JPMorgan Chase, Bank of America, Citigroup, and Wells Fargo will announce fourth-quarter earnings on Friday. Unfavorable news also emerged as Reuters reported on Monday that U.S. regional banks might encounter challenges in boosting profits in 2024. They are expected to contend with increased pressure to offer higher deposit rates compared to larger competitors, alongside potentially limited demand from borrowers.<\/p>\n\n\n\n
By the end of the week, it's anticipated that major banking institutions such as JPMorgan Chase, Bank of America, Citigroup, and Wells Fargo will announce decreased fourth-quarter profits. Analysts have reduced their estimates for the fourth quarter earnings by 6.8%, surpassing the pre-pandemic 2019 average pre-earnings cut of 4.6% and the post-pandemic 2022\u20132023 average cut of 3.6%.<\/p>\n\n\n\n
JPMorgan Chase, Bank of America, Citigroup, and Wells Fargo will announce fourth-quarter earnings on Friday. Unfavorable news also emerged as Reuters reported on Monday that U.S. regional banks might encounter challenges in boosting profits in 2024. They are expected to contend with increased pressure to offer higher deposit rates compared to larger competitors, alongside potentially limited demand from borrowers.<\/p>\n\n\n\n
Given the uncertain trajectory of interest rates, economic analysts informed Reuters<\/a> that the earnings of regional lenders may be constrained. This limitation stems from their association with securities holdings, which, rather than generating income through loans or investments in higher-yielding assets, are currently showing paper losses.<\/p>\n","post_title":"U.S. Stocks Rose On Wednesday. The Focus Of Investors Now Turns To Inflation Reports And Major Bank Earnings","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"u-s-stocks-rose-on-wednesday-the-focus-of-investors-now-turns-to-inflation-reports-and-major-bank-earnings","to_ping":"","pinged":"","post_modified":"2024-01-11 11:22:40","post_modified_gmt":"2024-01-11 00:22:40","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14973","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};
By the end of the week, it's anticipated that major banking institutions such as JPMorgan Chase, Bank of America, Citigroup, and Wells Fargo will announce decreased fourth-quarter profits. Analysts have reduced their estimates for the fourth quarter earnings by 6.8%, surpassing the pre-pandemic 2019 average pre-earnings cut of 4.6% and the post-pandemic 2022\u20132023 average cut of 3.6%.<\/p>\n\n\n\n JPMorgan Chase, Bank of America, Citigroup, and Wells Fargo will announce fourth-quarter earnings on Friday. Unfavorable news also emerged as Reuters reported on Monday that U.S. regional banks might encounter challenges in boosting profits in 2024. They are expected to contend with increased pressure to offer higher deposit rates compared to larger competitors, alongside potentially limited demand from borrowers.<\/p>\n\n\n\n Given the uncertain trajectory of interest rates, economic analysts informed Reuters<\/a> that the earnings of regional lenders may be constrained. This limitation stems from their association with securities holdings, which, rather than generating income through loans or investments in higher-yielding assets, are currently showing paper losses.<\/p>\n","post_title":"U.S. Stocks Rose On Wednesday. The Focus Of Investors Now Turns To Inflation Reports And Major Bank Earnings","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"u-s-stocks-rose-on-wednesday-the-focus-of-investors-now-turns-to-inflation-reports-and-major-bank-earnings","to_ping":"","pinged":"","post_modified":"2024-01-11 11:22:40","post_modified_gmt":"2024-01-11 00:22:40","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14973","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};
Investors will also closely monitor comments by New York Fed President John Williams and it is important to mention that market participants have scaled back expectations to a 67.6% chance for at least a 25-basis-point rate cut in March, according to CME's FedWatch Tool. While sentiment-based indicators show that investors are still bullish, a recommendation is that you continue taking a defensive investment approach in the upcoming days.<\/p>\n\n\n\n By the end of the week, it's anticipated that major banking institutions such as JPMorgan Chase, Bank of America, Citigroup, and Wells Fargo will announce decreased fourth-quarter profits. Analysts have reduced their estimates for the fourth quarter earnings by 6.8%, surpassing the pre-pandemic 2019 average pre-earnings cut of 4.6% and the post-pandemic 2022\u20132023 average cut of 3.6%.<\/p>\n\n\n\n JPMorgan Chase, Bank of America, Citigroup, and Wells Fargo will announce fourth-quarter earnings on Friday. Unfavorable news also emerged as Reuters reported on Monday that U.S. regional banks might encounter challenges in boosting profits in 2024. They are expected to contend with increased pressure to offer higher deposit rates compared to larger competitors, alongside potentially limited demand from borrowers.<\/p>\n\n\n\n Given the uncertain trajectory of interest rates, economic analysts informed Reuters<\/a> that the earnings of regional lenders may be constrained. This limitation stems from their association with securities holdings, which, rather than generating income through loans or investments in higher-yielding assets, are currently showing paper losses.<\/p>\n","post_title":"U.S. Stocks Rose On Wednesday. The Focus Of Investors Now Turns To Inflation Reports And Major Bank Earnings","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"u-s-stocks-rose-on-wednesday-the-focus-of-investors-now-turns-to-inflation-reports-and-major-bank-earnings","to_ping":"","pinged":"","post_modified":"2024-01-11 11:22:40","post_modified_gmt":"2024-01-11 00:22:40","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14973","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};
See Related: <\/em><\/strong>The Fed Raises Interest Rates By 25 BPS This Wednesday; Effects On Crypto And Financial Markets<\/a><\/p>\n\n\n\n Investors will also closely monitor comments by New York Fed President John Williams and it is important to mention that market participants have scaled back expectations to a 67.6% chance for at least a 25-basis-point rate cut in March, according to CME's FedWatch Tool. While sentiment-based indicators show that investors are still bullish, a recommendation is that you continue taking a defensive investment approach in the upcoming days.<\/p>\n\n\n\n By the end of the week, it's anticipated that major banking institutions such as JPMorgan Chase, Bank of America, Citigroup, and Wells Fargo will announce decreased fourth-quarter profits. Analysts have reduced their estimates for the fourth quarter earnings by 6.8%, surpassing the pre-pandemic 2019 average pre-earnings cut of 4.6% and the post-pandemic 2022\u20132023 average cut of 3.6%.<\/p>\n\n\n\n JPMorgan Chase, Bank of America, Citigroup, and Wells Fargo will announce fourth-quarter earnings on Friday. Unfavorable news also emerged as Reuters reported on Monday that U.S. regional banks might encounter challenges in boosting profits in 2024. They are expected to contend with increased pressure to offer higher deposit rates compared to larger competitors, alongside potentially limited demand from borrowers.<\/p>\n\n\n\n Given the uncertain trajectory of interest rates, economic analysts informed Reuters<\/a> that the earnings of regional lenders may be constrained. This limitation stems from their association with securities holdings, which, rather than generating income through loans or investments in higher-yielding assets, are currently showing paper losses.<\/p>\n","post_title":"U.S. Stocks Rose On Wednesday. The Focus Of Investors Now Turns To Inflation Reports And Major Bank Earnings","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"u-s-stocks-rose-on-wednesday-the-focus-of-investors-now-turns-to-inflation-reports-and-major-bank-earnings","to_ping":"","pinged":"","post_modified":"2024-01-11 11:22:40","post_modified_gmt":"2024-01-11 00:22:40","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14973","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};
The attention of investors will shift towards the December consumer and producer inflation reports, set to be released on Thursday and Friday, respectively. These reports hold significance in shaping the potential trajectory of the central bank's monetary policy.<\/p>\n\n\n\n See Related: <\/em><\/strong>The Fed Raises Interest Rates By 25 BPS This Wednesday; Effects On Crypto And Financial Markets<\/a><\/p>\n\n\n\n Investors will also closely monitor comments by New York Fed President John Williams and it is important to mention that market participants have scaled back expectations to a 67.6% chance for at least a 25-basis-point rate cut in March, according to CME's FedWatch Tool. While sentiment-based indicators show that investors are still bullish, a recommendation is that you continue taking a defensive investment approach in the upcoming days.<\/p>\n\n\n\n By the end of the week, it's anticipated that major banking institutions such as JPMorgan Chase, Bank of America, Citigroup, and Wells Fargo will announce decreased fourth-quarter profits. Analysts have reduced their estimates for the fourth quarter earnings by 6.8%, surpassing the pre-pandemic 2019 average pre-earnings cut of 4.6% and the post-pandemic 2022\u20132023 average cut of 3.6%.<\/p>\n\n\n\n JPMorgan Chase, Bank of America, Citigroup, and Wells Fargo will announce fourth-quarter earnings on Friday. Unfavorable news also emerged as Reuters reported on Monday that U.S. regional banks might encounter challenges in boosting profits in 2024. They are expected to contend with increased pressure to offer higher deposit rates compared to larger competitors, alongside potentially limited demand from borrowers.<\/p>\n\n\n\n Given the uncertain trajectory of interest rates, economic analysts informed Reuters<\/a> that the earnings of regional lenders may be constrained. This limitation stems from their association with securities holdings, which, rather than generating income through loans or investments in higher-yielding assets, are currently showing paper losses.<\/p>\n","post_title":"U.S. Stocks Rose On Wednesday. The Focus Of Investors Now Turns To Inflation Reports And Major Bank Earnings","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"u-s-stocks-rose-on-wednesday-the-focus-of-investors-now-turns-to-inflation-reports-and-major-bank-earnings","to_ping":"","pinged":"","post_modified":"2024-01-11 11:22:40","post_modified_gmt":"2024-01-11 00:22:40","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14973","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};
