Futures rise as JPMorgan kicks off earnings season on strong note
By Shreyashi Sanyal and Sruthi Shankar
April 12 () - U.S. stock index futures rose on Friday after JPMorgan kicked off first-quarter earnings season on a strong note, while signs of stabilization in China's economy helped ease global growth concerns.
JPMorgan Chase & Co rose 2.5% after the largest U.S. bank by assets topped quarterly earnings expectations, helped by higher interest income and gains in the bank's advisory and debt underwriting business.
S&P 500 companies are expected to post their first profit contraction since 2016 in the first quarter, with analysts projecting a 2.5 percent drop in earnings. Also, S&P 500 banks are expected to post earnings growth of 1.8%, down from an 8.2% rise estimated six months ago, according to Refinitiv data.
The S&P banks index has risen 12.8% this year, compared with a 15.2% gain for the S&P 500.
Data from China showed exports rebounded in March but imports shrank for a fourth straight month and at a sharper pace. The data, which eased concerns about a slowdown in world's second largest economy, and a jump in oil prices offered support to global equities. O/R
Grabbing the spotlight in the energy sector was Chevron Corp's$33 billion offer to buy smaller rival Anadarko Petroleum Corp . Shares of Anadarko jumped 30.3%, while Chevron fell 4%.
At 7:14 a.m. ET, Dow e-minis were up 183 points, or 0.7%. S&P 500 e-minis were up 15.5 points, or 0.54% and Nasdaq 100 e-minis were up 35.75 points, or 0.47%.
The S&P 500 index is now less than 2% away from its all-time high hit in September, helped by the Federal Reserve's patient stance on raising interest rates and signs of progress in the U.S.-China trade talks.
Investors are hoping that a trade deal with China and a better-than-feared quarterly earnings season will help push Wall Street above its September high.
Walt Disney Co gained 3.2% after the company priced it highly anticipated streaming service in a bid to challenge the digital dominance of Netflix Inc . Netflix shares were down 0.7%.
New York-listed shares of Fiat Chrysler rose 3.1% after its chairman provided an upbeat outlook for the full year.