Wall Street Today | JPMorgan CEO Jamie Dimon: Fitch Downgrade ‘Doesn’t Really Matter That Much'
![Wall Street Today | JPMorgan CEO Jamie Dimon: Fitch Downgrade ‘Doesn’t Really Matter That Much'](https://ussnsimg.moomoo.com/feed_image/77777011/95ebe71a1e6b30d6aefc34f1a473269e.webp/bigmoojpg)
MACRO
JPMorgan CEO Jamie Dimon: Fitch Downgrade ‘Doesn’t Really Matter That Much'
The Fitch Ratings downgrade of the United States’ long-term credit rating ultimately doesn’t matter, JPMorgan Chase CEO Jamie Dimon told CNBC on Wednesday.
“It doesn’t really matter that much” because it’s the market, not rating agencies, that determines borrowing costs, Dimon told CNBC’s Leslie Picker.
Fitch Move Spotlights US Debt Risk as Recession Fear Fades
The move by Fitch Ratings to downgrade US government credit has put a renewed focus on the nation’s debt trajectory, just when the world’s largest economy is shaking off forecasts for a looming recession.
The decision by Fitch to lower the US sovereign credit grade one level from AAA to AA+ highlights the debt pile that the US has built up in recent years, largely due to pandemic stimulus as well as tax cuts. More recently, the government has also launched investment programs for infrastructure, technology and clean energy. Meanwhile the cost of borrowing has soared as the Fed pushed interest rates to a 22-year high.
![Source: Bloomberg](https://ussnsimg.moomoo.com/77777011/editor_image/06bda15b32063a43968f4b9bee26f377.png/bigmoo)
BofA Dumps Recession Call. Economists Are Getting More Upbeat
Economists at Bank of America became the first group at a major bank to back away from a forecast that a recession is on the way. Others may follow, possibly swiftly.
$Bank of America (BAC.US)$‘s Michael Gapen and his team said in a research note on Wednesday that given recent economic data, they now anticipate a “soft landing” for the economy rather than the recession they had expected to hit in the first half of next year. That is another way of saying they expect economic growth to slow down, rather than going into reverse.
US Companies Added 324,000 Jobs in July, ADP Says
US companies added more jobs in July than expected, highlighting the persistent strength of the labor market.
Private payrolls increased by 324,000 last month, according to figures published Wednesday by the ADP Research Institute in collaboration with Stanford Digital Economy Lab. That exceeded all estimates in a Bloomberg survey of economists.
![Source: Bloomberg](https://ussnsimg.moomoo.com/77777011/editor_image/f7d0bf556a8f350eaf45a786584d155e.jpg/bigmoo)
SECTORS
Record Crude Inventory Drop Fails to Shake Oil’s Macro Gloom
A record drop in US crude inventories is failing to lift a market that has seen a recent rally squelched by concerns about the macroeconomic outlook.
West Texas Intermediate halted its recent rally, settling below $80 on Wednesday. Traders said markets are partly ignoring a government report that showed a 17.05 million-barrel plunge in US crude stockpiles last week because its so-called adjustment factor — akin to a margin of error — continues to swing wildly.
![Source: Bloomberg](https://ussnsimg.moomoo.com/77777011/editor_image/e219a500bbb23dddac9daff94c1984c0.jpg/bigmoo)
COMPANY
Qualcomm Sales and Forecast Come Up Light
$Qualcomm (QCOM.US)$ reported third-quarter earnings on Wednesday that beat Wall Street expectations, but revenue and guidance for the fourth quarter came up short.
The company is exposed to the slumping smartphone industry because it makes the processors at the heart of most high-end Android devices.
Handset chip sales declined 25% year-over-year to $5.26 billion.
Occidental Petroleum 2Q Profit Plunges On Lower Energy Prices
$Occidental Petroleum (OXY.US)$'s second-quarter earnings plunged on lower energy prices and crude oil volumes.
The company on Wednesday reported net income attributable to common stockholders of $605 million, of 63 cents a share, compared with $2.55 billion, or $2.52 a share, in the year-ago quarter. Adjusted for certain items, the company said per-share earnings were 68 cents.
DoorDash Sales Beat Expectations, Helped by Non-Restaurant Expansion
Delivery app $DoorDash (DASH.US)$ on Wednesday reported a slightly bigger second-quarter loss than expected but sales that beat estimates, and the company said it would keep investing in new businesses.
PayPal’s Stock Falls as Earnings Beat, But a Margin Metric Misses
$PayPal (PYPL.US)$ edged above expectations with its quarterly revenue and earnings outlook Wednesday, though the company fell short of a margin metric for the latest quarter due to dynamics within its credit business.
Costco’s Same-Store Sales Improved in July, Reversing Two Months of Declines
$Costco (COST.US)$ Wholesale’s same-store sales rebounded in July, the company announced Wednesday, snapping a two-month negative streak.
Costco’s same-store sales rose 2.5% compared to a year prior, the retailer said. Before July, same-store sales had declined for two consecutive months, down 1.4% in June and 0.3% in May.
Apple Savings Account Racks Up $10 Billion in Deposits Since April Debut
$Apple (AAPL.US)$ has amassed upwards of $10 billion in deposits for its savings account since launching the product with $Goldman Sachs (GS.US)$ in April, the company announced Wednesday.
The savings account, which is offered by Goldman, lets holders of the co-branded Apple Card credit card stash their rewards while earning interest.
Shopify Makes Progress on Free Cash Flow, But Stock Moves Lower After Earnings
$Shopify (SHOP.US)$ easily topped adjusted profit expectations for its latest quarter, though shares of the e-commerce marketplace were headed lower in Wednesday’s after-hours action.
The e-commerce company reported a comprehensive loss of $1.30 billion, or $1.02 a share, whereas it logged a loss of $1.21 billion, or 95 cents a share, in the year-earlier period.
Source: Bloomberg, Dow Jones, CNBC
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