However, another of the big US banks has easily beaten earnings expectations, and there's a lot more in the US corporate and economic calendar to come Thursday that could shift sentiment again.
Currently, futures trading indicates that the DJIA will open about 0.2% lower at about 17,085, while the S&P 500 will open 0.4% lower at about 1,973.
Investor sentiment took a knock after the US announced its latest sanctions against
At this stage, however, the sell off is relatively light, and investors are hoping for some more positive company earnings to bring a return to positive equity sentiment.
"This is hardly a major development, it's simply a case of a tad more risk being priced in," said
Sentiment had certainly been positive before the sanctions were announced, with the DJIA ending at another all-time high on Wednesday as earnings and data continued to be supportive. Another of the big banks has reported ahead of the opening bell and has also beaten expectations.
"In general so far, earnings have been coming in nicely above expectations and, coupled with the sentiment from the Federal Reserve, US markets are still looking comfortable at current levels," said IG market analyst
Indeed, the Fed Beige Book, which looks at current conditions in the US, Wednesday indicated economic expansion across all twelve of the Federal Reserve Districts since the previous report, with consumer spending increasing everywhere and increasing loan volumes in most areas.
"Whilst lending conditions are ‘risk-on’ the US economic outlook remains upbeat. This is likely to support earnings growth and equity markets in general," said
There are more corporate earnings to come Thursday, with the biggest stock by weighting on the DJIA,
In terms of data Thursday, US building permits and housing starts data just out have shown slightly less activity that expected, while weekly jobless claims are a little better. In the week ended
The Philadelphia Fed manufacturing survey is due at
Ahead of the
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