Despite the rise in U.S. stocks this Wednesday, the surge was tempered as investors await forthcoming inflation updates and the impending major bank earnings slated for later in the week. Sam Stovall, chief investment strategist at CFRA Research in New York, said: \"What the market is doing, is reassessing its 2024 expectations in terms of earnings and terms of interest rates, and looking to justify the surge in prices that we saw in November and December.\"<\/em><\/p>\n\n\n\n The attention of investors will shift towards the December consumer and producer inflation reports, set to be released on Thursday and Friday, respectively. These reports hold significance in shaping the potential trajectory of the central bank's monetary policy.<\/p>\n\n\n\n See Related: <\/em><\/strong>The Fed Raises Interest Rates By 25 BPS This Wednesday; Effects On Crypto And Financial Markets<\/a><\/p>\n\n\n\n Investors will also closely monitor comments by New York Fed President John Williams and it is important to mention that market participants have scaled back expectations to a 67.6% chance for at least a 25-basis-point rate cut in March, according to CME's FedWatch Tool. While sentiment-based indicators show that investors are still bullish, a recommendation is that you continue taking a defensive investment approach in the upcoming days.<\/p>\n\n\n\n By the end of the week, it's anticipated that major banking institutions such as JPMorgan Chase, Bank of America, Citigroup, and Wells Fargo will announce decreased fourth-quarter profits. Analysts have reduced their estimates for the fourth quarter earnings by 6.8%, surpassing the pre-pandemic 2019 average pre-earnings cut of 4.6% and the post-pandemic 2022\u20132023 average cut of 3.6%.<\/p>\n\n\n\n JPMorgan Chase, Bank of America, Citigroup, and Wells Fargo will announce fourth-quarter earnings on Friday. Unfavorable news also emerged as Reuters reported on Monday that U.S. regional banks might encounter challenges in boosting profits in 2024. They are expected to contend with increased pressure to offer higher deposit rates compared to larger competitors, alongside potentially limited demand from borrowers.<\/p>\n\n\n\n Given the uncertain trajectory of interest rates, economic analysts informed Reuters<\/a> that the earnings of regional lenders may be constrained. This limitation stems from their association with securities holdings, which, rather than generating income through loans or investments in higher-yielding assets, are currently showing paper losses.<\/p>\n","post_title":"U.S. Stocks Rose On Wednesday. The Focus Of Investors Now Turns To Inflation Reports And Major Bank Earnings","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"u-s-stocks-rose-on-wednesday-the-focus-of-investors-now-turns-to-inflation-reports-and-major-bank-earnings","to_ping":"","pinged":"","post_modified":"2024-01-11 11:22:40","post_modified_gmt":"2024-01-11 00:22:40","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14973","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};
Despite the rise in U.S. stocks this Wednesday, the surge was tempered as investors await forthcoming inflation updates and the impending major bank earnings slated for later in the week. Sam Stovall, chief investment strategist at CFRA Research in New York, said: \"What the market is doing, is reassessing its 2024 expectations in terms of earnings and terms of interest rates, and looking to justify the surge in prices that we saw in November and December.\"<\/em><\/p>\n\n\n\n The attention of investors will shift towards the December consumer and producer inflation reports, set to be released on Thursday and Friday, respectively. These reports hold significance in shaping the potential trajectory of the central bank's monetary policy.<\/p>\n\n\n\n See Related: <\/em><\/strong>The Fed Raises Interest Rates By 25 BPS This Wednesday; Effects On Crypto And Financial Markets<\/a><\/p>\n\n\n\n Investors will also closely monitor comments by New York Fed President John Williams and it is important to mention that market participants have scaled back expectations to a 67.6% chance for at least a 25-basis-point rate cut in March, according to CME's FedWatch Tool. While sentiment-based indicators show that investors are still bullish, a recommendation is that you continue taking a defensive investment approach in the upcoming days.<\/p>\n\n\n\n By the end of the week, it's anticipated that major banking institutions such as JPMorgan Chase, Bank of America, Citigroup, and Wells Fargo will announce decreased fourth-quarter profits. Analysts have reduced their estimates for the fourth quarter earnings by 6.8%, surpassing the pre-pandemic 2019 average pre-earnings cut of 4.6% and the post-pandemic 2022\u20132023 average cut of 3.6%.<\/p>\n\n\n\n JPMorgan Chase, Bank of America, Citigroup, and Wells Fargo will announce fourth-quarter earnings on Friday. Unfavorable news also emerged as Reuters reported on Monday that U.S. regional banks might encounter challenges in boosting profits in 2024. They are expected to contend with increased pressure to offer higher deposit rates compared to larger competitors, alongside potentially limited demand from borrowers.<\/p>\n\n\n\n Given the uncertain trajectory of interest rates, economic analysts informed Reuters<\/a> that the earnings of regional lenders may be constrained. This limitation stems from their association with securities holdings, which, rather than generating income through loans or investments in higher-yielding assets, are currently showing paper losses.<\/p>\n","post_title":"U.S. Stocks Rose On Wednesday. The Focus Of Investors Now Turns To Inflation Reports And Major Bank Earnings","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"u-s-stocks-rose-on-wednesday-the-focus-of-investors-now-turns-to-inflation-reports-and-major-bank-earnings","to_ping":"","pinged":"","post_modified":"2024-01-11 11:22:40","post_modified_gmt":"2024-01-11 00:22:40","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14973","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};
Following a robust end to 2023 with a powerful surge, stocks have faced challenges in gaining upward momentum in the first days of 2024 due to varied economic data and remarks by Federal Reserve officials<\/a>. Consequently, investors have tempered their expectations regarding the central bank's potential rate cuts in terms of timing and magnitude for this year.<\/p>\n\n\n\n Despite the rise in U.S. stocks this Wednesday, the surge was tempered as investors await forthcoming inflation updates and the impending major bank earnings slated for later in the week. Sam Stovall, chief investment strategist at CFRA Research in New York, said: \"What the market is doing, is reassessing its 2024 expectations in terms of earnings and terms of interest rates, and looking to justify the surge in prices that we saw in November and December.\"<\/em><\/p>\n\n\n\n The attention of investors will shift towards the December consumer and producer inflation reports, set to be released on Thursday and Friday, respectively. These reports hold significance in shaping the potential trajectory of the central bank's monetary policy.<\/p>\n\n\n\n See Related: <\/em><\/strong>The Fed Raises Interest Rates By 25 BPS This Wednesday; Effects On Crypto And Financial Markets<\/a><\/p>\n\n\n\n Investors will also closely monitor comments by New York Fed President John Williams and it is important to mention that market participants have scaled back expectations to a 67.6% chance for at least a 25-basis-point rate cut in March, according to CME's FedWatch Tool. While sentiment-based indicators show that investors are still bullish, a recommendation is that you continue taking a defensive investment approach in the upcoming days.<\/p>\n\n\n\n By the end of the week, it's anticipated that major banking institutions such as JPMorgan Chase, Bank of America, Citigroup, and Wells Fargo will announce decreased fourth-quarter profits. Analysts have reduced their estimates for the fourth quarter earnings by 6.8%, surpassing the pre-pandemic 2019 average pre-earnings cut of 4.6% and the post-pandemic 2022\u20132023 average cut of 3.6%.<\/p>\n\n\n\n JPMorgan Chase, Bank of America, Citigroup, and Wells Fargo will announce fourth-quarter earnings on Friday. Unfavorable news also emerged as Reuters reported on Monday that U.S. regional banks might encounter challenges in boosting profits in 2024. They are expected to contend with increased pressure to offer higher deposit rates compared to larger competitors, alongside potentially limited demand from borrowers.<\/p>\n\n\n\n Given the uncertain trajectory of interest rates, economic analysts informed Reuters<\/a> that the earnings of regional lenders may be constrained. This limitation stems from their association with securities holdings, which, rather than generating income through loans or investments in higher-yielding assets, are currently showing paper losses.<\/p>\n","post_title":"U.S. Stocks Rose On Wednesday. The Focus Of Investors Now Turns To Inflation Reports And Major Bank Earnings","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"u-s-stocks-rose-on-wednesday-the-focus-of-investors-now-turns-to-inflation-reports-and-major-bank-earnings","to_ping":"","pinged":"","post_modified":"2024-01-11 11:22:40","post_modified_gmt":"2024-01-11 00:22:40","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14973","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};
At the same time, the escalation of geopolitical uncertainties introduces an additional challenge and heightens the potential for unforeseen risks in both markets and economic performance. Considering these factors, the perspective is likely to stay cautious as long as interest rates remain significantly restrictive and the looming presence of geopolitical risks persists.<\/p>\n","post_title":"Wall Street Weakened As Retail Sales Data Hampers Expectations For A Cut In Interest Rates","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"wall-street-weakened-as-retail-sales-data-hampers-expectations-for-a-cut-in-interest-rates","to_ping":"","pinged":"","post_modified":"2024-01-19 05:56:51","post_modified_gmt":"2024-01-18 18:56:51","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15043","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":14973,"post_author":"14","post_date":"2024-01-11 11:22:35","post_date_gmt":"2024-01-11 00:22:35","post_content":"\n Following a robust end to 2023 with a powerful surge, stocks have faced challenges in gaining upward momentum in the first days of 2024 due to varied economic data and remarks by Federal Reserve officials<\/a>. Consequently, investors have tempered their expectations regarding the central bank's potential rate cuts in terms of timing and magnitude for this year.<\/p>\n\n\n\n Despite the rise in U.S. stocks this Wednesday, the surge was tempered as investors await forthcoming inflation updates and the impending major bank earnings slated for later in the week. Sam Stovall, chief investment strategist at CFRA Research in New York, said: \"What the market is doing, is reassessing its 2024 expectations in terms of earnings and terms of interest rates, and looking to justify the surge in prices that we saw in November and December.\"<\/em><\/p>\n\n\n\n The attention of investors will shift towards the December consumer and producer inflation reports, set to be released on Thursday and Friday, respectively. These reports hold significance in shaping the potential trajectory of the central bank's monetary policy.<\/p>\n\n\n\n See Related: <\/em><\/strong>The Fed Raises Interest Rates By 25 BPS This Wednesday; Effects On Crypto And Financial Markets<\/a><\/p>\n\n\n\n Investors will also closely monitor comments by New York Fed President John Williams and it is important to mention that market participants have scaled back expectations to a 67.6% chance for at least a 25-basis-point rate cut in March, according to CME's FedWatch Tool. While sentiment-based indicators show that investors are still bullish, a recommendation is that you continue taking a defensive investment approach in the upcoming days.<\/p>\n\n\n\n By the end of the week, it's anticipated that major banking institutions such as JPMorgan Chase, Bank of America, Citigroup, and Wells Fargo will announce decreased fourth-quarter profits. Analysts have reduced their estimates for the fourth quarter earnings by 6.8%, surpassing the pre-pandemic 2019 average pre-earnings cut of 4.6% and the post-pandemic 2022\u20132023 average cut of 3.6%.<\/p>\n\n\n\n JPMorgan Chase, Bank of America, Citigroup, and Wells Fargo will announce fourth-quarter earnings on Friday. Unfavorable news also emerged as Reuters reported on Monday that U.S. regional banks might encounter challenges in boosting profits in 2024. They are expected to contend with increased pressure to offer higher deposit rates compared to larger competitors, alongside potentially limited demand from borrowers.<\/p>\n\n\n\n Given the uncertain trajectory of interest rates, economic analysts informed Reuters<\/a> that the earnings of regional lenders may be constrained. This limitation stems from their association with securities holdings, which, rather than generating income through loans or investments in higher-yielding assets, are currently showing paper losses.<\/p>\n","post_title":"U.S. Stocks Rose On Wednesday. The Focus Of Investors Now Turns To Inflation Reports And Major Bank Earnings","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"u-s-stocks-rose-on-wednesday-the-focus-of-investors-now-turns-to-inflation-reports-and-major-bank-earnings","to_ping":"","pinged":"","post_modified":"2024-01-11 11:22:40","post_modified_gmt":"2024-01-11 00:22:40","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14973","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};
