JPMorgan Chase remains optimistic about the stock market despite recent dips, with limited downside projected for the crypto markets, and bullish outlooks for Telephone & Data Systems and HilleVax.
Equities are lower in premarket trading, oil prices pull back slightly, Arm Holdings' IPO is China-focused, Walt Disney faces a crisis with Charter Communications, retired Chinese Communist Party elders upbraid Xi Jinping, TD Cowen upgrades Constellation Brands, William Blair initiates coverage on Trade Desk, UBS lowers price target on Dexcom, HSBC initiates coverage on biopharmaceutical and healthcare companies, Loop Capital raises price target on TJX Companies, and Mizuho lowers price target on Dominion Energy.
Equities edge down as inflation increases more than expected, mortgage applications reach lowest level since 1996, Apple's iPhone updates disappoint investors, UBS initiates coverage on Ford with a buy rating, China denies ban on government workers using foreign-branded devices, JPMorgan downgrades Oracle, antitrust lawsuits against Google begin, and Arm Holdings' IPO is expected to be the largest listing of the year.
Marko Kolanovic, chief markets strategist at JPMorgan Chase, warns that a potential decline in inflation in late 2023 could challenge the stock market and weaken the pricing power of businesses, particularly in industries such as retail, automotive, and airlines. He also expresses concerns about the delayed effects of interest rate hikes on the economy, although he upgrades JPMorgan's position on global energy stocks due to expected increases in oil prices. Kolanovic foresees Japanese stocks performing well and suggests that China is entering a "buying zone" with potential trading opportunities in Chinese equities.
JPMorgan upgraded shares of DraftKings and boosted its price target, citing the stock's underperformance compared to the S&P 500 and the company's growth prospects in the online gambling sector.
Edward Jones downgrades Berkshire Hathaway to hold from buy, citing that the Warren Buffett company is fully valued. Citi lowers Domino's Pizza price target, but potential upside surprise is expected due to DoorDash and Uber app deals. Stifel upgrades Brinker International, while Loop Capital upgrades Restaurant Brands, both with price target increases. Bank of America raises Celsius' price target, while Citi starts Zions Bancorp with a buy rating. Citi also likes Huntington Bancshares. Wells Fargo increases Intuit's price target, and Wolfe Research downgrades ResMed. Mizuho raises Flowserve's price target, and CSX receives a price target bump from BofA.
Goldman Sachs initiates a sell rating on WK Kellogg due to weak demand and margin pressure, while Jefferies cuts price target on Starbucks and Jefferies upgrades Wingstop. Procter & Gamble holds its annual meeting, Disney+ cracks down on shared passwords, and Warren Buffett's Berkshire Hathaway sells 5.1 million shares of HP. UBS downgrades Emerson Electric but raises price target, Bank of America cuts price target on Crane, Piper Sandler raises price target on Valero Energy, Wells Fargo cuts price target on Boeing, and BofA takes Delta Air Lines to $40 per share ahead of EPS.
JPMorgan Chief Market Strategist predicts a recession and discusses the Federal Reserve's stance on interest rates and the performance of mega-cap versus mid-sized stocks.
JPMorgan Chase's profits surge in the third quarter, surpassing expectations and reinforcing the bank's dominance despite the challenges faced by the industry; CEO Jamie Dimon warns of economic risks, including inflation, rising interest rates, and global conflicts in Ukraine and Israel.
Profits for JPMorgan Chase, Citigroup, and Wells Fargo rose in the third quarter, despite challenges faced by smaller banks, signaling strength in the largest banks in the industry; however, JPMorgan CEO Jamie Dimon warns of economic risks such as inflation, interest rate hikes, and global conflicts.
JPMorgan Chase CEO Jamie Dimon warns that the ongoing conflicts in Ukraine and Israel could have significant impacts on energy and food markets, global trade, and geopolitical relationships, potentially making it the most dangerous time the world has seen in decades. However, the bank managed robust loan growth and increased revenue in the third quarter, benefiting from rising interest rates and acquisitions. Other major U.S. banks, including Wells Fargo and Citi, also reported strong results driven by rising interest rates.
Higher interest rates have boosted the earnings of big banks like JPMorgan Chase, Citigroup, and Wells Fargo, but an increase in loan write-offs and signs of consumer spending cutbacks indicate that customers are struggling.
