The first big batch of summertime profit reports from US companies is making waves on Wall Street after topping analysts’ expectations, but many are cancelling each other out.
asserted
many → make → other
That’s leaving stock indexes relatively static and near their records on Tuesday.
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That → leave → Tuesday
The S&P 500 slipped 0.1 per cent and edged further from its all-time high set last week.
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S&P → slip → high
The Australian sharemarket is set to retreat, with futures pointing to a fall of 40 points, or 0.5 per cent, at the open.
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futures → set → open
The Australian dollar was trading at US69.85¢
Wall Street’s modest moves masked some big swings happening underneath the market’s surface.
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moves → trade → surface
Goldman Sachs, for example, jumped more than 4 per cent at the start of trading after the bank delivered a profit for July through September that blew past analysts’ expectations.
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that → jump → expectations
But its stock quickly erased all of it and dipped to a modest loss before later returning to a gain of 0.3 per cent.
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stock → erase → cent
Goldman Sachs benefited in the summer from strong growth for its business that offers loans to clients for trading stocks, among other things, even as CEO David Solomon said it’s dealing with a “complicated operating environment” created by lots of uncertainty.
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it → benefit → uncertainty
Analysts are forecasting overall growth of nearly 30 per cent for companies in the S&P 500 during the summer from a year earlier, according to FactSet.
uncertain
Analysts → forecast → FactSet
If they’re correct, it would be the third straight quarter of growth better than 25 per cent.
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it → ’re → growth
And companies need to hit those high numbers to justify the record-setting runs for their stock prices despite the many worries on Wall Street about high inflation, increased pressure from the bond market and the war with Iran.
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companies → need → Iran
UnitedHealth Group’s stock swung sharply even though it reported stronger profit and revenue for the latest quarter than analysts expected.
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analysts → swing → quarter
The healthcare company also raised its forecast for profit over the full year of 2026.
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company → raise → 2026
After rallying as much as 5.6 per cent shortly after trading began, it erased all of it and fell to a modest loss of 0.2 per cent.
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it → rally → cent
More firmly in the losing column was Wells Fargo, whose stock fell 1.8 per cent after the bank reported weaker revenue for the latest quarter than analysts expected, even though its profit topped Wall Street’s estimates.
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profit → lose → estimates
CEO Charlie Scharf cited weaker revenue from its venture capital investments, among other things.
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Scharf → cite → things
But Scharf also gave a potentially encouraging signal about the broader economy and future profits for companies across industries.
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Scharf → give → industries
He said that “our data shows that our consumer and business customers are doing well” despite uncertainty about the economy and recent surveys showing how discouraged Americans have become about their finances.
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Americans → say → finances
At the country’s biggest bank, JPMorgan Chase CEO Jamie Dimon highlighted “elevated asset prices” as one of the potential risks for the economy.
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Dimon → highlight → economy
He also mentioned high inflation, rising interest rates and “geopolitical conditions.”
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He → mention → inflation
“These forces may be manageable, but we remain prepared for a wide range of outcomes,” he said.
uncertain
he → remain → outcomes
JPMorgan Chase’s stock rose 0.1 per cent after flipping between gains and losses in the morning.
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stock → rise → morning
It reported a weaker profit for the latest quarter than analysts expected, but it also gave a forecast for net interest income in the current quarter that topped Wall Street’s estimate.
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that → report → estimate
Worries have been high for a while about whether chip stock prices have shot too high in the frenzy around artificial-intelligence technology, and concerns climbed further following reports that China’s memory chipmaker CXMT is making advances that could challenge industry heavyweights like Micron Technology of Boise, Idaho, and Samsung Electronics and SK Hynix of South Korea.
uncertain
that → shoot → Korea
Micron fell 5.1 per cent and was the heaviest weight on the S&P 500.
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Micron → fall → S&P
South Korea’s Kospi stock index, meanwhile, tumbled 5.5 per cent.
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index → tumble → ?
Bumble, meanwhile, leaped 56.2 per cent after the app company that helps people make relationships said it agreed to a $US1.3 billion, all-cash buyout by Ithaca Holdings.
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it → leap → Holdings
In the bond market, Treasury yields eased after oil prices fell.
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prices → ease → market
The yield on the 10-year Treasury slipped to 5.22 per cent from 5.24 per cent late Friday.
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yield → slip → cent
Trading in the US bond market was closed Monday for a holiday.
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Trading → close → holiday
Yields sank following a 0.5 per cent dip for the price of a barrel of Brent crude oil to $US106.11.
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Yields → sink → US106.11
Oil prices have been yo-yoing because of uncertainty about when the war with Iran will allow the global energy industry to return to normal.
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industry → - → normal
The Aporia
