The first day of earnings season finds US bank and asset manager results coming in well above expectations, sparking premarket rallies. Headliners include JPMorgan* ($4.81 vs street $4.09, up 1.1% premarket), Wells Fargo ($1.43 vs street $1.35, up 4.3% premarket), Blackrock ($11.93 vs street $11.24, up 5.0% premarket), Goldman Sachs* ($11.95 vs street $8.21, up 3.1% premarket) and Citigroup ($1.34 vs street $1.22, up 5.6% premarket. Bank of America, Morgan Stanley, and UnitedHealth report tomorrow.
US stocks were already climbing on the positive start to earnings season then accelerated upward on today’ US inflation numbers. US index futures are currently up 1.2% to 1.5%. Over in Europe, the Dax is up 0.8% and the FTSE is up 0.6%.
UK consumer prices (2.5% vs street 2.7%) showed inflation still easing across the pond. US consumer prices (2.9% in line vs 2.7%) and core CPI (3.2% vs street 3.3%) were benign as well. The Empire State Manufacturing Index (-12.6 vs street 3.0) was much worse than expected. The US 10-year treasury note yield has come off a bit, sliding toward 4.70% from 4.75%. The US Dollar is in retreat this morning falling 0.3% against the Euro and Loonie, and 0.6% against the Pound. Precious metals are rallying today with Gold up 1.2% and Silver up 1.9%. Bitcoin is up 1.9%.
Crude oil is up 0.5% this morning after API reported another drawdown in its weekly inventory report, this time 2.1 mmbbls. DOE energy inventories are due at 10:30 am EST. Natural gas is down 1.5% ahead of tomorrow’s weekly gas storage report. Copper is quiet today.
* Shares of JPMorgan, Chase, and Goldman Sachs are held in portfolios managed by SIA Wealth Management.