JPMorgan Chase’s 3Q Earnings Dropped by 17 Percent

According to the Census Bureau, the U.S. retail and food services sales remained unchanged in September on a monthly basis, reaching $684 billion. However, the figure rose by 8.2% in comparison to the corresponding time period last year.

Yesterday the major U.S. stock exchanges reversed declines prompted by higher-than-expected consumer price data and rallied at the close of the trading session. A key inflation report showed consumer prices came in hotter than expected in September, giving license to the Federal Reserve to maintain its pace of historic rate hikes.

On a monthly basis, overall consumer prices in the U.S. increased by 0.4% from August. Economists had projected it to advance by just 0.2%. On an annual basis, prices rose by 8.2% in September, a slower increase than the 8.3% rise seen in August, according to the Consumer Price Index, but still exorbitantly high. Economists had projected the pace of price increases would slow to 8.1% last month. However, the investors eventually disregarded the reading and nudged up main index readings.

Earningswise, JPMorgan Chase (JPM) just reported today that its Q3 diluted earnings per share stood at $3.12, dropping 17% compared to the same period a year earlier but still coming in above estimates. The investment bank reported its revenue rose 10% YoY to reach $32.7 billion, while the return on common equity stood at 15% and the return on tangible common equity was 18%.

European markets were higher today. At the time of writing, the Stoxx Europe 600 Index rose 1.26%, the British FTSE 100 advanced 1.01% while the French CAC 40 Index gained 1.51%, and German DAX climbed 1.09%. The annual inflation rate in France eased to 5.6% in September from 5.9% in August. Wholesale prices in Germany jumped by a whopping 19.9% YoY in September.

Markets in Asia-Pacific posted strong gains earlier today, picking up on positive sentiment from yesterday’s Wall Street moves. Investors digested China's inflation report which however didn’t show a particularly troubling picture: consumer prices there climbed 2.8% on an annual basis in September. The annual inflation rate in China came in at 2.8% as well. The figure came just slightly under the 2.9% of consensus forecast. Still, consumer prices grew at the fastest pace recorded since April 2020. On a monthly level, the figure stood at 0.3%. The Producer Price Index (PPI) advanced by 0.9% compared to the same month in 2021.

Japan's Nikkei 225 soared 3.25% at the close. The U.S. dollar gained 0.12% against the yen to go for 147.8025 as of 2:30 p.m. CET. Hong Kong's Hang Seng advanced by 1.27% concurrently. In mainland China, the Shanghai Composite climbed 1.84% and the Shenzhen Composite surged 2.81%. In South Korea, the Kospi jumped 2.30% at the close and Australia's S&P/ASX 200 rose 1.75% at the same time.