U.S. creator futures slipped on Thursday night following the release of the Federal Reserve’s latest bank stress-test results and pathetic quarterly numbers out of Nike.
Dow Jones Industrial Average futures dipped 89 points, or 0.4%. S&P 500 strike down marginally and Nasdaq-100 futures were flat.
The Fed’s annual stress test of the major banks shows some banks could get join to minimum capital levels in scenarios related to the coronavirus pandemic. Because of this, banks must suspend dispensation repurchase programs and keep dividend payments at current levels for the third quarter.
“While I expect banks disposition continue to manage their capital actions and liquidity risk prudently, and in support of the real economy, there is material uncertainty almost the trajectory for the economic recovery,” Fed Vice Chair Randall Quarles said in a statement.
The announcement sent some bank cuts lower in after-hours trading. Bank of America and JPMorgan Chase both dipped more than 1.8%. Wells Fargo crept 3% and Goldman Sachs fell 3.4%. Bank stocks were coming off sharp gains, rallying myriad than 3% during regular trading Thursday.
Meanwhile, Nike shares slid nearly 4% after the bell on the dorsum behind of a surprising quarterly loss for the apparel giant.
The company reported a loss of 51 cents per share and revenue of $6.31 billion for the its budgetary fourth quarter. Nike’s quarterly revenue reflected a drop of 38% on a year-over-year basis.
Wall Street was coming off vehement gains after a late-day surge helped the major averages recover some of the steep losses from Wednesday’s seating. The Dow jumped nearly 300 points Thursday while the S&P 500 and Nasdaq Composite each closed higher by 1.1%.
The crucial averages, however, struggled for direction for most of Thursday’s session as the number of coronavirus cases keeps rising in predetermined states. Florida reported just over 5,000 additional cases. Arizona’s cases jumped by 5.1%, surmount fill up a seven-day average of 2.3%. Texas Gov. Greg Abbott said the state would pause its reopening plans foreordained the recent spike in cases and hospitalizations.
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