On Friday, benchmark equity indexes in the United States experienced an upward trend, driven by impressive post-earnings rallies from renowned financial institutions, JPMorgan Chase and Wells Fargo. The shares of JPMorgan soared by 4.8% following the unexpected increase in the bank's Q3 earnings, which showcased a significant year-over-year growth.
This positive outcome was fueled by revenue that not only surpassed market predictions but was also bolstered by gains within its investment banking segment. Similarly, Wells Fargo’s stock rose by 6%, despite the lender reporting a decline in Q3 results on a yearly basis. However, the earnings were above market expectations, attributing the robust performance to trading gains and the increased investment banking fees, which contributed positively to the noninterest income.
In the realm of economic indicators, the Bureau of Labor Statistics (BLS) released data revealing that US producer prices remained unexpectedly stable in September, while the annual metric exceeded market predictions. On the previous Thursday, the BLS had already reported that consumer inflation in the US picked up more than expected last month, reflecting persistent pressures on prices on both sequential and annual metrics.
The preliminary Michigan Sentiment Index showed a decline to 68.9 in October from 70.1 in September, contrary to expectations for an increase to 71.0. This deterioration in sentiments for both current conditions and near-term outlooks was largely attributed to ongoing concerns regarding elevated price levels.
Interestingly, Michigan's inflation expectations for the coming year showed a slight increase, moving up to 2.9% in October, compared to 2.7% in September, while the five-year inflation expectation fell to 3% from 3.1%. In the commodities market, November West Texas Intermediate crude oil settled down by $0.29, closing at $75.56 per barrel.
Similarly, December Brent crude, recognized as the global benchmark, was last observed down by $0.43, settling at $78.97. This decline transpired amid geopolitical tensions, particularly an impending Israeli strike on Iran, against a backdrop of light demand in the market despite escalating supply levels.
Tesla's stock witnessed a notable decline of 8.7% following the company's recent unveiling of two prototypes: a two-seat autonomous vehicle branded "Cybercab" and a larger 20-person vehicle dubbed "Robovan." Analysts, including those from Morgan Stanley and Oppenheimer, expressed concerns over the lack of substantial details and updates regarding several key aspects during the reveal event..