US stock futures slip lower ahead of bank earnings, PPI release

Investing.com--U.S. stock index futures slipped lower Friday ahead of the release of eagerly-awaited bank earnings as well as another inflation reading.

At 05:40 ET (09:40 GMT), Dow Jones Futures fell 95 points, or 0.2%, S&P 500 Futures slipped 17 points, or 0.3%, and Nasdaq 100 Futures dropped 70 points, or 0.3%.

The major averages are heading into the final day of the week with modest gains. The S&P 500 is up 0.5% week to date, the Dow Jones Industrial Average is up 0.2%, while the NASDAQ Composite gained 0.8%. Major bank earnings, Tesla robotaxi in focus 

The main focus Friday will be on the third quarter earnings season, with major banks JPMorgan Chase (NYSE:JPM ), Wells Fargo (NYSE:WFC ) and Bank of New York Mellon (NYSE:BK ) set to report later in the session.

Goldman Sachs (NYSE:GS ), Bank of America (NYSE:BAC ) and Citigroup (NYSE:C ) will report earnings next week. 

Bank results offer an important view into the economy, including the strength of demand for loans. Investors will also be on the lookout for signs of whether the Fed’s large rate cut last month is already influencing the economy through rising auto sales or the purchase of other big-ticket items.

Elsewhere, Tesla (NASDAQ:TSLA ) stock fell more than 5% premarket after the group unveiled its long-awaited "Cybercab" robotaxi, although analysts flagged that CEO Elon Musk provided few answers to crucial questions surrounding the technology. PPI data to support smaller rate cut? 

The producer price index for September is due later on Friday, and is expected to offer more cues on the economy, as is a reading on consumer sentiment . 

Consumer inflation data, released earlier in the week, read stronger-than-expected for September, which furthered expectations that the Federal Reserve will have less impetus to cut interest rates at an accelerated pace, with traders seen pricing in a greater chance for a 25 basis point cut in November after the data. 

Comments from Fed officials added to this notion, with Atlanta Fed President Raphael Bostic stating that the possibility of a hold in November could also be considered. 

A slower pace of interest rate cuts potentially presents pressure on Wall Street, given that U.S. stock valuations scaled record highs on expectations of a sharp reduction in rates.  Oil on pace for winning week 

Oil prices were choppy on Friday, although they remained on pace set for a second straight weekly gain, as investors gauged the impact of hurricane damage in the US and tensions in the Middle East.

By 05:40 ET, the Brent contract had slipped by 0.7% to $78.83 per barrel, while U.S. crude futures (WTI) traded 0.7% lower at $75.33 per barrel.

For the week, both benchmarks were headed for gains of around 1%.

In the US, Hurricane Milton cut a destructive path across Florida, leaving millions without power. The destruction could dampen fuel consumption in the world's largest oil producer and consumer.

Additionally, traders were on edge over a potential escalation in the conflict in the Middle East, especially if Israel targets Iran’s oil facilities.

(Ambar Warrick contributed to this article.)

Source: Investing.com