US Stock Futures Higher as Bank of America Profit Soars

New York (Jan 13)  Stock futures climbed on Friday as President-elect Donald Trump's election victory in November boosted trading revenue at the big banks.

S&P 500 futures were up 0.12%, Dow Jones Industrial Average futures added 0.13%, and Nasdaq futures rose 0.17%.

Bank of America's (BAC) profit surged 43% in the fourth quarter as a surprise rally in equities over the last two months in 2016 translated into increased trading revenue. Earnings increased to 40 cents a share from 27 cents a year earlier and came in higher than consensus of 38 cents a share. However, adjusted revenue of $20.22 billion came in slightly weaker than expected as analysts forecast revenue of $20.85 billion. Trading revenue rose 11% to $2.91 billion.

PNC Financial Services (PNC) also beat earnings expectations thanks to an increase in revenue. The bank earned $1.03 billion over the revenue quarter, up from $1.01 billion a year earlier. Earnings of $1.97 a share exceeded forecasts of $1.84. Revenue crept 0.5% higher to $3.87 billion, in line with analysts' estimates. Net interest income grew 2%.

Stocks have been in rally mode since Trump's unexpected win in November. Investors have bet big on Trump's proposed infrastructure spending and on hopes of a rollback in regulations on Wall Street. The Dow, in particular, has benefited from Trump's win, rocketing to new records and nearly touching the psychologically significant 20,000 milestone.

JPMorgan (JPM) and Wells Fargo (WFC) will also report earnings on Friday.

Source: TheStreet