It is also important to mention that a decline in U.S. stocks sent Wall Street's<\/a> \"fear gauge\" to a two-month high while JPMorgan analysts predict that the majority of negative consequences stemming from higher interest rates have not materialized yet. On Tuesday, Federal Reserve Governor Christopher Waller also emphasized that the central bank should refrain from hastily reducing interest rates until there is a clear indication that lower inflation is likely to persist.<\/p>\n\n\n\n At the same time, the escalation of geopolitical uncertainties introduces an additional challenge and heightens the potential for unforeseen risks in both markets and economic performance. Considering these factors, the perspective is likely to stay cautious as long as interest rates remain significantly restrictive and the looming presence of geopolitical risks persists.<\/p>\n","post_title":"Wall Street Weakened As Retail Sales Data Hampers Expectations For A Cut In Interest Rates","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"wall-street-weakened-as-retail-sales-data-hampers-expectations-for-a-cut-in-interest-rates","to_ping":"","pinged":"","post_modified":"2024-01-19 05:56:51","post_modified_gmt":"2024-01-18 18:56:51","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15043","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":14973,"post_author":"14","post_date":"2024-01-11 11:22:35","post_date_gmt":"2024-01-11 00:22:35","post_content":"\n Following a robust end to 2023 with a powerful surge, stocks have faced challenges in gaining upward momentum in the first days of 2024 due to varied economic data and remarks by Federal Reserve officials<\/a>. Consequently, investors have tempered their expectations regarding the central bank's potential rate cuts in terms of timing and magnitude for this year.<\/p>\n\n\n\n Despite the rise in U.S. stocks this Wednesday, the surge was tempered as investors await forthcoming inflation updates and the impending major bank earnings slated for later in the week. Sam Stovall, chief investment strategist at CFRA Research in New York, said: \"What the market is doing, is reassessing its 2024 expectations in terms of earnings and terms of interest rates, and looking to justify the surge in prices that we saw in November and December.\"<\/em><\/p>\n\n\n\n The attention of investors will shift towards the December consumer and producer inflation reports, set to be released on Thursday and Friday, respectively. These reports hold significance in shaping the potential trajectory of the central bank's monetary policy.<\/p>\n\n\n\n See Related: <\/em><\/strong>The Fed Raises Interest Rates By 25 BPS This Wednesday; Effects On Crypto And Financial Markets<\/a><\/p>\n\n\n\n Investors will also closely monitor comments by New York Fed President John Williams and it is important to mention that market participants have scaled back expectations to a 67.6% chance for at least a 25-basis-point rate cut in March, according to CME's FedWatch Tool. While sentiment-based indicators show that investors are still bullish, a recommendation is that you continue taking a defensive investment approach in the upcoming days.<\/p>\n\n\n\n By the end of the week, it's anticipated that major banking institutions such as JPMorgan Chase, Bank of America, Citigroup, and Wells Fargo will announce decreased fourth-quarter profits. Analysts have reduced their estimates for the fourth quarter earnings by 6.8%, surpassing the pre-pandemic 2019 average pre-earnings cut of 4.6% and the post-pandemic 2022\u20132023 average cut of 3.6%.<\/p>\n\n\n\n JPMorgan Chase, Bank of America, Citigroup, and Wells Fargo will announce fourth-quarter earnings on Friday. Unfavorable news also emerged as Reuters reported on Monday that U.S. regional banks might encounter challenges in boosting profits in 2024. They are expected to contend with increased pressure to offer higher deposit rates compared to larger competitors, alongside potentially limited demand from borrowers.<\/p>\n\n\n\n Given the uncertain trajectory of interest rates, economic analysts informed Reuters<\/a> that the earnings of regional lenders may be constrained. This limitation stems from their association with securities holdings, which, rather than generating income through loans or investments in higher-yielding assets, are currently showing paper losses.<\/p>\n","post_title":"U.S. Stocks Rose On Wednesday. The Focus Of Investors Now Turns To Inflation Reports And Major Bank Earnings","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"u-s-stocks-rose-on-wednesday-the-focus-of-investors-now-turns-to-inflation-reports-and-major-bank-earnings","to_ping":"","pinged":"","post_modified":"2024-01-11 11:22:40","post_modified_gmt":"2024-01-11 00:22:40","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14973","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};
It is also important to mention that a decline in U.S. stocks sent Wall Street's<\/a> \"fear gauge\" to a two-month high while JPMorgan analysts predict that the majority of negative consequences stemming from higher interest rates have not materialized yet. On Tuesday, Federal Reserve Governor Christopher Waller also emphasized that the central bank should refrain from hastily reducing interest rates until there is a clear indication that lower inflation is likely to persist.<\/p>\n\n\n\n At the same time, the escalation of geopolitical uncertainties introduces an additional challenge and heightens the potential for unforeseen risks in both markets and economic performance. Considering these factors, the perspective is likely to stay cautious as long as interest rates remain significantly restrictive and the looming presence of geopolitical risks persists.<\/p>\n","post_title":"Wall Street Weakened As Retail Sales Data Hampers Expectations For A Cut In Interest Rates","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"wall-street-weakened-as-retail-sales-data-hampers-expectations-for-a-cut-in-interest-rates","to_ping":"","pinged":"","post_modified":"2024-01-19 05:56:51","post_modified_gmt":"2024-01-18 18:56:51","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15043","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":14973,"post_author":"14","post_date":"2024-01-11 11:22:35","post_date_gmt":"2024-01-11 00:22:35","post_content":"\n Following a robust end to 2023 with a powerful surge, stocks have faced challenges in gaining upward momentum in the first days of 2024 due to varied economic data and remarks by Federal Reserve officials<\/a>. Consequently, investors have tempered their expectations regarding the central bank's potential rate cuts in terms of timing and magnitude for this year.<\/p>\n\n\n\n Despite the rise in U.S. stocks this Wednesday, the surge was tempered as investors await forthcoming inflation updates and the impending major bank earnings slated for later in the week. Sam Stovall, chief investment strategist at CFRA Research in New York, said: \"What the market is doing, is reassessing its 2024 expectations in terms of earnings and terms of interest rates, and looking to justify the surge in prices that we saw in November and December.\"<\/em><\/p>\n\n\n\n The attention of investors will shift towards the December consumer and producer inflation reports, set to be released on Thursday and Friday, respectively. These reports hold significance in shaping the potential trajectory of the central bank's monetary policy.<\/p>\n\n\n\n See Related: <\/em><\/strong>The Fed Raises Interest Rates By 25 BPS This Wednesday; Effects On Crypto And Financial Markets<\/a><\/p>\n\n\n\n Investors will also closely monitor comments by New York Fed President John Williams and it is important to mention that market participants have scaled back expectations to a 67.6% chance for at least a 25-basis-point rate cut in March, according to CME's FedWatch Tool. While sentiment-based indicators show that investors are still bullish, a recommendation is that you continue taking a defensive investment approach in the upcoming days.<\/p>\n\n\n\n By the end of the week, it's anticipated that major banking institutions such as JPMorgan Chase, Bank of America, Citigroup, and Wells Fargo will announce decreased fourth-quarter profits. Analysts have reduced their estimates for the fourth quarter earnings by 6.8%, surpassing the pre-pandemic 2019 average pre-earnings cut of 4.6% and the post-pandemic 2022\u20132023 average cut of 3.6%.<\/p>\n\n\n\n JPMorgan Chase, Bank of America, Citigroup, and Wells Fargo will announce fourth-quarter earnings on Friday. Unfavorable news also emerged as Reuters reported on Monday that U.S. regional banks might encounter challenges in boosting profits in 2024. They are expected to contend with increased pressure to offer higher deposit rates compared to larger competitors, alongside potentially limited demand from borrowers.<\/p>\n\n\n\n Given the uncertain trajectory of interest rates, economic analysts informed Reuters<\/a> that the earnings of regional lenders may be constrained. This limitation stems from their association with securities holdings, which, rather than generating income through loans or investments in higher-yielding assets, are currently showing paper losses.<\/p>\n","post_title":"U.S. Stocks Rose On Wednesday. The Focus Of Investors Now Turns To Inflation Reports And Major Bank Earnings","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"u-s-stocks-rose-on-wednesday-the-focus-of-investors-now-turns-to-inflation-reports-and-major-bank-earnings","to_ping":"","pinged":"","post_modified":"2024-01-11 11:22:40","post_modified_gmt":"2024-01-11 00:22:40","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14973","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};
