Federal Reserve Chairman Jerome Powell speaks at the National Association for Business Economics (NABE) annual meeting in Nashville, Tennessee, USA, Monday, September 30, 2024.
Seth Herald | Bloomberg | Getty Images
This report comes from today’s CNBC Daily Open, our international markets newsletter. CNBC Daily Open keeps investors updated on everything they need to know, no matter where they are. Like what you see? You can subscribe here.
What you need to know today
Tesla’s Cybercab and Robovan
Tesla The company’s shares fell 8.8% after the company’s “We, the Robots” campaign disappointed investors. At Thursday night’s event, CEO Musk unveiled the Cybercab, a two-seater without a steering wheel or pedals, and the Robovan, a high-capacity self-driving car. But Musk provided few other details, leading analysts to cast doubt on the company.
More assurances from China
According to CNBC’s Chinese translation, at a press conference on Saturday, Chinese Finance Minister Lan Fo’an told reporters that Beijing has “considerable” room to increase its budget deficit, but that the government is still discussing a stimulus plan. Lan also announced measures to support employment and the real estate industry.
Bank profits are good
JPMorgan ChaseThe largest U.S. banks reported third-quarter profit and revenue that beat expectations. Net interest income increased by 3% compared with the same period last year, driving revenue to grow by 6%. Wells Fargo The third season was pretty good. The bank’s profit beat expectations, but unlike JPMorgan, revenue fell short of expectations and NII fell.
(PRO) Earnings will show market direction
Corporate earnings will determine the near-term market trend following the release of a slew of data including the September jobs report and consumer price index report. Big banks dominated this week’s third-quarter reports. it is Bank of America and Goldman Sachs Turn on Tuesday, at the same time Morgan Stanley It releases its financial results on Wednesday.
bottom line
Looks like September’s inflation data was hotter than expected It was indeed a flash in the pan.
A slight thump in the producer price index eased worries about still-stubborn inflation. The index, which measures wholesale prices – and therefore typically signals changes in CPI – was unchanged in September from August, defying expectations in the Dow Jones survey for a 0.1% rise.
In fact, as CNBC’s Jeff Cox reports, last week’s inflation data looked so promising that Goldman Sachs believes the Fed just cut inflation to its 2% target. without causing an economic collapse.
The University of Michigan Consumer Survey showed that while consumer confidence fell slightly in October, “long-term business conditions rose to their highest level in six months,” wrote Joanne Hsu, the survey’s director.
JPMorgan Chase’s third-quarter earnings report may be the first taste of this. The largest U.S. banks beat revenue and profit estimates. Since banks typically reflect the health of the overall economy, this suggests that despite falling consumer confidence, it’s not all bad.
Granted, earnings reflect what has already happened. Investors are more concerned about what is going to happen. But as JPMorgan Chief Financial Officer Jeremy Barnum told reporters, consumers are “in good shape and the fundamentals are solid.”
The market cheered a string of bullish news.
Friday, S&P 500 Index Add 0.61%, Dow Jones Industrial Average up 0.97% Nasdaq Index up 0.33%.
It marked a fifth straight week of wins for Wall Street. The S&P and Nasdaq rose 1.1%, while the Dow Jones fared slightly better, rising 1.2% for the week.
“We’re seeing … the market expand,” said Craig Sterling, head of U.S. equity research at Amundi US.
It’s a reminder that curbing inflation is only the end of the road for investors toward the real end of a healthy stock market.
– CNBC’s Jeff Cox, Samantha Subin and Brian Evans contributed to this article.
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