Stock futures higher before big bank profits

Stock futures rose on Friday as investors turned their attention to the earnings of major banks after the major averages posted a historic high in turn.

Futures related to the Dow Jones Industrial Average rose 184 points, or 0.61%. S&P 500 futures are up 0.45%, and Nasdaq 100 futures are up 0.24%.

JPMorgan Chase and Wells Fargo both rose after revenue beat expectations, sending both stocks higher in pre-market trading. Morgan Stanley and Citigroup are also scheduled to report before the bell.

Dow Jones member UnitedHealth also reported quarterly results on Friday, with earnings and revenue above expectations. UnitedHealth shares rose 1.59%.

The reports come a day after the market made a major comeback. The Dow ended Thursday’s session 827 points higher after dropping more than 500 points at its lowest level on the day. The S&P 500 rose 2.6% to break its six-day losing streak, and the Nasdaq Composite jumped 2.2%.

The moves followed the release of Consumer Price Index, a headline inflation reading in the US came in higher than expected for September. Initially, this weighed heavily on the markets as investors prepared for the Federal Reserve to continue its aggressive plan to raise interest rates. But they later ignored these concerns.

However, persistent inflation remains an issue for the Federal Reserve and investor concerns about central bank policy tightening.

Global wealth management UBS writes: “With core CPI continuing to move in the wrong direction and labor market strength, conditions are not in place as pivotal to Fed policy, which will be one of the conditions for a sustainable stock market recovery.” Chief Investment Officer Mark Heffel in a note on Friday. “Furthermore, as inflation continues to rise for longer and the Federal Reserve increases, the risk increases that the cumulative effect of policy tightening will push the US economy into recession, undermining corporate earnings expectations.”

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There is still more economic data to be released this week as well. September Retail Sales will be released at 8:30 AM ET. Later in the morning, investors will be looking forward to the latest consumer confidence numbers from the University of Michigan.

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