We expect Wall Street to open almost unchanged despite good data from JPMorgan Chase. This is due to the fact that investors evaluate previous earnings and start the reporting season slightly cautiously.
S&P 500 futures are trading 2 points or 0.1% lower, NASDAQ futures 11 points or 0.1% lower while the DJIA futures contract is up 4 points or 0 , 1%
The whole focus will be on the start of the US reporting season, with banking giants JPMorgan Chase (JPM.US), Citigroup (C.US) and Wells Fargo (WFC.US) starting today. Banks are often seen as a rough indicator of the health of the economy and thus likely set the tone for the overall earnings season.
JPMorgan (JPM .US) impressed with its fourth quarter, with earnings per share reaching $ 2.57, compared to an expected $ 2.35, and revenue of $ 29.21 billion, above the expected $ 27.96 billion. Their shares rose 1.8% in pre-market.
These banks had to deal with the Federal Reserve, cutting interest rates three times last year. Lower interest rates reduce what banks can charge on loans, but also reduce what they have to pay for deposits.
However, any market withdrawal is unlikely to be difficult as global economic sentiment remains positive.
Today I would expect the session to be rather cautious.
Trader Milko Zashev