By Victor Reklaitis, MarketWatch
J.P. Morgan, Wells Fargo, Bank of America and retail sales in focus
U.S. stock futures on Friday pointed to little change at the open, keeping the Dow industrials on track for a weekly loss as investors focused on updates from the banking and retail sectors.
Dow Jones Industrial Average futures edged up by 22 points, or 0.1%, to 19,825, while S&P 500 futures inched higher by 2.35 points, or 0.1%, to 2,265.75. Nasdaq-100 futures tacked on 8 points, or 0.2%, to 5,042.75.
Investors are taking in quarterly earnings that are due before the open from J.P. Morgan Chase & Co.(JPM) , Bank of America Corp.(BAC) and Wells Fargo & Co.(WFC) . The banking sector (KBE) (XLF) has been a big stock-market winner (http://www.marketwatch.com/story/bank-etfs-still-favored-as-investors-see-growth-and-trump-bump-ahead-2017-01-11) since Donald Trump won the presidential election, as it is expected to benefit from deregulation and rising interest rates.
Bank of America's stock was trading modestly lower in premarket action after the company's earnings beat forecasts (http://www.marketwatch.com/story/bank-of-america-kicks-off-earnings-with-beat-2017-01-13). It initially rose after the results, but the small gain evaporated.
Read our earnings previews:J.P. Morgan (http://www.marketwatch.com/story/jp-morgan-earnings-expect-a-strong-trading-quarter-and-improved-credit-markets-2017-01-11), (http://www.marketwatch.com/story/bank-of-america-earnings-what-to-watch-for-2017-01-12)Wells Fargo (http://www.marketwatch.com/story/what-to-expect-from-wells-fargo-earnings-impact-of-sales-tactics-scandal-2017-01-12)
"The U.S. financials space will get attention above all other sectors this earning season," said Chris Weston, IG's chief market strategist, in a note. Banks results are key, due to the potential for further boosts to net interest income and overall high hopes for profit growth, he said.
December readings on retail sales and producer prices are due at 8:30 a.m. Eastern Time. Economists polled by MarketWatch expect 0.8% growth for retail sales and a 0.3% rise for the producer price index.
"Retailer profit warnings suggest the results could be mixed," said Colin Cieszynski, chief market strategist at CMC Markets, in a note. "Producer prices may also attract attention from traders looking for signs of inflation, which could impact how many times the Fed raises interest rates this year."
On Thursday, the Dow and Nasdaq Composite both closed down by 0.3% (http://www.marketwatch.com/story/dow-futures-descend-as-analysts-question-the-trump-rally-2017-01-12), while the S&P 500 shed 0.2%. The Dow is on track for a weekly loss of 0.4% as of Thursday's close, the S&P is down 0.3%, and the Nasdaq is up 0.5%. U.S. financial markets will be closed Monday in honor of Martin Luther King Jr. Day (http://www.marketwatch.com/story/which-us-markets-are-closed-for-martin-luther-king-jr-day-2017-01-12).
Other economic news: Beyond the reports on retail sales and producer prices, readings on consumer sentiment in January and business inventories in November are slated to hit at 10 a.m. Eastern Time. Economists polled by MarketWatch expect 98.8 for the sentiment figure.
Philadelphia Fed President Patrick Harker is due to give a speech in Philadelphia about economic mobility at 9:30 a.m. Eastern.
In remarks late Thursday (said%20the%20U.S.%20economy%20faces%20no%20serious%20short-term%20obstacles), Fed chief Janet Yellen reiterated her support for existing regulations on banks andsaid the U.S. economy faces no serious short-term obstacles.
In overseas economic news, data showed that China's exports last month fell (http://www.marketwatch.com/story/chinas-exports-fall-2-in-2016-extending-decline-2017-01-13) by 6.1%, more than expected.
Corporate movers: Car maker Fiat Chrysler Automobiles NV (FCA.MI) (FCA.MI) was in focus as its stock rebounded in European trading, but its U.S.-lised shares were down in premarket action. Fiat dived Thursday after the Environmental Protection Agency alleged the company had used software to cheat on diesel emissions testing (http://www.marketwatch.com/story/fiat-chryslers-stock-plunges-epa-issues-notice-of-violation-2017-01-12).
Other markets:Oil futures (http://www.marketwatch.com/story/oil-higher-after-saudi-arabia-cuts-output-china-imports-rise-2017-01-13) , gold futures and a key dollar index (http://www.marketwatch.com/story/dollar-recaptures-lost-ground-after-losses-linked-to-trump-conference-2017-01-13) were all trading lower. European stocks (http://www.marketwatch.com/story/fiat-rebound-sends-european-stocks-higher-into-the-weekend-2017-01-13) traded higher, and Asian markets closed mixed (http://www.marketwatch.com/story/asian-markets-largely-retreat-on-profit-taking-2017-01-12).
(END) Dow Jones Newswires
January 13, 2017 07:59 ET (12:59 GMT)
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