Futures dip after bank stress test results, Nike reports surprise loss

Futures dip after bank stress test results, Nike reports surprise loss

U.S. stock futures slipped on Thursday night following the release of the Federal Reserve’s latest bank stress-test results and disappointing quarterly numbers out of Nike.Dow Jones Industrial Average futures dipped 89 points, or 0.4%. S&P 500 fell marginally and Nasdaq-100 futures were flat. The Fed’s annual stress test of the major banks shows some banks could get close to minimum capital levels in scenarios related to the coronavirus pandemic. Because of this, banks must suspend share repurchase programs and keep dividend payments at current levels for the third quarter.”While I expect banks will continue to manage their capital actions and liquidity risk prudently, and in support of the real economy, there is material uncertainty about the trajectory for the economic recovery,” Fed Vice Chair Randall Quarles said in a statement.The announcement sent some bank shares lower in after-hours trading. Bank of America and JPMorgan Chase both dipped more than 1.8%. Wells Fargo slid 3% and Goldman Sachs fell 3.4%. Bank stocks were coming off sharp gains, rallying more than 3% during regular trading Thursday.Meanwhile, Nike shares slid nearly 4% after the bell on the back of a surprising quarterly loss for the apparel giant.The company reported a loss of 51 cents per share and revenue of $6.31 billion for the its fiscal fourth quarter. Nike’s quarterly revenue reflected a drop of 38% on a year-over-year basis.Wall Street was coming off strong gains after a late-day surge helped the major averages recover some of the steep losses from Wednesday’s session. The Dow jumped nearly 300 points Thursday while the S&P 500 and Nasdaq Composite each closed higher by 1.1%.The major averages, however, struggled for direction for most of Thursday’s session as the number of coronavirus cases keeps rising in certain states. Florida reported just over 5,000 additional cases. Arizona’s cases jumped by 5.1%, topping a seven-day average of 2.3%. Texas Gov. Greg Abbott said the state would pause its reopening plans given the recent spike in cases and hospitalizations.Subscribe to CNBC PRO for exclusive insights and analysis, and live business day programming from around the world.


Source link

Leave a Reply

Your email address will not be published. Required fields are marked *

Top