Economic news

Futures Muted Ahead of Next Batch of Bank Earnings

Futures tracking the S&P 500 were flat on Wednesday on doubts about more fiscal stimulus following an impasse in Washington and ahead of the next batch of quarterly bank earnings after JPMorgan kicked off the season on an upbeat note.

Fading hopes of a deal on federal aid and a halt in trials of a COVID-19 vaccine and a treatment sent Wall Street’s main indexes tumbling on Tuesday, although losses on the Nasdaq were limited as shares of technology mega-caps outperformed.

Senate Majority Leader Mitch McConnell said the Republican-led U.S. Senate would vote next week on a targeted, $500 billion coronavirus economic aid bill of the type Democrats already have rejected as they hold out for trillions in relief.

Investors have been expecting more aid after the Nov. 3 presidential election in the event Congress fails to agree on a deal in the next three weeks.

A widening lead for Democratic candidate Joe Biden in national opinion polls has also been positive for markets as they expect a bigger infrastructure spending and less global trade uncertainty, strategists and fund managers said.

Goldman Sachs Group Inc, Wells Fargo & Co and Bank of America Corp rose between 0.2% and 0.9% in premarket trading ahead of their third-quarter reports, which would follow a better-than-expected numbers from JPMorgan Chase & Co and Citigroup Inc on Tuesday.

Apple Inc headed lower after sliding 3% during an event in the previous session where the company launched its next-generation iPhone 12.

At 6:21 a.m. ET, Dow e-minis were up 38 points, or 0.13%, S&P 500 e-minis were up 1.25 points, or 0.04%, and Nasdaq 100 e-minis were up 9.25 points, or 0.08%.

UnitedHealth Group Inc rose 1.1% as the U.S. insurer reported better-than-expected profit and revenue.

Concho Resources Inc surged 10.4% after a report that oil producer ConocoPhillips was in talks to acquire the shale producer.

(Reporting by Medha Singh in Bengaluru; Editing by Arun Koyyur)

Source: Reuters

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