Futures Pointing To Initial Pullback On Wall Street

Stocks are likely to move to the downside in early trading on Friday, giving back ground following the notable rebound seen in the previous session. The major index futures are currently pointing to a lower open for the markets, with the S&P 500 futures down by 0.4 percent.

A steep drop by JPMorgan Chase (JPM) may weigh on the markets, as the financial giant is tumbling by 3.0 percent in pre-market trading.

JPMorgan Chase is under pressure after reporting better than expected first quarter results but providing disappointing guidance for net interest income, a key profit metric.

Shares of Wells Fargo (WFC) are also seeing pre-market weakness after the company reported first quarter results that beat expectations on the top and bottom lines but showed a decline in net interest income.

On the other hand, shares of Citigroup (C) are likely to see initial strength after the company reported first quarter results that exceeded analyst estimates.

Inflation concerns may continue to weigh on the markets, however, as the Labor Department released a report showing import prices in the U.S. increased by slightly more than expected in the month of March.

The report said import prices climbed by 0.4 percent in March after rising by 0.3 percent in February. Economists had expected import prices to increase by another 0.3 percent.

Import prices also rose by 0.4 percent compared to the same month a year ago, marking the first year-over-year increase since January 2023.

Meanwhile, the Labor Department said export prices rose by 0.3 percent in March after climbing by a revised 0.7 percent in February. The increase in export prices matched economist estimates.

Compared to the same month a year ago, export prices were down by 1.4 percent in March following a 1.8 percent slump in February.

Shortly after the start of trading, the University of Michigan is scheduled to release its preliminary reading on consumer sentiment in the month of April. The consumer sentiment index is expected to edge down to 79.0 in April after jumping to 79.4 in March.

After ending Wednesday’s session sharply lower, stocks showed a strong move back to the upside during trading on Thursday. Technology stocks led the rebound on Wall Street, with the tech-heavy Nasdaq surging to a new record closing high.

The Nasdaq pulled back off its highs of the session going into the close but still ended the day up 271.84 points or 1.7 percent at 16,442.18. The S&P 500 also climbed 38.42 points or 38.42 points or 0.7 percent to 5,199.06, but the narrower Dow edged down 2.43 points or less than a tenth of a percent to 38,459.08.

In overseas trading, stock markets across the Asia-Pacific region moved mostly lower on Friday. Hong Kong’s Hang Seng Index plunged by 2.2 percent and China’s Shanghai Composite Index fell by 0.5 percent, although Japan’s Nikkei 225 Index bucked the downtrend and crept up by 0.2 percent.

Meanwhile, the major European markets have moved to the upside on the day. While the U.K.’s FTSE 100 Index has surged by 1.5 percent, the German DAX Index is up by 0.8 percent and the French CAC 40 Index is up by 0.7 percent.

In commodities trading, crude oil futures are jumping $1.45 to $86.47 a barrel after tumbling $1.19 to $85.02 a barrel on Thursday. Meanwhile, after jumping $24.30 to $2,372.70 an ounce in the previous session, gold futures are spiking $40 to $2,412.70 an ounce.

On the currency front, the U.S. dollar is trading at 152.87 yen versus the 153.27 yen it fetched at the close of New York trading on Thursday. Against the euro, the dollar is valued at $1.0638 compared to yesterday’s $1.0726.