4:10pm: New highs
The Dow and S&P 500 hit new highs on Friday, with the S&P 500 closing above 5,800 for the first time.
The Dow rose nearly 1%, driven by strong quarterly results from JPMorgan Chase, while the S&P 500 gained 0.6% and the Nasdaq Composite increased by almost 0.4%.
All three major indexes ended the first full trading week of October with weekly gains exceeding 1%.
2:45pm: More CPI reaction
UBS anticipates a larger CPI rise in October, projecting a 0.22% increase in headline CPI and a 0.33% rise in core CPI.
Headline inflation is expected to reach 2.6% next month and possibly 3.0% by December, before moderating, with core inflation hovering around 3.3%-3.4%.
The upside surprise within the core CPI categories was entirely in goods prices, UBS analysts noted.
"The rise in core goods prices was their strongest move in some time after declining 14 of the past 15 months," analysts wrote.
"As expected new and used vehicle prices rose, marking a turn around in those components, which we expect to continue rising for the next few months. The upside surprise in core goods was most notable in apparel prices, which tend to be volatile (even pre-pandemic) and we have noted in the past that we generally take little signal from them for future inflation movements."
1:10pm: Uber hits all-time high
Uber Technologies Inc (NYSE:UBER, ETR:UT8) shares reached an all-time high on Friday following Tesla's much-anticipated robotaxi event held last night.
Shares of Uber were up 9.6% on Friday afternoon at around $85.40.
According to Jefferies analysts, the ridesharing platform is poised for growth despite competition from Tesla Inc (NASDAQ:TSLA) (Tesla Inc (NASDAQ:TSLA))'s robotaxi initiatives.
The absence of verifiable advancements in Tesla's autonomous technology reduces concerns about immediate threats to Uber's market position, analysts believe.
In their report, Jefferies described Tesla's unveiling of its robotaxi prototypes, including the Cybercab and the Robovan, as a "best-case outcome for Uber."
Analysts believe that Tesla did not provide "verifiable evidence of progress toward L3 autonomous technology," which casts doubt on the feasibility of its ambitious plans.
11:20am: Stocks get a boost
Stocks rebounded in morning trading Friday, led by a 345-point gain for the Dow, which was up 0.8%.
The S&P 500 saw a gain of 0.5% and the Nasdaq was in positive territory with a gain of 0.2%
"A rebound in the UK economy, unexpected drop in Canada unemployment, slowing US producer price inflation and JPMorgan Q3 earnings beating estimates gave stocks on both sides of the Atlantic a boost," said IG's Axel Rudolph.
"The US 10-year yield rose to 4.11%, a two-month high, as US Q3 earnings season kicked off in earnest. It is expected to provide volatility in the coming weeks."
10:45am: Bank earnings kick off
A closer look at this morning's big bank earnings from JPMorgan and Wells Fargo.
JPMorgan Chase & Co (NYSE:JPM, ETR:CMC) reported a strong third-quarter performance, surpassing Wall Street expectations with a surprise gain in net interest income (NII).
The bank posted earnings per share (EPS) of $4.37, beating the $4.01 estimate, while revenue reached $43.32 billion, topping the expected $41.63 billion.
The bank's NII, a key metric driven by rising interest rates, came in at $23.5 billion, above the $22.73 billion forecast.
Despite market expectations that US interest rates may decline in the near term, JPMorgan raised its NII guidance, signaling confidence in continued revenue growth from this stream.
Elsewhere, Wells Fargo & Co (NYSE:WFC, ETR:NWT) shares added more than 6% after the bank’s third quarter earnings exceeded Wall Street’s expectations.
Adjusted earnings per share of $1.42 handily beat estimates of $1.28 but were down from $1.48 in the year-ago quarter.
However, net income fell from $5.76 billion to $5.11 billion.
Revenue of $20.37 billion was short of the $20.42 billion expected. It was down 2% year-over-year from $20.86 billion.
9.52am: Mixed start on Wall Street
Wall Street got off to a mixed start on Friday, as the Nasdaq fell but the S&P 500 and Dow Jones both gained.
The Nasdaq dipped 0.3% as trading got underway, while the S&P 500 and Dow Jones climbed by 0.4% and 0.1% respectively.
A 2.9% gain by JPMorgan Chase & Co (NYSE:JPM, ETR:CMC) saw the bank top the Dow Jones’ risers early on, after third quarter results showed earnings per share beat market expectations.
Wells Fargo enjoyed an even stronger start in the meantime on its update, jumping 5.1%, while BlackRock Inc (NYSE:BLK) also racked up a 3.3% gain following results.
Producer price index figures on Wednesday also proved positive for the Federal Reserve’s efforts to stem inflation, showing a rise of 1.8% in September against August’s 1.9%.
7.57am: Stocks seen lower
Wall Street looked on course to drop on Friday morning as JPMorgan Chase & Co (NYSE:JPM, ETR:CMC), Wells Fargo & Co (NYSE:WFC, ETR:NWT) and BlackRock Inc (NYSE:BLK) got third-quarter earnings season fully underway.
Futures had the Nasdaq down 0.3% ahead of the opening bell, while the S&P 500 and Dow Jones were also seen slightly below the mark.
This came as 10-year Treasury yields crept higher over the course of the morning to 4.1%, as markets continued to mull slower rate cuts from the Federal Reserve.
A string of updates from Wall Street giants got third-quarter earnings season well and truly underway in the meantime on Wednesday.
BlackRock Inc (NYSE:BLK)hed up 0.5% in pre-market trading after reporting assets under management had hit an all-time high of US$11.5 trillion, aided by record inflows of US$221 billion in the third quarter.
JPMorgan ticked up 1.0%, as profit, despite falling by 2% year on year, beat analysts' expectations at US$12.9 billion.
Revenue of US$42.6 billion was also ahead of expectations, while fees from JPMorgan’s investment banking wing jumped 31% to US$2.2 billion
Shares in Wells Fargo rallied 3.5% ahead of the open meanwhile, as a 37% surge in its investment-banking fees to US$672 million came alongside expectation-beating net income of US$5.11 billion, which was also down year on year.