Major US Banks Are Doing Well

13/10/2020

Major US banks are in focus today13.10.2020 as JPMorgan Chase and Citigroup are going to release their financial quarterly reports before the opening bell. Both banks started their Q3 earning season by releasing numbers better than what the market expected. Most notably: 

  •       Revenue (adjusted): $29.94 billion (compared to $28.39 billion expected)
  •       Earnings per share (adjusted):$2.92  (compared to $2.26 per share expected)

In spite of the on-going COVID-19 crisis, JPMorgan successfully set aside $611 million in credit reserves for the quarter, a bit shy of what analysts had anticipated. JPMorgan’s net income is $9.4 billion on nearly $30 billion of total revenue.

 

The market expects to see the S&P 500 Q3 earnings at $33.30 per share; there was a significant decline of 20.5% over the year, undoubtedly the second-largest drop since the financial crisis. However, the stock market rebounded quite remarkably from the lowest numbers this year. The market remains optimistic that after the COVID-19 pandemic Q2 reports, Q3 will reveal higher numbers, but despite better than expected results, some company shares continue to decline.

 

For the 4th day in a row, Dow Jones Industrial Average and NASDAQ are winning with Dow hitting its one-month high and NASDAQ posting the greatest progress since April.

Apple and Amazon are in focus today as the market is counting the minutes for the most important event of the year, unveiling the new product line of 5G-enabled iPhone 12 and the annual Prime Day marketing event of Amazon.

  •       Apple(NASDAQ: AAPL) stock went up 1.4%, continuing to push higher after witnessing the biggest single-day gain on Monday since the end of July, as investors await the release of the company’s first 5G-enabled iPhone 12.
  •       Walt Disney (NYSE:DIS) stock went up 4.1% after the company debuted its media and entertainment business whose focus is on developing productions focusing on streaming and broadcast services.

 

Europe’s economic recovery is under a giant question mark as all countries are battling the second wave of infections and unemployment; governments are planning to negotiate wage subsidy packages.