JPM shares are pointed higher in electronic trading
U.S. stock futures are trading mixed this morning, as traders react to second-quarter earnings out of the financial sector. While shares of Citigroup (C) are sliding before the open, blue chip JPMorgan Chase (JPM) is ticking higher thanks to a record-breaking earnings release. On the economic front, Wall Street is digesting a sharp drop in June import prices, while the University of Michigan's consumer sentiment survey is due out later in the morning. Despite the tepid pre-market price action, the Dow Jones Industrial Average (DJI) and its index peers are set for a second straight week of gains, as the Nasdaq Composite (IXIC) looks to build on yesterday's all-time high.
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5 Things You Need to Know Today
- The Chicago Board Options Exchange (CBOE) saw 946,550 call contracts traded on Thursday, compared to 525,993 put contracts. The single-session equity put/call ratio dipped to 0.56, while the 21-day moving average held at 0.59.
- Johnson & Johnson (NYSE:JNJ) is in focus after the company was ordered to pay out $4.7 billion to 22 women who said the company's talc products contained asbestos and caused ovarian cancer. JNJ shares had been rallying back since a recent bottom near $120, but they're down 2% ahead of the open -- and far below their January all-time high above $148.
- McDonald's Corporation (NYSE:MCD) is another blue-chip stock that is trading lower before the open on negative news, off 1% amid reports of potential foodborne illnesses linked to salads sold at some the company's Midwest restaurants. MCD stock is also off its highs from early in the year, and is now testing the mettle of its historically supportive 320-day moving average.
- Shifting back to bank earnings, Wells Fargo & Co (NYSE:WFC) stock is trading 3% lower before the open due to disappointing second-quarter profits and revenue. The equity is on track to start the session back below the $56 level that's acted as resistance and support several times in the past year.
- Atlanta Fed President Raphael Bostic is expected to speak, while PNC Financial (PNC) is another name in the earnings spotlight today. Next week, second-quarter earnings season kicks into high gear.
Japanese Stocks Jump as Yen Sinks
It was a mostly higher finish in Asia, with Tokyo stocks outperforming their regional peers. Japan's Nikkei tacked on 1.9%, as the yen hit a six-month low against the U.S. dollar and Uniqlo parent Fast Retailing surged 7% after earnings. Hong Kong's Hang Seng and South Korea's Kospi gained ground, too, adding 0.2% and 1.1%, respectively. The Shanghai Composite bucked the bullish trend, though, settling down 0.2% following a report that showed China's trade surplus with the U.S. hit a record $28.97 billion last month.
European benchmarks are positive at midday, with the tech sector helping to boost the broader market. Among individual indexes, London's FTSE 100 is up 0.4%, as the pound cools following an interview where U.S. President Donald Trump criticized Prime Minister Theresa May's Brexit plan. Elsewhere, the German DAX and French CAC 40 are also boasting 0.4% gains.