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Dow futures jump more than 200 points on better-than-expected earnings from Bank of America, others

Dow futures jump more than 200 points on better-than-expected earnings from Bank of America, others

14 Oct 2021

U.S. stock futures rose Thursday after better-than-expected earnings reports from Bank of America and other major companies.

Dow Jones Industrial Average futures jumped 251 points, or 0.8%. S&P 500 futures gained 0.8% and Nasdaq 100 futures added 0.9%.

Bank of America’s third-quarter financial results beat analysts’ expectations as the firm benefited from the release of credit loss reserves and record advisory and asset management fees. The stock rose in the premarket.

Morgan Stanley shares also rose after the bank’s quarterly earnings beat estimates, boosted by record investment banking and asset management results.

Dow member UnitedHealth gained in early morning trading after the insurer reported quarterly results besting Wall Street estimates and raised its 2021 forecast.

Another Dow constituent Walgreens Boots Alliance saw it shares gain in the premarket after the drugstore chain topped earnings estimates and gave twice as many Covid vaccines as expected in the quarter.

Stocks linked to the economic recovery rose in the premarket as well.

Shares of Carnival and MGM Resorts gained. Energy shares including Diamondback Energy and Occidental Petroleum moved higher as oil prices jumped on increased demand. UPS rose after an upgrade from Stifel, which cited upcoming holiday demand.

The moves came as Covid cases in the U.S. continued to trend lower. The 7-day moving average of cases fell to 86,181, down from an average above 161,000 cases at the peak of this latest wave in early September, according to the latest CDC figures.

On Wednesday, the Labor Department reported the core Consumer Price Index, which excludes food and energy, rose 0.2% month over month in September and 4% over the last 12 months, compared to estimates of 0.3% and 4%, respectively.

September producer price index data and weekly jobless claims will be released Thursday.

The major averages were little changed by the end of the regular session Wednesday. The Dow was flat at 34,377.81, the S&P 500 gained 0.3% and the Nasdaq Composite ticked up 0.7%.

Minutes from the Federal Open Market Committee’s September meeting, released Wednesday afternoon, showed that the central bank could begin the tapering process in mid-November or mid-December.

“We still think November but one month isn’t going to matter to markets at this point,” said Lawrence Gillum, fixed income strategist for LPL Financial. “There was some interesting discussion on lift-off though and it looks like the Committee remains divided. The future make-up of the Committee only adds uncertainty to when lift-off will actually take place.”

Earlier in the day, JPMorgan kicked off big bank earnings with stellar results that exceeded expectations on a $1.5 billion boost from better-than-expected loan losses. Still, shares fell by 2.6% and other bank stocks slid too.