\"We had news that the U.S. consumer continues to be quite healthy, but that has increased anxiety that the Fed\u2019s first rate cut could potentially be pushed to May from March. Yields are also moving higher on the strong retail sales numbers, adding to near-term worries.\"<\/em><\/p>\n\n\n\n It is also important to mention that a decline in U.S. stocks sent Wall Street's<\/a> \"fear gauge\" to a two-month high while JPMorgan analysts predict that the majority of negative consequences stemming from higher interest rates have not materialized yet. On Tuesday, Federal Reserve Governor Christopher Waller also emphasized that the central bank should refrain from hastily reducing interest rates until there is a clear indication that lower inflation is likely to persist.<\/p>\n\n\n\n At the same time, the escalation of geopolitical uncertainties introduces an additional challenge and heightens the potential for unforeseen risks in both markets and economic performance. Considering these factors, the perspective is likely to stay cautious as long as interest rates remain significantly restrictive and the looming presence of geopolitical risks persists.<\/p>\n","post_title":"Wall Street Weakened As Retail Sales Data Hampers Expectations For A Cut In Interest Rates","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"wall-street-weakened-as-retail-sales-data-hampers-expectations-for-a-cut-in-interest-rates","to_ping":"","pinged":"","post_modified":"2024-01-19 05:56:51","post_modified_gmt":"2024-01-18 18:56:51","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15043","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":14973,"post_author":"14","post_date":"2024-01-11 11:22:35","post_date_gmt":"2024-01-11 00:22:35","post_content":"\n Following a robust end to 2023 with a powerful surge, stocks have faced challenges in gaining upward momentum in the first days of 2024 due to varied economic data and remarks by Federal Reserve officials<\/a>. Consequently, investors have tempered their expectations regarding the central bank's potential rate cuts in terms of timing and magnitude for this year.<\/p>\n\n\n\n Despite the rise in U.S. stocks this Wednesday, the surge was tempered as investors await forthcoming inflation updates and the impending major bank earnings slated for later in the week. Sam Stovall, chief investment strategist at CFRA Research in New York, said: \"What the market is doing, is reassessing its 2024 expectations in terms of earnings and terms of interest rates, and looking to justify the surge in prices that we saw in November and December.\"<\/em><\/p>\n\n\n\n The attention of investors will shift towards the December consumer and producer inflation reports, set to be released on Thursday and Friday, respectively. These reports hold significance in shaping the potential trajectory of the central bank's monetary policy.<\/p>\n\n\n\n See Related: <\/em><\/strong>The Fed Raises Interest Rates By 25 BPS This Wednesday; Effects On Crypto And Financial Markets<\/a><\/p>\n\n\n\n Investors will also closely monitor comments by New York Fed President John Williams and it is important to mention that market participants have scaled back expectations to a 67.6% chance for at least a 25-basis-point rate cut in March, according to CME's FedWatch Tool. While sentiment-based indicators show that investors are still bullish, a recommendation is that you continue taking a defensive investment approach in the upcoming days.<\/p>\n\n\n\n By the end of the week, it's anticipated that major banking institutions such as JPMorgan Chase, Bank of America, Citigroup, and Wells Fargo will announce decreased fourth-quarter profits. Analysts have reduced their estimates for the fourth quarter earnings by 6.8%, surpassing the pre-pandemic 2019 average pre-earnings cut of 4.6% and the post-pandemic 2022\u20132023 average cut of 3.6%.<\/p>\n\n\n\n JPMorgan Chase, Bank of America, Citigroup, and Wells Fargo will announce fourth-quarter earnings on Friday. Unfavorable news also emerged as Reuters reported on Monday that U.S. regional banks might encounter challenges in boosting profits in 2024. They are expected to contend with increased pressure to offer higher deposit rates compared to larger competitors, alongside potentially limited demand from borrowers.<\/p>\n\n\n\n Given the uncertain trajectory of interest rates, economic analysts informed Reuters<\/a> that the earnings of regional lenders may be constrained. This limitation stems from their association with securities holdings, which, rather than generating income through loans or investments in higher-yielding assets, are currently showing paper losses.<\/p>\n","post_title":"U.S. Stocks Rose On Wednesday. The Focus Of Investors Now Turns To Inflation Reports And Major Bank Earnings","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"u-s-stocks-rose-on-wednesday-the-focus-of-investors-now-turns-to-inflation-reports-and-major-bank-earnings","to_ping":"","pinged":"","post_modified":"2024-01-11 11:22:40","post_modified_gmt":"2024-01-11 00:22:40","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14973","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};
Anticipations among traders for a 25-basis-point Federal Reserve rate cut in March declined to 55%, down from approximately 60% before the release of the retail sales data. Ryan Detrick, chief market strategist at Carson Group in Omaha, said<\/a>:<\/p>\n\n\n\n \"We had news that the U.S. consumer continues to be quite healthy, but that has increased anxiety that the Fed\u2019s first rate cut could potentially be pushed to May from March. Yields are also moving higher on the strong retail sales numbers, adding to near-term worries.\"<\/em><\/p>\n\n\n\n It is also important to mention that a decline in U.S. stocks sent Wall Street's<\/a> \"fear gauge\" to a two-month high while JPMorgan analysts predict that the majority of negative consequences stemming from higher interest rates have not materialized yet. On Tuesday, Federal Reserve Governor Christopher Waller also emphasized that the central bank should refrain from hastily reducing interest rates until there is a clear indication that lower inflation is likely to persist.<\/p>\n\n\n\n At the same time, the escalation of geopolitical uncertainties introduces an additional challenge and heightens the potential for unforeseen risks in both markets and economic performance. Considering these factors, the perspective is likely to stay cautious as long as interest rates remain significantly restrictive and the looming presence of geopolitical risks persists.<\/p>\n","post_title":"Wall Street Weakened As Retail Sales Data Hampers Expectations For A Cut In Interest Rates","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"wall-street-weakened-as-retail-sales-data-hampers-expectations-for-a-cut-in-interest-rates","to_ping":"","pinged":"","post_modified":"2024-01-19 05:56:51","post_modified_gmt":"2024-01-18 18:56:51","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15043","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":14973,"post_author":"14","post_date":"2024-01-11 11:22:35","post_date_gmt":"2024-01-11 00:22:35","post_content":"\n Following a robust end to 2023 with a powerful surge, stocks have faced challenges in gaining upward momentum in the first days of 2024 due to varied economic data and remarks by Federal Reserve officials<\/a>. Consequently, investors have tempered their expectations regarding the central bank's potential rate cuts in terms of timing and magnitude for this year.<\/p>\n\n\n\n Despite the rise in U.S. stocks this Wednesday, the surge was tempered as investors await forthcoming inflation updates and the impending major bank earnings slated for later in the week. Sam Stovall, chief investment strategist at CFRA Research in New York, said: \"What the market is doing, is reassessing its 2024 expectations in terms of earnings and terms of interest rates, and looking to justify the surge in prices that we saw in November and December.\"<\/em><\/p>\n\n\n\n The attention of investors will shift towards the December consumer and producer inflation reports, set to be released on Thursday and Friday, respectively. These reports hold significance in shaping the potential trajectory of the central bank's monetary policy.<\/p>\n\n\n\n See Related: <\/em><\/strong>The Fed Raises Interest Rates By 25 BPS This Wednesday; Effects On Crypto And Financial Markets<\/a><\/p>\n\n\n\n Investors will also closely monitor comments by New York Fed President John Williams and it is important to mention that market participants have scaled back expectations to a 67.6% chance for at least a 25-basis-point rate cut in March, according to CME's FedWatch Tool. While sentiment-based indicators show that investors are still bullish, a recommendation is that you continue taking a defensive investment approach in the upcoming days.<\/p>\n\n\n\n By the end of the week, it's anticipated that major banking institutions such as JPMorgan Chase, Bank of America, Citigroup, and Wells Fargo will announce decreased fourth-quarter profits. Analysts have reduced their estimates for the fourth quarter earnings by 6.8%, surpassing the pre-pandemic 2019 average pre-earnings cut of 4.6% and the post-pandemic 2022\u20132023 average cut of 3.6%.<\/p>\n\n\n\n JPMorgan Chase, Bank of America, Citigroup, and Wells Fargo will announce fourth-quarter earnings on Friday. Unfavorable news also emerged as Reuters reported on Monday that U.S. regional banks might encounter challenges in boosting profits in 2024. They are expected to contend with increased pressure to offer higher deposit rates compared to larger competitors, alongside potentially limited demand from borrowers.<\/p>\n\n\n\n Given the uncertain trajectory of interest rates, economic analysts informed Reuters<\/a> that the earnings of regional lenders may be constrained. This limitation stems from their association with securities holdings, which, rather than generating income through loans or investments in higher-yielding assets, are currently showing paper losses.<\/p>\n","post_title":"U.S. Stocks Rose On Wednesday. The Focus Of Investors Now Turns To Inflation Reports And Major Bank Earnings","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"u-s-stocks-rose-on-wednesday-the-focus-of-investors-now-turns-to-inflation-reports-and-major-bank-earnings","to_ping":"","pinged":"","post_modified":"2024-01-11 11:22:40","post_modified_gmt":"2024-01-11 00:22:40","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14973","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};
See Related: Wall Street's Main Indexes Fell At The Beginning Of 2024 year<\/a><\/p>\n\n\n\n Anticipations among traders for a 25-basis-point Federal Reserve rate cut in March declined to 55%, down from approximately 60% before the release of the retail sales data. Ryan Detrick, chief market strategist at Carson Group in Omaha, said<\/a>:<\/p>\n\n\n\n \"We had news that the U.S. consumer continues to be quite healthy, but that has increased anxiety that the Fed\u2019s first rate cut could potentially be pushed to May from March. Yields are also moving higher on the strong retail sales numbers, adding to near-term worries.\"<\/em><\/p>\n\n\n\n It is also important to mention that a decline in U.S. stocks sent Wall Street's<\/a> \"fear gauge\" to a two-month high while JPMorgan analysts predict that the majority of negative consequences stemming from higher interest rates have not materialized yet. On Tuesday, Federal Reserve Governor Christopher Waller also emphasized that the central bank should refrain from hastily reducing interest rates until there is a clear indication that lower inflation is likely to persist.<\/p>\n\n\n\n At the same time, the escalation of geopolitical uncertainties introduces an additional challenge and heightens the potential for unforeseen risks in both markets and economic performance. Considering these factors, the perspective is likely to stay cautious as long as interest rates remain significantly restrictive and the looming presence of geopolitical risks persists.<\/p>\n","post_title":"Wall Street Weakened As Retail Sales Data Hampers Expectations For A Cut In Interest Rates","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"wall-street-weakened-as-retail-sales-data-hampers-expectations-for-a-cut-in-interest-rates","to_ping":"","pinged":"","post_modified":"2024-01-19 05:56:51","post_modified_gmt":"2024-01-18 18:56:51","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15043","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":14973,"post_author":"14","post_date":"2024-01-11 11:22:35","post_date_gmt":"2024-01-11 00:22:35","post_content":"\n Following a robust end to 2023 with a powerful surge, stocks have faced challenges in gaining upward momentum in the first days of 2024 due to varied economic data and remarks by Federal Reserve officials<\/a>. Consequently, investors have tempered their expectations regarding the central bank's potential rate cuts in terms of timing and magnitude for this year.<\/p>\n\n\n\n Despite the rise in U.S. stocks this Wednesday, the surge was tempered as investors await forthcoming inflation updates and the impending major bank earnings slated for later in the week. Sam Stovall, chief investment strategist at CFRA Research in New York, said: \"What the market is doing, is reassessing its 2024 expectations in terms of earnings and terms of interest rates, and looking to justify the surge in prices that we saw in November and December.