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US STOCKS-Futures subdued after mixed results from big U.S. banks

Published 10/14/2020, 08:29 PM
Updated 10/14/2020, 08:30 PM
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* Goldman Sachs jumps as profit nearly doubles
* Wells Fargo, Bank of America drop after results
* Concho surges on report of deal talks with ConocoPhillips
* Futures up: Dow 0.15%, S&P 0.01%, Nasdaq 0.25%

(Adds comment, details; updates prices)
By Medha Singh and Shivani Kumaresan
Oct 14 (Reuters) - Futures tracking the S&P 500 were flat on
Wednesday after a mixed bag of quarterly earnings reports from
major Wall Street lenders and on doubts about more fiscal
stimulus following an impasse in Washington.
Senate Majority Leader Mitch McConnell said the
Republican-led Senate would vote next week on a targeted $500
billion coronavirus aid bill of the type Democrats already have
rejected as they hold out for trillions in relief. Fading hopes of a deal on federal aid as well as a halt in
trials of a COVID-19 vaccine and a treatment pulled Wall
Street's main indexes back from one-month highs on Tuesday,
although losses on the Nasdaq were limited as technology
mega-caps outperformed.
"Markets have almost taken a break today, continuing to
digest recent gains," said Ryan Detrick, senior market
strategist at LPL Financial in Charlotte, North Carolina.
"They are gearing up for the earnings season and the
continued back-and-forth out of Washington with the stimulus
plan, which doesn't appear to be any closer than it was a couple
of days ago."
Investors have been expecting more aid after the Nov. 3
presidential election in the event Congress fails to agree on a
deal in the next three weeks.
A widening lead for Democratic candidate Joe Biden in
national opinion polls has also been positive for markets as
they expect more infrastructure spending and less global trade
uncertainty, strategists and fund managers said.
Goldman Sachs Group Inc GS.N jumped 2.2% before market
open as strength in its trading and underwriting businesses
helped quarterly profit surge 94%. On the other hand, Bank of America Corp BAC.N slipped 2.3%
and Wells Fargo & Co WFC.N shed 1.6% after the lenders
reported a slump in profit. Analysts expect earnings for the broader financials sector
to slump 12.1% in the third quarter from a year earlier, while
S&P 500 companies overall are expected to report a 19.6% fall in
earnings, according to Refinitiv IBES data.
Apple Inc AAPL.O edged higher after sliding 3% during an
event in the previous session where the company launched its
next-generation iPhone 12. At 8:18 a.m. ET, Dow e-minis 1YMcv1 were up 42 points, or
0.15%, S&P 500 e-minis EScv1 were up 0.25 points, or 0.01%,
and Nasdaq 100 e-minis NQcv1 were up 30.75 points, or 0.25%.

UnitedHealth Group Inc UNH.N rose 0.8% as the U.S. insurer
reported better-than-expected profit, helped by growth in its
Optum unit that manages its pharmacy benefits business.
Concho Resources Inc CXO.N surged 9.7% after a report that
oil producer ConocoPhillips COP.N was in talks to acquire the
shale producer.

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