Morning 10-13

Earnings season has begun

JPM via CNBC (Emphasis my own) stock ~+1%

  • JPMorgan Chase posted earnings that beat analysts’ estimates for the top and bottom line. The stock edged higher by 1.1% in early trading.
  • The bank posted third-quarter profit of $9.44 billion, or $2.92 per share, exceeding the $2.23 consensus of analysts surveyed by Refinitiv.
  • The firm generated revenue of $29.94 billion, about $1.5 billion more than what analysts had expected, fueled in part by better-than-expected trading results.
  • Rather than building reserves for loan losses, as it had done aggressively in the first half of the year, it actually reduced them by $569 million.  

Citi.

Citigroup Q3 20 Earnings: – Revenue: $17.3B (exp $17.2B) – Adj EPS: $1.40 (exp $0.93) – FICC Sales & Trading Revenue: $3.79B (exp $3.66B) – Total Cost Of Credit: $2.26B (exp $3.94B)

News:

“Johnson & Johnson announced … it is temporarily pausing recruitment and dosing of its coronavirus vaccine in clinical trials due to an ‘unexplained illness in a study participant.’ “The independent drug safety monitoring board for J&J’s phase 3 ENSEMBLE trial is reviewing the unexpected event. The company did not disclose more information about the affected individual.”   (Politico)

“Trump has tested negative for Covid-19 on consecutive days and is not infectious to others, his physician said(politico)

China trade Balance showed Imports at 11.6% vs Expectations of 1% A good sign for Global growth(and U.S. Ag products), Exports  though missed at 8.7% vs f/c 0f 10.5%. China trade surplus w/ USA dipped from $ 34.24 to $30.75

Small business optimism index back at pre pandemic levels as “more businesses plan toa dd workers, boost capital spending and build Inventories” per news release

Optimism in the U.S. but pessimism  in Germany “The ZEW Indicator of Economic Sentiment for Germany dropped by 21.3 points from the previous month to 56.1 in October 2020, from the previous month’s over 20-year high and well below market expectations of 73. Investors voiced concerns about the recent sharp rise in the number of COVID-19 cases and the prospect of the UK leaving the EU without a trade deal. (trading economics)

Markets:

 I can’t remember exactly where I read it but I think this is A good reason why Nasdaq Stocks moving higher. Scarcity causes prices to move higher, Growth stocks are scarce at the moment but where you can find Growth is in tech so thus the push higher in prices. Apple unveiling a new iPhone today Stock +6% yesterday +1% today amazon prime day(s) starts today stock higher again today the growth is here in these stocks. Also plenty of talk of another “whale” type trade in  Big tech  stock options it worked once why not try it again!  A break in Beans yesterday below short-term support let’s see if minor correction or start of the Harvest Selling, beans up 20 ticks so far today.  Cpi Inline… Dollar little changed, Copper, Gold and Silver steady treasuries are higher. European Bourses lower Dax -.75% Cac -.5% weak ZEW and worries about Covid spread.

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