Stock Futures Rise Before Big Bank Profits

U.S. equity futures rose ahead of a wave of profits, including from the big banks, which investors will use to assess how companies are positioned to deal with risks, including inflation and rising market prices. energy.

S&P 500-linked futures gained 0.6% on Thursday, putting the broad market index on track for a second day of gains. Futures on the Nasdaq-100 climbed 0.7%, suggesting gains for tech stocks.

A series of large companies are expected to release quarterly results before the market opens, including UnitedHealth Group, US Bancorp, Bank of America, Walgreens Boots Alliance, Morgan Stanley, Wells Fargo and Citigroup. Investors will investigate whether higher-than-expected inflation has had an impact on profits and whether the outlook for companies is clouded by rising energy prices, supply chain disruptions and expected increases in prices. interest rate over the next two years.

“Can companies overcome these risks or has the whole rally been fueled only by ultra-accommodative monetary policy?” Said Carsten Brzeski, Global Head of Macro Research at ING Groep. Investors are looking to see ‘where we are in terms of the post-foreclosure cycle and also to get a glimpse of how strong earnings and businesses are in this downturn and era of somewhat higher interest rates.’ .

Brent crude futures, the global indicator of oil prices, rose 1% to $ 83.98 a barrel. Gas futures for delivery in the Netherlands – the European benchmark – gained 8.3% to 101.35 euros per megawatt hour, or about $ 117.53.

In bond markets, the yield on the 10-year Treasury bill fell to 1.535% on Thursday, from 1.549% on Wednesday. Yields fall when prices rise.

Unemployment claims in the United States for the week ended Oct. 9 are expected to decline for the second week in a row when the numbers are released at 8:30 a.m. ET, according to economists polled by the Wall Street Journal.

Overseas, the pancontinental Stoxx Europe 600 gained 0.7%. Shares of Paris-based advertising firm Publicis Groupe rose 3.4% after improving its outlook for organic revenue growth in 2021 due to strong demand for digital marketing services in the third quarter.

Indices in Asia closed with mixed performance. China’s Shanghai Composite fell 0.1%. Meanwhile, South Korea’s Kospi and Japan’s Nikkei 225 both climbed 1.5%.

Traders worked on the floor of the New York Stock Exchange on Wednesday.


Photo:

BRENDAN MCDERMID / REUTERS

Write to Caitlin Ostroff at [email protected]

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