Future flat after bank stress test results, Nike reports surprise loss

Traders work during the opening bell on the New York Stock Exchange (NYSE) on March 16, 2020 on Wall Street in New York City.

Johannes Eisele | AFP | fake pictures

US stock futures were mostly flat on Thursday night after the release of the latest Federal Reserve bank stress test results and Nike’s disappointing quarterly numbers.

Dow Jones Industrial Average futures fell 67 points, or 0.3%. S&P 500 and Nasdaq-100 futures traded marginally above the flat line.

The Fed’s annual stress test of major banks shows that some banks may approach minimum capital levels in scenarios related to the coronavirus pandemic. Because of this, banks must suspend share buyback programs and keep dividend payments at current levels for the third quarter.

“While I hope that banks will continue to manage their capital and liquidity risk stocks wisely, and in support of the real economy, there is material uncertainty about the trajectory of the economic recovery,” said Fed Vice President Randall Quarles. , it’s a statement.

The announcement sent some banking stocks lower in off-hours trading. Bank of America and JPMorgan Chase fell 1.3%. Wells Fargo fell 3.5% and Goldman Sachs fell more than 3%. The banks’ stocks were coming out of strong gains, rising more than 3% during regular trading on Thursday.

Meanwhile, Nike shares fell more than 3% after the bell on the back of a surprising quarterly loss for the clothing giant.

The company reported a loss of 51 cents per share and revenue of $ 6.31 billion for the fiscal fourth quarter. Nike’s quarterly revenue reflected a 38% drop year-over-year.

Wall Street was making strong gains after a gain on the day helped major averages regain some of the heavy losses from Wednesday’s session. The Dow jumped nearly 300 points on Thursday, while the S&P 500 and Nasdaq Composite closed up 1.1%.

However, the leading averages struggled to get directions for most of Thursday’s session, as the number of coronavirus cases continues to rise in certain states. Florida reported just over 5,000 additional cases. Arizona cases increased 5.1%, beating a seven-day average of 2.3%. Texas Governor Greg Abbott said the state would pause its reopening plans due to the recent increase in cases and hospitalizations.

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