U.S. stock index futures edged lower on Friday as big lenders including JPMorgan and Wells Fargo kicked off the fourth-quarter earnings season with a mixed batch of results, while big technology companies extended declines after a bruising selloff.
At 8:00 a.m. ET, Dow E-minis were down 195 points, or 0.54%, S&P 500 E-minis were down 30.25 points, or 0.65% and Nasdaq 100 E-minis were down 161.5 points, or 1.04%.
Wells Fargo & Co , on the other hand, gained 1.8% after posting a greater-than-expected rise in fourth-quarter profit.
Asset manager BlackRock Inc posted a fourth-quarter profit above estimates. However, its shares fell 0.1%.
Year-over-year earnings growth from S&P 500 companies was expected to be lower in the fourth quarter compared with the first three quarters but still strong at 22.4%, according to IBES data from Refinitiv.
Stocks making the biggest moves in the premarket:
BlackRock– BlackRock earned an adjusted $10.42 per share for the fourth quarter, beating the consensus estimate of $10.16, although revenue for the asset manager was slightly below forecasts. Assets under management rose above the $10 trillion mark for the first time.
JPMorgan Chase – JPMorgan beat estimates by 32 cents with quarterly earnings of $3.33 per share, while revenue topped forecasts as well. The bank was helped by strong performance at its investment banking unit, but results at its trading operation slowed. JPMorgan shares fell 2.7% in the premarket.
Wells Fargo – Wells Fargo gained 2.3% in the premarket after beating estimates on the top and bottom lines for the fourth quarter. Wells Fargo earned an adjusted $1.25 per share, 12 cents above estimates. Overall profit was boosted by the release of loan loss provisions and improving loan demand.
Sherwin-Williams – The paint company’s stock fell 3.3% in premarket action after it cut its full year forecast amid supply chain issues that it expects to persist through the current quarter. Sherwin-Williams did say demand remains strong in most of its end markets.
Macau casino stocks –Las Vegas Sands ,,Melco Entertainment(MLCO) andMGM Resorts(MGM) rallied in premarket trading after Macau’s government said it would limit the number of casino licenses to six. These companies are among the six operating in Macau, with their current licenses due to expire this year. Las Vegas Sands rocketed 10.7%, Wynn surged 10%, Melco soared 12.9% and MGM added 4%.
Walt Disney – Disney lost 1.6% in premarket trading after Guggenheim downgraded the stock to “neutral” from “buy,” reflecting lowered predictions for Disney’s direct-to-consumer and parks businesses.
Boston Beer – Boston Beer tumbled 8% in the premarket after the brewer cut its annual earnings outlook. The company is being hit by supply chain issues as well as waning growth for its Truly hard seltzer brand.
Virgin Orbit Holdings Inc. – Virgin Orbit successfully launched seven small satellites Thursday, the first launch since the company went public last month. Shares gained 1.1% in premarket trading.
BJ's Wholesale Club Holdings Inc. – BJ’s shares lost 3% in premarket action after J.P. Morgan Securities downgraded the warehouse retailer’s stock to “underweight” from “neutral,” reflecting concerns about inflation and a pullback in stimulus measures for consumers.
Bausch Health Companies Inc – Bausch Health rallied 3.2% in the premarket following news that its Bausch + Lomb eyecare unit filed to go public and that the unit reported a jump in sales for the nine months ended in September. Bausch Health will remain a majority owner of Bausch + Lomb.
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