DJIA futures are up slightly, as Wall Street digests a flood of bank earnings
Dow Jones Industrial Average (DJIA) futures are just a hair higher as earnings season kicks off with a raft of results from big banks. Most notably, blue chip
JPMorgan Chase & Co. (NYSE:JPM) beat its consensus earnings and revenue estimates, and "grew market share," according to CEO Jamie Dimon -- sending the bank stock higher in electronic trading. On the data front, December retail sales rose less than expected, while the producer price index (PPI) was in line with forecasts, rising 0.3%.
Continue reading for more on today's market, including:
Futures on the Dow Jones Industrial Average (DJIA) are 2 points above fair value.
5 Things You Need to Know Today
- The Chicago Board Options Exchange (CBOE) saw 656,569 call contracts traded on Thursday, compared to 446,356 put contracts. The resultant single-session equity put/call ratio jumped to 0.68, while the 21-day moving average rose to 0.65.
- Bank of America Corp (NYSE:BAC) topped expectations in the earnings confessional, with an adjusted per-share profit of 42 cents versus an anticipated 38 cents. Chief Financial Officer (CFO) Paul Donofrio explained, "Strong client activity and good expense discipline created solid operating leverage again this quarter." The shares are down 0.7% in electronic trading, a much smaller move than the options market was anticipating.
- Panera Bread Co (NASDAQ:PNRA) has eliminated all artificial colors, flavors, preservatives, and sweeteners from its U.S. menu. To get to this point, the restaurant chain had to review over 450 ingredients and reformulate 122 of them. The shares are 0.7% lower ahead of the bell, but have staged a strong rebound since their early November low.
- Like its aforementioned financial sector peers, Wells Fargo & Co's (NYSE:WFC) fourth-quarter profit beat estimates -- though profit fell for a fifth straight quarter, despite what CFO John Shrewsberry called a "solid underlying performance". This is just the latest fundamental misstep for the bank, and it has the shares 0.8% lower pre-market.
- The week wraps up with the release of business inventories and the Thomson Reuters/University of Michigan consumer sentiment survey, as well as a speech by Philadelphia Fed President Patrick Harker. The earnings docket is busy, with an emphasis on finance and bank earnings. Infosys (INFY) and PNC Financial Services (PNC) are all set to deliver earnings.
Overseas Trading
Stocks in Asia were mixed in the final session of the week. Japan's Nikkei was one of the outperformers, rising 0.8% on news airbag maker Takata may be ready to plead guilty to criminal misconduct charges and pay a settlement of nearly $1 billion. Video game giant Nintendo also took the spotlight after it unveiled its Switch console, though traders were largely unimpressed, sending the stock down 5.8%. Energy stocks helped Hong Kong's Hang Seng climb as well, with the index picking up 0.5%. China's Shanghai Composite fell, however, giving back 0.2% following a larger-than-expected year-over-year decline in exports. Meanwhile, South Korea's Kospi dipped 0.5%, after the Bank of Korea decided to leave interest rates unchanged, with heavy losses for Samsung Electronics also weighing on the index.
In Europe, major stock indexes are on the rise at midday. Auto stocks are in focus as Fiat Chrysler Automobiles rebounds, after yesterday coming under fire from U.S. regulators. Healthcare stocks are also making a comeback, shrugging off comments made earlier in the week by U.S. President-elect Donald Trump. At last check, France's CAC 40 is leading the way, up 1%, while Germany's DAX is sporting a 0.7% lead. London's FTSE 100 is also on the rise, up 0.4%, as the index eyes an incredible 14th straight win and fresh record highs.
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