Stock futures were flat in overnight trading on Thursday as investors braced for the start of big banks’ gains.
Futures linked to the Dow Jones Industrial Average and S&P 500 were flat, while Nasdaq 100 futures fell 0.10%.
Overnight moves followed a positive day for the three major indices. The Nasdaq Composite grabbed its fifth day of gains for the first time since July. Stocks across the board rose as the December CPI report showed prices down 0.1% from November. While prices rose 6.5% year-on-year, the results fueled hopes that the US Federal Reserve may soon be slowing its rate hike.
The Dow Jones Industrial Average gained 216.96 points, or 0.64%. The S&P 500 and Nasdaq Composite gained 0.34% and 0.64%, respectively, in regular trading.
The Nasdaq Composite is on course for its longest daily winning streak since July
Stocks are headed for a successful week, with the Nasdaq and S&P on course for their best weekly performance since November. The Nasdaq was up 4.09% by the close on Thursday. The S&P gained 2.26% while the Dow gained 1.66%.
Eight of the 11 S&P 500 sectors closed positive on Thursday, leading to upward movement into 2022. Consumer staples stocks lagged, with the sector down 0.79%.
Earnings season begins Friday with results from big bank stocks JPMorgan Chase, Wells Fargo, Citigroup and Bank of America. Investors will be keeping an eye on the releases, which are expected to provide more insight into the health of the economy and set the tone for the earnings season.
“As the tug-of-war among analysts mounts over the prospects of a recession — and the depth of a recession — banks’ earnings reports, along with their forecasts, should help clarify how businesses and consumers are faring,” said Quincy Krosby, more global Chief Strategist of LPL Financial.
Delta Air Lines, BlackRock and UnitedHealth will also report on Friday. Consumer sentiment data is due later in the morning.