U.S. stock futures rise ahead of quarterly earnings reports

by Jonathan Adams
stock futures rise

According to Refinitiv IBES data, first-quarter earnings for S&P 500 companies are estimated to have risen 25%

U.S. stock index futures rose on Wednesday ahead of quarterly earnings reports from JPMorgan and Goldman Sachs, with investors expecting a strong rebound for corporate America amid a swift vaccine-led global economic recovery.

JPMorgan Chase & Co is expected to kick off the first-quarter earnings season for big banks, followed by Goldman Sachs Group Inc and Wells Fargo & Co later in the morning.

Analysts expect overall net income for U.S. banks to climb between 60% and 250% from a year earlier, partly as they release a chunk of “reserves” – money they had set aside last year for expected pandemic loan losses.

First-quarter earnings for S&P 500 companies are estimated to have risen 25% in the quarter, according to Refinitiv IBES data. That would be the biggest quarterly gain since 2018, when tax cuts under former President Donald Trump had powered profit growth.

Shares of Goldman Sachs rose 0.7% in premarket trading, while those of JPMorgan and Wells Fargo were flat.

Dow e-minis were flat, S&P 500 e-minis added 3 points, or 0.07%, and Nasdaq 100 e-minis gained 19.75 points, or 0.14%.

The S&P 500 finished at record highs in the previous session as a surge in high-flying technology stocks helped offset the impact of stronger-than-expected inflation data and a pause in the use of Johnson & Johnson’s COVID-19 vaccine.

Technology stocks including Apple Inc, Alphabet Inc, Microsoft Corp and Tesla Inc inched up in early premarket deals.

Discovery Inc dropped 3.9% as CNBC reported on Tuesday that Credit Suisse Group AG was still unloading its positions in the media company after losses relating to Archegos Capital Management.

This article is for information purposes only.
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