U.S. stock futures mostly steady as Bank of America, JP Morgan and other big financial names get ready to kick off earnings season

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Stock futures were flat to slightly weaker on Friday, which will mark the start of fourth-quarter earnings season.

U.S. stock futures were little changed on Friday, as investors await the first batch of big fourth-quarter earnings that will include reports from JPMorgan Chase & Co. and Bank of America Corp.

Shares of Tesla Inc. TSLA fell in premarket trading after the company announced price cuts for its Model 3 and Model Y cars. Many investors are torn on what to expect. Some believe outlooks have already been cut enough and will open the door to better-than-expected results and stock gains, while others see lackluster results and downbeat forward guidance leading to further stock falls. Recession worries are also weighing on investors headed into those results.But more economic data is also on the way Friday, a day after a report that showed the first inflation fall in more than two years.

“According to fed fund futures, financial markets now see no more than a one-in-ten chance of another 50bp move in February, with a final 25bp hike in March not currently fully price in. What this does is confirm suspicions that the Fed will be done hiking rates sooner than most of its major peers, which is clearly providing some headwinds to the U.S. dollar,” said Matthew Ryan, head of market strategy at global financial services firm Ebury, in a note to clients.

 

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