Big Banks Kick Off Q4 Earnings Season

Economic Indicators - The new Inflation Rate is reported at +2.7% month over month, down 30 basis points from the recent high of +3.0% in September, indicating a significant turnaround in the Consumer Price Index (CPI) year over year [1] - Oil and gasoline prices contributed to moderating inflation, with gasoline prices dropping -3.4% and oil inflation slowing to +7.4% from +11.3%, while food prices increased to +3.1% and shelter costs rose to +3.2% [2] - The core CPI, excluding volatile food and energy prices, remained stable at +2.6% month over month, which is lower than the +2.8% expected by analysts [2] Banking Sector Performance - JPMorgan Chase reported earnings of $5.23 per share, exceeding the Zacks consensus of $4.87, resulting in a +7.3% earnings surprise, with revenues of $45.8 billion also surpassing expectations [4] - The bank's average loans increased by +3% quarter over quarter, and it now holds Assets Under Management (AUM) of $4.8 trillion, reflecting an +18% year over year growth [5] Airline Industry Insights - Delta Air Lines reported earnings of $1.55 per share, slightly above the Zacks consensus, with quarterly revenues of $16 billion exceeding the anticipated $15.63 billion [6] - Despite the positive earnings report, signs of slowing demand have led to a -4.5% decline in pre-market trading for Delta [6] Market Expectations - Upcoming economic indicators include New Home Sales for October, expected to decrease to 710K seasonally adjusted annualized units, and a new Budget Deficit for December anticipated to drop to -$150 billion from -$87 billion reported previously [7]