Earnings live: JPMorgan, BlackRock stocks edge lower, Wells Fargo rises as Q3 earnings season kicks off
The third quarter earnings season kicked off in earnest on Tuesday as the major Wall Street banks reported their quarterly results.
Coming into the quarter, analysts expect S&P 500 companies to report a 7.9% jump in earnings per share during the third quarter, according to FactSet data. If that figure holds, it would mark the ninth straight quarter of positive earnings growth but a deceleration from the 12% earnings growth reported in Q2 of this year.
On Tuesday, the major financial institutions will test those expectations when JPMorgan Chase (JPM), Goldman Sachs (GS), Wells Fargo (WFC), Citigroup (C), and BlackRock (BLK) report results. That initial slew of earnings will be followed by Bank of America (BAC), Morgan Stanley (MS), PNC (PNC), Synchrony Financial (SYF), and Citizens Financial Group (CFG) on Wednesday.
Earnings from Charles Schwab (SCHW), BNY Mellon (BK), and U.S. Bancorp (USB) will help round out the financial sector on Thursday, while the world's largest chipmaker — Taiwan Semiconductor Manufacturing Company (TSM) — will provide a closely watched update on its business and chip demand.
The weekly earnings calendar also features quarterly results from Fastenal (FAST), Johnson & Johnson (JNJ), Domino's (DPZ), Albertsons (ACI), Progressive (PGR), Abbott Laboratories (ABT), Prologis (PLD), United Airlines (UAL), Marsh & McLennan (MMC), Infosys (INFY), CSX (CSX), American Express (AXP), Truist (TFC), State Street (STT), and Ally Financial (ALLY).
Here are the latest updates from corporate America.
LIVE8 updates-
FeaturedGrace O'Donnell
Wall Street bonanza boosts profits at JPMorgan
JPMorgan Chase (JPM) stock edged lower after the major US bank reported that its profits climbed in the third quarter.
Yahoo Finance's David Hollerith reports:
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Grace O'Donnell
Johnson & Johnson raises sales forecast, announces plans to spin off orthopedics unit
Johnson & Johnson (JNJ) announced it plans to spin off its orthopedics business on Tuesday as the company reported better-than-expected earnings and raised its 2025 revenue guidance.
J&J's orthopedics unit, which makes hip, knee, and shoulder implants, among other products, is expected to become an independent company called DePuy Synthes within the next 18 to 24 months.
For the quarter, J&J reported adjusted earnings per share of $2.80, compared to Wall Street estimates of $2.76.
Pharmaceutical sales rose 6.8% year over year to $15.56 billion, while medical device sales also rose 6.8% to $8.43 billion. Oncology treatment sales hit $3.67 billion.
Johnson & Johnson raised its 2025 sales forecast by about $300 million to a new range of $93.5 billion to $93.9 billion, above analysts' expectations of $93.4 billion.
The stock ticked lower in premarket trading.
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Brian Sozzi
The impact of booming markets on a bank..
Greetings from Dreamforce out in San Francisco! I just can't help myself in weighing in on JP Morgan (JPM) earnings — indeed these numbers in the markets business will be the gold standard to compare the other banks in terms of third quarter performance.
But the numbers also offer up a good snapshot into how surging markets are impacting banks. And it also shows how performance like this is at risk if we get the long overdue 3% pullback in markets in the fourth quarter.
JP Morgan's markets performance:
"Markets & Securities Services revenue was $10.4 billion, up 24%. Markets revenue was $8.9 billion, up 25%. Fixed Income Markets revenue was $5.6 billion, up 21%, largely driven by higher revenue in Rates, Credit and the Securitized Products Group14. Equity Markets revenue was $3.3 billion, up 33%, predominantly driven by higher revenue across products, particularly in Prime. Securities Services revenue was $1.4 billion, up 7%, driven by higher deposit balances as well as fee growth on higher client activity and market levels, partially offset by deposit margin compression."
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Grace O'Donnell
Wells Fargo boosts key profitability metric as asset cap removed
Wells Fargo (WFC) posted third quarter results that beat analysts' expectations on Tuesday, lifting the stock over 2% in premarket trading.
Bloomberg reports:
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Jenny McCall
BlackRock hauls in $205B as private assets accelerate
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Jenny McCall
Ericsson shares rise after profit beat, plays down tariff impact
Ericsson's (ERIC) shares surged by 14% on Tuesday after the Swedish telecommunications company beat forecasts for its quarterly earnings growth and also shrugged off US tariffs.
Reuters reports:
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Grace O'Donnell
Wall Street's biggest banks are riding high as earnings season begins
Yahoo Finance's David Hollerith previews what to look for when the major Wall Street banks report earnings on Tuesday:
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Grace O'Donnell
Analysts forecast 8% S&P 500 earnings growth for Q3. It's likely to be higher.
Over the past four months, analysts have been revising their earnings per share estimates upward.
As of Oct. 10, the estimated year-over-year earnings growth rate for the S&P 500 is 8%, according to FactSet research. At the end of June, analysts were predicting a growth rate of 7.3%.
But as FactSet senior earnings analyst John Butters points out, most S&P 500 companies report earnings that surprise estimates to the upside. Butters notes that, based on the average improvement in the earnings growth rate during the earnings season, the S&P 500 is likely to report earnings growth in the double digits. He estimates an actual growth rate of 13%.
As the chart below highlights, actual earnings for S&P 500 companies surpassed estimates in 37 of the past 40 quarters. The few exceptions were in Q1 2020, Q3 2022, and Q4 2022.
(Chart: FactSet)
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