Dow Futures Rise, Wells Fargo to Report Earnings — and What Else Is Happening in the Stock Market Today

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Traders working at the New York Stock Exchange (Photo courtesy of NYSE)

Stock futures fluctuated Friday as investors awaited further earnings reports from the biggest banks in the U.S., which disappointed in the previous session, leading Wall Street mostly lower.

Contracts linked to the Dow Jones Industrial Average on Friday fell 18 points, or 0.06%, to 30,586, S&P 500 futures were down 0.06% and Nasdaq futures slipped 0.04%. 

The Dow and S&P 500 declined Thursday after  JPMorgan Chase  (ticker: JPM) posted earnings and revenue that missed forecasts, and the bank recorded a $1.1 billion provision for credit losses. JPMorgan also said it was temporarily suspending stock repurchases, another clear sign the company is preparing for a weakening economy.

Earnings reports from Wells Fargo (WFC) and Citigroup (C) are scheduled for Friday. Bank of America (BAC) and Goldman Sachs (GS) issue reports on Monday.

Worries over an economic slowdown and the Federal Reserve’s aggressive moves to tame rising prices have led Wall Street sharply lower this year. While expectations the Fed will boost rates by a full percentage point at the end of the month have been scaled back, investors still expect the central bank to boost rates by at least 75 basis points to cool inflation that is running at a historic high.

More evidence of price pressures was released Thursday, when the producer price index — a measure of the change in prices for goods as they leave the factory — rose 11.3% year over year for June. That followed by a day data on consumer prices, which surged 9.1%, the highest rate since late 1981.

Elsewhere, China’s economy grew only 0.4% in the second quarter, the country’s weakest growth rate in more than two years. Beijing has adopted a zero-Covid policy that meets outbreaks of the virus with severe restrictions, which has led many businesses to close.

Stocks in Shanghai finished Friday’s session down 1.6%. Tokyo’s Nikkei 225 rose 0.5%.

Here are some stocks on the move Friday:

Pinterest (PINS) rose 14.6% in premarket trading after The Wall Street Journal reported that activist investor Elliott Management has taken a stake in the company.

U.S.-listed shares of Alibaba (BABA) stabilized after slumping 4.9% on Thursday following reports that company executives have been called in by Shanghai authorities to discuss a breach of police data.

Peabody Energy (BTU) fell more than 3% after issuing a second-quarter revenue estimate that missed analysts’ forecasts.

Write to Joe Woelfel at joseph.woelfel@barrons.com