From the Wall Street Journal’s “Stock Futures Rise Ahead of Major Bank Earnings” posted early Thursday:
U.S. stock futures rose ahead of a wave of earnings, including from major banks, which investors will use to assess how companies are positioned to deal with risks including inflation and higher energy prices.
Futures tied to the S&P 500 gained 0.7% Thursday, putting the broad market index on course for a second day of gains. Nasdaq-100 futures climbed 0.8%, suggesting gains for technology stocks.
A spate of major companies are slated to post quarterly results before the market opens, including UnitedHealth Group, U.S. Bancorp, Bank of America, Walgreens Boots Alliance, Morgan Stanley, Wells Fargo and Citigroup. Investors will be looking to see whether stickier-than-expected inflation has impacted earnings and whether companies’ outlooks are dimmed by rising energy prices, supply-chain disruptions and anticipated interest rate increases over the next two years.
“Can companies weather those risks or was the entire rally only fueled by ultraloose monetary policy?” said Carsten Brzeski, ING Groep ‘s global head of macro research. Investors are looking to see “where are we in terms of the post-lockdown cycle and also to get some insights into how solid earnings and companies are going into this tapering period and this era of somewhat higher interest rates.”
UPDATE: After this was posted, max pain slid to $144.