Stocks edge higher as investors weigh disappointing JPMorgan results, new China stimulus

U.S .. stocks are trading modestly higher early on Tuesday when investors digested defective results from major US banks, including the Dow component JPMorgan Chase, and news of new stimulus from China.

How do you make big references?

Dow Jones Industrial Average

DJIA, + 0.20%

rose 43 points, or 0.2% to 23,958, while the S & P 500 index

SPX, + 0.64%

increased 1[ads1]3 points, or 0.5% to 2.596. Nasdaq Composite Index

NQH9, + 1.80%

advanced 66 points, or 1%, for trading to 6.972.

Read: The most important skill traders do not need when buying – it is when (and what) to sell

What drives the market?

The mood on Wall Street was curbed by ] JPMorgan Chase & Cos

JPM, -1.41%

fourth quarterly report, showing that financial behemoth delivered results that fell below consensus analysts estimates for both profit and income. The disappointing earnings come at the heels of Citigroup's weaker-than-expected results, driven by poor interest rate and currency trading, and may argue about US economy vitality or the bank's ability to handle volatility.

Banking results hardened past optimism driven by a People & # 39; s Bank of China announcement that it would increase efforts to stimulate its economy by improving access to credit for smaller companies and a promise by the Chinese Treasury to cut taxes and ramp up infrastructure expenses.

The comments come one day after the world's second largest economy delivered trade data that was worse than expected, and stressed concerns that the country's economy was locked in a downturn that could emphasize global expansion among a long-standing tariff spit between China and the US [19659007] See: China's growth concerns flare up after trading data

Separately, investors also saw an important British parliamentary vote on Prime Minister Theresa Mays plan to make a proper divorce from the EU by March 29. Can face a probable defeat on its Brexit plan that is likely to inject volatility into local markets and potentially among countries that are doing business with the UK.

What do strategies say?

J.P. Morgan's earnings flawed Citigroup on Monday, because it was driven by a major downturn in the capital market operation, instead of lending to households or corporations, wrote Axel Pierron, CEO of Capital Markets Management Consultancy Company Opimas, on a Tuesday morning note. "The situation is strongly linked to market conditions, especially in the bond market," he wrote.

"Beijing revealed plans to cut income tax for small businesses in an effort to stimulate the economy. The last move of the Chinese government indicates how eager to reduce the decline in economic activity," David Madden writes. market analyst at CMC Markets UK, in a Tuesday research paper. "Dealers in Europe are a bit optimistic since tomorrow, and the US policy will be in focus tonight, when Parliament will vote on the Theresa May's Brexit deal, but it seems to be very unpopular," he wrote.

What data and Fed speakers are ahead?

Wholesale inflation fell 0.2% in December, driven by lower petrol prices. Last year, prices from companies for inputs increased by 2.5%, unchanged from last month and down from a peak in seven years at 3.4% in July last year.

The Empire State Index, which tracks production activity in New York State, fell sharply by 7.6 points to 3.9 in January, according to the New York Fed. It is well below twelve interpretations of economists, according to a survey by Econoday.

Tuesday will also include comments from several Federal Reserve officials. At 11:30 am, Minneapolis Fed will give President Neel Kashkari a speech; at 1 am Dallas Fed President Rob Kaplan will attend a Q&A, and Kansas City Fed President Esther George will speak at 1:15 pm George is the only voting member in the Fed's rate setting committee, among the three.

What shares are in focus?

Neflix Inc. shares

NFLX, + 6.35%

jumped 6% after the video streaming company said it would increase US prices by 13% to 18%, the biggest increase since the launch of the streaming service 12 years ago.

] Shares of UnitedHealth Group Inc .

UNH, + 1.33%

increased 0.5% after the health trust reported better than expected profits and income.

Wells Fargo & Co. .

WFC, -1.84%

withdrawn 1.6%, after fourth quarter earnings were below expectations.

J.P. Morgan shares fell 1.6% early on Tuesday.

Delta Air Lines Inc shares .

DAL, + 0.84% ​​

increased by 0.1% after the company had achieved better than expected fourth quarter earnings, while Wall Street expected revenues.

Sherwin-Williams Co .

Source link

Back to top button