Stock futures slipped Friday as some of the biggest banks in the U.S. reported earnings.
Futures tied to the Dow Jones Industrial Average fell 200 points, or 0.6%, while S&P 500 futures slid 0.7%. Nasdaq 100 futures dipped 0.8%.
Bank of America reported better-than-expected earnings for the fourth quarter, but the stock was flat in the premarket.
JPMorgan Chase, meanwhile, posted a revenue that beat expectations, but the bank warned it was setting aside more money to cover credit losses because a “mild recession” is its “central case.” The stock fell more than 2%. Wells Fargo shares also fell 2% after the bank reported its quarterly figures.
Delta Air Lines also reported earnings and revenue that beat estimates for the final quarter of 2022. However, the stock slid more than 5% in the premarket.
Investors have been awaiting these results to gain more insight into the health of the economy.
“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.
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.
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 has advanced 2.26%, while the Dow has added 1.66%.
Read More: Stock futures dip as JPMorgan shares slide; S&P 500 still headed for winning week
