Home Sports S&P 500 Big Comeback; Earnings estimates for JPMorgan, Wells Fargo and...

S&P 500 Big Comeback; Earnings estimates for JPMorgan, Wells Fargo and Citigroup



  • U.S. stocks were little changed after a sharp sell-off in early trade, sparked by hotter-than-expected U.S. inflation data
  • The S&P 500 2.0% advances after dropping as much as 2.5% on opening cash
  • The market’s focus will now turn to corporate earnings, with major financial institutions such as JP Morgan Chase, Wells Fargo and Citigroup set to report their third-quarter results on Friday

Trade smarter – subscribe to the DailyFX newsletter

Get timely and compelling market commentary from the DailyFX team

Subscribe to the newsletter

Most read: S&P 500, Nasdaq 100 and Dow after CPI print. What is a Price Action Alert?

It was a wild and volatile day Wall Street after leaving the US inflation report for September. Hotter-than-expected data that showed the core CPI accelerated to a four-decade high of 6.6% y-o-y sparked a sharp sell-off at the opening of cash, sending the S&P 500 down more than 2.4% amid a spike in US Treasury yields.

However, the negative reaction in the stock market has been completely reversed by a surprising turnaround, perhaps due to short covering, as the market has turned very bearish recently, with low liquidity and low positioning fueling directional moves.

After all was said and done, the S&P 500 ended the day up 2.6% at 3,669 after managing to bounce off the March 2020/January 2022 50% Fibonacci retracement near the 3,500 area, indicating strong technical support around these levels. If the bullish momentum continues into Friday’s session, the next resistance to consider would appear around 3815, as seen on the weekly chart below.

Recommended by Diego Colman

Get a free stock forecast


The S&P 500 chart is prepared using TradingView

Looking ahead, stocks will remain vulnerable as the Fed is likely to continue its sharp hiking cycle in the face of persistently high inflationary pressure. As financial conditions continue to tighten, economic growth will continue to decline, reducing risk appetite and creating a hostile environment for equities.

Focusing on the very short term, the third-quarter earnings season, which begins on Friday, may be in the spotlight in the coming days. However, JPMorgan Chase ( JPM ), Wells Fargo ( WFC ), Citigroup ( C ) and Morgan Stanley ( MS ) will report results tomorrow morning.

Commercial and investment banks, as lenders and capital markets entities, have a first-hand view of the economy, so traders should keep an eye on their bottom line and bottom line numbers, but more importantly, their forward-looking guidance. growing economic problems.

The table below shows what Wall Street expects in terms of earnings for these companies


Source: Earnings Whisper

customers pure long.

customers pure short.

Change to




Every day 7% -6% 2%
Every week 4% -15% -4%


  • Are you just starting out? Download the program for beginners a guide for FX traders
  • Would you like to learn more about your trading personality? Take it DailyFX Quiz and find out
  • IG’s customer positioning data provides valuable insight into market sentiment. Get a free guide on how to use this powerful trading indicator here.

— Posted by Diego Colman, DailyFX Market Strategist


Previous articleA young woman was evicted from her home because of “gross” mold
Next articleRatcliffe said Man United are not for sale