Dow futures rise 100 points, head for winning week after strong bank earnings, yields retreat: Live updates

Shares of Citigroup rose more than 2% in premarket trading after the bank’s third-quarter report showed stronger-than-expected revenue.

Here is how the bank’s results compared to estimates from analysts surveyed by LSEG, formally Refinitiv.

Earnings per share: $1.63. Not comparable to the expected $1.21 due to divestitures. Excluding divestitures, earnings per share were $1.52.Revenue: $20.14 billion, vs. expected $19.31 billion

Citigroup saw solid year-over-year growth in both its institutional clients and personal banking and wealth management units.

— Jesse Pound

Dollar General‘s latest leadership change could help re-stabilize the company and put it on track toward growth again, according to research firm Gordon Haskett. 

Analyst Chuck Grom upgraded shares to buy from hold after the company announced former CEO Todd Vasos would be returning and replacing Jeff Owen as chief executive on Thursday.

The stock jumped 7.2% Friday during premarket trading. CNBC Pro subscribers can read more about the upgrade here.

— Hakyung Kim

Netflix shed 2% Friday before the bell following a downgrade from Wolfe Research.

Analyst Peter Supino downgraded the streaming service to peer perform from outperform. He said the company’s premium valuation may not be able to hold up against falling growth expectations.

To read more about his downgrade, click here.

— Hakyung Kim

UnitedHealth shares were up 1.6% after the health insurance giant posted earnings of $6.56 per share for the third quarter, exceeding an LSEG estimate of $6.32 per share. Revenue of $92.4 billion was also above expectations.

Revenue from premiums and services topped analyst expectations. The company also raised its full-year earnings per share guidance.

— Fred Imbert

JPMorgan Chase reported third-quarter revenue of $40.69 billion, more than the LSEG analyst consensus of $39.63 billion. The bank said earnings per share for the period was $4.33, but it was not immediately clear whether that could be compared to the $3.96 consensus estimate from LSEG. It did appear to be a beat, but not clear by how much. Overall, net income was up 24% for the quarter and net revenue was up 15% excluding items related to the First Republic takeover. Higher rates helped the bank more than expected with interest income topping expectations.

There shares were slightly in the green following the results.

“Currently, U.S. consumers and businesses generally remain healthy, although, consumers are spending down their excess cash buffers,” noted CEO Jamie Dimon in the earnings press release.

—John Melloy

Asset management giant BlackRock reported mixed results for the third quarter, sending the stock slightly lower in the premarket. The company earned $10.91 per share, easily exceeding an LSEG estimate of $8.26 per share. Revenue, however, was in line at $4.52 billion.

“For the first time in nearly two decades, clients are earning a real return in cash and can wait for more policy and market certainty before re-risking. This dynamic weighed on industry and BlackRock third quarter flows,” CEO Larry Fink said in a statement.

— Fred Imbert

Oil prices popped Friday after the U.S. strengthened sanctions against crude exports out of Russia, adding fuel to supply concerns around the world. West Texas Intermediate futures traded 4% higher at $86.29 per barrel. Brent crude advanced 3.9% to $89.33 per barrel.

— Fred Imbert, Sam Meredith

JPMorgan Chase, Wells Fargo and Citigroup are on deck to report their latest quarterly earnings Friday morning.

For 2023, the three stocks are well ahead of the SPDR S&P Bank ETF (KBE). JPMorgan is posting an 8.7% gain this year, while Wells Fargo is off nearly 3.8% and Citigroup is down more than 8%. This compares to the nearly 20% loss KBE is facing in a year that has come with higher interest rates and slowing demand for loans.

JPMorgan and Citigroup are close to flat in the past month, but Wells Fargo has lost 6.5% in that period. All three are on pace for modest weekly gains. Friday’s results could sway the stocks during the session.

Read more about the upcoming bank earnings reports here.

–Darla Mercado, Ethan Kraft

A strong third-quarter earnings season could set up markets for a year-end rally, according to Ed Yardeni.

The founder of Yardeni Research believes that earnings bottomed out in the second quarter and should be followed be a recovery in the third.

“What really came down is the profit margin because companies got squeezed but somehow or other, companies are starting to figure out ways to make their profit margin go up. The analysts consensus expectations are showing that,” he told CNBC’s “Closing Bell” on Thursday.

Against a macroeconomic backdrop of higher rates, Yardeni also believes that mega-cap tech companies could be a good bet, since they don’t have as much debt and are therefore less exposed to interest rate risks.

“I think tech could actually turn out to be the safe haven in an environment where interest rates are going to be higher for longer,” he said.

— Lisa Kailai Han

Dollar General stock climbed nearly 8% higher in post-market trading hours after the company announced it was reinstating former CEO Todd Vasos.

Vasos, who held the position from June 2015 to November 2022, will take the reins immediately from successor Jeff Owen. During Owen’s time in the role, the company faced declining sales growth and mounting criticism for its unsafe working conditions.

On Thursday, Dollar General also lowered its full-year profit guidance. The company now expects earnings of about $7.10 to $7.60 per share, versus prior forecasts of between $7.10 to $8.30 per share.

Read more about Todd Vasos’ return to Dollar General here.

— Lisa Kailai Han, Gabrielle Fonrouge, Jacob Pramuk

Stock futures traded near flat on Thursday evening.

Dow Jones Industrial Average futures fell 31 points, or 0.09%. S&P 500 futures and Nasdaq 100 futures were both marginally unchanged.

— Lisa Kailai Han