Wall Street’s major indexes were on track for a subdued start on Wednesday following a sell-off in technology and oil stocks in the previous session, while investors analyzed quarterly results from banks such as Morgan Stanley.
Morgan Stanley rose 3.5% in premarket trading, with the bank joining peers such as JPMorgan Chase (NYSE:JPM) reporting strong earnings after a sharp rise in investment banking revenue.
Among other lenders, Citizens Financial (NYSE:CFG) Group lost 1.8%, First Horizon (NYSE:FHN) gained 2% and U.S. Bancorp rose 2.8% after reporting third-quarter results.
Meanwhile, semiconductor companies were mixed, with heavyweight Nvidia (NASDAQ:NVDA) gaining 0.8% after plunging nearly 5% in the previous session.
U.S.-listed chipmaker ASML Holding (AS:ASML) stock fell 4.3% after the company cut its 2025 financial forecast when it announced results on Tuesday. The company also warned of market weakness and order delays, raising concerns about the technology sector.
Intel (NASDAQ:INTC) fell 1.7% after the Cybersecurity Association of China recommended initiating a review of the chipmaker’s products sold in the country.
Sharp declines in semiconductor and oil stocks weighed on Wall Street on Tuesday as investors assessed mixed earnings. Shares of health insurer UnitedHealth (NYSE:UNH) also slumped, offsetting gains from reports of upbeat results from major banks.
“We definitely expect to be pretty stable in the major indexes. We had a big down day yesterday, mostly driven by some odd news on a few names, and that will continue in the middle of earnings season,” said Zachary Hill, head of portfolio management at Horizon Investments.
“In general, the bank earnings were received quite well by the market, and that was helpful for broad indexes… you definitely need things other than technology to work for that to continue.”
The Dow E-minis rose 35 points, or 0.08%, the US S&P 500 E-minis rose 4.25 points, or 0.07%, and the Nasdaq 100 E-minis rose 19.5 points, or 0.1%.
Futures tracking the small-cap Russell 2000 rose 0.9% after the index closed unchanged in the previous session.
More corporate earnings are expected later in the week, along with key economic data including retail sales and industrial production figures on Thursday, all of which should shed light on consumer health and the growth outlook for the world’s largest economy.
The S&P 500 and Dow traded at record levels despite Tuesday’s decline, with continued optimism about future Federal Reserve rate cuts and economic growth boosting sentiment.
Bets on a 25 basis point rate cut at the central bank’s November meeting have risen to over 90%, according to CMEs’ FedWatch.
Interactive Brokers (NASDAQ:IBKR) Group shares fell 2.8% after missing estimates for third-quarter adjusted earnings, while Synchrony Financial (NYSE:SYF) rose 4.8% after reporting results.
United Airlines rose 1% after the company forecast better-than-expected fourth-quarter earnings and announced a $1.5 billion share buyback program on Tuesday.
J.B. Hunt climbed 7.1% after beating third-quarter earnings estimates after the close on Tuesday.
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Reference;
Reuters (2024) Wall Street set for steady open after tech selloff; Morgan Stanley jumps By Reuters, Investing.com. Investing.com. Available at: https://www.investing.com/news/stock-market-news/futures-steady-nasdaq-higher-as-markets-await-bank-earnings-3665399 (Accessed: 16 October 2024).
