Stocks climb as JPM beats forecasts
David Russell | [email protected]
The S&P 500 is indicated to open higher by about 0.4 percent after an unchanged session yesterday. European shares edged lower while Asian indexes were higher in the overnight session.
Most overseas markets moved by less than half a percent. Shanghai was the strongest, climbing two-thirds of 1 percent, after China and Japan agreed to hold talks over a territorial dispute that was undermining trade and confidence in the region.
The big news this morning comes from JP Morgan and Wells Fargo. JPM already issued better-than-expected earnings and revenue, fueled by healthy mortgage lending. WFC released its results minutes ago and appears to have beaten earnings estimates but missed revenue forecasts.
At 9:55 a.m. ET, the University of Michigan is expected to report that its index of consumer confidence rose to 80 from 78.3.
Foreign exchange and commodities are painting a mixed picture. The euro rallied more than one-third of a percent, while the Japanese yen is modestly weaker. Currencies associated with global growth, namely the Canadian and Australian dollars, were little changed.
Oil is fractionally higher, but most other commodities are negative. Silver and copper fell by more than half a percent. Gold is slightly negative, and agricultural foodstuffs are generally lower.
In company-specific news, Advanced Micro Devices is likely to trade lower after weak computer demand caused the chip maker to issue weak preliminary sales figures for the third quarter. J.B. Hunt Transport Services rose in after-hours trading yesterday after its revenue beat expectations.
Outsourcing company Infosys also fell after providing a disappointing growth outlook to investors. JPM also climbed more than 1 percent on its strong quarterly report.