5 hours ago
Goldman Sachs’ Kostin expects profit to rise further this year despite margin pressure
Goldman Sachs’ David Kostin expects profits to rise further this year, despite concerns about margin pressure from rising inflation.
About one-fifth of companies have reported so far this earnings season. Kostin noted that about two-thirds of these companies beat expectations in their bottom line, and about one-third beat expectations in their bottom line.
“What this tells us is that companies can make some money over slim margins and demonstrate their ability to do so,” Kostin said Tuesday on CNBC’s “Squawk on the Street.” That means we are doing it,” he said.
The chief U.S. equity strategist said he expects inflation to eventually fall this year and interest rates to come down from their highs, helping boost earnings growth.
“Our prediction is that [the] “The market will rise slowly in line with earnings expectations,” Kostin said. “Margins will remain roughly flat and economic growth will ultimately drive sales up, but that’s the main reason earnings will rise this year.” That’s the reason.”
— Sarah Min
8 hours ago
Dimon says economy is strong but “stagflation” risk remains
JPMorgan Chase CEO and Chairman Jamie speaks while gesturing during a U.S. Senate Banking, Housing and Urban Affairs Committee oversight hearing on Wall Street companies at the Capitol on December 6, 2023 in Washington, DC. Daimon.
Evelyn HochsteinReuter
JPMorgan Chase & Co. Chief Executive Jamie Dimon said Tuesday that the U.S. economy remains strong but could enter an era of “stagflation.”
Speaking at the New York Economic Club, Mr. Dimon said he was wary of “stagflation,” an economic condition defined by high inflation, unemployment and slowing growth. Despite such concerns, he said the U.S. economy continues to boom.
The bank president also said the current geopolitical situation is likely the “most complex and dangerous” since World War II.
— Alex Harring, Ritika Shah
11 hours ago
US crude oil falls to lowest since March, below 50-day moving average
Aerial photo showing a pump jack in operation at an oil well in Greyhorse, Oklahoma, September 29, 2023.
Chandan Khanna | AFP | Getty Images
U.S. crude oil hit an intraday low of $80.89 per barrel on Tuesday, its lowest since late March.
West Texas Intermediate futures for June also fell below its 50-day moving average of $81.22 per barrel for the first time since early February.
WTI was last traded at $81.51 per barrel, down 39 cents, and Brent futures for June was last traded, down 36 cents at $86.64 per barrel.
Traders lowered prices after surging earlier this month on concerns that Iran and Israel were on the brink of war. Those concerns have largely disappeared after rival forces signaled they were not interested in a broader war after retaliatory attacks this month.
The market was also indifferent to the impending oil sanctions against Iran. The House of Representatives passed a bill over the weekend that would target ports, ships and refineries that accept Iranian crude oil. The Senate could consider the bill this week.
— Spencer Kimball
