Wednesday morning finds US index futures divided between a 0.2% gain for Dow Futures and a 0.2% loss for NASDAQ futures. In Europe today the DAX is up 0.5% and the FTSE is up 0.3%. Energy action is mixed with Crude Oil down 1.0% following a big build of 19.1 mmbbls in US API weekly oil inventories, while Natural Gas is up 1.1%. In metals action, Gold is up 0.2% and Copper is down 0.4%.
For the second day in a row, earnings from US financials have come in very strong with Goldman Sachs ($10.91 vs street $9.65) and Morgan Stanley ($2.13 vs street $1.98) crushing street estimates. Bank of America and Johnson & Johnson also beat expectations.
The Street reaction to these numbers has been muted, suggesting strong reports may have already been priced in by the market gains of the last three months. Meanwhile semiconductor equipment producer ASML is down 8.2% after management indicated it is unable to predict whether it can continue its growth momentum into 2026 or not.
Inflation numbers are mixed this morning. US producer prices came in better than expected (2.3% vs Street 2.5%), but UK consumer prices (3.6% vs Street 3.4%) were worse than expected. US industrial production is due at 9:15 am EDT.
*Shares of Bank of NY Mellon are held in portfolios managed by SIA Wealth Management.