On Wednesday, US stock index futures rose slightly in the premarket, bouncing up ahead of US inflation data. The results may greatly surprise investors who do not know what to grab since the season of company reports for the 3rd quarter of this year has already begun in full swing. The S&P 500 indices grew quite a bit, but the Nasdaq turned out to be stronger due to the growth of several technology companies.
Shares of JPMorgan Chase & Co. jumped almost 1% in premarket trading after the company announced a good quarterly profit. JPMorgan reported earnings of $ 3.74 per share in the third quarter, compared with the consensus forecast of $ 3, while revenue exceeded economists' forecasts. CEO Jamie Dimon said the quarter was a success despite the negative impact on the economy of the coronavirus and supply chain disruptions.
The yield on 10-year US Treasury bonds is holding around 1.60%, which will depend on the US inflation data. The upcoming flurry of corporate profit and loss reports will allow investors to assess how businesses are coping with supply chain problems due to the coronavirus pandemic and rising costs during a slowdown in economic growth and expectations of a reduction in stimulus measures from central banks.
Now let's take a look at the premarket, run through the most volatile stocks, and sort out the news:
Management company BlackRock generated revenue of $ 10.95 per share in the third quarter of this year, which exceeded the consensus forecast of $ 9.35. Revenue also exceeded forecasts, although some commission fees were canceled during the quarter. Assets under management grew, although less than analysts expected. BlackRock shares rose 2.6% in the premarket.
As noted above, the technology sector has shown growth. Shares of the SAP business software company rose 5.3% in premarket trading after the German company raised its annual forecast for the third time. The revision is related to the transition of several clients to work in the cloud.
Qualcomm has announced a $ 10 billion share buyback program. The recently announced repurchase of the chip manufacturer is a continuation of the program launched in July 2018. The shares rose 1.8% in premarket trading.
It is impossible not to note Apple. The company is expected to reduce the production of the iPhone 13 by as much as 10 million units due to a global shortage of chips. It is about 11% less than current volumes, negatively affecting profits in the next quarters. There is no reaction to this news on the premarket yet.
Vimeo, a well-known video software company, reported that its total revenue in September jumped by 33% compared to last year, while the company's number of subscribers increased by 14%. The average revenue per user increased by 16%. Vimeo securities gained 3.6% in the premarket.
As for the technical picture of the S&P 500 index
So far, the $ 4,331 level creates a problem for sellers. Its breakthrough will push the trading instrument lower – to the area of larger support of $ 4,288, on which a lot depends. A breakdown of this range will open the possibility of updating $ 4,231 and $ 4,155. But if the reporting season starts on a good note, then a breakout of the $ 4,382 resistance will open up the possibility of returning the index to the highs of $ 4,428 and $ 4,478, where it will be possible to observe the active actions of sellers again.