U.S. equity futures are pointing to a softer start on Wednesday, indicating stocks may face additional pressure after ending Tuesday’s choppy trading modestly in the red.
Pre-market weakness in Wells Fargo (NYSE:WFC) is weighing on sentiment, with the bank’s shares down around 2.6%. The decline comes after the lender reported fourth-quarter earnings that beat expectations, but fell short on revenue.
Bank of America (NYSE:BAC) was also trading lower ahead of the opening bell, despite delivering quarterly results that exceeded analyst forecasts.
By contrast, Citigroup (NYSE:C) shares were poised to advance after the bank posted stronger-than-expected fourth-quarter earnings.
On the economic front, new data from the Commerce Department showed U.S. retail sales rose more than anticipated in November. Sales increased 0.6% during the month, following a revised 0.1% decline in October, outpacing expectations for a 0.4% gain.
Excluding autos, retail sales climbed 0.5% in November after rising 0.2% in October, also beating forecasts.
Separately, the Labor Department reported a modest increase in producer prices in November.
Markets struggled to find direction on Tuesday, after rebounding from early losses on Monday to finish slightly higher. During Tuesday’s session, major indexes swung between gains and losses before closing lower.
The Dow Jones Industrial Average fell 398.21 points, or 0.8%, to 49,191.99. The Nasdaq Composite edged down 24.03 points, or 0.1%, to 23,709.87, while the S&P 500 slipped 13.53 points, or 0.2%, to 6,963.74.
The Dow retreated from a record closing high set on Monday, pressured by a sharp drop in JPMorgan Chase (NYSE:JPM), which declined 4.2%. The bank’s shares slid after it reported a year-over-year decline in fourth-quarter profit, despite adjusted earnings topping expectations.
The uneven trading reflects uncertainty about the near-term outlook, driven by rising global geopolitical tensions and a series of policy proposals from President Donald Trump.
Trump has recently called for a one-year cap on credit card interest rates at 10%. He has also proposed barring defense companies from paying dividends or buying back shares, and restricting large institutional investors from purchasing single-family homes.
Meanwhile, inflation data from the Labor Department showed consumer prices rose broadly in line with expectations in December. Headline CPI increased 0.3% for the month.
Core inflation, excluding food and energy, rose 0.2% in December, below forecasts for a 0.3% increase. On an annual basis, headline inflation held steady at 2.7%, while core inflation remained unchanged at 2.6%.
Sector performance was mixed, with airline stocks under pressure, dragging the NYSE Arca Airline Index down 2.0%. Software stocks also weakened, as the Dow Jones U.S. Software Index fell 1.6%.
Banking shares were broadly lower, while energy stocks outperformed as crude oil prices jumped. Networking and steel stocks also showed pockets of strength.
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