Citigroup Stock, JPMorgan Gain on Earnings, Apple Amazon Rise. Dow Still Falls.

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Stock indexes were modestly lower Tuesday after a big Monday for technology shares. There was some bad news on the Covid-19 vaccine front and little progress toward a fiscal stimulus bill in Washington, but most of Tuesday’s action was on the individual stock level, as third-quarter earnings season kicks off.

On Tuesday morning, the

Dow Jones Industrial Average

fell 110 points, or 0.4%, the

S&P 500

also dipped 0.4%, and the

Nasdaq Composite

ticked down less than 0.1%.

It was a contrast to Monday, when stocks jumped on little news during a light Columbus Day holiday and the technology-heavy Nasdaq rallied 2.6% to its third-highest close in history.

Contributing to the lackluster trading on Tuesday was an announcement from

Johnson & Johnson

(ticker: JNJ) on Monday night that it paused its trial of a coronavirus vaccine after an unexplained illness in a trial participant.

It isn’t uncommon for

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Amazon, J&J, Apple and JPMorgan – 5 Things You Must Know

Here are five things you must know for Tuesday, Oct. 13:

1. — Stock Futures Waver After J&J Vaccine Trial Pause

Stock futures fluctuated Tuesday following a setback in a coronavirus vaccine trial being conducted by Johnson & Johnson  (JNJ) – Get Report and as Wall Street prepared for the start of earnings season.

Contracts linked to the Dow Jones Industrial Average fell 106 points, S&P 500 futures slipped 9 points and Nasdaq futures rose 29 points.

Johnson & Johnson paused its trial of a vaccine for Covid-19, the disease caused by the coronavirus, following an unexplained illness in a patient.

The healthcare giant said the trial participant’s illness was being reviewed and evaluated.

“We are committed to providing transparent updates throughout the clinical development process of our vaccine candidate, in compliance with regulatory standards and our own high ethical and scientific principles,” J&J said in a statement.

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JPMorgan Set to Kick Off Third-Quarter Earnings Season

Third-quarter earnings season gets underway in the week ahead with results from big banks and healthcare companies among the heavy hitters on tap.

Here’s a look at some of the more notable results expected beginning on Tuesday.

JPMorgan

JPMorgan Chase & Co.  (JPM) – Get Report is expected to report adjusted net income of $6.9 billion, or $2.23 a share, on sales of $28.2 billion before the market opens on Tuesday, based on a FactSet survey of 23 analysts.

In the same period a year ago, the company posted earnings of $2.68 a share on sales of $30.1 billion. It reported net income of $9.6 billion.

The stock has risen 3.6% since the company last reported earnings on July 14.

In the upcoming quarter, analysts are forecasting adjusted net income of $6.1 billion, or $1.91 a share, on sales of $26.8 billion.

For the year, analysts project revenue

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China market reforms have benefited SMEs and tech companies: JPMorgan

The inner view of Shenzhen Stock Exchange as the first batch of registration-based initial public offerings (IPOs) of 18 enterprises are about to debut on the ChiNext board on August 23, 2020 in Shenzhen, Guandong Province of China.

VCG | VCG via Getty Images)

SINGAPORE — As China continues to push toward further reforms in its financial markets, one of the changes the country made was to revamp listing rules for the ChiNext start-up board.

The move has benefited small and medium-sized businesses, as well as technology firms, according to Chaoping Zhu, a global market strategist at JPMorgan Asset Management.

“Based on the current development in the market, we find that it has been easier for companies to get listed in the stock market since the registration system was adopted,” Zhu told CNBC in an email.

“The major beneficiaries are SMEs (small and medium-sized enterprises) and innovative tech companies,” he

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JPMorgan Chase, Citigroup, PepsiCo and Micron Technology are part of Zacks Earnings Preview

For Immediate Release

Chicago, IL – September 28, 2020 – Zacks.com releases the list of companies likely to issue earnings surprises. This week’s list includes JPMorgan Chase & Co. JPM, Citigroup Inc. C, PepsiCo, Inc. PEP and Micron Technology, Inc. MU.

Handicapping Q3 Earnings Season

The overall earnings picture has been steadily improving over the last three months as big parts of the U.S. economy have started coming out of the pandemic-driven lockdown. The market will be looking for this improving earnings trend to accelerate in the Q3 earnings season.

The wide majority of companies have fiscal quarters that correspond with the calendar quarters, which is September 30th for Q3. These calendar-quarter companies will start reporting Q3 results after September 30th. Back in the day when Alcoa was in all the major indexes, the aluminum producer was generally seen as kick-starting quarterly reporting cycles.

The rump Alcoa

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JPMorgan Says Usual Hedges Aren’t Working as They Once Did

(Bloomberg) — Safe-haven assets seen as traditional hedges aren’t panning out as they once did, according to JPMorgan Chase & Co.

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Easy-money policies may actually be keeping investors in cash and away from other traditional buffers, strategists led by John Normand wrote in a note Friday. That’s because such policies create a zero-yield environment where cyclical assets might be too difficult to hedge, they said.

This kind of conservative mindset may not become popular enough to affect the direction of risky markets, but it could discourage investors from deploying their cash into other asset classes, the strategists said.

“Defensive assets are delivering their weakest performance and therefore worst hedge protection of any equity sell-off in at least a decade,” Normand said. “The wall of cash some hypothesize will inevitably flow into equity, credit and EM may remain very high indefinitely.”

The S&P 500 index is down about 8%

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