M Alfathan Rahman
M Alfathan Rahman
September CPI and results from Bank of America and Morgan Stanley are in focus tonight.
Wall Street ended Tuesday without a clear direction. The S&P 500 closed largely flat, while the Nasdaq Composite lost 0.2% as chip stocks came under pressure again (Investing.com).
Tonight the focus is September CPI, due at 8:30am ET (BLS). Before that, Bank of America and Morgan Stanley report third-quarter results.
| Stock | Movement | What to Watch |
|---|---|---|
| BAC | Reports around 6:45am ET | Consensus EPS of $1.10; a $1.2 billion fine charge lands in Q3 earnings |
| MS | Reports around 7:30am ET | Consensus EPS of $2.93 |
| C | -5.6% on Tuesday | Follow-through after a Q3 profit beat |
| AMAT | Down nearly 7% on Tuesday | Chip sentiment after five straight declines in the semiconductor index |
| MU | -3.6% on Tuesday | Competition concerns around China's ChangXin Memory |
Source: C, AMAT and MU moves and the chip-stock focus from Investing.com; BAC and MS timing and consensus EPS from INDmoney (WSJ data); the BAC fine from Investing.com.
In August, US headline inflation was 3.4% year over year and core inflation was 2.4%. For September, core forecasts cluster around 0.2% month over month, while headline inflation is expected to rise on energy prices (Admiral Markets). Traders widely expect the Fed to hold rates this month, although a December rate increase remains possible (Investing.com).
Bank of America (BAC) is scheduled to report around 6:45am ET and Morgan Stanley (MS) around 7:30am ET (INDmoney). US regulators fined Bank of America a total of $1.21 billion over failures to detect potential money laundering. The bank said the $1.2 billion charge will cut third-quarter net income by about 17 cents a share (Investing.com).
The Philadelphia Semiconductor Index fell for a fifth consecutive session. Applied Materials (AMAT) dropped nearly 7% and Micron (MU) fell 3.6%, amid concerns about competition from China's ChangXin Memory Technologies (Investing.com).
As of Tuesday evening US time, S&P 500 futures were flat at 7,855.75 and Nasdaq 100 futures were unchanged at 30,793.75. Dow futures edged down 0.1% to 51,894. Among banks, Citigroup (C) fell 5.6% on Tuesday despite beating profit expectations (Investing.com).
Brent crude rose to near $107 a barrel in Asian trading on Wednesday (Investing.com). High energy prices are the main reason headline inflation is expected to rise.
Tonight's CPI could shape expectations for the Fed's rate path into year-end. The BAC and MS reports round out the picture for financials after mixed big-bank results on Tuesday.
Meanwhile, five straight losing sessions for chip stocks show the market remains cautious about the sector's valuations.
This article is for education and information only and is not investment advice. Investment decisions are yours to make after your own research.
What stocks are you watching tonight?
Disclaimer
Gotrade is the trading name of Gotrade Securities Inc., which is registered with and supervised by the Labuan Financial Services Authority (LFSA). This content is for educational purposes only and does not constitute financial advice. Always do your own research (DYOR) before investing.
Welcome Reward up to $1,888
Create an account and trade US stocks on Gotrade
*Terms & conditions apply
