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U.S. stock futures were mixed on Wednesday, October 14, as investors waited for September inflation data and reviewed bank earnings. The S&P 500 and Dow Jones futures rose before the opening bell, while Nasdaq-100 contracts slipped. High fuel prices, falling chip stocks and uneven earnings contributed to the cautious start.
At 7:28 a.m. ET, S&P 500 futures gained 0.15%, while Dow Jones futures added 141 points, or 0.27%. Nasdaq-100 futures fell 0.16%, extending pressure on technology shares. The figures reflected premarket trading, not the performance of the main indexes after the opening bell.
The Bureau of Labor Statistics scheduled its September consumer price index report for 8:30 a.m. ET. Economists forecast annual inflation of 3.6%, compared with 3.4% in August. They also expect a 0.2% monthly rise in core prices, which exclude food and energy. The report could affect expectations for the Federal Reserve's next interest rate decision.
AAA data showed regular gasoline averaging about USD 4.33 per gallon on October 14, compared with USD 3.08 one year earlier. U.S. crude oil futures traded near USD 96 a barrel, while Brent crude remained above USD 100. Higher transport and fuel costs have kept investors focused on consumer prices.
Bank of America shares dropped about 4.2% in premarket trading after the lender reported third-quarter net income of USD 6.9 billion, or USD 0.91 per share. Analysts had expected roughly USD 1.10 per share. The bank recorded a USD 1.2 billion charge linked to penalties over failures in its systems for detecting suspicious transactions.
Bank of America's revenue reached USD 30 billion, below expectations of about USD 30.6 billion. Adjusted earnings were USD 1.08 per share, also below forecasts. Meanwhile, Morgan Stanley announced earnings of USD 3.03 per share on USD 20.34 billion in revenue, beating estimates of USD 2.91 and USD 19.95 billion. Its shares nevertheless edged lower.
BlackRock moved in the opposite direction, gaining nearly 5% before the opening bell after stronger third-quarter results. The different share-price reactions followed Tuesday's losses for several major banks, even when their profits exceeded forecasts. Investors continued to compare the companies' results with the high expectations built into share prices.
Technology shares remained under pressure after five sessions of losses for the Philadelphia semiconductor index. On Tuesday, Micron declined 3.6% and Applied Materials lost almost 7%. Reports of advances by Chinese memory chipmaker CXMT added to concerns about competition. Early Wednesday, Intel, Micron and Nvidia also traded lower.
However, Dutch chip equipment supplier ASML reported third-quarter sales of EUR 11.7 billion and raised its full-year sales outlook to EUR 44 billion to EUR 45 billion. The company pointed to continuing demand for equipment used in artificial intelligence chips. Some customers have expressed interest in orders stretching into 2029 and 2030.
Questions remain over how much growth markets have already priced into technology stocks. Marta Norton, chief investment strategist at Empower, said the business fundamentals for chipmakers remained strong. However, she questioned “how much valuation is left in the space.” Her remarks drew a distinction between customer demand and the prices investors pay for shares.
The S&P 500 ended Tuesday down 0.02% at 7,805.45, while the Nasdaq lost 0.15% to 27,204.38. The Dow dropped 0.35% to 51,670.10. Citigroup, Goldman Sachs, Wells Fargo and JPMorgan Chase closed lower as investors assessed the first large batch of third-quarter banking results.
New York Fed President John Williams said another interest rate increase could be needed this year, although he saw no need for further hikes in 2027. Investors also awaited the Fed's Beige Book report on regional economic activity later Wednesday. Overseas, South Korea's Kospi and Japan's Nikkei rose, while major European markets also traded higher.
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