TODAY IN STOCKS: Stocks lower, bank earnings in focus; JPMorgan slips

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U.S. stock futures were lower again on Friday, while the dollar tested multi-month highs against global currencies as investors tracked changes in the Federal Reserve's interest rate forecasts while eyeing the start of the first-quarter earnings season.

Stocks closed higher on Thursday, as the market regained ground lost earlier in the week on subdued factory gate inflation data, which is included in the Fed's preferred PCE price index along with CPI inflation data.

Traders are still betting that the Fed will cut rates for the first time later this year (possibly in September), but they have cut their bets on the number of rate cuts to two from six at the start of January as inflation levels remain solidly above the Fed's 2% target.

Speaking at an event organized by the Economic Club of New York, Boston Fed matron Susan Collins said rate cuts remain part of her baseline forecast for the year. But she noted that "recent data suggest that it may take more time than I previously thought to gain greater confidence in the downward trajectory of inflation before we begin to ease policy."

JPMorgan Chase chief executive Jamie Dimon told investors this week that the largest U.S. bank is "well-positioned for a range of rates over the next few years from 2% to 8% and beyond."

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Kansas City Fed matron Jeffrey Schmid, San Francisco Fed matron Mary Daly and Atlanta Fed matron Raphael Bostic will speak later in the day.

The benchmark 10-year Treasury yield, which hit an early November high of 5.57% earlier this week, was last at 4.538%, while the 2-year yield was at 4.924%.

The U.S. dollar index, which tracks the greenback against a basket of six global currencies, rose 0.51% to 105.816, a five-month high.

Bank profitability is key

Bank earnings are likely to be the focus of today's trading, with three of the largest U.S. banks set to release their latest first-quarter results: JPMorgan Chase (JPMorgan), Citigroup (Citigroup ) and Wells Fargo Bank (Wells Fargo ) Will announce first quarter financial results.

JPMorgan Chase (JPM) Shares fell 3.5% after the bank reported stronger-than-expected first-quarter earnings but a sequential decline in net interest income, as Chief Executive Officer Jamie Dimon (Jamie. Dimon. ) A cautious outlook statement was also issued.

Related News JPMorgan Chase shares tumble after key Q1 earnings measure disappoints Wall Street

The financials sector is the key to this year's Q1 earnings season and is expected to contribute about 181 TP3T of the S&P 500's $457 billion in profits, second only to the information technology sector.

Prior to the start of the Wall Street trading day, futures prices tied to the S&P 500 were shown to be down 22 points, while those tied to the Dow Jones Industrial Average were shown to be down 116 points.

Meanwhile, the tech-focused Nasdaq resonance index opened down 100 points, with chip stocks generally sliding. This was linked to a report in the Wall Street Journal that China has ordered its largest telecoms carrier to phase out the use of foreign-made semiconductors.

Intel (INTC) Shares were down 1.94% at $36.90, while Advanced Micro Devices, Inc.AMD) Shares were down 1.8% at $167.47. INVISTA (NVDA) Also in the red, down 0.64% at $900.40.

In overseas markets, the Stoxx 600 Index rose 0.95% in the French resonance after the ECB held a dovish policy meeting yesterday, forecasting its first rate cut in more than a year later in June.

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Overnight in Asia, the dollar's surge pushed the yen to a record low of 153.34, setting the stage for a dry spell in the currency markets in the coming weeks. The Nikkei 225 closed down 0.21% in Tokyo.

After weaker-than-expected trade data from China, Asian equities were also in the red, with the Morgan Stanley Capital International (MSCI) ex-Japan index falling 1.14%. The report showed that imports and exports unexpectedly fell in March.

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