Earnings Season Starts

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Well, earnings season has started October 13th, Tuesday, 2026 JP Morgan profit rises as Jamie Dimon warns that economic forces shift under the surface. JP Morgan reported earnings before the bell. Let me get to that in just a minute. Micron SK Hynek stocks tumble as chip sell off deepens following South Korean market route. Is it too crowded of a trade? Are there too many investors going for too few names? United Health Group stock jumps 5% on profit outlook. Boy, that stock's had a crazy 10 years. With the CEOs dying and two very different administrations approach to health care, you're always gonna have a risk on Wall Street. One of the risks is political. Another risk is bad headline news. But before I get there, and there's a good story about bad headline news, S&P 500's down fractions. Again, close to all time high. So we're not gonna read too much into the fact that it's not at all time highs.

We're gonna read into the fact that, is it not down 5% or 10% or 15% or 20% from all time highs? Jamie Dimon said from JP Morgan this morning that he's concerned about large goal fiscal deficits. And I think he well has a right. We're borrowing too much money per our GDP. Considering we're in a healthy economy, we should be borrowing far less. Instead of at 6%, we should be in the 3% range, so that when it rains, and we do need to be more spending, it's there. It's not there for the good times. It's very problematic in my head. Apple's got a big event today to release their HomePod. Big question, is this the backdoor play into AI that people are looking for? 52-week range on Apple is 348, 52-week high, which it happened to hit today. So the 52-week high is 348.15, and it hit it today, so it's hit an all-time high. That's a big market story. Alibaba has unveiled $450 AI glasses and expanding push into gadgets. Let's talk about some of the big stories of the day. I've hit, have I hit the major markets? S&P 500 down to fractions, Dow is up one-tenth of 1% tiny. NASDAQ is down one-tenth of 1% tiny. Russell 2000 is down about 40 basis points. So nothing shocking there, not even one-half of 1%. The 10-year Treasury is open day after seeing oil prices rise yesterday while the bond market was shut for Christopher Columbus slash Indigenous Peoples Day. The 10-year Treasury sits at 5.2%.

Gold is up $4.00 to $41.95. Bitcoin is up $1,000 to $83,499. Jumping in to some of the details of the day. And there's going to be a market commentary this morning that's a little bit shorter than usual.

I do hope you got a cake yesterday for the current bull market, which turned four years old yesterday, with the S&P 500 growing nearly 120% since October 12th, 2022, thanks in large part to AI. Memory chips are taking a hit today, as investors grow nervous about violations and new competition from China. Chinese chip maker CXMT plans to reduce a new powerful chip by the end of 2026, raising concerns about future competition. SK Hynix, Western Digital and Seagate all dropped more than 5%, while Micron fell 3.7% and SanDisk lost 4.6%.

The bigger question for investors is whether expectations for the memory chip boom have simply gotten too high. It's interesting to note that the story that came out this morning was about a Chinese chip maker CXMT. They're not really a competitor to Western Digital and Seagate. They are to SK Hynix and Micron as well as Samsung. So a lot of these stories are written by young people who don't have a lot of savvy, which is okay. I'm not knocking them. Wells Fargo down 1.1% profit came in slightly ahead of expectations, but revenue fell short of forecast.

Investors want to see more growth on that top line. Net interest income was a little late for the quarter, though the fourth quarter guide was slightly stronger and the full year guide was maintained. Provisions for credit losses were less than expected. I'm going to do a lot of work tonight on Wells Fargo, Goldman Sachs and JP Morgan. Their earnings come out in the morning, so I am a little bit behind.

But they tell us, like Charlie Sharpe from Wells Fargo, tells us how the resilient consumer is doing. Goldman Sachs shares climbed 2.8% after the investment bank delivered a strong quarter. Revenue came in at 18.68 billion, well ahead of the expectations. Earnings from Goldman Sachs, pretty good. It's a Dow stock as well, and it's more than 3% gain is supporting a strong rally. Early out of the gate on Wall Street, but it didn't hold it. It's not their fault though. Revenue blew past expectations for Goldman Sachs, nearly 2 billion. Equities trading powered a large chunk of that beat. Good quarter. Good quarter at Goldman, from what I can see. JPMorgan Chase. Third quarter earnings and revenue came in below Wall Street expectations, living in upside. Shares rose about 1% today. They raised their outlook for net interest income. It's been a volatile morning for JPMorgan Chase. Fixed income trading revenue and expense growth were blemishes, but the bank did raise its NII outlook for the year. Net interest income.