Stock futures were flat in early premarket trading Friday as investors braced for big bank earnings to commence.
Futures tied to the Dow Jones Industrial Average rose just 9 points, or less than 0.1%, while S&P 500 futures were fractionally lower. Nasdaq 100 futures dipped 0.1%.
The moves followed a positive day for the three major indexes. The Nasdaq Composite snatched its fifth day of gains — a first since July. Stocks rose broadly as December’s CPI report showed prices declined 0.1% over November. While prices rose at a 6.5% pace compared to the previous year, the results heightened hopes that the Federal Reserve may soon slow its hiking.
The Dow Jones Industrial Average added 216.96 points, or 0.64%. The S&P 500 and Nasdaq Composite gained 0.34% and 0.64%, respectively.
The Nasdaq Composite is on pace for its longest daily win streak since July
Stocks are headed for a winning week, with the Nasdaq and S&P on pace for their best weekly performance since November. The Nasdaq is up 4.09% through Thursday’s close. The S&P advanced 2.26%, while the Dow added 1.66%.
Earnings season kicks into full gear Friday with results from big bank stocks JPMorgan Chase, Wells Fargo, Citigroup and Bank of America. Investors will monitor the releases, which are expected to offer more insight into the health of the economy and set the tone for earnings season.
“As the tug-of-war among analysts intensifies around the prospects for a recession — and the depth of a recession — the earnings reports from the banks, coupled with their guidance, should help clarify how businesses and consumers are managing,” said Quincy Krosby, LPL Financial’s chief global strategist.
Delta Air Lines, BlackRock, UnitedHealth are also set to report Friday. Consumer sentiment data is due later in the morning.