\"<\/em><\/p>\n\n\n\n The attention of investors will shift towards the December consumer and producer inflation reports, set to be released on Thursday and Friday, respectively. These reports hold significance in shaping the potential trajectory of the central bank's monetary policy.<\/p>\n\n\n\n See Related: <\/em><\/strong>The Fed Raises Interest Rates By 25 BPS This Wednesday; Effects On Crypto And Financial Markets<\/a><\/p>\n\n\n\n Investors will also closely monitor comments by New York Fed President John Williams and it is important to mention that market participants have scaled back expectations to a 67.6% chance for at least a 25-basis-point rate cut in March, according to CME's FedWatch Tool. While sentiment-based indicators show that investors are still bullish, a recommendation is that you continue taking a defensive investment approach in the upcoming days.<\/p>\n\n\n\n By the end of the week, it's anticipated that major banking institutions such as JPMorgan Chase, Bank of America, Citigroup, and Wells Fargo will announce decreased fourth-quarter profits. Analysts have reduced their estimates for the fourth quarter earnings by 6.8%, surpassing the pre-pandemic 2019 average pre-earnings cut of 4.6% and the post-pandemic 2022\u20132023 average cut of 3.6%.<\/p>\n\n\n\n JPMorgan Chase, Bank of America, Citigroup, and Wells Fargo will announce fourth-quarter earnings on Friday. Unfavorable news also emerged as Reuters reported on Monday that U.S. regional banks might encounter challenges in boosting profits in 2024. They are expected to contend with increased pressure to offer higher deposit rates compared to larger competitors, alongside potentially limited demand from borrowers.<\/p>\n\n\n\n Given the uncertain trajectory of interest rates, economic analysts informed Reuters<\/a> that the earnings of regional lenders may be constrained. This limitation stems from their association with securities holdings, which, rather than generating income through loans or investments in higher-yielding assets, are currently showing paper losses.<\/p>\n","post_title":"U.S. Stocks Rose On Wednesday. The Focus Of Investors Now Turns To Inflation Reports And Major Bank Earnings","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"u-s-stocks-rose-on-wednesday-the-focus-of-investors-now-turns-to-inflation-reports-and-major-bank-earnings","to_ping":"","pinged":"","post_modified":"2024-01-11 11:22:40","post_modified_gmt":"2024-01-11 00:22:40","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14973","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};
The data revealed that discounts offered by retailers and a surge in motor vehicle acquisitions contributed to a greater-than-anticipated increase in U.S. retail sales, maintaining the economy on a robust trajectory in 2024. This bolstered the perspective that the Federal Reserve might not reduce interest rates as rapidly as initially anticipated for the current year.<\/p>\n\n\n\n See Related: Wall Street's Main Indexes Fell At The Beginning Of 2024 year<\/a><\/p>\n\n\n\n Anticipations among traders for a 25-basis-point Federal Reserve rate cut in March declined to 55%, down from approximately 60% before the release of the retail sales data. Ryan Detrick, chief market strategist at Carson Group in Omaha, said<\/a>:<\/p>\n\n\n\n \"We had news that the U.S. consumer continues to be quite healthy, but that has increased anxiety that the Fed\u2019s first rate cut could potentially be pushed to May from March. Yields are also moving higher on the strong retail sales numbers, adding to near-term worries.\"<\/em><\/p>\n\n\n\n It is also important to mention that a decline in U.S. stocks sent Wall Street's<\/a> \"fear gauge\" to a two-month high while JPMorgan analysts predict that the majority of negative consequences stemming from higher interest rates have not materialized yet. On Tuesday, Federal Reserve Governor Christopher Waller also emphasized that the central bank should refrain from hastily reducing interest rates until there is a clear indication that lower inflation is likely to persist.<\/p>\n\n\n\n At the same time, the escalation of geopolitical uncertainties introduces an additional challenge and heightens the potential for unforeseen risks in both markets and economic performance. Considering these factors, the perspective is likely to stay cautious as long as interest rates remain significantly restrictive and the looming presence of geopolitical risks persists.<\/p>\n","post_title":"Wall Street Weakened As Retail Sales Data Hampers Expectations For A Cut In Interest Rates","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"wall-street-weakened-as-retail-sales-data-hampers-expectations-for-a-cut-in-interest-rates","to_ping":"","pinged":"","post_modified":"2024-01-19 05:56:51","post_modified_gmt":"2024-01-18 18:56:51","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15043","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":14973,"post_author":"14","post_date":"2024-01-11 11:22:35","post_date_gmt":"2024-01-11 00:22:35","post_content":"\n Following a robust end to 2023 with a powerful surge, stocks have faced challenges in gaining upward momentum in the first days of 2024 due to varied economic data and remarks by Federal Reserve officials<\/a>. Consequently, investors have tempered their expectations regarding the central bank's potential rate cuts in terms of timing and magnitude for this year.<\/p>\n\n\n\n Despite the rise in U.S. stocks this Wednesday, the surge was tempered as investors await forthcoming inflation updates and the impending major bank earnings slated for later in the week. Sam Stovall, chief investment strategist at CFRA Research in New York, said: \"What the market is doing, is reassessing its 2024 expectations in terms of earnings and terms of interest rates, and looking to justify the surge in prices that we saw in November and December.\"<\/em><\/p>\n\n\n\n The attention of investors will shift towards the December consumer and producer inflation reports, set to be released on Thursday and Friday, respectively. These reports hold significance in shaping the potential trajectory of the central bank's monetary policy.<\/p>\n\n\n\n See Related: <\/em><\/strong>The Fed Raises Interest Rates By 25 BPS This Wednesday; Effects On Crypto And Financial Markets<\/a><\/p>\n\n\n\n Investors will also closely monitor comments by New York Fed President John Williams and it is important to mention that market participants have scaled back expectations to a 67.6% chance for at least a 25-basis-point rate cut in March, according to CME's FedWatch Tool. While sentiment-based indicators show that investors are still bullish, a recommendation is that you continue taking a defensive investment approach in the upcoming days.<\/p>\n\n\n\n By the end of the week, it's anticipated that major banking institutions such as JPMorgan Chase, Bank of America, Citigroup, and Wells Fargo will announce decreased fourth-quarter profits. Analysts have reduced their estimates for the fourth quarter earnings by 6.8%, surpassing the pre-pandemic 2019 average pre-earnings cut of 4.6% and the post-pandemic 2022\u20132023 average cut of 3.6%.<\/p>\n\n\n\n JPMorgan Chase, Bank of America, Citigroup, and Wells Fargo will announce fourth-quarter earnings on Friday. Unfavorable news also emerged as Reuters reported on Monday that U.S. regional banks might encounter challenges in boosting profits in 2024. They are expected to contend with increased pressure to offer higher deposit rates compared to larger competitors, alongside potentially limited demand from borrowers.<\/p>\n\n\n\n Given the uncertain trajectory of interest rates, economic analysts informed Reuters<\/a> that the earnings of regional lenders may be constrained. This limitation stems from their association with securities holdings, which, rather than generating income through loans or investments in higher-yielding assets, are currently showing paper losses.<\/p>\n","post_title":"U.S. Stocks Rose On Wednesday. The Focus Of Investors Now Turns To Inflation Reports And Major Bank Earnings","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"u-s-stocks-rose-on-wednesday-the-focus-of-investors-now-turns-to-inflation-reports-and-major-bank-earnings","to_ping":"","pinged":"","post_modified":"2024-01-11 11:22:40","post_modified_gmt":"2024-01-11 00:22:40","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14973","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};
The December retail sales report from the Commerce Department (USRSL=ECI) depicted a robust consumer, responsible for approximately 70% of the U.S. economy. Despite facing the challenges of high inflation and a tight monetary policy, the consumer has shown resilience.<\/p>\n\n\n\n The data revealed that discounts offered by retailers and a surge in motor vehicle acquisitions contributed to a greater-than-anticipated increase in U.S. retail sales, maintaining the economy on a robust trajectory in 2024. This bolstered the perspective that the Federal Reserve might not reduce interest rates as rapidly as initially anticipated for the current year.<\/p>\n\n\n\n See Related: Wall Street's Main Indexes Fell At The Beginning Of 2024 year<\/a><\/p>\n\n\n\n Anticipations among traders for a 25-basis-point Federal Reserve rate cut in March declined to 55%, down from approximately 60% before the release of the retail sales data. Ryan Detrick, chief market strategist at Carson Group in Omaha, said<\/a>:<\/p>\n\n\n\n \"We had news that the U.S. consumer continues to be quite healthy, but that has increased anxiety that the Fed\u2019s first rate cut could potentially be pushed to May from March. Yields are also moving higher on the strong retail sales numbers, adding to near-term worries.\"<\/em><\/p>\n\n\n\n It is also important to mention that a decline in U.S. stocks sent Wall Street's<\/a> \"fear gauge\" to a two-month high while JPMorgan analysts predict that the majority of negative consequences stemming from higher interest rates have not materialized yet. On Tuesday, Federal Reserve Governor Christopher Waller also emphasized that the central bank should refrain from hastily reducing interest rates until there is a clear indication that lower inflation is likely to persist.<\/p>\n\n\n\n At the same time, the escalation of geopolitical uncertainties introduces an additional challenge and heightens the potential for unforeseen risks in both markets and economic performance. Considering these factors, the perspective is likely to stay cautious as long as interest rates remain significantly restrictive and the looming presence of geopolitical risks persists.<\/p>\n","post_title":"Wall Street Weakened As Retail Sales Data Hampers Expectations For A Cut In Interest Rates","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"wall-street-weakened-as-retail-sales-data-hampers-expectations-for-a-cut-in-interest-rates","to_ping":"","pinged":"","post_modified":"2024-01-19 05:56:51","post_modified_gmt":"2024-01-18 18:56:51","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15043","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":14973,"post_author":"14","post_date":"2024-01-11 11:22:35","post_date_gmt":"2024-01-11 00:22:35","post_content":"\n Following a robust end to 2023 with a powerful surge, stocks have faced challenges in gaining upward momentum in the first days of 2024 due to varied economic data and remarks by Federal Reserve officials<\/a>. Consequently, investors have tempered their expectations regarding the central bank's potential rate cuts in terms of timing and magnitude for this year.<\/p>\n\n\n\n Despite the rise in U.S. stocks this Wednesday, the surge was tempered as investors await forthcoming inflation updates and the impending major bank earnings slated for later in the week. Sam Stovall, chief investment strategist at CFRA Research in New York, said: \"What the market is doing, is reassessing its 2024 expectations in terms of earnings and terms of interest rates, and looking to justify the surge in prices that we saw in November and December.