Earnings won’t start until major banks’ reports come out.

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Banks start earning
Four of Wall Street’s biggest banks released their earnings results on Friday. JP Morgan Chase Things started late in the 4th quarter. profit This is because the company paid $2.9 billion in fees related to the government’s acquisition of some local banks last year. citygroup reported a quarterly loss of $1.8 billion while announcing it would cut 10% of its workforce. bank of america’s Net income for the fourth quarter was down more than 50% year-over-year; wells fargo It reported an increase in quarterly profit but warned of a decline in interest income this year.

A positive inflation signal?
The unexpected decline in wholesale prices indicated that inflation may fall permanently.Ministry of Labor producer price index It fell 0.1% in December, compared to a 0.1% rise expected by economists polled by Dow Jones. PPI data measures inflation from the producer or manufacturer perspective.

The market rose this week
Excellent company Dow Jones Industrial Average It fell more than 100 points on Friday, but ended the week 0.3% higher.of S&P500 And that Nasdaq The stock ended the day mostly flat, but ended the week higher. The market has digested the start of earnings season and the unexpected decline in producer prices.European stocks ended higher, but shares of British luxury goods companies slumped. burberry Shares fell 7% after the profit warning.

China skeptics win Taiwan general election
Taiwan’s Lai Ching-de won the presidential election held on Saturday. This is the Democratic Party’s third consecutive victory. Lai, seen as a strong China skeptic, won with more than 40% of the public vote. “We are determined to protect Taiwan from China’s threats and intimidation,” he said. The Chinese government dismissed his victory.

[PRO] Buffett’s views on airlines
Wall Street legend Warren Buffett will probably never add airline stocks to his portfolio again. The ‘Oracle of Omaha’ has been quick to sell $4 billion worth of airline stocks during the pandemic, but has recently re-entered those stocks following disappointing profit forecasts and an increase in grounded planes and mid-air emergencies. I’m not going to give it a chance.

The fourth quarter earnings season has officially begun, with four of Wall Street’s top six banks reporting rather gloomy results.

JPMorgan Chase & Co., the largest U.S. bank by assets, paid large fees related to government foreclosures during last March’s local banking crisis, hurting its bottom line.

CEO “The U.S. economy remains resilient with continued consumer spending, and the market is now expecting a soft landing,” said Jamie Dimon.

But he added that deficit spending and supply chain adjustments “could result in inflation remaining higher and interest rates higher than the market expects.”

Citigroup was also hit by last year’s regional bank crisis, but the focus is largely on CEO Jane Fraser’s plans for a major overhaul aimed at improving the bank’s financial health and stock sentiment. was assigned.

The third-largest U.S. bank by assets said it would cut about 20,000 jobs “over the medium term,” but did not immediately specify the exact period. Citigroup has lagged behind its Wall Street peers since the 2008 financial crisis and remains the lowest valued among the top six banks.

The outlook from Wall Street’s biggest financial institutions was cautious, with markets pricing in a rate cut by the Federal Reserve in March. Lower interest rates hurt the net interest income that banks generate.

Separately, data showing declines in wholesale prices came as a positive surprise. The announcement comes a day after the prices consumers pay for goods and services rose 0.3% in December and 3.4% from a year earlier. That remains well above the Fed’s 2% target for this year.

“It’s clear that the remaining inflation risks in the U.S. economy are not driven by upward pressure on producer costs,” said Kurt Rankin, senior economist at PNC.

“Whether examined from a producer intermediate demand perspective or from a final demand perspective, there will be little to no price pressure on the U.S. economy from the supply side heading into 2024.”