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Bank Profits, Inflation, Apple iPhone Day: 3 Things to Watch

Published 2020-10-12, 03:50 p/m
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By Liz Moyer

Investing.com -- Two highly anticipated events this week boosted stocks on Monday, pushing the NASDAQ Composite index closer to 12,000.

Apple Inc (NASDAQ:AAPL) and Amazon.com Inc (NASDAQ:AMZN) led stocks higher as the two prepared for their big events on Tuesday: the unveiling of the next line of iPhones and the annual Amazon Prime day sale.

Monday's market surge put the momentum trade back in the forefront after cyclical stocks took center stage the last few weeks. Investors and traders have been watching Washington's off-again, on-again negotiations over a new stimulus plan, with fading hopes a deal will come any time soon.

In addition, the market seems to be adjusting for the possibility of a Joe Biden victory in November and a related "Blue wave."

Bank stocks are also in the spotlight this week as earnings kick off, and core inflation data are expected.

Here are three things that could affect the markets tomorrow:

1. Bank stocks react to third quarter earnings

JPMorgan Chase & Co (NYSE:JPM) and Citigroup Inc (NYSE:C) report third quarter earnings before the opening bell. Some analysts believe trading income could help smooth over lackluster lending income. JPMorgan is seen reporting earnings per share of $2.23 on revenue of $28.2 billion, according to estimates of analysts tracked by Investing.com. Citi is seen reporting EPS of 86 cents on revenue of $17.2 billion.

Delta Air Lines Inc (NYSE:DAL) also reports on Tuesday, and analysts tracked by Investing.com expect a loss of $3.03 a share on revenue of $3.1 billion.

2. Inflation for September seen slowing from prior month

Core CPI for September comes out at 8:30 AM ET (1230 GMT) along with a slew of other inflation measures. Investors tracked by Investing.com expect Core CPI to pick up 0.2% from the prior month, when it crept up 0.4% from July.

For the year-over-year comparison, Core CPI is expected to tick up 1.4% compared to the 1.3% gain in August.

3. Big iPhone reveal on deck

Apple shares are already near a 52-week high, and the unveiling of the next set of iPhones is pushing it up even more.

The shares jumped 6% on Monday. Some analysts, such as Wedbush, are saying the unveiling could be the beginning of Apple's most important product cycle since the release of the iPhone 6 in 2014.

The new suite of phones are equipped with 5G, the next generation network. But what's really got people excited is the prospect of upgrades. Wedbush estimates that out of 950 million phones around the world, some 350 million of consumers are ready for an upgrade.

 

 

 

 

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