Stock futures point to rebound for Friday session

Investors may take a day off from what has been a turbulent week on Wall Street.

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Equity futures are pointing to a rebound and a positive open to trading on Friday morning.

Dow Jones futures were rising by 1.2 percent, for more than a 200 point gain.  The S&P 500 added 1.3 percent and the Nasdaq Composite was up 1.8 percent.

Factors playing into the rebound include reports that President Trump and his Chinese counterpart Xi Jinping may meet at the Group of 20 summit in Argentina in late November. The aim would be to find a way out of the impasse over trade that has led both countries to impose penalty tariffs on billions of dollars of each other’s exports.

However, China reported on Friday an unexpected acceleration in export growth in September and a record trade surplus with the U.S., which could exacerbate an already-heated dispute.

There have also been reports that the U.S. Treasury Department will not call China a currency manipulator in its upcoming semiannual report.

In Asian markets on Friday, Japan’s Nikkei average ended the day gaining 0.5 percent, but for the week fell 4.6 percent.

China’s Shanghai Composite rose 0.8 percent fell close to 1 percent.

Hong Kong’s Hang Seng traded higher by as much as 1.2 percent.

In Europe, London’s FTSE opened up 0.5 percent, Germany’s DAX gained 1.2 percent and France’s CAC was higher by 1 percent.

U.S. stocks were whipsawed for a second straight session Thursday, a day after the Dow Jones Industrial Average registered its third-largest point drop in its history.

The blue-chip index tumbled about 546 points, or 2.13 percent, as investors continued to trade on concerns over rising interest rates. The Dow lost about 832 points in Wednesday trading.

The broader S&P 500 dipped 57 points, about 2 percent, while the Nasdaq was down 93 points, or 1.25 percent.

Ticker Security Last Change %Chg
I:DJI DOW JONES AVERAGES 25052.83 -545.91 -2.13%
SP500 S&P 500 2728.37 -57.31 -2.06%
I:COMP NASDAQ COMPOSITE INDEX 7329.0605 -92.99 -1.25%

The rout followed fast-rising bond yields and signs of inflation, which led investors to worry that profit margins could narrow.

Of note, on Thursday the yield on the 10-year U.S. Treasury note retreated slightly but remained above 3 percent.

Economic data released Thursday included a report on inflation. The Consumer Price Index rose a modest 0.1 percent in September, below the estimated rise of 0.2 percent. CPI was up 2.3 percent year-over-year last month, also below the Refinitiv estimate of 2.4 percent. Core CPI, which excludes volatile food and energy prices, also came in slightly below estimates. Weekly jobless claims rose by 7,000 to 214,000.

On Friday, traders will get another inflation-related report with a check on import and export prices.  There will also be the latest report on consumer sentiment.

The morning will also mark the start of earnings season for the big banks with JPMorgan Chase, Citigroup and Wells Fargo reporting.

Ticker Security Last Change %Chg
JPM JP MORGAN CHASE & CO. 108.13 -3.34 -3.00%
C CITIGROUP INC. 68.38 -1.57 -2.24%
WFC WELLS FARGO & COMPANY 51.44 -0.99 -1.89%

Analysts polled by Refinitiv expect JPMorgan Chase to earn $2.26 per share on revenue of $27.57 billion. In the second quarter, JPM earned $1.76 per share on revenue of $26.2 billion.

Citigroup is forecast to earn $1.69 on revenue of $18.45 billion. In the second quarter of this year, Citigroup earned $1.63 per share and revenue came in at $18.46 billion.

Wells Fargo is forecast to earn $1.17 per share on revenue of $21.9 billion. In the second quarter, Wells Fargo missed expectations reporting a profit of $0.98 per share on revenue of $21.6 billion. The quarterly earnings per share included a discrete income tax expense of $0.10 per share.

Crude prices were higher by 1 percent after a 2-day fall.

FOX Business’ Leia Klingel, Matthew Rocco and Charles Brady contributed to this article.

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