U.S. stock futures wavered Friday amid earnings reports from financial heavyweights.
JPMorgan Chase kicked off earnings before the opening bell Friday. JPMorgan stock rose more than 2% in premarket trading after the bank’s quarterly results topped Wall Street consensus and it said it expects to resume stock buybacks next year.
Wells Fargo posted stronger-than-expected revenue for the third quarter, offsetting a profit miss. The stock is up 1% in premarket trading. Morgan Stanley reported a profit drop in the third quarter, prompting shares to fall 3% in premarket trading.
Elsewhere on Friday morning: Kroger announced a $24.6 billion deal to buy rival Albertsons, and Beyond Meat announced a 19% reduction in the plant-based meat company’s global workforce after another brutal quarter.
On Thursday, stocks started the day sharply lower after a hotter-than-expected inflation report. But that didn’t last long, as stocks trimmed their losses and turned green before midday trading, ending a six-day losing streak with a big rebound rally.
Thursday’s stock market gains followed the main event of the week on Wall Street — consumer price data, which came in hotter than expected. The Consumer Price Index (CPI) for September showed prices rose 8.2% over the prior year and 0.4% over the prior month. The core consumer price index, which excludes food and energy, rose 6.6% from a year ago, marking the highest level since 1982. Core CPI rose by 0.6% month over month.
To some investors, the sharp moves were excessive short market positioning, during which traders rushed to cover following the hot inflation data.
“What followed was extraordinary and may have been exacerbated by short-covering, perhaps even some panic,” Oanda Senior Market Analyst Craig Erlam wrote in a note. “While it may indicate the market has established a bottom for now, given the scale of the declines since the August peak, that doesn’t necessarily mean the worst is suddenly behind us. Not when inflation is so stubborn, the labor market so tight and the Fed so intent on more aggressive hikes.”
In the currency market, the dollar was below its two-week highs against other currencies while the 10-year Treasury yield wavered close to 4%. Elsewhere, Bitcoin also rebounded, rallying back toward $20,000, lifting the digital asset to a one-week high.
Dani Romero is a reporter for Yahoo Finance. Follow her on Twitter @daniromerotv