Stock futures trade cautiously as earnings parade continues

Gregg Smith of Evolution VC Partners provides insight into what factors are impacting markets, including upcoming earnings, the Federal Reserve, the coronavirus vaccine race and the presidential election.

U.S. equity futures are bouncing between gains and losses ahead of the Wednesday trading session.

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The major futures indexes are suggesting a flat open.

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A number of financial names will be reporting quarterly results including Goldman Sachs, Bank of America and Wells Fargo.

Several companies kicked the earnings season off on Tuesday with better-than-expected reports. JPMorgan Chase, Johnson & Johnson, Citigroup and BlackRock all reported stronger results for the summer than analysts had forecast.

Investors will also get the latest reading on wholesale inflation. September producer prices are expected to increase 0.2% according to Refinitiv forecasts, just below the 0.3% rise in August. Year-over-year, prices paid by wholesalers are also expected to increase the same 0.2% .

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Shares were mixed in Asia on Wednesday after pandemic concerns snapped a four-day winning streak on Wall Street.

Japan’s Nikkei 225 erased early losses to gain 0.1%, while the Hang Seng in Hong Kong added 0.1% and China’s Shanghai Composite shed 0.6%.

In Europe, London’s FTSE slipped 0.1%, Germany’s DAX declined 0.1% and France’s CAC was off 0.2%.

Rising coronavirus counts in many countries are raising the urgency to develop vaccines and treatments and setbacks in that process tend to discourage investors.

On Tuesday, independent monitors paused enrollment in a study testing the COVID-19 antiviral drug remdesivir plus an experimental antibody therapy being developed by Eli Lilly. The company said the study was paused “out of an abundance of caution.” The news followed a disclosure late Monday by Johnson

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