Wall Street is slightly up this morning, as investors assess a solid rise in monthly consumer prices, as well as stronger-than-expected earnings from JPMorgan and BlackRock. Consumer price index inched up 0.4% last month after gaining 0.3% in August, according to the Labor Department.
JPMorgan Chase posted a profit of $3.74 per share for the third quarter, while $3.00 was expected. Revenues also topped expectations. BlackRock recorded an adjusted $10.95 per share for the third quarter, higher than the $9.35 consensus forecast. Revenues also beat estimates.
In addition, investors are also digesting the fact that the IMF lowered its global growth forecast for 2021. They are also wondering how China jumped its September exports by 28% despite a dotted line in industrial production, while welcoming the confirmatory vote on raising the US debt ceiling by the House of Representatives.
In other news, it’s looks like the energy crisis looks like it’s going to last, if we’re to believe the International Energy Agency. Published yesterday, its 2021 energy outlook report blames governments for the situation, but not necessarily companies. The head of the Paris-based organization told the Financial Times that the oil and gas industry has aligned its investments with zero greenhouse gas emissions by 2050. But that public spending is only one-third of the required level. It believes that without the necessary political commitments, prices will remain volatile and brutal episodes like those we are currently experiencing will only intensify. Meanwhile, oil and gas remain high and coal prices are at record highs, not because of regulatory pressure but because demand is at its peak due to the lack of sufficiently reliable alternative sources.
Economic highlights of the day:
In Europe, the second reading of German inflation for September, European industrial production for August are on the agenda. In the United States, we have the September consumer price index and the minutes of the last Fed meeting.
The dollar is trading at EUR 0.8649. Gold is rising to USD 1,768, while oil is holding high, with Brent at USD 82.66 and WTI at USD 79.88. The yield on 10-year US debt falls slightly to 1.58%, while the Bund stands at -0.09%. Bitcoin remains steady around USD 55,000.
* Apple is down 0.8% in pre-market trading after Bloomberg reported that the U.S. technology giant has resigned itself to reducing production of iPhone 13 by up to 10 million units this year amid a global semiconductor shortage.
* Qualcomm advanced 2.1% in premarket trading after announcing a new plan to buy back its own shares for $10 billion.
* Hasbro announced Tuesday evening the death of its CEO Brian Goldner, who had been at the head of the group since 2008 after joining the toy manufacturer in 2000. The 58-year-old had stepped down for medical reasons two days earlier.
- AstraZeneca: JP Morgan is positive on the stock with a Buy rating. The target price is still set at GBp 10000.
- Axalta: Mizuho Securities Co Ltd initiated coverage with a recommendation of buy. PT set to $40
- Ball: Mizuho Securities initiated coverage with a recommendation of neutral. PT set to $104
- Britvic: HSBC upgrades from hold to buy targeting GBp1050.
- BT Group: HSBC downgrades from Hold to Reduce, targeting GBp 125.
- CF Industries: Mizuho starts at neutral with $65 price target
- Constellation Brands: HSBC raised the recommendation on Constellation Brands Inc. Class A to buy from hold. PT up 20% to $262
- Corteva : Mizuho Securities starts at buy with $53 price target
- Crown Holdings: Mizuho Securities initiated coverage with a recommendation of buy. PT set to $129
- Dow: Mizuho starts at neutral with $64 price target
- EasyJet: Barclays is keeping its Neutral rating. Previously set at GBp 685, the target price has been slightly modified to GBp 705.
- Freeport-McMoRan: Scotiabank adjusts price target to $42 from $44, maintains sector outperform rating
- FMC : Mizuho starts at buy with $123 price target
- Graphic Packaging: Truist Securities starts graphic packaging holding at buy with $26 price target
- International Consolidated Airlines Group: Barclays retains his positive opinion on the stock with a Buy rating. The target price is lowered from GBp 230 to GBp 215.
- International Paper : Truist Securities Starts International Paper at Hold With $50 Price Target
- Johnson Matthey: Berenberg remains Buy with a price target reduced from GBp 3,800 to 3,600.
- Monster Beverage: Jefferies downgrades monster beverage to hold from buy, cuts price target to $92 from $113
- Packaging Corporation of America: Truist Securities starts at hold with $131 price target
- Plug power: Morgan Stanley raised the recommendation to overweight from equal-weight. PT up 34% to $40
- Skyworks: Baird cut the recommendation to neutral from outperform. PT up 4% to $165
- The Sherwin-Williams Company: Mizuho Securities Co Ltd initiated coverage with a recommendation of buy. PT set to $352
- Wayfair : Jefferies downgrades wayfair to hold from buy, cuts price target to $225 from $330
- YouGov: Liberum remains long with a target cut from GBp 1,455 to 1,300.