Stock futures rise as Wall Street awaits more bank earnings

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Stock futures rise as Wall Street awaits more bank earnings

US stock futures rose Friday morning after falling in the previous session on disappointing second-quarter earnings by the country’s largest banks.

Other important bank results are expected Friday from Wells Fargo and Citigroup.

Dow Jones Industrial Average futures were up 72 points, or 0.24%. S&P 500 and Nasdaq 100 futures were up 0.27% and 0.32%, respectively.

Pinterest shares rose 16% in extended trading after a Wall Street Journal report said activist investor Elliott Management had acquired a more than 9% stake in the social media company.

The Dow lost nearly 0.5% or 142.62 points during Thursday’s session. The S&P 500 fell 0.3% and the Nasdaq Composite rose 0.03%.

Investors combed through troubling reports from JPMorgan Chase and Morgan Stanley, which boosted profits at big banks, and also weighed the likelihood of major rate hikes by the Federal Reserve and looming recession fears.

JPMorgan Chase shares fell about 3.5% after the bank said it had built up reserves for bad loans and suspended share buybacks. Meanwhile, shares of Morgan Stanley fell 0.4% after the bank reported weaker-than-expected investment banking earnings.

“I don’t have a lot of optimism about our ability to grow profits in this environment,” Victoria Greene, CIO of G Squared Private Wealth, said on CNBC’s “Closing Bell: Overtime” on Thursday. “I don’t think it was bad or tragic, you know, but sadly I think any loss of profits or margins will be punished in this earnings season and any actual beats can actually be picked apart.”

On the economic front, the latest report on June retail sales and import and export prices will be released at 8:30 am ET on Friday. The June industrial production report is expected at 9:15 am ET. Preliminary July consumer sentiment data is available at 10am ET.