U.S. stock index futures are pointing to a weaker open on Wednesday, suggesting equities could extend recent losses after finishing Tuesday’s volatile session slightly lower.
Pre-market declines in Wells Fargo (NYSE:WFC) are adding pressure to sentiment, with the bank’s shares down about 2.6%. The move comes after the lender posted fourth-quarter earnings that topped expectations, but disappointed on revenue.
Bank of America (NYSE:BAC) was also trading lower ahead of the opening bell, despite reporting quarterly results that exceeded analysts’ forecasts.
In contrast, Citigroup (NYSE:C) shares were set to gain in early trading after the bank delivered better-than-expected fourth-quarter earnings.
On the economic front, fresh data from the Commerce Department showed U.S. retail sales rose more than anticipated in November. Sales increased by 0.6% for the month, following a revised 0.1% decline in October. Economists had been looking for a 0.4% rise, compared with the previously reported flat reading.
Excluding autos and auto parts, retail sales climbed 0.5% in November after a 0.2% gain in October, also beating expectations for a 0.4% increase.
Separately, the Labor Department reported a modest uptick in U.S. producer prices for November.
Stocks struggled for direction during Tuesday’s session after rebounding from early losses on Monday to finish slightly higher. On Tuesday, the major indexes swung above and below unchanged levels before closing in negative territory.
The Dow Jones Industrial Average dropped 398.21 points, or 0.8%, to 49,191.99. The Nasdaq Composite slipped 24.03 points, or 0.1%, to 23,709.87, while the S&P 500 fell 13.53 points, or 0.2%, to 6,963.74.
The Dow retreated from Monday’s record closing high, weighed down by a sharp decline in JPMorgan Chase (NYSE:JPM), which fell 4.2%. The bank came under pressure after reporting a year-on-year drop in fourth-quarter profit, despite adjusted earnings beating market expectations.
The choppy tone in equities reflects uncertainty over the near-term outlook, driven by rising global geopolitical tensions and a wave 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 suggested banning defense companies from paying dividends or conducting share buybacks, and proposed restrictions preventing large institutional investors from purchasing single-family homes.
Meanwhile, U.S. inflation data released by the Labor Department showed consumer prices rose broadly in line with expectations in December. The consumer price index increased 0.3% for the month, matching forecasts.
Core inflation, which excludes food and energy, rose 0.2% in December, below expectations for a 0.3% gain. On an annual basis, headline inflation held steady at 2.7%, while core inflation remained unchanged at 2.6%, compared with expectations for a slight increase.
Sector-wise, airline stocks posted sharp declines, pulling the NYSE Arca Airline Index down 2.0%. Software shares also weakened, with the Dow Jones U.S. Software Index falling 1.6%.
Banking stocks were broadly lower, while energy stocks outperformed as crude oil prices jumped. Networking and steel shares also showed pockets of strength during the session.