Wall St set for muted open after mixed bank results, PPI data
Corrects comparative period in paragraph 7 to year-ago quarter, not last quarter
US producer prices rise moderately in June
JPMorgan profit jumps; shares dip in choppy trading
Wells Fargo drops after profit falls on deposit costs
BNY up after Q2 profit rises
Futures: Dow up 0.05%, S&P 500 up 0.02%, Nasdaq down 0.01%
By Medha Singh and Ankika Biswas
July 12 (Reuters) - Wall Street was set for a subdued open on Friday as investors digested mixed results from big banks, while slightly hotter-than-expected producer price numbers reined in bets that the Federal Reserve would begin easing interest rates in September.
JPMorgan Chase's JPM.N second-quarter profit increased on a boost from rising investment banking fees and an $8 billion accounting gain from a share exchange deal with Visa V.N. However, shares of the world's largest bank edged0.2% lower in choppy premarket trading.
Wells Fargo WFC.Nslid 5.5% as the lender missed estimates forquarterly interest income, while Citigroup C.N rose2.8% after posting a surge ininvestment banking revenue and gains in its services division.
The results come against a backdrop of expectations that some of the largest U.S. banks would report weaker second-quarter profits due to lower interest payments and higher provisions for deteriorating loans.
As the S&P 500 .SPX and the Nasdaq.IXIC scale new peaks, investors are hoping for strong profit growth from companies beyond heavyweight tech names such as Nvidia NVDA.O, so that the U.S. stocks rally can broaden out.
"Big bank earnings, big tech earnings and consumer company earnings will be the most important to watch, as these companies are highly levered to the strength of the economy," said Clark Bellin, president and chief investment officer, Bellwether Wealth.
Analysts, on average, expect earnings for S&P 500 firms to grow by 10.1% during the quarter from a year ago, from 2.8% decline 2.8% in the same period in 2023, according to LSEG IBES data. Financial firms are likely to post a profit growth of 6.7%.
After data showed asurprise fall in U.S. consumer prices on Thursday, solidifyingbets on aSeptember rate cut, the latest report showed producer prices rose 0.2% on a monthly basis in June, compared to an expectation of a 0.1% rise. Annually, it rose 2.6%, versus an estimated 2.3% rise.
"Friday's stronger-than-expected PPI is an important reminder that inflation is still here and that the inflation data can be volatile," Bellin said.
Traders still seea 93% chance of a rate cut in September, up from 72% a week ago, according to CMEGroup's FedWatch tool.
Focus now turns to theUniversity of Michigan's consumer survey report, due after markets open.
At 8:47 a.m. ET, Dow e-minis 1YMcv1 were up 22 points, or 0.05%, S&P 500 e-minis EScv1 were up 1.25 points, or 0.02%, and Nasdaq 100 e-minis NQcv1 were down 1.5 points, or 0.01%.
The S&P 500 and Nasdaq logged their worst sessions in more than two months on Thursday, on a rotation out ofhigh-flying large-cap stocks in favor of small-cap shares, which have underperformed this year. The rotation has also set the blue-chip Dow .DJI on track for its best week in four.
Tesla TSLA.O dropped 1.7% after UBS downgraded the EV maker's stock to "sell" from "neutral".
BNY BK.Nclimbed 2.5% after the U.S. bank posted a 10% rise insecond-quarter net profit.
AT&T T.Ndropped 1.5% after the telecom firm said data from about 109 million customer accounts containing records of calls and texts from 2022 had beendownloaded illegally in April.
Reporting by Medha Singh and Ankika Biswas in Bengaluru; Editing by Saumyadeb Chakrabarty and Pooja Desai
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