Bank of America shares dropped 6% in early-hours activity Wednesday after the lender reported an unexpected year-over-year decrease in third-quarter earnings. The decline stands out in a mixed premarket session where broader equity indices held steady following the release of September consumer inflation data.
The US seasonally adjusted consumer price index rose by 0.6% in September, matching expectations in a survey compiled by Bloomberg as of 7:30 am ET. The gain followed a 0.4% increase in August, according to data from the US Bureau of Labor Statistics. This alignment with forecasts helped stabilize the market, with the SPDR S&P 500 ETF Trust (SPY) up 0.3% and the Invesco QQQ Trust (QQQ) gaining 0.1% before the open.
Stock futures presented a divided picture heading into regular trading hours. S&P 500 Index futures were up 0.2%, while Dow Jones Industrial Average futures gained 0.4%. Nasdaq futures, however, slipped 0.1%. Mortgage applications fell by 2.7% in the week ended Oct. 9, following a 4.2% drop in the prior week as rates continued to climb, according to Mortgage Bankers Association data.
Sector performance was uneven, with technology and financials under pressure while energy and healthcare showed strength. The State Street Technology Select Sector SPDR ETF (XLK) retreated 1%, and semiconductor stocks were split, with the State Street SPDR S&P Semiconductor ETF (XSD) up 0.1% but the iShares Semiconductor ETF (SOXX) falling 1.8%. Hewlett Packard Enterprise shares fell more than 4% after Barclays downgraded the stock to equalweight.
In healthcare, Liquidia shares surged 35% after the company announced it had ended six pending lawsuits with United Therapeutics. The deal allows Liquidia's Yutrepia treatment for pulmonary arterial hypertension to remain on the market. The State Street Health Care Select Sector SPDR ETF (XLV) advanced 0.5%, while the Vanguard Health Care Index Fund (VHT) rose 1.6%.
Commodity prices moved in different directions, with front-month US West Texas Intermediate crude oil advancing 1.3% to $95.35 per barrel on the New York Mercantile Exchange. Natural gas fell 1.2% to $3.24 per 1 million British Thermal Units. Gold futures for November retreated by 0.1% to $4,172.30 an ounce on the Comex, and silver futures lost 1.2% to $58.83 an ounce.
SpaceX stock declined 0.7% before the opening bell, extending a 4.2% loss from the previous session. Reuters reported that SpaceX is limiting certain Starlink services in Ukraine, a move that impacts military combat drone missions in the country according to a statement from Ukraine's presidential adviser Serhiy Beskrestnov.
Fed officials Thomas Barkin and Michelle Bowman are scheduled to speak on Wednesday, providing additional context for market participants assessing the inflation data and recent earnings reports.