U.S. equity futures were trading lower Thursday morning ahead of the release of earnings from the big banks.
The major futures indexes suggest a decline of 1% when the opening bell rings on Wall Street.
Oil prices traded lower Thursday morning as investors looked at the prospect of a large U.S. rate hike that would stem inflation and curb crude demand.
U.S. West Texas Intermediate crude was at $95 a barrel, after a small rise in the previous session.
Brent crude futures traded at $99 a barrel after settling below $100 for the second straight session on Wednesday.
Second quarter earnings season kicks off unofficially this week with several of the major banks reporting starting with JPMorgan Chase and Morgan Stanley.
JPMorgan Chase is expected to report an increase in revenue, but a lower profit than a year ago. The Refinitiv estimate is for $2.93 per share, down from $3.78 a year ago. The revenue estimate is for $31.97 billion, a 1.8% boost from year ago.
Morgan Stanley's results are expected to fall short of year ago numbers. The profit estimate is for $1.53 per share, off 17% from last year's $1.73. The revenue estimate is for $13.48 billion, down more than 8% from a year ago.
On the economic calendar, traders will review another inflation report in the form of producer prices. Wholesale prices are expected to rise 0.8% month-over-month according to Refinitiv forecasts, matching May’s increase but below a record 1.6% surge in March. Year-over-year, prices paid by wholesalers are anticipated to jump 10.7% in June. core producer prices are anticipated to rise 0.5%.
Investors will also look over the latest jobless figures.
Bitcoin was trading around $20,000.
In Asia, Tokyo's Nikkei 225 gained 0.6%, the Hang Seng in Hong Kong slipped 0.2% and China's Shanghai Composite Index was off 0.1%.
|I:DJI||DOW JONES AVERAGES||31899.29||-137.61||-0.43%|
|I:COMP||NASDAQ COMPOSITE INDEX||11834.111839||-225.50||-1.87%|
Wall Street's benchmark S&P 500 index lost 0.4% on Wednesday after data showed U.S. consumer inflation rose to 9.5% in June over a year earlier from May's 8.6%.
The Dow Jones Industrial Average fell 0.7% to 30,772.79, and the Nasdaq composite dropped 0.2% to 11,247.58.
Traders are looking ahead to the latest quarterly results from big U.S. companies in the next few weeks.
The Associated Press contributed to this report.