US pre-open: Stocks to eke out gains as bank earnings roll in
By Michele Maatouk
Date: Wednesday 16 Jan 2019
(Sharecast News) - US stocks looked set to eke out small gains at the open on Wednesday as investors braced for more bank earnings and the latest Brexit news from across the pond.
At 1220 GMT, Dow Jones Industrial Average and S&P 500 futures were up 0.1%, while Nasdaq futures were flat.
Oanda analyst Craig Erlam said: "Attention may be primarily on Brexit in Europe but over in the US, earnings season is upon us and investors will be eyeing results for signs of weakness at a time when the global economy is expected to slow, fiscal stimulus is fading and some major companies - including Apple - are reporting difficulties.
"The trade war with China may not have massively taken its toll yet but it may start to show itself in the upcoming results and/or guidance."
Brexit developments in the UK were in focus after Prime Minister Theresa May lost the 'meaningful vote' on her deal by a record margin of 432 to 202 on Tuesday, and Labour leader Jeremy Corbyn tabled a vote of no confidence in the government.
May said that if her government wins the confidence motion this evening, which is expected after the DUP and hardline Brexiteers guaranteed their backing, she will then open up Brexit negotiations to a cross-party approach. She will have until the end of next Monday to put forward a 'plan B' on Brexit.
On home turf, the government shutdown was into its 26th day as President Trump and the Democrats remained at loggerheads over funding for his Mexico border wall.
In corporate news, Bank of America shares were likely to be active after its fourth-quarter profit came in above expectations.
BlackRock was weaker in pre-market trade as the asset manager's quarterly earnings and revenue missed forecasts, while Ford slipped 0.9% as its fourth-quarter profit fell short of forecasts.
BNY Mellon and Goldman Sachs were also slated to report earnings, while results from Alcoa were due after the close.
On the data front, the import and export price indices for December are due at 1330 GMT, while the NAHB housing market index is at 1500 GMT.
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