\"<\/em><\/p>\n\n\n\n The attention of investors will shift towards the December consumer and producer inflation reports, set to be released on Thursday and Friday, respectively. These reports hold significance in shaping the potential trajectory of the central bank's monetary policy.<\/p>\n\n\n\n See Related: <\/em><\/strong>The Fed Raises Interest Rates By 25 BPS This Wednesday; Effects On Crypto And Financial Markets<\/a><\/p>\n\n\n\n Investors will also closely monitor comments by New York Fed President John Williams and it is important to mention that market participants have scaled back expectations to a 67.6% chance for at least a 25-basis-point rate cut in March, according to CME's FedWatch Tool. While sentiment-based indicators show that investors are still bullish, a recommendation is that you continue taking a defensive investment approach in the upcoming days.<\/p>\n\n\n\n By the end of the week, it's anticipated that major banking institutions such as JPMorgan Chase, Bank of America, Citigroup, and Wells Fargo will announce decreased fourth-quarter profits. Analysts have reduced their estimates for the fourth quarter earnings by 6.8%, surpassing the pre-pandemic 2019 average pre-earnings cut of 4.6% and the post-pandemic 2022\u20132023 average cut of 3.6%.<\/p>\n\n\n\n JPMorgan Chase, Bank of America, Citigroup, and Wells Fargo will announce fourth-quarter earnings on Friday. Unfavorable news also emerged as Reuters reported on Monday that U.S. regional banks might encounter challenges in boosting profits in 2024. They are expected to contend with increased pressure to offer higher deposit rates compared to larger competitors, alongside potentially limited demand from borrowers.<\/p>\n\n\n\n Given the uncertain trajectory of interest rates, economic analysts informed Reuters<\/a> that the earnings of regional lenders may be constrained. This limitation stems from their association with securities holdings, which, rather than generating income through loans or investments in higher-yielding assets, are currently showing paper losses.<\/p>\n","post_title":"U.S. Stocks Rose On Wednesday. The Focus Of Investors Now Turns To Inflation Reports And Major Bank Earnings","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"u-s-stocks-rose-on-wednesday-the-focus-of-investors-now-turns-to-inflation-reports-and-major-bank-earnings","to_ping":"","pinged":"","post_modified":"2024-01-11 11:22:40","post_modified_gmt":"2024-01-11 00:22:40","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14973","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};
The December retail sales report from the Commerce Department (USRSL=ECI) depicted a robust consumer, responsible for approximately 70% of the U.S. economy. Despite facing the challenges of high inflation and a tight monetary policy, the consumer has shown resilience.<\/p>\n\n\n\n The data revealed that discounts offered by retailers and a surge in motor vehicle acquisitions contributed to a greater-than-anticipated increase in U.S. retail sales, maintaining the economy on a robust trajectory in 2024. This bolstered the perspective that the Federal Reserve might not reduce interest rates as rapidly as initially anticipated for the current year.<\/p>\n\n\n\n See Related: Wall Street's Main Indexes Fell At The Beginning Of 2024 year<\/a><\/p>\n\n\n\n Anticipations among traders for a 25-basis-point Federal Reserve rate cut in March declined to 55%, down from approximately 60% before the release of the retail sales data. Ryan Detrick, chief market strategist at Carson Group in Omaha, said<\/a>:<\/p>\n\n\n\n \"We had news that the U.S. consumer continues to be quite healthy, but that has increased anxiety that the Fed\u2019s first rate cut could potentially be pushed to May from March. Yields are also moving higher on the strong retail sales numbers, adding to near-term worries.\"<\/em><\/p>\n\n\n\n It is also important to mention that a decline in U.S. stocks sent Wall Street's<\/a> \"fear gauge\" to a two-month high while JPMorgan analysts predict that the majority of negative consequences stemming from higher interest rates have not materialized yet. On Tuesday, Federal Reserve Governor Christopher Waller also emphasized that the central bank should refrain from hastily reducing interest rates until there is a clear indication that lower inflation is likely to persist.<\/p>\n\n\n\n At the same time, the escalation of geopolitical uncertainties introduces an additional challenge and heightens the potential for unforeseen risks in both markets and economic performance. Considering these factors, the perspective is likely to stay cautious as long as interest rates remain significantly restrictive and the looming presence of geopolitical risks persists.<\/p>\n","post_title":"Wall Street Weakened As Retail Sales Data Hampers Expectations For A Cut In Interest Rates","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"wall-street-weakened-as-retail-sales-data-hampers-expectations-for-a-cut-in-interest-rates","to_ping":"","pinged":"","post_modified":"2024-01-19 05:56:51","post_modified_gmt":"2024-01-18 18:56:51","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15043","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":14973,"post_author":"14","post_date":"2024-01-11 11:22:35","post_date_gmt":"2024-01-11 00:22:35","post_content":"\n Following a robust end to 2023 with a powerful surge, stocks have faced challenges in gaining upward momentum in the first days of 2024 due to varied economic data and remarks by Federal Reserve officials<\/a>. Consequently, investors have tempered their expectations regarding the central bank's potential rate cuts in terms of timing and magnitude for this year.<\/p>\n\n\n\n Despite the rise in U.S. stocks this Wednesday, the surge was tempered as investors await forthcoming inflation updates and the impending major bank earnings slated for later in the week. Sam Stovall, chief investment strategist at CFRA Research in New York, said: \"What the market is doing, is reassessing its 2024 expectations in terms of earnings and terms of interest rates, and looking to justify the surge in prices that we saw in November and December.\"<\/em><\/p>\n\n\n\n The attention of investors will shift towards the December consumer and producer inflation reports, set to be released on Thursday and Friday, respectively. These reports hold significance in shaping the potential trajectory of the central bank's monetary policy.<\/p>\n\n\n\n See Related: <\/em><\/strong>The Fed Raises Interest Rates By 25 BPS This Wednesday; Effects On Crypto And Financial Markets<\/a><\/p>\n\n\n\n Investors will also closely monitor comments by New York Fed President John Williams and it is important to mention that market participants have scaled back expectations to a 67.6% chance for at least a 25-basis-point rate cut in March, according to CME's FedWatch Tool. While sentiment-based indicators show that investors are still bullish, a recommendation is that you continue taking a defensive investment approach in the upcoming days.<\/p>\n\n\n\n By the end of the week, it's anticipated that major banking institutions such as JPMorgan Chase, Bank of America, Citigroup, and Wells Fargo will announce decreased fourth-quarter profits. Analysts have reduced their estimates for the fourth quarter earnings by 6.8%, surpassing the pre-pandemic 2019 average pre-earnings cut of 4.6% and the post-pandemic 2022\u20132023 average cut of 3.6%.<\/p>\n\n\n\n JPMorgan Chase, Bank of America, Citigroup, and Wells Fargo will announce fourth-quarter earnings on Friday. Unfavorable news also emerged as Reuters reported on Monday that U.S. regional banks might encounter challenges in boosting profits in 2024. They are expected to contend with increased pressure to offer higher deposit rates compared to larger competitors, alongside potentially limited demand from borrowers.<\/p>\n\n\n\n Given the uncertain trajectory of interest rates, economic analysts informed Reuters<\/a> that the earnings of regional lenders may be constrained. This limitation stems from their association with securities holdings, which, rather than generating income through loans or investments in higher-yielding assets, are currently showing paper losses.<\/p>\n","post_title":"U.S. Stocks Rose On Wednesday. The Focus Of Investors Now Turns To Inflation Reports And Major Bank Earnings","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"u-s-stocks-rose-on-wednesday-the-focus-of-investors-now-turns-to-inflation-reports-and-major-bank-earnings","to_ping":"","pinged":"","post_modified":"2024-01-11 11:22:40","post_modified_gmt":"2024-01-11 00:22:40","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14973","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};
Wall Street witnessed a significant stock decline this Wednesday following positive December U.S. retail sales data, which diminished the anticipation of an early initiation of the Federal Reserve's campaign to cut interest rates.<\/p>\n\n\n\n The December retail sales report from the Commerce Department (USRSL=ECI) depicted a robust consumer, responsible for approximately 70% of the U.S. economy. Despite facing the challenges of high inflation and a tight monetary policy, the consumer has shown resilience.<\/p>\n\n\n\n The data revealed that discounts offered by retailers and a surge in motor vehicle acquisitions contributed to a greater-than-anticipated increase in U.S. retail sales, maintaining the economy on a robust trajectory in 2024. This bolstered the perspective that the Federal Reserve might not reduce interest rates as rapidly as initially anticipated for the current year.<\/p>\n\n\n\n See Related: Wall Street's Main Indexes Fell At The Beginning Of 2024 year<\/a><\/p>\n\n\n\n Anticipations among traders for a 25-basis-point Federal Reserve rate cut in March declined to 55%, down from approximately 60% before the release of the retail sales data. Ryan Detrick, chief market strategist at Carson Group in Omaha, said<\/a>:<\/p>\n\n\n\n \"We had news that the U.S. consumer continues to be quite healthy, but that has increased anxiety that the Fed\u2019s first rate cut could potentially be pushed to May from March. Yields are also moving higher on the strong retail sales numbers, adding to near-term worries.\"<\/em><\/p>\n\n\n\n It is also important to mention that a decline in U.S. stocks sent Wall Street's<\/a> \"fear gauge\" to a two-month high while JPMorgan analysts predict that the majority of negative consequences stemming from higher interest rates have not materialized yet. On Tuesday, Federal Reserve Governor Christopher Waller also emphasized that the central bank should refrain from hastily reducing interest rates until there is a clear indication that lower inflation is likely to persist.<\/p>\n\n\n\n At the same time, the escalation of geopolitical uncertainties introduces an additional challenge and heightens the potential for unforeseen risks in both markets and economic performance. Considering these factors, the perspective is likely to stay cautious as long as interest rates remain significantly restrictive and the looming presence of geopolitical risks persists.<\/p>\n","post_title":"Wall Street Weakened As Retail Sales Data Hampers Expectations For A Cut In Interest Rates","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"wall-street-weakened-as-retail-sales-data-hampers-expectations-for-a-cut-in-interest-rates","to_ping":"","pinged":"","post_modified":"2024-01-19 05:56:51","post_modified_gmt":"2024-01-18 18:56:51","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15043","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":14973,"post_author":"14","post_date":"2024-01-11 11:22:35","post_date_gmt":"2024-01-11 00:22:35","post_content":"\n Following a robust end to 2023 with a powerful surge, stocks have faced challenges in gaining upward momentum in the first days of 2024 due to varied economic data and remarks by Federal Reserve officials<\/a>. Consequently, investors have tempered their expectations regarding the central bank's potential rate cuts in terms of timing and magnitude for this year.