All three major US stock indexes were up in late-morning trading, as the big banks kicked off earnings season with strong reports and the latest consumer price index report showed inflation fell more than expected.
The US seasonally adjusted consumer price index fell by 0.4% in June, compared to expectations of a 0.1% decline in a survey compiled by Bloomberg as of 7:35 a.m. ET and following a 0.5% increase in May, the Bureau of Labor Statistics said Tuesday. Core CPI, which excludes food and energy prices, held steady, compared to the consensus estimate of a 0.2% gain. Core CPI rose by 0.2% in May. The year-over-year rates for headline and core CPI slowed to 3.5% and 2.6%, respectively, from 4.2% and 2.9% in May.
In company news, IBM (IBM) said Tuesday it expects Q2 operating earnings of $2.93 per diluted share, up from $2.80 a year earlier but below the FactSet consensus analyst estimate of $3.01. Second-quarter revenue is expected to rise 1% to $17.2 billion, below the FactSet consensus of $17.86 billion. IBM Chief Executive Arvind Krishna said that most of Q2's "shortfall" was due to the company failing to close "numerous large deals" on expected timelines. The company is scheduled to release its Q2 results on July 22. IBM shares were down 26.1% around midday.
JPMorgan Chase (JPM) reported Q2 earnings Tuesday of $7.70 per diluted share, up from $5.24 a year earlier and above the FactSet consensus of $5.59. Second-quarter revenue was $57.35 billion, up from $44.91 billion a year ago and above the FactSet consensus of $51.09 billion. JPMorgan shares were up 2.4%.
Bank of America (BAC) reported Q2 earnings Tuesday of $1.21 per diluted share, up from $0.90 a year earlier and above the FactSet consensus of $1.13. Second-quarter revenue was $31.56 billion, up from $27.44 billion a year ago and above the FactSet consensus of $30.78 billion. Bank of America shares were up 2.5%.
Wells Fargo (WFC) reported Q2 earnings Tuesday of $2.00 per diluted share, up from $1.60 a year earlier and above the FactSet consensus of $1.72. Second-quarter revenue was $22.62 billion, up from $20.82 billion a year ago and above the FactSet consensus of $21.86 billion. Wells Fargo shares were down 2.2%.
Citigroup (C) reported Q2 net income Tuesday of $3.15 per diluted share, up from $1.96 a year earlier and above the FactSet consensus of $2.74. Second-quarter revenue was $24.77 billion, up from $21.67 billion a year ago and above the FactSet consensus of $23.74 billion. Citigroup shares were down 4.3%.
Goldman Sachs (GS) reported Q2 earnings Tuesday of $20.98 per diluted share, up from $10.91 a year earlier and above the FactSet consensus of $14.51. Second-quarter revenue was $20.34 billion, up from $14.58 billion a year ago and above the FactSet consensus of $16.23 billion. Goldman shares were up 7.7%.
Uber Technologies (UBER) is in advanced talks to buy Delivery Hero, with the ride-sharing giant aiming to reach an agreement as soon as this week, Bloomberg reported Tuesday, citing people familiar with the matter. A deal would likely value the German food-delivery company well above its recent trading price of about 36 euros ($41.23) per share, the report said, citing the people. Uber shares were down 2.5%.
The US has approved the sale of Nvidia (NVDA) and Advanced Micro Devices (AMD) advanced AI hips to a ZTE unit and two other Chinese firms, Reuters reported Tuesday, citing documents and two sources familiar with the matter. Nvidia shares were up 2.6%, while AMD shares were up 5.6%.
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