US stock futures were lower on Friday as earnings season for major US banks got underway and investors weighed the potential impact of a hot inflation print on Federal Reserve policy.
Dow Jones Industrial Average futures (YM=F) edged slightly below the flatline, paring deep premarket losses on financial updates from major banks. S&P 500 futures (ES=F) fell roughly 0.1%, and tech-heavy Nasdaq 100 contracts (NQ=F) were off 0.3%, after closing Thursday with smaller losses.
Investors were combing through quarterly results from major Wall Street banks — the traditional starting gun for earnings season. The focus is the potential impact of the Fed's pivot to cut rates on lending margins and profits.
JPMorgan Chase ( JPM ) profit fell despite a strong investment banking performance, thanks to credit loss provisions. Its stock rose 1% in premarket trading. Meanwhile, Wells Fargo ( WFC ) shares rose nearly 4%, while it reported a decline in net interest income and profit.
This year's stock rally has lifted the value of assets under management at some institutions, boosting earnings from charges. BlackRock's ( BLK ) assets under management hit a record high for the third straight quarter, while BNY Mellon's ( BK ) profit jumped 16% as net interest income rose.
At the same time, investors continued to analyze the latest consumer inflation data, which failed to clearly signal the Fed's next move on interest rate cuts.
Read more: What Fed Rate Cuts Mean for Bank Accounts, CDs, Loans and Credit Cards
The reading, along with data showing rising jobless claims, underscores the challenges facing policymakers as they attempt a “soft landing” for the economy. Given this, an update to September wholesale prices may be closely watched when it lands on Friday morning
The focus is on Tesla's ( TSLA ) Robotaxi event late Thursday, where CEO Elon Musk unveiled a $30,000 CyberCab as well as a larger Robovan. The EV maker's shares fell 6% amid some disappointment it didn't provide more specifics about its strategy to become a force in AI and autonomous driving.
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Tesla stock plunged as investors signaled disappointment over the robotaxi debut
Shares of Tesla ( TSLA ) sank 6% in pre-market Friday as investors reacted to the EV maker's unveiling of its Robotaxi.
Elon Musk has high hopes for the future of Tesla's self-driving vehicles, and a recent incident tested Wall Street's appetite for that vision. Yahoo Finance's Pros Subramanian reported that the event, “We, the Robots,” investors want more of.
Musk unveiled a $30,000 autonomous “CyberCab” that will arrive sometime in 2026. Tesla has not revealed its upcoming low-cost “next-gen” model, which many analysts had expected, Subramanian reported. The sub-$30K next-gen EV will arrive later this year, Tesla has already confirmed.
Tesla stock has been on a wild ride recently on earlier hopes of unveiling a robotaxi before the fall after the company's third-quarter deliveries disappointed. Tesla shares are down 8% over the past year.
Read the full story on Tesla's Robotaxi debut here.
Stellantis CEO to retire in 2026 amid struggling automaker
DETROIT (Reuters) – Chrysler parent Stellartis ( STLA, STLAM.MI ) confirmed on Thursday that CEO Carlos Tavares will retire at the end of his contract in early 2026 and announced major senior management changes as it struggles to turn around its lagging North American operations. . .
JP Morgan's CFO's vibes on the housing market
Reasonable quarter this morning from JP Morgan (JPM). Read more from our banking reporter David Hollerith.
I was optimistic on JPM's earnings media call and asked CFO Jeremy Barnum for his thoughts on housing after the Fed rate cut. After all, it didn't seem like a housing boom was taking shape at a lower rate – but activity did pick up.
Here's what Barnum told me to emphasize):
“What we've seen, as you would expect, is a pickup in mortgage applications and a tiny bit of an increase in refinancing there, which, again, you would expect. But it's worth noting that, when it comes to mortgages, all the sequential and year-to-year changes are coming from a very low base, and that's the bulk of the outstanding mortgage stock in this country right now. Below 6% and many of them are still below 5%. So it would take a really big rally on the long end of the yield curve to see a significant pickup in refinancing. The home view on home prices, you know, I think generally you've got a tension between probably a little bit of a weak economy that should create a little bit more supply, there's a little bit more construction, but there's generally a housing shortage. the country So the housing market seems to me to be still a bit stuck, I would say.“
