U.S. stocks edge higher as earnings season kicks off, producer inflation runs hot

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U.S. stocks post modest gains early Wednesday in wake of latest inflation data

U.S. stock index futures tiptoed higher early Wednesday, shaking off premarket weakness seen after disappointing earnings from JPMorgan Chase & Co., as investors also weighed data showing wholesale inflation continues to run hot.

What’s driving markets First-quarter earnings season was underway as investors digested results from JPMorgan Chase & Co. JPM, -3.34%, as well as Delta Air Lines Inc. DAL, +4.09%, BlackRock Inc. BLK, -0.62%, and others. “During the pandemic, [return on equity] hovered close to 20%. Investment banking and trading did magnificently well, while loan losses remained extremely low. Now, with rising interest rates, JP Morgan’s earnings got clobbered, falling by over 40%. This is going to be the new normal in banking for the foreseeable future,” he said.

Overseas developments meanwhile brought the inflation and rate hike stories back into focus. The U.K. reported the fastest inflation rate in 30 years, and the Reserve Bank of New Zealand made a bigger-than-forecast half percentage point interest rate hike. The Bank of Canada also is expected to lift rates by a half-point later Wednesday.

 

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