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
A winning week at the market
all Major U.S. stock indexes rose on Friday On the back of encouraging inflation data and positive earnings from the big banks. This gives them a winning week. Euro Stoxx 600 Index Up 0.55%, ending the week higher. In addition, in August, UK economy grew by 0.2% Preliminary data from British officials showed that on a monthly basis, after stalling in June and July.
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 Elon Musk Launch of Cybercaba two-seater vehicle without a steering wheel or pedals, and the Robovan, a self-driving vehicle with a large capacity. But Musk provided few other details, leading to Analysts question About the company.
More assurances from China
At a news conference on Saturday, Chinese Finance Minister Lan Fo’an told reporters that Beijing had “considerable” room to increase its budget deficit, but that the government Stimulus package still being discussedAccording to CNBC Chinese translation report. Lan also announced measures to support employment and the real estate industry.
Bank profits are good
JPMorgan ChaseAccording to reports, the largest bank in the United States Third quarter earnings and revenue This exceeded expectations. Net interest income increased by 3% compared with the same period last year, driving revenue to grow by 6%. Wells Fargo have Not a bad third quarter. The bank’s profit beat expectations, but unlike JPMorgan, revenue fell short of expectations and NII fell.
(PRO) Earnings will show market direction
Following the release of a slew of data including the September jobs report and consumer price index report, Profits will determine the direction of the market In the short term. 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’s really a flash in the pan.
A slight thump in the producer price index eased worries about still-stubborn inflation. This index measures wholesale prices – and therefore generally indicates changes in CPI – No change in September compared to Augustdefying expectations for a 0.1% increase in the Dow Jones survey.
In fact, last week’s inflation data looked so promising that Goldman Sachs believes the Fed just brought Inflation rate dropped to 2% target As CNBC’s Jeff Cox reports, there won’t be 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 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.
