Big Banks Kick Off Earnings Season as Investors Watch CPI and Chip Demand
The latest Wall Street Brunch podcast previews a busy week of third-quarter earnings led by major U.S. banks. Taiwan Semiconductor's report is expected to offer a key read on AI chip demand and capacity. Investors are also focused on September CPI, with economists expecting a 0.6% monthly increase and core inflation remaining contained.
JPMorgan, Goldman Sachs, Wells Fargo, and Citigroup are scheduled to report Tuesday, with Bank of America, Morgan Stanley, and BlackRock following Wednesday. An analyst views JPMorgan as operating near peak conditions, citing strong return on tangible common equity and record revenue in markets and investment banking. J&J and UnitedHealth report Tuesday; Travelers Friday.
Taiwan Semiconductor reports Thursday, a key signal for AI chip demand. Analysts expect demand to remain strong, but growth depends on capacity. September CPI is forecast up 0.6% monthly, 3.6% annually, core up 0.2% monthly and 2.5% yearly. Fed funds futures imply an October pause and possible December quarter-point hike.
Investors, retirees, borrowers, and businesses could feel ripple effects as bank earnings and inflation data shape rate expectations. If CPI remains firm and futures point to a possible December hike, borrowing costs may stay elevated, affecting mortgages, credit cards, and corporate spending. AI chip demand signals from Taiwan Semiconductor may influence technology investment, data-center expansion, and related jobs. Market reactions to earnings could also affect portfolios and consumer confidence.