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The Zacks Analyst Blog Highlights JPMorgan Chase, Bank of America and Citigroup
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For Immediate Release
Chicago, IL – January 9, 2024 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: JPMorgan Chase (JPM - Free Report) , Bank of America (BAC - Free Report) and Citigroup (C - Free Report) .
Here are highlights from Monday’s Analyst Blog:
A Refresh for Consumer Price Inflation: Global Week Ahead
In the Global Week Ahead, a flurry of macro data should give financial markets a clearer sense of how fast inflation is falling globally.
In geopolitics, turmoil in the Red Sea and oil price gains renew angst over price pressures.
Finally, U.S. banking giants kick off the Q4-23 S&P500 stock reporting season and crypto markets look set for more volatility.
Next are Reuters' five world market themes, reordered for equity traders—
(1) The major money center U.S. banks will kick off Q4-23 earnings season.
U.S. banking giants kick off earnings with JPMorgan Chase, Bank of America and Citigroup due to report fourth quarter and full-year results on Jan. 12th.
Top lenders brought in more income from interest payments in 2023 as the Fed raised rates, helping banks to offset a protracted slump in dealmaking revenue in Wall Street divisions.
Consumers are also in focus with household finances having remained largely healthy since the pandemic, but some customers, particularly those on lower incomes, are starting to fall behind on payments in greater numbers.
Commercial real estate will continue to be a drag meanwhile. Banks have set aside money to cover souring office loans last year. As many employees continue to work remotely or in hybrid arrangements, office owners who borrowed money to finance their buildings are likely to face further strains.
(2) On Thursday, Jan. 11th at 8:30 am ET, the U.S. DEC Consumer Price Inflation (CPI) data hits the tape.
U.S. stocks and bonds soared in late 2023 in anticipation of Federal Reserve rate cuts this year. Inflation data on Jan. 11th could show whether those expectations are warranted.
Gradually cooling inflation has increased bets that the central bank could begin lowering borrowing costs as early as March. Signs that inflation remained subdued in December would likely support that view, though a sharper-than-expected decline could also stoke fears that recent Fed rate increases are starting to weaken the economy.
Conversely, a report showing that consumer prices are rising again could spark concerns markets may have underestimated how long it could take for the Fed to defeat inflation.
Economists polled by Reuters expect the report to show a monthly +0.2% gain in consumer prices versus a +0.1% rise in November.
(3) CPI prints for Australia, China and Japan also come out.
Policymakers across Australia, China and Japan face critical inflation readings likely to provide a sense of whether they will have more, rather than less work in 2024.
The Reserve Bank of Australia, which is expected to join a rate-cut bandwagon later this year could find some relief, if there is a slowdown in November's inflation.
In contrast, a pick-up in consumer prices in Tokyo, a leading indicator of nationwide inflation trends, could cheer those betting on a Bank of Japan (BOJ) policy pivot. Such expectations sent a battered yen surging 5% versus the dollar in December.
Achieving its 2% inflation target "sustainably" is the pre-condition for BOJ officials to ending negative interest rates.
In China, figures on Friday will give further clarity on whether deflationary pressures continue to mount in the world's second largest economy.
(4) Hopes for a crypto ETF continue to rise.
Bitcoin kicked off the new year as it finished 2023 — with sharp gains after investors bet on the possible approval by U.S. regulators of exchange-traded spot bitcoin funds.
The biggest crypto token topped $45,000 for the first time since April 2022 on bets that such applications will get the nod from the Securities and Exchange Commission soon.
Market players say the SEC's decision may be imminent and could usher in a new wave of capital to crypto. Such hopes helped propel bitcoin in 2023 to yearly gains of more than +155%.
Yet the ever-volatile bitcoin has already trimmed its 2024 gains. Doubts linger, some analysts say, over how much demand will exist for any bitcoin ETF — and whether approval is already priced in.
(5) A Red Sea shipping crisis
Markets have been looking to oil prices for signs the Israel-Hamas dispute will push global inflation higher, but with expectations of heavy supply, oil does not tell the whole story.
As transport groups re-route vessels away from the Red Sea, retailers face the biggest shipping upheaval since COVID-19 stymied the freight industry in 2020.
The result could be Western retailers waiting longer for goods to arrive from China, with shortages pushing up prices, trade analysts say. The British Retail Consortium has said rising costs could reverse a trend of moderating grocery price inflation.
Markets, more focused on relatively moderate oil prices, have so far shown limited concern about Red Sea shipping. But investors would be wise to monitor freight costs for signs that the battle against inflation is not over.
Why Haven't You Looked at Zacks' Top Stocks?
Since 2000, our top stock-picking strategies have blown away the S&P's +6.2 average gain per year. Amazingly, they soared with average gains of +46.4%, +49.5% and +55.2% per year. Today you can access their live picks without cost or obligation.
