Stock Futures Flat After Wells Fargo Earnings
NEW YORK (TheStreet) -- Stock futures were little changed Friday after Wells Fargo(WFC) kicked off fourth-quarter bank earnings with a mixed report and China sparked concerns that it will hold off on easing policy after reporting higher-than-expected inflation.
China's annual consumer price inflation accelerated to a seven-month high of 2.5% year over year in December, from 2% in November, much of it due to a sharp rise in food inflation during the month.
Meanwhile, data showed that the U.S. trade deficit widened to a seven-month high in November.
Futures for the Dow Jones Industrial Average were unchanged, or 0.22 points below fair value, at 13,406. Futures for the S&P 500 were up 0.75 points, or 1.13 points above fair value, at 1467. Futures for the Nasdaq were up 1.25 points, or 0.27 points above fair value, at 2738.
Wells Fargo reported better-than-expected earnings of $5.1 billion on revenue of $21.9 billion, beating adjusted estimates of $4.82 billion and $21.3 billion, respectively. However, net interest margin fell 10 basis points, missing some estimates.
Shares were down 1.3% in premarket trading.
The Census Bureau reported Friday that the U.S. trade deficit widened to $48.7 billion in November from a revised $42.1 billion in October. The prior October deficit estimate was $42.2 billion.
Economists, on average, were expecting a deficit of $41.3 billion for November.
The Bureau of Labor Statistics said that December import prices, excluding oil, fell 0.1% in December after declining 0.2% in November. Export prices, excluding the agriculture component, edged down 0.2% after November was revised to a decline of 0.8% from a fall of 0.7%.
At 9:30 a.m., Philadelphia Federal Reserve Bank President Charles Plosser will speak on the economic outlook at New Jersey Economic Leadership Forum in Somerset, N.J.
At 2 p.m., the Treasury Department will release Treasury budget data for December. Its monthly budget report for November showed a deficit of $172.1 billion.
European markets were trading off highs after the Chinese inflation data. The FTSE 100 in London was up 0.2%, while the DAX in Germany was up 0.05%