U.S. Stock Market Drifts Lower as Investors Digest Inflation Data and Bank Earnings
JPMorgan, Wells Fargo, and Dollar General Rise; BlackRock and Netflix Fall
The U.S. stock market showed a downward trend on Friday as investors analyzed the release of hotter than expected inflation data and the latest bank earnings. Let’s take a look at some of the biggest movers in the premarket trading session:
JPMorgan Chase
JPMorgan Chase stock experienced a 1% rise after reporting revenue in the third quarter that exceeded expectations. This positive performance was attributed to higher interest rates, which helped offset lower deposit balances.
Wells Fargo
Wells Fargo, the fourth-largest U.S. lender, saw its stock rise by 2.2% following a jump in profit during the third quarter. The bank benefited from customers paying higher interest on loans.
BlackRock
Despite reporting a 13% rise in third-quarter profit, BlackRock’s stock fell by 2.2%. The world’s largest asset manager faced challenges as clients pulled $13 billion from long-term funds.
Dollar General
Dollar General’s stock soared by 6.9% after reappointing a top executive to combat weakening traffic and margin pressure. This move was well-received by investors.
Activision Blizzard and Microsoft
Activision Blizzard experienced a 0.1% increase in stock value after receiving clearance from Britain’s competition watchdog for its acquisition by Microsoft. This long-awaited deal is set to proceed after two years of legal reviews.
Ford
Ford’s stock experienced a 0.4% decline as a senior executive stated that the automaker is nearing its spending limit on higher wages and benefits for the United Auto Workers amidst an ongoing strike.
Netflix
Wolfe Research downgraded Netflix’s stock by 1.8% from ‘outperform’ to ‘peer perform’. The downgrade cited overly optimistic growth forecasts for the years 2024-2025.
Fortinet
Barclays downgraded Fortinet’s stock by 3% from ‘overweight’ to ‘equal weight’. They believe the cybersecurity company’s risk/reward proposition is more balanced going forward.
These are the notable movements in the U.S. stock market premarket session. Despite the mixed performance, investors continue to navigate the market with caution, taking into account various factors such as inflation data and corporate earnings.
