US pre-open: Futures mixed following Fed's stress tests, Nike earnings

Wall Street futures were pointing to a mixed open on Friday after the publication of the Fed's latest bank stress-test results and a surprise loss from Nike.

As of 1220 BST, Dow futures were down 0.18%, while S&P 500 and Nasdaq-100 futures had the indices opening 0.10% and 0.16% firmer, respectively.

The Dow closed 299.66 points higher on Thursday amid news that regulators were set to ease some rules on banks, although ongoing worries about the risk of a second wave of Covid-19 lingered.

The moves in pre-market trade came after the Federal Reserve's yearly stress test of major US banks revealed that several banks were likely to get close to their minimum capital requirements as a result of the coronavirus pandemic, meaning the banks would be forced to suspend share repurchase programs and keep dividend payments at current levels throughout the third quarter.

"While I expect banks will continue to manage their capital actions and liquidity risk prudently, and in support of the real economy, there is material uncertainty about the trajectory for the economic recovery," said Federal Reserve vice chairman Randall Quarles.

In coronavirus headlines, Florida reported more than 5,000 new cases, while Arizona's cases jumped 5.1% - topping a seven-day average of 2.3% - and Texas governor Greg Abbott announced the state would halt its reopening plans as a result of the recent spike in cases and hospitalisations.

Oanda's Edward Moya said: "US stocks are still holding up despite the biggest-ever surge in coronavirus cases, as expectations remain high that the country might face regional lockdowns and not a state-wide reversal of reopening plans. As testing expands, many investors will focus on increasing hospitalisation rates across the south and west coast.

"Equities are trying to continue their painstaking climb up a rocky wall of virus uncertainty, supported by global fiscal and monetary stimulus but somewhat limited on growing expectations regional lockdowns will limit the economic recovery trade over the next several weeks."

On the corporate front, the Fed's stress left shares in Bank of America, JPMorgan Chase, Wells Fargo and Goldman Sachs lower ahead of the open, while Nike stock slid before the bell after posting a loss of $0.51 per share in its fourth trading quarter.

In data news, May's PCE price index will be published at 1330 BST, while the University of Michigan's consumer sentiment index for June will follow at 1500 BST.