Home Business Wall Street awaits Fed, focus on warnings Dimon (JP Morgan). Credit Suisse: exaggerated Disney sell off, upside margin + 27%

Wall Street awaits Fed, focus on warnings Dimon (JP Morgan). Credit Suisse: exaggerated Disney sell off, upside margin + 27%

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Wall Street up pending the Fed’s verdict on rates and any changes to its monetary policy, expected at around 20 Italian time.

However, the September balance remains negative; the S&P 500 index lost 3.7% since the beginning of the month, including a 1.7% drop in Monday’s session, which was the worst since May. The Dow Jones has been down 4% since the beginning of the month.

At about 3.40 pm Italian time, a few minutes after the start of the session, the Dow Jones rose by 0.59% to 34.120 points; the Nasdaq advanced by 0.18% to 14,772 points; the S&P 500 posted a rise of 0.44% to 4,373 points.

Waiting for the statements that the number one of the Federal Reserve Jerome Powell will make in the press conference following the release of the release, regarding tapering.

Most importantly, will the Fed announce tapering today?

Many economists believe the US central bank will postpone the announcement to November.

At the end of the meeting that began yesterday, the FOMC – the monetary policy arm of the Federal Reserve – will churn out its rate announcements, also rattling off the new outlook on US inflation growth and GDP. And revealing the dot plot, therefore the set of forecasts on the trend of rates by its exponents.

“I think they will announce that they have discussed tapering, but I don’t think they will give any details.” So the investment manager of BlackRock’s global fixed income division, Rick Rieder, at CNBC. “In my view they will present a context from which it will emerge that they could start tapering in November or December.”

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Jamie Dimon, JP Morgan’s number one, also said on Fed-Day:

“The Fed can’t always be proactive. Sometimes it has to be reactive.”

Dimon believes that, at some point, the Fed may be forced to admit that US inflation is anything but a temporary or transitory factor. Asked by CNBC-TV18, the CEO of the US banking giant said he expected a further flare-up in inflation over the next few months which will probably force the Fed to act quickly, indeed, to react strongly.

It is therefore possible that, if inflation remains much higher than expected, “the US central bank’s brakes will jam, liquidity will be withdrawn, and the reaction will be enormous. This is not a prediction I am making, but it is possible. that the Fed has to do something at some point next year, ”Dimon said.

Among the stocks in the spotlight on Wall Street is FedEx, which fell by more than -6% after the shipping giant published a balance sheet that highlighted a decline in profits during the previous quarter, due to the increase of labor costs. The group reported earnings per share of $ 4.37 per share, 54 cents below what Refinitiv analysts expected.

Adobe is also bad, with the software giant’s prices down by -4% despite the quarterly results that are better than forecasts. The company reported earnings per share of $ 3.11, more than an estimated $ 3.01 per share, on revenue of $ 3.94 billion, up from $ 3.89 billion expected.

The protagonist is also Disney, after the publication of a note from the research division of Credit Suisse. Analysts said that the sharp sell off that hit prices following the statement by the American giant – which predicts a lower than expected growth in subscribers – was exaggerated, to the point that, in his opinion, the stock would have a margin of rise up to + 27%.

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Yesterday Disney lost more than 4% after the CEO
Bob Chapek spoke of obstacles in the fourth quarter of the year for the video streaming service, also expecting a delay in production, albeit “in the very short term”. The CEO essentially announced that the fourth quarter schedule will be lower “than we might have expected”, which will affect subscriber growth.

Disney has estimated a growth in subscribers to its Disney + service at 230-260 million by 2024. In August, the US giant announced that it had 116 million subscribers to the service.

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