Thursday January 14th

13-01-2016

Dow futures briefly add 100 points; earnings, oil eyed

U.S. stock index futures indicated a higher open on Thursday as JPMorgan reported earnings that beat expectations. Dow futures briefly gained 100 points, boosted by gains in JPMorgan and energy stocks. Shares of JPMorgan Chase briefly gained more than 2 percent in pre-market trade after the banking giant reported net income of $5.4 billion, earnings per share of $1.32, on revenue of $23.7 billion, beating estimates. Oil held higher in morning trade, with U.S. crude above $31 a barrel and Brent around $30.80 a barrel as of 8:35 a.m. ET. Expectations are low for corporate profits this quarter, with analysts projecting a consensus 4.7 percent decline for S&P 500 profits, according to Thomson Reuters. Other companies expected to report before the bell on Thursday include Taiwan Semiconductor and First Republic Bank. Weekly jobless claims came in at 284,000. December import prices fell 1.2 percent. Treasury yields held lower, with the 2-year yield near 0.90 percent and the 10-year yield at 2.08 percent as of 8:34 a.m. ET. The U.S. dollar traded a touch lower against major world currencies, with the euro near $1.089 and the yen at 117.77 yen against the greenback. Euro zone inflation could miss the European Central Bank's already lowered forecast but the bank needed to maintain some powder dry at its December meeting in case more policy easing would be required later, the meeting's minutes showed on Thursday. Risks, particularly from emerging markets and geopolitical turmoil, continue to weigh on euro zone growth while governments are still not doing their part in fostering growth with reforms and fiscal accommodation, the bank said in the accounts of its Dec 3 policy meeting, Reuters reported. In Asia, Japan's Nikkei finished 2.68 percent lower. In China, the Shanghai Composite closed 1.96 percent higher. In Europe, the pan European Stoxx 600 index was around 2.25 percent percent lower on Thursday morning. Gold eased on Thursday as buyers cashed in some of the previous session's gains, but the metal remained underpinned by positive pressure from a drop in stock markets and dollar weakness. Stocks fell in Europe and Asia on Thursday following steep losses on Wall Street, after volatility in Chinese stocks early in the year battered appetite for risk. That helped send gold prices to two-month highs at $1,112 last week, but gold trading has since been choppy. Spot gold was down 0.5 percent at $1,087.41 an ounce at 1249 GMT, while U.S. gold futures for February delivery were up 50 cents an ounce at $1,087.60.