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As the earnings season gathers steam, stock index futures are presenting a mixed picture on Friday.
S&P futures (SPX) -0.1% and Nasdaq 100 futures (NDX:IND) -0.2% were lower. Meanwhile, Dow futures (INDU) +0.1% were on the rise.
The overall market appears poised for a victorious week following a robust Monday. The S&P 500 (SP500) has gained 1.8% heading into Friday’s trading, with the Nasdaq (COMP.IND) up by 3% and the Dow (DJI) up by 0.7%.
Bank earnings are anticipated to play a pivotal role in shaping the early market direction, with J.P. Morgan (JPM), BofA (BAC), Citi (C), and Wells Fargo (WFC) set to report.
Following yesterday’s CPI, which exceeded expectations spurred mainly by shelter costs, the December PPI is expected before the market open.
Deutsche Bank’s Jim Reid remarked, “With shelter inflation still running at elevated levels, it’s plausible that you could end up with a larger wedge between the two, with the PCE indicators looking better on a relative basis, which would offer the Fed greater justification to cut rates. As part of that, it’ll be worth looking out for today’s PPI reading, as some of the measures there will provide an indication about some of the larger components for core PCE, like healthcare and portfolio management.”
Interest rates held steady, with the 10-year Treasury yield (US10Y) up by 1 basis point to 3.98%, and the 2-year yield (US2Y) remaining flat at 4.27%.
