BLBG: U.S. Index Futures Little Changed; JPMorgan Advances on Earnings
U.S. stock-index futures were little changed, paring an earlier advance, as investors await quarterly results.
JPMorgan Chase & Co. gained 1.2 percent in early New York trading after reporting quarterly profit that beat analysts’ estimates. Urban Outfitters Inc. rose 1.7 percent after BMO Capital Markets upgraded the stock to the equivalent of a buy rating. Norfolk Southern Corp. fell 5.6 percent after saying lower-than-expected revenue will probably lead to a decline in first-quarter earnings.
E-mini contracts on the Standard & Poor’s 500 Index expiring in June fell less than 0.1 percent to 2,086 at 7:20 a.m. in New York, after earlier climbing as much as 0.3 percent. Dow Jones Industrial Average futures added 4 points to 17,918.
“We’re starting to hit the reporting season which is going to be a major driver for the next few weeks,” said Peter Dixon, an economist at Commerzbank AG in London. “The market is not looking for a good set of numbers as demand has been hit by a stronger dollar, but the numbers for financials are expected to be reasonably decent for this quarter.”
Johnson & Johnson, Wells Fargo & Co. and Intel Corp. are also among S&P 500 members reporting earnings today. Analysts have slashed profit projections, predicting a slump through September amid concern that a stronger dollar and tumbling oil prices are hurting results. Earnings probably fell 5.6 percent in the first quarter, they predict.
Retail Data
Investors are also awaiting economic data to gauge when the Federal Reserve will raise interest rates. The Commerce Department may say today that March retail sales rose 1.1 percent from a 0.6 percent fall the previous month, economists forecast. Reports on industrial production and housing starts are also due this week.
“Retail sales are expected to be strong after a fairly weak set of numbers in February, and the trend is the U.S. consumer is likely to expand spending over the next few months,” Dixon said.
Fed Chair Janet Yellen has said that while rates will probably rise this year, any decision depends on economic data, with recent economic releases missing projections by the most in six years.
The S&P 500 fell on Monday as General Electric Co. retreated from a six-year high, leading industrial companies lower. Last week, both the S&P 500 and the Dow closed near records.
