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The beginning of earnings season in the U.S.
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American stocks below the flatline
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BlackRock reports record assets under management
Wall Street opened lower on Tuesday with several major U.S. companies reporting their third-quarter results. Among firms that released their quarterly reports were some big U.S. banks (JPMorgan and Citigroup). Investors paid attention to bad loans provisions, yet results of mentioned banks confirm that the worst-case scenarios isn’t in the cards. Meanwhile the IMF revised its global GDP forecast higher. The new projection assumes that global economy will contract by 4.4% in 2020 (June’s forecast implied 4.9% economic contraction).
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Create account Try a demo Download mobile app Download mobile appUS500 seem to have lost steam after breaking above the 3,500 pts mark. The barrier remains key short-term support as it coincides with the 78.6% Fibo retracement of the September’s slump. Source: xStation5
S&P 500 top movers at 3:01 pm BST. Source: Bloomberg
Citigroup (C.US) reported a 34% drop in quarterly profit in Q3 ended Sept. 30. The firm earned $1.40 per share, well above expectations of 92c per share. Total cost of credit amounted to $2.26 billion vs analyst consensus estimate of $3.94 billion. Trading division did extremely well as traders focusing on fixed income, currencies and commodities posted their best third quarter in eight years. “Credit costs have stabilised,” CEO Corbat said.
Citigroup (C.US) stocks falls more than 1% despite better-than-expected third-quarter results. The area at $44.10 remains key support level for now (previous price reactions and 1:1 structure). Source: xStation5
BlackRock (BLK.US), the world’s largest asset manager, reported third quarter assets under management of $7.81 trillion (+12% y/y), which is a new record for the company. Adjusted EPS rose to $9.22 (vs expected $7.78). BlackRock CEO Fink said that more than 50% of long-term flows were driven by clients in Europe and Asia.
Johnson & Johnson (JNJ.US) reported adjusted Q3 earnings of $2.20 per share, beating the consensus estimate of $1.98 a share (analysts surveyed by FactSet). Sales rose to $21.08 billion, up 1.7% from $20.73 billion last year. The firm paused trials of its candidate Covid-19 vaccine after participant's unexplained illness.
