US pre-open: Futures trade lower as Q2 bank earnings begin to roll in
Wall Street futures had stocks opening firmly in the red ahead of the bell on Thursday as Q2 bank earnings began to roll in.
As of 1215 BST, Dow Jones futures were down 1.33%, while S&P 500 and Nasdaq-100 futures had the indices opening 1.25% and 0.84% lower, respectively.
The Dow closed 208.54 points lower on Wednesday following a hotter-than-expected inflation reading.
Quarterly earnings were in focus prior to the opening bell after banking giant JPMorgan said profits fell 28% throughout the period as a result of the group building up reserves for bad loans. JPM also said it had halted buybacks on the back of the earnings miss.
Still to come, Morgan Stanley was also slated to report its latest set of quarterly numbers on Thursday.
Markets.com's Neil Wilson said: "Attention now shifts from the inflation story to earnings with JPMorgan and Morgan Stanley due to unofficially kick off earnings season today. My sense is that this will be a quarter that triggers analysts to downgrade their forward earnings estimates."
Treasuries also remained inverted early on Thursday, potentially indicating a coming recession, with the two-year note yielding 3.211%, ahead of its ten-year counterpart at 2.972% - one of the biggest inversion of this particular spread in more than 20 years.
Adding to recessionary fears, the Federal Reserve's Beige Book, released overnight, indicated that the central bank may also be worried about an upcoming recession due to persistently high inflation.
On the macro front, June's producer price index and jobless claims data for the week ended 9 July will be published at 1330 BST, while the Federal Reserve's Christopher Waller will deliver a speech at 1600 BST.
Reporting by Iain Gilbert at Sharecast.com