Oil slide dents futures ahead of bank earnings

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U.S. stock index futures retreated on Wednesday for a second time this week, as a slide in oil prices pressured energy stocks ahead of what is ...

U.S. stock index futures retreated on Wednesday for a second time this week, as a slide in oil prices pressured energy stocks ahead of what is expected to be another dismal round of first-quarter earnings reports.

UnitedHealth Group Inc , the biggest U.S. health insurer, reported a fall in quarterly profit, but its shares rose 2.6per cent in premarket trading as it maintained its 2020 profit outlook at a time when major companies have withdrawn forecasts due to the coronavirus pandemic.J.C. Penney Co Inc slumped 14.7per cent as sources said the retailer was exploring filing for bankruptcy protection after the virus outbreak upended its turnaround plans.

With dire forecasts of the biggest economic slump this year since the Great Depression, analysts expect earnings for S&P 500 firms to slide 12.3per cent in the first quarter and 23.6per cent in the second, according to IBES estimates from Refinitiv. Oil majors Exxon Mobil Corp and Chevron Corp slipped about 3per cent as oil prices tumbled, pressured by reports suggesting persistent oversupply and collapsing global demand.

 

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