Stock futures flat ahead of major bank earnings

U.S. stock indexes were little changed in overnight trade Thursday ahead of earnings reports from major banks on Friday.

Futures contracts linked to the Dow Jones Industrial Average rose 29 points. S&P 500 futures were up 0.08% and Nasdaq 100 futures were up 0.12%.

All major averages slipped in regular trading on Thursday. The Dow and S&P 500 fell 0.48% and 1.42%, respectively, their first losses in three sessions. The 30-stock benchmark rose more than 200 points at one point.

The Nasdaq Composite was a relative laggard, falling 2.51% and snapping a three-day winning streak as tech stocks came under pressure. Microsoft fell more than 4%, while Nvidia fell 5%. Apple, Amazon, Meta, Netflix and Alphabet also closed lower.

Investors have shifted from growth stocks to value stocks amid rising interest rate concerns, making future profits — including those from growth companies — look less attractive.

“The big tech sell-off was so big because ‘yes, U.S. rates could go up further this year’ and investors turned to value and cyclical trades,” said Ed Moya, senior market analyst at Oanda. “Wall Street is trying to Knowing how much growth will slow, banks will start providing some insights on Friday,” he added.

Companies have started releasing quarterly updates, but reporting season will be in full swing on Friday, when JPMorgan, Citigroup and Wells Fargo Post results Before the market opens.

A slew of economic data will also be released on Friday, including retail sales for December. Economists expect the print to fall 0.1%, according to estimates compiled by Dow Jones. Sales rose 0.3% in November, below the 0.9% expected by economists.

Industrial production data is also due out, with Wall Street expecting a 0.2% rise. Consumer confidence data will be released later Friday morning.

These reports come as investors are closely watching all the latest inflation data.This producer price index The Labor Department said on Thursday that December rose 0.2% from a month earlier, missing economists’ expectations for a 0.4% increase.The report comes after Wednesday’s jump in consumer price readings 7% year-on-year increase Fasting annual rate since 1982 during December.

“Growth will remain strong and concerns about inflation and the Fed will cool from boil to boil,” said Brent Schutte, chief investment strategist at Northwestern Mutual Wealth Management Company. “Supply chains and labor markets will catch up, which actually Two birds will be killed with one stone.”

With Thursday’s move lower, the major averages are in negative territory for the week. The Dow and S&P were on track for their second straight weekly loss, while the Nasdaq was on track for a third straight weekly loss.