Wall Street Today | Market Falls Tuesday, Following JPM Shares

Moomoo Recap US joined discussion · Sep 11, 2024 04:29

Wall Street Today | Market Falls Tuesday, Following JPM Shares

The market tried to climb Tuesday but, shortly after opening, felt pressure from stocks in the banking sector. Within indexes, tech held the Nasdaq and S&P 500 higher while the Dow fell.

Just past the 4 pm ET close, the $S&P 500 Index (.SPX.US)$ climbed 0.45%, the $Dow Jones Industrial Average (.DJI.US)$ fell 0.23%, and the $Nasdaq Composite Index (.IXIC.US)$ climbed 0.84%.

MACRO

This week in macro, investors are waiting for Wednesday's Core CPI numbers for August. PPI and initial jobless claims will be released on Thursday.

Last week, just before the blackout began in the lead-up to the FOMC September 17-18th rate decision meeting, investors also got word from New York Fed President John Williams Friday that it is time to cut rates.

Speaking toward the Council on Foreign Relations, Williams said the economy is balanced, and inflation is tracking lower, and "it is now appropriate to dial down the degree of restrictiveness in the stance of policy by reducing the target range for the federal funds rate."

Last Friday, the economy added 142k nonfarm payrolls last week, and the Unemployment rate landed at 4.2% in August, according to the Bureau of Labor Statistics. Payrolls were below expected by 20k, but fit the narrative of softening labor in the U.S. that investors have come to expect.

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SECTORS

Within industries tracked by moomoo, banks fell Tuesday after news that the Fed may require 9% capital reserves at the largest banks, higher than June's rumor of 5%, but below the 19% originally put forward. The news came in from the Federal Reserve Vice Chair for Supervision, Michael Barr, according to Bloomberg. Options on the equity flew after the news. JPM also fell after the firm's President Daniel Pinto said at a conference that estimates for the firm's Net Interest Income at $91.5B is no longer "reasonable."

$JPMorgan (JPM.US)$ fell 7% intraday, the lowest on the Dow Jones, $Discover Financial Services (DFS.US)$ fell nearly 4%, $Goldman Sachs (GS.US)$ fell 4.6%.

MOOVERS

GameStop $GameStop (GME.US)$ reported quarterly earnings of $0.04 per share which beat the analyst consensus estimate of $(0.01) by 500 percent. The firm reported sales that were lower 31% year-over- in Q2

$Oracle (ORCL.US)$ shares climbed 11% to a record Tuesday after the infrastructure software provider reported earnings that beat analysts' estimates and announced a multi-cloud agreement with Amazon Web Services. The rally boosted the appeal of call options that give the holders the right to buy the stock at $160 by the end of this week.

Shares of Hewlett Packard Enterprise $Hewlett Packard Enterprise (HPE.US)$ dropped 7% Tuesday after the company said it had commenced a public offering of $1.35 billion of Series C mandatory company convertible preferred stock.

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Word from the herd: Mooers, what are you watching?
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