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Futures slip after mixed results from big banks

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U.S. stock index futures fell slightly on Friday as major lenders including JPMorgan and Wells Fargo kicked off the fourth-quarter earnings season with mixed results, while big tech companies extended their decline after a massive sale.

JPMorgan Chase & Co fell 3.0% in pre-market trading due to weaker performance in its trading arm, even though it exceeded earnings expectations for the fourth quarter.

Wells Fargo & Co, on the other hand, gained 1.8% after posting a larger-than-expected profit increase in the fourth quarter.

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Asset manager BlackRock Inc posted fourth quarter profit higher than estimates. However, its shares fell 0.1%.

According to IBES data from Refinitiv, year-on-year profit growth for companies in the S&P 500 is expected to be lower in the fourth quarter compared to the first three quarters, but still strong at 22.4%.

The financial sector of the S&P 500 is up nearly 6% since the start of this year, outperforming the S&P 500, amid expectations of banks benefiting from the Federal Reserve’s interest rate hikes and firming prices. Treasury yields.

The financial sector has also benefited from a shift towards economically sensitive sectors of growth sectors such as technology and consumer discretionary.

Mega-capitalized growth companies including Apple Inc, Amazon.com Inc, Microsoft, Tesla and Meta fell 0.6% per day after a massive sell-off sparked by several Fed speakers who focused on discussions about inflation and interest rate hikes.

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As of 7:11 a.m. ET, Dow e-minis were down 49 points, or 0.14%, S&P 500 e-minis were down 8 points, or 0.17%, and Nasdaq e-minis 100 were down 44.25 points, or 0.29%.

U.S. casino operators Las Vegas Sands, MGM Resorts, Wynn Resorts and Melco Resorts rose 3.5% to 10.3% after the Macau government limited the number of new authorized casino operators to six with a period operating up to 10 years.

Investors will look at the retail sales data later today, with analysts expecting it to remain unchanged in December after rising 0.3% in November. (Reporting by Bansari Mayur Kamdar and Shreyashi Sanyal in Bengaluru; editing by Maju Samuel)