<\/p>\n\n\n\n Despite the rise in U.S. stocks this Wednesday, the surge was tempered as investors await forthcoming inflation updates and the impending major bank earnings slated for later in the week. Sam Stovall, chief investment strategist at CFRA Research in New York, said: \"What the market is doing, is reassessing its 2024 expectations in terms of earnings and terms of interest rates, and looking to justify the surge in prices that we saw in November and December.\"<\/em><\/p>\n\n\n\n The attention of investors will shift towards the December consumer and producer inflation reports, set to be released on Thursday and Friday, respectively. These reports hold significance in shaping the potential trajectory of the central bank's monetary policy.<\/p>\n\n\n\n See Related: <\/em><\/strong>The Fed Raises Interest Rates By 25 BPS This Wednesday; Effects On Crypto And Financial Markets<\/a><\/p>\n\n\n\n Investors will also closely monitor comments by New York Fed President John Williams and it is important to mention that market participants have scaled back expectations to a 67.6% chance for at least a 25-basis-point rate cut in March, according to CME's FedWatch Tool. While sentiment-based indicators show that investors are still bullish, a recommendation is that you continue taking a defensive investment approach in the upcoming days.<\/p>\n\n\n\n By the end of the week, it's anticipated that major banking institutions such as JPMorgan Chase, Bank of America, Citigroup, and Wells Fargo will announce decreased fourth-quarter profits. Analysts have reduced their estimates for the fourth quarter earnings by 6.8%, surpassing the pre-pandemic 2019 average pre-earnings cut of 4.6% and the post-pandemic 2022\u20132023 average cut of 3.6%.<\/p>\n\n\n\n JPMorgan Chase, Bank of America, Citigroup, and Wells Fargo will announce fourth-quarter earnings on Friday. Unfavorable news also emerged as Reuters reported on Monday that U.S. regional banks might encounter challenges in boosting profits in 2024. They are expected to contend with increased pressure to offer higher deposit rates compared to larger competitors, alongside potentially limited demand from borrowers.<\/p>\n\n\n\n Given the uncertain trajectory of interest rates, economic analysts informed Reuters<\/a> that the earnings of regional lenders may be constrained. This limitation stems from their association with securities holdings, which, rather than generating income through loans or investments in higher-yielding assets, are currently showing paper losses.<\/p>\n","post_title":"U.S. Stocks Rose On Wednesday. The Focus Of Investors Now Turns To Inflation Reports And Major Bank Earnings","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"u-s-stocks-rose-on-wednesday-the-focus-of-investors-now-turns-to-inflation-reports-and-major-bank-earnings","to_ping":"","pinged":"","post_modified":"2024-01-11 11:22:40","post_modified_gmt":"2024-01-11 00:22:40","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14973","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};
This report paints a refined picture of the banking sector's future, urging institutions to reimagine their strategies to unlock the $7 trillion potential. While challenges loom, the prospect of doubling valuations underscores the importance of proactive measures in fostering growth and adapting to the evolving financial landscape. The conclusion is clear - the path forward involves a delicate dance between innovation and regulation, and only those who master it will truly thrive in the years to come.<\/p>\n","post_title":"Global Banks Poised For A $7 Trillion Boost In Valuations","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"global-banks-poised-for-a-7-trillion-boost-in-valuations","to_ping":"","pinged":"","post_modified":"2024-01-19 06:53:43","post_modified_gmt":"2024-01-18 19:53:43","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15020","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15043,"post_author":"14","post_date":"2024-01-19 05:56:40","post_date_gmt":"2024-01-18 18:56:40","post_content":"\n Wall Street witnessed a significant stock decline this Wednesday following positive December U.S. retail sales data, which diminished the anticipation of an early initiation of the Federal Reserve's campaign to cut interest rates.<\/p>\n\n\n\n The December retail sales report from the Commerce Department (USRSL=ECI) depicted a robust consumer, responsible for approximately 70% of the U.S. economy. Despite facing the challenges of high inflation and a tight monetary policy, the consumer has shown resilience.<\/p>\n\n\n\n The data revealed that discounts offered by retailers and a surge in motor vehicle acquisitions contributed to a greater-than-anticipated increase in U.S. retail sales, maintaining the economy on a robust trajectory in 2024. This bolstered the perspective that the Federal Reserve might not reduce interest rates as rapidly as initially anticipated for the current year.<\/p>\n\n\n\n See Related: Wall Street's Main Indexes Fell At The Beginning Of 2024 year<\/a><\/p>\n\n\n\n Anticipations among traders for a 25-basis-point Federal Reserve rate cut in March declined to 55%, down from approximately 60% before the release of the retail sales data. Ryan Detrick, chief market strategist at Carson Group in Omaha, said<\/a>:<\/p>\n\n\n\n \"We had news that the U.S. consumer continues to be quite healthy, but that has increased anxiety that the Fed\u2019s first rate cut could potentially be pushed to May from March. Yields are also moving higher on the strong retail sales numbers, adding to near-term worries.\"<\/em><\/p>\n\n\n\n It is also important to mention that a decline in U.S. stocks sent Wall Street's<\/a> \"fear gauge\" to a two-month high while JPMorgan analysts predict that the majority of negative consequences stemming from higher interest rates have not materialized yet. On Tuesday, Federal Reserve Governor Christopher Waller also emphasized that the central bank should refrain from hastily reducing interest rates until there is a clear indication that lower inflation is likely to persist.<\/p>\n\n\n\n At the same time, the escalation of geopolitical uncertainties introduces an additional challenge and heightens the potential for unforeseen risks in both markets and economic performance. Considering these factors, the perspective is likely to stay cautious as long as interest rates remain significantly restrictive and the looming presence of geopolitical risks persists.<\/p>\n","post_title":"Wall Street Weakened As Retail Sales Data Hampers Expectations For A Cut In Interest Rates","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"wall-street-weakened-as-retail-sales-data-hampers-expectations-for-a-cut-in-interest-rates","to_ping":"","pinged":"","post_modified":"2024-01-19 05:56:51","post_modified_gmt":"2024-01-18 18:56:51","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15043","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":14973,"post_author":"14","post_date":"2024-01-11 11:22:35","post_date_gmt":"2024-01-11 00:22:35","post_content":"\n Following a robust end to 2023 with a powerful surge, stocks have faced challenges in gaining upward momentum in the first days of 2024 due to varied economic data and remarks by Federal Reserve officials<\/a>. Consequently, investors have tempered their expectations regarding the central bank's potential rate cuts in terms of timing and magnitude for this year.<\/p>\n\n\n\n Despite the rise in U.S. stocks this Wednesday, the surge was tempered as investors await forthcoming inflation updates and the impending major bank earnings slated for later in the week. Sam Stovall, chief investment strategist at CFRA Research in New York, said: \"What the market is doing, is reassessing its 2024 expectations in terms of earnings and terms of interest rates, and looking to justify the surge in prices that we saw in November and December.\"<\/em><\/p>\n\n\n\n The attention of investors will shift towards the December consumer and producer inflation reports, set to be released on Thursday and Friday, respectively. These reports hold significance in shaping the potential trajectory of the central bank's monetary policy.<\/p>\n\n\n\n See Related: <\/em><\/strong>The Fed Raises Interest Rates By 25 BPS This Wednesday; Effects On Crypto And Financial Markets<\/a><\/p>\n\n\n\n Investors will also closely monitor comments by New York Fed President John Williams and it is important to mention that market participants have scaled back expectations to a 67.6% chance for at least a 25-basis-point rate cut in March, according to CME's FedWatch Tool. While sentiment-based indicators show that investors are still bullish, a recommendation is that you continue taking a defensive investment approach in the upcoming days.<\/p>\n\n\n\n By the end of the week, it's anticipated that major banking institutions such as JPMorgan Chase, Bank of America, Citigroup, and Wells Fargo will announce decreased fourth-quarter profits. Analysts have reduced their estimates for the fourth quarter earnings by 6.8%, surpassing the pre-pandemic 2019 average pre-earnings cut of 4.6% and the post-pandemic 2022\u20132023 average cut of 3.6%.<\/p>\n\n\n\n JPMorgan Chase, Bank of America, Citigroup, and Wells Fargo will announce fourth-quarter earnings on Friday. Unfavorable news also emerged as Reuters reported on Monday that U.S. regional banks might encounter challenges in boosting profits in 2024. They are expected to contend with increased pressure to offer higher deposit rates compared to larger competitors, alongside potentially limited demand from borrowers.<\/p>\n\n\n\n Given the uncertain trajectory of interest rates, economic analysts informed Reuters<\/a> that the earnings of regional lenders may be constrained. This limitation stems from their association with securities holdings, which, rather than generating income through loans or investments in higher-yielding assets, are currently showing paper losses.<\/p>\n","post_title":"U.S. Stocks Rose On Wednesday. The Focus Of Investors Now Turns To Inflation Reports And Major Bank Earnings","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"u-s-stocks-rose-on-wednesday-the-focus-of-investors-now-turns-to-inflation-reports-and-major-bank-earnings","to_ping":"","pinged":"","post_modified":"2024-01-11 11:22:40","post_modified_gmt":"2024-01-11 00:22:40","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14973","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};
