📊 Bank earnings season got off to a mixed start.
▪️Dow futures +0.9%, Nasdaq 100 futures -0.7%.
▪️Goldman Sachs (GS) +4% in premarket trading. The bank posted its second-highest revenue ever, at $18.7 billion (+23%). Earnings were $17.01 per share versus $12.86 expected. Equity trading revenue rose 72%.
▪️JPMorgan (JPM) missed expectations. Earnings were $5.57 per share versus $5.93, due to a $658 million loss on securities and a decline in client activity. Shares fell 4%, but recovered their losses after the bank forecast fourth-quarter net interest income of $28 billion, above consensus.
▪️Citigroup (C) increased profit by 40% to $5.25 billion. Wells Fargo (WFC) reported a 6% increase in profit, but revenue came in below forecasts. Both banks reported stable consumer spending.
▪️UnitedHealth (UNH) +3% after a strong quarter and an increase to its annual forecast.
▪️Chipmakers' shares are under pressure after China's CXMT announced a new type of DRAM. Samsung -7%, SK Hynix -10%, KOSPI -5.5%. Micron (MU) -3%, with Nvidia (NVDA), Marvell (MRVL), and Sandisk (SNDK) also falling.
▪️In a Bank of America survey, 45% of fund managers named long chip positions as the most crowded trade.
👀Bank of America (BAC), Morgan Stanley (MS), and BlackRock (BLK) report tomorrow.
▪️Dow futures +0.9%, Nasdaq 100 futures -0.7%.
▪️Goldman Sachs (GS) +4% in premarket trading. The bank posted its second-highest revenue ever, at $18.7 billion (+23%). Earnings were $17.01 per share versus $12.86 expected. Equity trading revenue rose 72%.
▪️JPMorgan (JPM) missed expectations. Earnings were $5.57 per share versus $5.93, due to a $658 million loss on securities and a decline in client activity. Shares fell 4%, but recovered their losses after the bank forecast fourth-quarter net interest income of $28 billion, above consensus.
▪️Citigroup (C) increased profit by 40% to $5.25 billion. Wells Fargo (WFC) reported a 6% increase in profit, but revenue came in below forecasts. Both banks reported stable consumer spending.
▪️UnitedHealth (UNH) +3% after a strong quarter and an increase to its annual forecast.
▪️Chipmakers' shares are under pressure after China's CXMT announced a new type of DRAM. Samsung -7%, SK Hynix -10%, KOSPI -5.5%. Micron (MU) -3%, with Nvidia (NVDA), Marvell (MRVL), and Sandisk (SNDK) also falling.
▪️In a Bank of America survey, 45% of fund managers named long chip positions as the most crowded trade.
👀Bank of America (BAC), Morgan Stanley (MS), and BlackRock (BLK) report tomorrow.