Beat the street: Softer-than-anticipated inflation; mixed US bank earnings; Delta shares; Chevron; Exxon Mobil
Softer-than-expected PPI data cheered traders hoping for an earlier Fed rate cut, but the optimism was tempered by mixed earnings reports from JPMorgan Chase, Citigroup, Bank of America, and Wells Fargo.
Chevron and Exxon Mobil, both all-sessions, rose as oil prices jumped after the US and UK launched strikes against Houthi rebels.
(AI Video Summary)
Mixed stock market reactions
In today's edition of "Beat the street", hosted by Angeline Ong, she delivers crucial news and data to traders before the Wall Street market opens. It's important to note that investors are being cautious as they eagerly await more information on inflation, while also closely analysing the earnings reports from major US banks like JPMorgan Chase, Citigroup, Bank of America, and Wells Fargo. So far, the stock market has had a mixed reaction to these reports. Another factor affecting the market is the rise in oil prices due to strikes against rebels carried out by the US and the UK.
US banks earnings report
JPMorgan Chase has reported its best-ever annual profit and higher-than-expected interest income for 2024, despite a dip in quarterly profits because they needed to replenish a government deposit insurance fund. On the flip side, Citigroup recorded a loss for Q4 due to charges related to the deposit insurance fund and their ongoing restructuring efforts. Wells Fargo saw an increase in Q4 profit thanks to Costco, but their outlook for net interest income in 2024 isn't as promising, causing their shares to drop. Bank of America also experienced a decrease in fourth-quarter profit due to charges related to the deposit insurance fund and the removal of a loan index.
Positive Dow Jones outlook
Moving on, the Dow Jones is close to hitting its all-time high and could potentially reach a significant milestone of 40,000 this year, according to expert analysis. Additionally, oil prices are influenced by factors like the strikes in Yemen and limited supply from companies hesitant to invest in new exploration. Experts predict a possible rise in oil prices, with Brent crude potentially reaching $86.50 and US crude oil reaching $78.
Stock performance analyses
She also highlights the performance of specific stocks. Chevron and Exxon Mobil stocks are on the rise due to the increase in oil prices. However, Tesla's stock has suffered a setback after reducing prices for some of its new China models. Furthermore, Delta Air Lines' stock has declined by almost 5% as they adjusted their profit outlook for the current year, citing issues with their supply chain and general economic uncertainties.
Bitcoin ETFs approved
In other news, Bitcoin ETFs have received approval from the SEC, resulting in a race for market share and a two-year high for Bitcoin. Lastly, the report touches on the performance of the S&P 500 and NASDAQ 100 after the release of banking results and PPI data.
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