US pre-open: Stocks seen up on China boost but JPMorgan Chase disappoints
By Michele Maatouk
Date: Tuesday 15 Jan 2019
(Sharecast News) - US stocks looked set for a positive open on Tuesday, with investors likely to welcome Beijing's latest efforts to bolster China's flagging economic growth, while earnings from the likes of JPMorgan Chase will be in focus.
At 1220 GMT, Dow Jones Industrial Average and S&P 500 futures were up 0.1%, while Nasdaq futures were 0.4% firmer.
China has announced plans to cut taxes on a larger scale to help support its slowing economy, boost spending and provide financing for private and small businesses.
Spreadex analyst Connor Campbell said: "After Monday's imports and exports plunge - just the latest sign that the Chinese economy is grimacing under the strain of Trump's tariffs - put the fear in investors, Beijing have moved (somewhat) quickly to try and convince everyone that things are going to be OK.
"The country's finance ministry announced it intends to cut VAT rates for certain industries, including manufacturers, while giving tax rebates to others. At the same time, the People's Bank of China claimed it would keep liquidity 'reasonably ample', a pincer attack of reassurances that, looking at the markets, seems, for now, to have worked."
Meanwhile, Brexit developments across the pond were likely to garner some attention as the Commons vote on Theresa May's Brexit plan was due later in the day.
In US corporate news, JPMorgan Chase was trading down nearly 2% in pre-market trade as its fourth-quarter profit and revenue fell short of analysts' expectations. This follows on from Citigroup's results on Monday, in which fourth-quarter profit beat expectations but revenue was a miss.
Wells Fargo is also due to release its fourth-quarter earnings. "Wells Fargo is one of the largest mortgage lenders in the US, and given the Fed hiked interest rates four times last year, investors will be interested to see how their lending unit performed," said CMC Markets analyst David Madden.
Elsewhere, UnitedHealth was higher in pre-market trade after its fourth-quarter earnings beat analysts' expectations.
On the data front, the NY Empire State manufacturing index is at 1330 GMT, along with the producer price index.
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