Tuesday, September 28, 2021

Global Market Square

By on July 13, 2021

The U.S. and European stock markets closed with losses as investors were impacted by the continued rise of inflation reported Tuesday.

The Consumer Price Index rose to 5.39% last month, the third month of inflation over 4%, which is higher than the 3.22% long-term average. As the rhythm of inflationary increases accelerates the previous month’s impact, it places both the Federal Reserve and the White House in a predicament as both have indicated these increases were temporary.

The Corporate earnings season began Tuesday, but the good news was not enough to calm investors’ fears. The earnings parade began with J.P. Morgan Chase (JPM) and Goldman Sachs (GS), which reported secon quarter results as follows:

  1. J.P. Morgan Chase

·         2Q21 Revenues of $31.4 billion, down 7%.

·         2Q21 Net Income of $11.9 billion, an increase of $7.3 billion, and $3.78 on a per-share basis.

·         Total Overall Liquidity of $1.6 Trillion

·         #1 ranking for Global Investment Banking fees with 9.4% wallet share year-to-date

·         JP Morgan Chase made $5.9 billion of common stock net repurchases in 2Q21.

·         The stock closed at $155.50, down $2.50, or 1.58%

  1. Goldman Sachs

·         2Q21 Revenues of $15.38 billion was down 13%.

·         2Q21 Net Income of $5.49 billion and $15.02 on a per-share basis.

·         The firm ranked No. 1 worldwide in announced and completed mergers and acquisitions, worldwide equity and equity-related offerings, common stock offerings, and initial public offerings for the year-to-date.

·         The firm returned $1.44 billion of capital to common shareholders during the quarter, including $1 billion of share repurchases.

·         The stock closed at $375.80, down $4.70, or 1.24%

Key economic metrics reported:

  • US Consumer Price Index rose to 5.39%, compared to 4.99% last month.
  • U.S. Consumer Price Index rose to 271.70, up from 269.20 last month, a change of 0.93%.
  • U.S. Consumer Price Index is at 0.90%, compared to 0.64% last month, higher than the long-term average of 0.28%.

Eurozone Summary for July 13:

  • Stoxx 600 closed at 460.96, up 0.13 points, or 0.028%.
  • FTSE 100 closed at 7,124.72, down 0.70 points, or 0.01%
  • Dax index closed at 15,789.64, down 0.87 points, or 0.05%.

Wall Street Summary for July 13:

  • The Dow Jones Industrial Average closed at 34,888.79, down 107.36 points, or 0.31%.
  • The Standard & Poor’s 500 closed at 4,369.21, down 15.42 points, or 0.35%.
  • The Nasdaq Composite Index closed at 14,677.65, down 55.59 points, or 0.38%.
  • The Birling Capital Puerto Rico Stock Index closed at 2,479.13, up 16.46 points, or 0.67%.
  • The U.S. Treasury 10-year note closed at 1.42%.
  • The U.S. Treasury 2-year note closed at 0.26%.

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