Stock futures rose on Wednesday as investors digested new earnings data and waited for a major inflation report that will show how rising prices have hurt economic recovery and corporate earnings.
Third quarter reporting season picked up speed, with well-known companies such as JPMorgan Chase (JPM) and BlackRock (BLK) releasing their results ahead of market opening. JPMorgan Chase, the largest US bank by assets, posted results that exceeded estimates in terms of both sales and earnings, supported by unexpectedly high release of loan reserves and strong sales in the company’s investment banking and equity trading divisions.
Investors have lowered their outlook for S&P 500’s total earnings growth for the third quarter as rising commodity prices, higher labor costs, and other supply-side headwinds likely weighed on margins and hurt profitability.
Recent developments for a variety of companies in all industries have already reflected the impact of supply chain bottlenecks and shipping challenges. The Wall Street Journal reported that companies from Costco (COST) to Walmart (WMT) have resorted to chartering their own ships to import goods before the holiday season. And Bloomberg reported Tuesday that Apple (AAPL) will cut its iPhone production targets for this year by up to 10 million units due to ongoing chip shortages.
The latest economic data coming Wednesday will likely confirm this Discrepancies between supply and demand at the beginning of autumn led to persistent inflationary pressures. In the Ministry of Labor’s consumer price index, which will be released on Wednesday morning, consensus economists expect core prices excluding food and energy to rise 4.0% year-on-year in September, only slightly from the 30-year high of 4.5 % decline in June.
According to FactSet data, Wall Street analysts expect earnings to grow by around 27% year-on-year for the third quarter. While this would still be the third fastest earnings growth rate since 2010, it would be a significant slowdown from the second quarter’s pace of nearly 90%.
Savita Subramanian, head of US equity and quantitative strategy at Bank of America, wrote on a note this week that this will be « a crucial quarter with all eyes on margins and supply chains.
» We think investors should buckle up because this is going to be a rocky earnings season, « said Aadil Zaman of of the Wall Street Alliance Group on Tuesday told Yahoo Finance Live. « Supply chain problems will dominate profits, and we will see some companies will give us an early Halloween shock. » Focus more on company comments and prospects as a signal of future resilience, noted some experts.
« The message I am giving our investors is that I am not necessarily focusing on the pressures of the third quarter, but primarily on that what companies are saying about future visibility, « John Lynch, chief investment officer of Comerica Wealth Management, told Yahoo Finance Live. “And we think we’ll see good visibility from some of the value and cyclical players going forward.” JPMorgan Chase far exceeded Wall Street’s expectations for third quarter results and earnings, being the results spurred an increase in investment banking activity.
Investment banking revenues increased 45% year over year to $ 3 billion, with both advisory fees and underwriting fees increasing. Elsewhere in the company, revenue from stock sales and trading rose 30%, reaching a better-than-expected $ 2.60 billion. That growth helped offset a 20% decline in fixed income sales and trading revenues, although that was still in line with estimates of $ 3.7 billion. JPMorgan’s quarterly results were also boosted by the liquidation of 2.1 billion
In a statement, Jamie Dimon, CEO of JPMorgan Chase said that the release of the reserves has been made “as the economic outlook continues to improve and our scenarios have improved accordingly. However, as we said earlier, we don’t view these scenario-driven releases as core or recurring earnings. « JPMorgan Chase posted a 24% profit jump Wednesday in the third quarter, largely driven by one-off items that drove its results improved as the bank struggled to grow earnings with interest rates close to zero. The country’s largest bank by asset reported earnings of $ 11.69 billion, or $ 3.74 per share, compared to earnings of $ 9.44 billion, or $ 2.92 per share, for the same period last year The bank had two one-time items that helped increase earnings for the quarter: an income tax break in $ 566 million and clearing $ 2.1 billion from their distressed loan books, something JPMorgan has been doing every three months since the US economy has recovered from the recovery and the pandemic.
On Wednesday, Russia appointed a staunch supporter of the annexation of Crimea by Moscow as its ambassador to the Cape Verde Islands.
