Stocks rebound led by Bank of America, Morgan Stanley
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U.S. equity futures rose Wednesday morning as another round of earnings rolled in.
The major futures indexes suggest a gain of 0.2%, rebounding from Tuesday's sharp selloff.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| I:DJI | DOW JONES AVERAGES | 35368.47 | -543.34 | -1.51% |
| SP500 | S&P 500 | 4577.11 | -85.74 | -1.84% |
| I:COMP | NASDAQ COMPOSITE INDEX | 14506.896644 | -386.86 | -2.60% |
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Equities tacked on momentum despite the 10-year Treasury hovering around 1.87%, the highest since January 2020, while oil sits at the $85 per barrel level, an eight-year high.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| USO | UNITED STATES OIL FUND L.P. | 60.97 | +1.00 | +1.67% |
HARVARD ECONOMIST ON HOW LONG PRICES WILL CONTINUE TO SOAR
Financials are in focus with SoFi Technologies Inc. up 17% in the premarket after the Office of the Comptroller of the Currency and the Federal Reserve approved its application to operate as a bank, and it expects to do so next month.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| SOFI | SOFI TECHNOLOGIES | 12.06 | -1.14 | -8.64% |
In earnings news, Bank of America and Morgan Stanley rose after reporting better-than-expected results.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| BAC | BANK OF AMERICA CORP. | 46.26 | -1.65 | -3.44% |
| MS | MORGAN STANLEY | 94.01 | -4.87 | -4.93% |
Dow member UnitedHealth Group posted strong fourth-quarter earnings led by double-digit growth in its Optum division. The largest U.S. health insurer posted fourth-quarter net income on Wednesday of $4.07 billion, or $4.26. Removing one-time benefits and charges, per-share earnings were $4.48, or 18 cents better than expected on Wall Street, according to a survey by Zacks Investment Research. Revenue, at $73.74 billion, also topped expectations.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| UNH | UNITEDHEALTH GROUP INC. | 460.99 | -7.70 | -1.64% |
| PG | PROCTER & GAMBLE CO. | 156.73 | -3.08 | -1.93% |
Procter & Gamble also reported better than expected results even with inflationary pressures.
"We delivered very strong top-line growth and made sequential progress on earnings in the face of significant cost headwinds," President and CEO Jon Moeller said in a release. "These results keep us on track to deliver our earnings outlook and to raise estimates for sales growth, cash productivity and cash return to shareowners."
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| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| UAL | UNITED AIRLINES HOLDINGS INC. | 45.61 | -1.13 | -2.42% |
| DFS | DISCOVER FINANCIAL SERVICES | 123.72 | -3.82 | -3.00% |
In the afternoon, investors will focus on United Airlines and Discover Financial Services.
Video game makers remain in focus following Microsoft's $68.7 billion acquisition of Activision. Speculation mounts over the possibility of more M&A in the sector.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| MSFT | MICROSOFT CORP. | 302.65 | -7.55 | -2.43% |
| ATVI | ACTIVISION BLIZZARD INC. | 82.31 | +16.92 | +25.88% |
| EA | ELECTRONIC ARTS INC. | 133.91 | +3.47 | +2.66% |
| ZNGA | ZYNGA INC. | 8.99 | +0.03 | +0.33% |
| TTWO | TAKE-TWO INTERACTIVE SOFTWARE INC. | 154.04 | +1.46 | +0.96% |
On the economic calendar, the Commerce Department is expected to say that the number of new homes under construction in December fell 1.7% to a seasonally adjusted annual rate of 1.65 million. That’s after a much stronger-than-expected increase in November to 1.679 million. Permits for future construction are anticipated to slip 0.9% to 1.701 million in December, after jumping 3.9% the previous month to the highest since August.
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In Europe, London's FTSE added 0.1%, Germany's DAX gained 0.1% and France's CAC rose 0.5%.
GOLDMAN SACHS' PROFIT DECLINES BY 13% IN FOURTH QUARTER
In Asia, Japan’s benchmark Nikkei 225 dropped 2.8% to its lowest level since August, Hong Kong’s Hang Seng added 0.1% and China's Shanghai Composite lost 0.3%.
FOX Business' Ken Martin and The Associated Press contributed to this report.
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