Early morning earnings reports from major financial companies and a few economic reports, including industrial production, could set the tone for today’s markets.
Traders have been watching an overnight report on China's first-quarter GDP and the outcome of the European Central Bank's meeting and 8:30 a.m. ET press briefing, just ahead of the New York opening bell. The ECB is not expected to take action, but it could discuss quantitative easing, and that could affect the currency market.
The oil market and the dollar could also be factors for markets, after a flare-up in crude futures prices Tuesday helped give energy stocks and the broader stock market a lift. The dollar slipped after moving higher against the euro early in the day.
Earnings are expected from Bank of America, US Bancorp, BlackRock, Charles Schwab and PNC Financial ahead of the market open and after the opening bell reports will come in from Netflix, Kinder Morgan, Universal Forest Products and Wintrust Financial.
12% Growth
Financial company earnings are expected to grow by 12 percent in what is expected to be a down quarter for the S&P 500, according to Thomson Reuters. Jack Ablin, CIO of BMO Private Bank, pointed to J.P. Morgan, which beat targets Wednesday and saw its stock leap ahead to a 15-year high.
According to Ablin, it would be a positive for the stock market if financials could lead the market, and the industry has shaken off much of the overhang from the financial crisis. "It's like baseball after steroids. Baseball is a better game. There's no steroids creating artificial imbalances, but the problem is that it's boring and no one likes it anymore, and we're trying to figure out how to speed it up."