US pre-open: Futures slightly lower as Q1 bank earnings continue to roll in

(Sharecast News) - Major indices were slightly lower prior to the open as market participants as market participants remained focus on quarterly earnings from more of the nation's biggest names in banking. As of 1300 BST, Dow Jones futures were down 0.08%, while S&P 500 and Nasdaq-100 futures had the indices opening 0.04% and 0.05% softer, respectively.

The Dow closed 317.74 points higher on Tuesday, extending gains recorded in the previous session.

Investors were again locked in on bank earnings before the open on Wednesday, with Bank of America posting some better-than-expected Q1 results as both revenue and earnings per share came in ahead of Wall Street expectations at $30.43bn and $1.11, respectively, while Morgan Stanley also beat on both the top and bottom lines, with revenues of $20.58bn and earnings per share of $3.43, as the group benefitted from robust investment banking and trading revenues.

Trade Nation's David Morrison said: "This earnings season could prove critical in determining the near-term direction of global stock indices. If US corporations meet their lofty targets, while expressing confidence through their forward guidance, then that would go a long way to support the current bull market. If not, beware."

On the macro front, US mortgage applications increased 1.8% in the week ended 10 April, according to the Mortgage Bankers Association of America, the first rise in five weeks following a 0.8% drop in the prior week. Applications to refinance a mortgage, which are generally more sensitive to weekly interest rate moves, jumped 5.1%, while applications to purchase a home fell 1%. Last week's increase comes as the average 30-year fixed mortgage rate for conforming loans of $806,500 or less fell for a second week in a row to 6.42% - the lowest value in roughly a month.

Stil to come, March's import and export price indexes will be released at 1330 BST, as will April's New York Empire State manufacturing index, while NAHB's April housing market index will follow at 1500 BST.







Reporting by Iain Gilbert at Sharecast.com