This revelation comes at a crucial time for the banking industry, as it grapples with a changing landscape and the rise of disruptive forces. The need for adaptation and innovation is evident, and banks must navigate the delicate balance between embracing technological advancements and adhering to stringent regulatory requirements.<\/p>\n\n\n\n This report paints a refined picture of the banking sector's future, urging institutions to reimagine their strategies to unlock the $7 trillion potential. While challenges loom, the prospect of doubling valuations underscores the importance of proactive measures in fostering growth and adapting to the evolving financial landscape. The conclusion is clear - the path forward involves a delicate dance between innovation and regulation, and only those who master it will truly thrive in the years to come.<\/p>\n","post_title":"Global Banks Poised For A $7 Trillion Boost In Valuations","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"global-banks-poised-for-a-7-trillion-boost-in-valuations","to_ping":"","pinged":"","post_modified":"2024-01-19 06:53:43","post_modified_gmt":"2024-01-18 19:53:43","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15020","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15043,"post_author":"14","post_date":"2024-01-19 05:56:40","post_date_gmt":"2024-01-18 18:56:40","post_content":"\n Wall Street witnessed a significant stock decline this Wednesday following positive December U.S. retail sales data, which diminished the anticipation of an early initiation of the Federal Reserve's campaign to cut interest rates.<\/p>\n\n\n\n The December retail sales report from the Commerce Department (USRSL=ECI) depicted a robust consumer, responsible for approximately 70% of the U.S. economy. Despite facing the challenges of high inflation and a tight monetary policy, the consumer has shown resilience.<\/p>\n\n\n\n The data revealed that discounts offered by retailers and a surge in motor vehicle acquisitions contributed to a greater-than-anticipated increase in U.S. retail sales, maintaining the economy on a robust trajectory in 2024. This bolstered the perspective that the Federal Reserve might not reduce interest rates as rapidly as initially anticipated for the current year.<\/p>\n\n\n\n See Related: Wall Street's Main Indexes Fell At The Beginning Of 2024 year<\/a><\/p>\n\n\n\n Anticipations among traders for a 25-basis-point Federal Reserve rate cut in March declined to 55%, down from approximately 60% before the release of the retail sales data. Ryan Detrick, chief market strategist at Carson Group in Omaha, said<\/a>:<\/p>\n\n\n\n \"We had news that the U.S. consumer continues to be quite healthy, but that has increased anxiety that the Fed\u2019s first rate cut could potentially be pushed to May from March. Yields are also moving higher on the strong retail sales numbers, adding to near-term worries.\"<\/em><\/p>\n\n\n\n It is also important to mention that a decline in U.S. stocks sent Wall Street's<\/a> \"fear gauge\" to a two-month high while JPMorgan analysts predict that the majority of negative consequences stemming from higher interest rates have not materialized yet. On Tuesday, Federal Reserve Governor Christopher Waller also emphasized that the central bank should refrain from hastily reducing interest rates until there is a clear indication that lower inflation is likely to persist.<\/p>\n\n\n\n At the same time, the escalation of geopolitical uncertainties introduces an additional challenge and heightens the potential for unforeseen risks in both markets and economic performance. Considering these factors, the perspective is likely to stay cautious as long as interest rates remain significantly restrictive and the looming presence of geopolitical risks persists.<\/p>\n","post_title":"Wall Street Weakened As Retail Sales Data Hampers Expectations For A Cut In Interest Rates","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"wall-street-weakened-as-retail-sales-data-hampers-expectations-for-a-cut-in-interest-rates","to_ping":"","pinged":"","post_modified":"2024-01-19 05:56:51","post_modified_gmt":"2024-01-18 18:56:51","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15043","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":14973,"post_author":"14","post_date":"2024-01-11 11:22:35","post_date_gmt":"2024-01-11 00:22:35","post_content":"\n Following a robust end to 2023 with a powerful surge, stocks have faced challenges in gaining upward momentum in the first days of 2024 due to varied economic data and remarks by Federal Reserve officials<\/a>. Consequently, investors have tempered their expectations regarding the central bank's potential rate cuts in terms of timing and magnitude for this year.<\/p>\n\n\n\n Despite the rise in U.S. stocks this Wednesday, the surge was tempered as investors await forthcoming inflation updates and the impending major bank earnings slated for later in the week. Sam Stovall, chief investment strategist at CFRA Research in New York, said: \"What the market is doing, is reassessing its 2024 expectations in terms of earnings and terms of interest rates, and looking to justify the surge in prices that we saw in November and December.\"<\/em><\/p>\n\n\n\n The attention of investors will shift towards the December consumer and producer inflation reports, set to be released on Thursday and Friday, respectively. These reports hold significance in shaping the potential trajectory of the central bank's monetary policy.<\/p>\n\n\n\n See Related: <\/em><\/strong>The Fed Raises Interest Rates By 25 BPS This Wednesday; Effects On Crypto And Financial Markets<\/a><\/p>\n\n\n\n Investors will also closely monitor comments by New York Fed President John Williams and it is important to mention that market participants have scaled back expectations to a 67.6% chance for at least a 25-basis-point rate cut in March, according to CME's FedWatch Tool. While sentiment-based indicators show that investors are still bullish, a recommendation is that you continue taking a defensive investment approach in the upcoming days.<\/p>\n\n\n\n By the end of the week, it's anticipated that major banking institutions such as JPMorgan Chase, Bank of America, Citigroup, and Wells Fargo will announce decreased fourth-quarter profits. Analysts have reduced their estimates for the fourth quarter earnings by 6.8%, surpassing the pre-pandemic 2019 average pre-earnings cut of 4.6% and the post-pandemic 2022\u20132023 average cut of 3.6%.<\/p>\n\n\n\n JPMorgan Chase, Bank of America, Citigroup, and Wells Fargo will announce fourth-quarter earnings on Friday. Unfavorable news also emerged as Reuters reported on Monday that U.S. regional banks might encounter challenges in boosting profits in 2024. They are expected to contend with increased pressure to offer higher deposit rates compared to larger competitors, alongside potentially limited demand from borrowers.<\/p>\n\n\n\n Given the uncertain trajectory of interest rates, economic analysts informed Reuters<\/a> that the earnings of regional lenders may be constrained. This limitation stems from their association with securities holdings, which, rather than generating income through loans or investments in higher-yielding assets, are currently showing paper losses.<\/p>\n","post_title":"U.S. Stocks Rose On Wednesday. The Focus Of Investors Now Turns To Inflation Reports And Major Bank Earnings","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"u-s-stocks-rose-on-wednesday-the-focus-of-investors-now-turns-to-inflation-reports-and-major-bank-earnings","to_ping":"","pinged":"","post_modified":"2024-01-11 11:22:40","post_modified_gmt":"2024-01-11 00:22:40","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14973","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};
This revelation comes at a crucial time for the banking industry, as it grapples with a changing landscape and the rise of disruptive forces. The need for adaptation and innovation is evident, and banks must navigate the delicate balance between embracing technological advancements and adhering to stringent regulatory requirements.<\/p>\n\n\n\n This report paints a refined picture of the banking sector's future, urging institutions to reimagine their strategies to unlock the $7 trillion potential. While challenges loom, the prospect of doubling valuations underscores the importance of proactive measures in fostering growth and adapting to the evolving financial landscape. The conclusion is clear - the path forward involves a delicate dance between innovation and regulation, and only those who master it will truly thrive in the years to come.<\/p>\n","post_title":"Global Banks Poised For A $7 Trillion Boost In Valuations","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"global-banks-poised-for-a-7-trillion-boost-in-valuations","to_ping":"","pinged":"","post_modified":"2024-01-19 06:53:43","post_modified_gmt":"2024-01-18 19:53:43","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15020","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15043,"post_author":"14","post_date":"2024-01-19 05:56:40","post_date_gmt":"2024-01-18 18:56:40","post_content":"\n Wall Street witnessed a significant stock decline this Wednesday following positive December U.S. retail sales data, which diminished the anticipation of an early initiation of the Federal Reserve's campaign to cut interest rates.<\/p>\n\n\n\n The December retail sales report from the Commerce Department (USRSL=ECI) depicted a robust consumer, responsible for approximately 70% of the U.S. economy. Despite facing the challenges of high inflation and a tight monetary policy, the consumer has shown resilience.<\/p>\n\n\n\n The data revealed that discounts offered by retailers and a surge in motor vehicle acquisitions contributed to a greater-than-anticipated increase in U.S. retail sales, maintaining the economy on a robust trajectory in 2024. This bolstered the perspective that the Federal Reserve might not reduce interest rates as rapidly as initially anticipated for the current year.<\/p>\n\n\n\n See Related: Wall Street's Main Indexes Fell At The Beginning Of 2024 year<\/a><\/p>\n\n\n\n Anticipations among traders for a 25-basis-point Federal Reserve rate cut in March declined to 55%, down from approximately 60% before the release of the retail sales data. Ryan Detrick, chief market strategist at Carson Group in Omaha, said<\/a>:<\/p>\n\n\n\n \"We had news that the U.S. consumer continues to be quite healthy, but that has increased anxiety that the Fed\u2019s first rate cut could potentially be pushed to May from March. Yields are also moving higher on the strong retail sales numbers, adding to near-term worries.\"<\/em><\/p>\n\n\n\n It is also important to mention that a decline in U.S. stocks sent Wall Street's<\/a> \"fear gauge\" to a two-month high while JPMorgan analysts predict that the majority of negative consequences stemming from higher interest rates have not materialized yet. On Tuesday, Federal Reserve Governor Christopher Waller also emphasized that the central bank should refrain from hastily reducing interest rates until there is a clear indication that lower inflation is likely to persist.<\/p>\n\n\n\n At the same time, the escalation of geopolitical uncertainties introduces an additional challenge and heightens the potential for unforeseen risks in both markets and economic performance. Considering these factors, the perspective is likely to stay cautious as long as interest rates remain significantly restrictive and the looming presence of geopolitical risks persists.<\/p>\n","post_title":"Wall Street Weakened As Retail Sales Data Hampers Expectations For A Cut In Interest Rates","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"wall-street-weakened-as-retail-sales-data-hampers-expectations-for-a-cut-in-interest-rates","to_ping":"","pinged":"","post_modified":"2024-01-19 05:56:51","post_modified_gmt":"2024-01-18 18:56:51","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15043","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":14973,"post_author":"14","post_date":"2024-01-11 11:22:35","post_date_gmt":"2024-01-11 00:22:35","post_content":"\n Following a robust end to 2023 with a powerful surge, stocks have faced challenges in gaining upward momentum in the first days of 2024 due to varied economic data and remarks by Federal Reserve officials<\/a>. Consequently, investors have tempered their expectations regarding the central bank's potential rate cuts in terms of timing and magnitude for this year.<\/p>\n\n\n\n Despite the rise in U.S. stocks this Wednesday, the surge was tempered as investors await forthcoming inflation updates and the impending major bank earnings slated for later in the week. Sam Stovall, chief investment strategist at CFRA Research in New York, said: \"What the market is doing, is reassessing its 2024 expectations in terms of earnings and terms of interest rates, and looking to justify the surge in prices that we saw in November and December.\"<\/em><\/p>\n\n\n\n The attention of investors will shift towards the December consumer and producer inflation reports, set to be released on Thursday and Friday, respectively. These reports hold significance in shaping the potential trajectory of the central bank's monetary policy.<\/p>\n\n\n\n
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