Living through the coronavirus pandemic has caused scholastic disruption in schools across America, and former Secretary of Education John B. King is particularly concerned about the social and emotional disruption.
The Biden administration said law enforcement efforts should be focused on being exploitative and Hold unscrupulous employers accountable.
Delta Air Lines returned to profitability in the third quarter, but CEO Ed Bastian says rising fuel prices threaten future profits.
Here are five of them in the Coming out next three to six months which the experts at Edmunds believe will be worth the wait. There will be a lot of EVs arriving in the coming months and the Ioniq 5 seems to stand out from that group. Unlike Hyundai’s Ioniq compact hatchback that is currently for sale, the Ioniq 5 is based on a special EV structure that is tailored to the specific needs of an electric vehicle.
Leon County says its vaccine requirement is « legally defensible. » « and a » responsible measure to protect our employees « .
From Friday, Italy will require all workers to present a coronavirus health passport, one of the toughest anti-Covid regimes in the world that has already sparked and of which many fear that it will cause “chaos”.
The burial of a Holocaust denier in the grave of a Jewish music professor caused a stir in Germany. The top official of the German government tasked with combating anti-Semitism, Commissioner for Jewish Life Felix Klein, criticized the action on Wednesday and joined the incredulous statements made by some of the country’s leading Jews. « This is of course a very regrettable mistake that happened here, » Klein told the dpa.
Today’s headlines:
The USB-C iPhone becomes a reality thanks to a robotics engineer
Google is suing Epic Games for evading fees for in-app purchases
The world’s first hyper e-bike is on the move.
California firefighters fought overnight Wednesday to tackle a fast-moving fire that, according to local authorities, has burned more than 13,400 acres and has been under evacuation orders since Monday JPMorgan Chase reported higher third-quarter earnings on Wednesday as the improving economic outlook allowed it to include $ 2.1 billion in earnings previously set aside in the pandemic for potential loan defaults .
Make more of the sweet and hot sauce for burgers, pulled pork or bacon sandwiches, says Ella Walker
‘EVE Online’ is finally available as a native app on the Mac – no emulator required.
The trans software engineer who publicly criticized Netflix for introducing the special is among the reinstated employees
Blue Origin prepares for it, William Shatner to launch on board his New Shepard rocket today. The New Shepard NS-18 flight was originally scheduled for Tuesday but was delayed due to the windy weather at the launch site in Texas. Shatner is accompanied by Blue Origin Vice President Audrey Powers, former NASA engineer Chris Boshuizen and Medidata CEO Glen de Vries.
US security investigators want to know why Tesla didn’t file recall documents when they did Autopilot software has been updated to better identify parked emergency vehicles, escalating a simmering conflict between the automaker and regulators. In a letter to Tesla, the National Highway Traffic Safety Administration told the electric automaker on Tuesday that it would have to recall vehicles if an update over the Internet mitigated a safety flaw. « Any manufacturer that issues an over-the-air update that mitigates a defect that poses an unreasonable risk to vehicle safety must submit an accompanying recall notification to the NHTSA in good time, » said the agency in a letter to Eddie Gates, Tesla director of field quality.
China’s planning agency on Wednesday said electricity supplies would be high enough to heat homes in the north of the country in winter amid a nationwide energy crisis that resulted in blackouts in some areas. Zhao Chenxin, head of the National Development and Reform Commission, also said China will meet its CO2 reduction targets even if it ramped up coal production to meet increased electricity needs EU member states on Wednesday advised to adopt tax cuts, state aid and other measures to help households and businesses weather the effects of high energy prices that have fueled renewed debate on the use of nuclear energy. After months of economic instability linked to the coronavirus pandemic, the European Commission wants a swift and joint response to mitigate the impact of price increases, especially for people living in poverty or on low incomes. To help consumers, the European Commission has proposed that countries offer income support through vouchers, deferred invoices or partial invoices that can be supported with EU revenue.
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