What you need to know before the US open
US stock futures took a tumble, following an earnings announcement from JP Morgan, which kicked off the earnings season.
S&P 500 firms’ earnings are estimated to have increased a meagre one per cent from a year ago.
At the beginning of the year, analysts forecast 6.5 per cent growth, highlighting the impact of a harsh winter and waning optimism among investors.
The sharp sell-off seen in the tech sector this week has continued today, with global equities hitting a two-week low.
Some more encouraging news on the data front, though: US producer prices have seen their biggest increase since June of last year, jumping 0.5 per cent in March.
That’s from the 0.1 per cent fall seen in February. Producer prices measure input costs for firms manufacturing goods.
Corporate news
JP Morgan has reported first quarter results significantly below expectations, with profits falling to $5.4bn – 18.5 per cent lower than a year earlier. Shares dropped nearly three three per cent on the news.
And women’s clothes retailer Coldwater Creek has filed for bankruptcy, saying it plans to close. It has 365 shops and 6,000 employees.
Wells Fargo & Co will be reporting earnings later on.
Data in focus
• 2.55pm: US April Reuters/Michigan consumer sentiment index