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
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The Zacks Analyst Blog Highlights JPMorgan Chase, Bank of America and Citigroup
For Immediate Release
Chicago, IL – January 9, 2024 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: JPMorgan Chase (JPM - Free Report) , Bank of America (BAC - Free Report) and Citigroup (C - Free Report) .
Here are highlights from Monday’s Analyst Blog:
A Refresh for Consumer Price Inflation: Global Week Ahead
In the Global Week Ahead, a flurry of macro data should give financial markets a clearer sense of how fast inflation is falling globally.
In geopolitics, turmoil in the Red Sea and oil price gains renew angst over price pressures.
Finally, U.S. banking giants kick off the Q4-23 S&P500 stock reporting season and crypto markets look set for more volatility.
Next are Reuters' five world market themes, reordered for equity traders—
(1) The major money center U.S. banks will kick off Q4-23 earnings season.
U.S. banking giants kick off earnings with JPMorgan Chase, Bank of America and Citigroup due to report fourth quarter and full-year results on Jan. 12th.
Top lenders brought in more income from interest payments in 2023 as the Fed raised rates, helping banks to offset a protracted slump in dealmaking revenue in Wall Street divisions.
Consumers are also in focus with household finances having remained largely healthy since the pandemic, but some customers, particularly those on lower incomes, are starting to fall behind on payments in greater numbers.
Commercial real estate will continue to be a drag meanwhile. Banks have set aside money to cover souring office loans last year. As many employees continue to work remotely or in hybrid arrangements, office owners who borrowed money to finance their buildings are likely to face further strains.
(2) On Thursday, Jan. 11th at 8:30 am ET, the U.S. DEC Consumer Price Inflation (CPI) data hits the tape.
U.S. stocks and bonds soared in late 2023 in anticipation of Federal Reserve rate cuts this year. Inflation data on Jan. 11th could show whether those expectations are warranted.
Gradually cooling inflation has increased bets that the central bank could begin lowering borrowing costs as early as March. Signs that inflation remained subdued in December would likely support that view, though a sharper-than-expected decline could also stoke fears that recent Fed rate increases are starting to weaken the economy.
Conversely, a report showing that consumer prices are rising again could spark concerns markets may have underestimated how long it could take for the Fed to defeat inflation.
Economists polled by Reuters expect the report to show a monthly +0.2% gain in consumer prices versus a +0.1% rise in November.
(3) CPI prints for Australia, China and Japan also come out.
Policymakers across Australia, China and Japan face critical inflation readings likely to provide a sense of whether they will have more, rather than less work in 2024.
The Reserve Bank of Australia, which is expected to join a rate-cut bandwagon later this year could find some relief, if there is a slowdown in November's inflation.
In contrast, a pick-up in consumer prices in Tokyo, a leading indicator of nationwide inflation trends, could cheer those betting on a Bank of Japan (BOJ) policy pivot. Such expectations sent a battered yen surging 5% versus the dollar in December.
Achieving its 2% inflation target "sustainably" is the pre-condition for BOJ officials to ending negative interest rates.
In China, figures on Friday will give further clarity on whether deflationary pressures continue to mount in the world's second largest economy.
(4) Hopes for a crypto ETF continue to rise.
Bitcoin kicked off the new year as it finished 2023 — with sharp gains after investors bet on the possible approval by U.S. regulators of exchange-traded spot bitcoin funds.
The biggest crypto token topped $45,000 for the first time since April 2022 on bets that such applications will get the nod from the Securities and Exchange Commission soon.
Market players say the SEC's decision may be imminent and could usher in a new wave of capital to crypto. Such hopes helped propel bitcoin in 2023 to yearly gains of more than +155%.
Yet the ever-volatile bitcoin has already trimmed its 2024 gains. Doubts linger, some analysts say, over how much demand will exist for any bitcoin ETF — and whether approval is already priced in.
(5) A Red Sea shipping crisis
Markets have been looking to oil prices for signs the Israel-Hamas dispute will push global inflation higher, but with expectations of heavy supply, oil does not tell the whole story.
As transport groups re-route vessels away from the Red Sea, retailers face the biggest shipping upheaval since COVID-19 stymied the freight industry in 2020.
The result could be Western retailers waiting longer for goods to arrive from China, with shortages pushing up prices, trade analysts say. The British Retail Consortium has said rising costs could reverse a trend of moderating grocery price inflation.
Markets, more focused on relatively moderate oil prices, have so far shown limited concern about Red Sea shipping. But investors would be wise to monitor freight costs for signs that the battle against inflation is not over.
Why Haven't You Looked at Zacks' Top Stocks?
Since 2000, our top stock-picking strategies have blown away the S&P's +6.2 average gain per year. Amazingly, they soared with average gains of +46.4%, +49.5% and +55.2% per year. Today you can access their live picks without cost or obligation.
See Stocks Free >>
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.