Stock Futures Tick Lower on JPMorgan Disappointment
Futures for the Dow Jones Industrial Average were down 26 points, or 25 points below fair value, at 12,387. Futures for the S&P 500 were down 4 points, or 3 points below fair value, at 1288. Futures for the Nasdaq were down 3 points, or 3 points below fair value, at 2376.
Shares of JPMorgan Chase (JPM) were dropping more than 3% in premarket trading after the company kicked off earnings for major U.S. banks on a downbeat note. The banking giant's net income declined 23% in the fourth quarter, as persistent weakness in trading and capital markets revenues, offset strength in loan growth. Fourth-quarter earnings came in at $3.7 billion, or 90 cents a share, about in line with estimates. However, revenue at $22.2 billion was down 17% from a year earlier and missed expectations for $22.99 billion, according to Thomson Reuters.
While the U.S. market was headed for losses at the open, European equities were gaining. Germany's DAX was up 0.41% while London's FTSE was trading about flat. Japan's Nikkei Average settled 1.36% higher, and Hong Kong's Hang Seng was up 0.57%.A bond auction in Italy helped set a positive tone after the government sold 3 billion euros of bonds maturing in 2014 at a yield of 4.83%, down from 5.62% at a similar auction in the past. This came on the heels of government debt sales in both Spain and Italy during the prior session in which borrowing costs also fell. Spain was able to sell twice the amount of bonds that it had planned, a signal that investor demand for its sovereign debt remains robust. Bonds sales in Italy on the whole have been comparatively softer.
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