* BofA, Wells Fargo drops after revenue misses estimates
* JPMorgan gains on profit, revenue top expectations
* Financials expected to boost S&P 500 Q4 profit growth
* Futures up: Dow 11 pts, S&P 1.25 pts, Nasdaq 5.5 pts
(Adds details, comment, updates prices)
By Tanya Agrawal
Jan 13 U.S. stock index futures gave up some
gains on Friday after disappointing quarterly reports from Bank
of America and Wells Fargo.
Shares of Bank of America fell 0.7 percent to $22.76
in premarket trading after the lender's quarterly profit beat
estimates, but its revenue fell short.
Wells Fargo was down 1 percent at $53.95 after it
reported a fall in profit and its revenue fell short of market
JPMorgan was up 0.2 percent at $86.39 after its
quarterly profit and revenue both topped analysts' expectations.
The combined profit of S&P 500 companies is estimated to
have risen 5.7 percent in the fourth quarter, largely helped by
financial companies, according to Thomson Reuters I/B/E/S.
"There is a lot of optimism regarding the financial sector
but any kind of cautious statement from them might cause a bit
of a pullback," said Scott Brown, chief economist at Raymond
James in St. Petersburg, Florida.
"All the changes that are being proposed for the sector is
going to take some time, it's not going to happen right away."
Dow e-minis were up 11 points, or 0.06 percent, with
16,237 contracts changing hands at 8:35 a.m. ET (1335 GMT).
S&P 500 e-minis were up 1.25 points, or 0.06 percent,
with 99,199 contracts traded.
Nasdaq 100 e-minis were up 5.5 points, or 0.11
percent, on volume of 15,473 contracts.
The S&P financial sector has jumped about 17 percent
since the Nov. 8 U.S. presidential election, outpacing the S&P
500's 6.1 percent rise, boosted by hopes of deregulation and
increased interest rates.
U.S. stocks overall have been on the rise since the election
on optimism that U.S. President-elect Donald Trump's policies to
boost infrastructure spending and reform corporate taxes will
benefit the economy.
But, analysts fear the market has run too far too soon, with
Trump's policies expected to hit legislature hurdles, and with
stock valuations stretched.
Blackrock Chief Executive Larry Fink told CNBC that
if the roll out of growth initiatives by Trump are slower, then
the markets are ahead of themselves.
Shares of the world's largest asset manager were little
changed after the company reported a better-than-expected
U.S. retail sales rose solidly in December amid strong
demand for automobiles, with data showing retail sales increased
0.6 percent last month, slightly below the 0.7 percent increase
expected by economists.
A separate report at 10 a.m. ET is expected to show U.S.
consumer sentiment improved to 98.5 in January from 98.2.
Pandora Media was up 8.2 percent at $12.98 after the
online radio service said it would reduce its U.S. workforce and
that it expects to surpass its fourth-quarter revenue forecast.
(Reporting by Tanya Agrawal; Editing by Savio D'Souza)