Big Banks Kick Off Q3 Earnings Season – CPI Inflation Data

The momentum of the third quarter was strong this week, as well as the huge activity of large financial institutions ready to predict their results. In September, the important economic information will include the US Consumer Price Index as well as the latest information on the latest developments for the U.S. economy.

Entrepreneurs waited for the start of the final loan period and supported it by slowing business growth after the strong second quarter.

S&P 500 stocks are expected to rise 27.6% overall for the third quarter, declining in the second quarter, to rise to almost 90%, according to the report. According to FactSet data. Nevertheless, simple comparisons given recent regional levels as well as the spread of infectious diseases by mid-2020 have declined.

With almost 30%, the three-quarter growth forecast is expected to be the third-fastest since 2010. Many entrepreneurs expect to see supply challenges as well as rising investment and profit margins in the last 15 minutes.

For many companies, the Federal Reserve’s high-interest rates and current inflation have raised concerns about rising investment and borrowing costs. But for large banks, high interest rates often turn out to be huge profits with large lenders, allowing them to pay high-interest rates on loans.

Nearly 20 S&P 500 companies, including big names like FedEx (FDX) and Nike (NKE) – have released three-quarters of the results, giving the place the most pressure.

“The maximum number of transactions on the list to date refers to the value of the offer, such as the impact and value or other negative or negative benefits. Expecting to be affected by negative profits or costs for the next few minutes.

John Butters left a statement in a note on Friday. Of the 21 companies in the S&P 500 that have produced results so far, 15 have examined the negative effects of these factors, Butters added.

He added that “after the turmoil, job shortages and costs, the cost and impact of COVID, as well as the cost of travel and transportation have accounted for the largest S&P. 500 companies.”

Bank of America, Goldman Sachs, JPMorgan Chase (JPM), and Morgan Stanley, like major U.S. banks including, are offering results for the 15th quarter by this week. Referring to these results, many researchers have said that they expect high-interest rates to increase at the highest interest rates this year.

As well as the period of economic recovery, banks can still withdraw loans they have built to protect them from defaults and no repayments during illness.

Gerard Cassidy, an RBC Markets capital analyst, wrote in a statement last week: 1T. / 2Q21, in the same way, shows good growth; the main topic we hope to see results in:

(1) No other measure of high stability (NIM) stability;

(2) growth in consumer lending, mortgage lending portfolio, real estate, and business;

(3) Configuration of credit checks, credit growth (mainly commercial credit in factories), and NIM. ”

He added, “Finally, it is important to pay close attention to capital expenditures if banks start to feel the effects of unaccounted for wages.

Oconnor wrote in a note, “We remain positive in the banking sector, where there may be favorable conditions for credit, interest and loan growth.”

“It is difficult to be serious about the bank, given the macroeconomic outlook for many (despite slower activity in recent times) as well as the perception of high-interest rates and rapid growth, well.”

According to Matt Oconnor, the chief financial officer of the US. Loans for companies are less than 1% below the infectious disease level in the fourth quarter of 2019, he said, falling even more than a percentage from the average to the sector excluding loans granted by Paycheck Covid-ERA Security Program.

The financial sector is still the best performer for the year to date with S&P 500, while the energy sector is up in 2021 by more than 30%.

Economists expect consumer prices to jump 0.3% in September from last month and 5.3% last year. At least part of the increase could come from rising energy prices, with oil and gas prices staying between high demand and strong demand last month.

The Consumer Price Index Bureau of Labor Statistics will be big news for Wednesday’s release. The report is expected to show that the cost for consumers is inflating one month and one year in September. This causes great pressure to rise sharply for the long term, even if the economic recovery continues.

CPI can inflate at an annual ratio of 4.0%. The expected CPI is consistent with an annual clip of 12.5%, or the fastest rate since 1991, but is still higher than the infectious disease system. Despite the fact that many of the articles related to economic movements have seen prices fall after early spring and early summer – but not enough to reduce CPI levels as a whole.

On Friday, Financial analyst for Bankrate, Greg McBride, said in an e-mail that “While car prices, airfare and housing costs have declined a bit, reflecting the idea that higher increases can actually last longer, increasing with other factors such as rent. can only be fire. ”

Other sectors of the economy have begun to show a sharp rise in inflation and intolerance, along with the future of U.S. crude oil, raised to the highest point last week since 2014.

In the week of September, the employment report also showed a lot of pressure on the labor market, as well as the monthly wage, which has been rising sharply since February and increasing during the working week.

“We expect the impact of the resumption to decrease, but the risk of a resurgence will last longer than expected,” economist Rubeela Farooqi wrote in a note. “This should give ongoing support for commodity rates, even as the growth of the industry moves to return to the process of organizational planning.”

Economic Calendar For September


No reports that are notable are planned for liberation


The optimism of the small company NFIB, (99.5 guessed, 100.1 during the previous month);

For August, Nutty job offers (10,938 million expectations)


the week ended October 8 MBA mortgage applications, (-6.9% in the previous week);

Consumer price index, for September months-month, (0.3% expected);

IPC excluding food and energy, for September months-month, (0.2% expected);

CPI annually to the other, (5.3% expected);

Actual average on-to-one-to-one and weekly income (-1.4% during the previous month);


Weekend October 9, the initial unemployment claims (325,000 expectations);

the week ended October 2 Persistent claims, (2,696 million expectations);

Producer price index during month of September (0.6% expected, 0.7% was in the previous month);

PPI, in the other year, (8.7% expected);

PPI year-over-year excluding food and energy (7.1% planned)


October Empire manufacture (25.0 expected);

Month to Retail month sales (-0.2% expected);

In September, the retail sales excluding cars and gas (0.6% expected, which was about 1.8% from the previous month);

Month to month based import price index, month-month for September that was (0.6% expected, which was calculated -0.3% from the previous month);

Calendar of gains

  • Monday: No such report planned for liberation
  • Tuesday: Still no such reports provided for release
  • Wednesday: Blackrock, JPMorgan Chase, the First Republic Bank, Delta Air Lines before the open market
  • Thursday: Bank of America (BAC), Dominos Pizza (DPZ), Walgreens Boots Alliance (WBA), Progressive Group (PGR), Wells Fargo (WFC), UnitedHealth Group (HOM), USB Bancorp (USB), Morgan Stanley (MS), Citigroup before the open market.
  • Friday: Trust Financial Corp., Coinbase Global (Corner), PNC Financial Services (PNC), The Charles Schwab Corp., Goldman Sachs before the open market.

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