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Stocks Tick Up After Goldman Earnings Soar, But Key Economic Indicator Shows Consumer Worries

Stocks Tick Up After Goldman Earnings Soar, But Key Economic Indicator Shows Consumer Worries

Topline

Stocks barely budged Wednesday morning after a mixed bag of pre-market earnings results revealed that the economic recovery is still suffering from weak fundamentals.

Key Facts

As of 9:35 a.m., the Dow Jones Industrial Average had edged up .1%, while the S&P 500 and the tech-heavy Nasdaq ticked up .2% and .5%, respectively.

Shares of Goldman Sachs climbed 1% after the New York-based investment banking giant reported $3.5 billion in profits and a 30% surge in revenue fueled by the mid-pandemic trading boom. 

Bank of America, on the other hand, failed to impress investors, posting mixed results for the third quarter that beat analysts expectations on profits, which totaled $4.9 billion, but fell behind on revenue expectations; its shares are down nearly 3%.

Wells Fargo shares are down 3% after reporting a 56% drop in quarterly earnings due to decreased interest income in light of historically low interest rates, the firm said.

Global markets were also fairly tepid on Wednesday: As of market open, the United Kingdom’s FTSE 100 had fallen .4%, and France’s CAC 40 was virtually flat, while Japan’s Nikkei 225 ended Wednesday up just .1%.

The consumer price index for September–a key measure of inflation–came in slightly below expectations, rising .19% during the month and leading to an unchanged year-over-year rate of 1.7%.

Key Background

The Covid-19 pandemic threw the economy into a deep recession, and Federal Reserve Vice Chairman Richard Clarida said Wednesday morning that the U.S. economy needs another year–or maybe more–until it fully recovers. The recovery thus far has been marked by slowed job growth, layoffs that remain high and a volatile stock market that’s been rocked in recent weeks by mounting uncertainty around

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Queensland transition to renewables would generate almost 10,000 jobs, analysis shows

Queensland transition to renewables would generate almost 10,000 jobs, analysis shows

Queensland has the potential to draw all of its electricity from renewable sources in a 15-year transition away from fossil fuels that would generate almost 10,000 jobs, according to analysis commissioned by the Queensland Conservation Council.

Almost 11,000 ongoing jobs would then operate and maintain a suite of energy sources either existing or proposed in the state, including wind and solar and farms, hydro plants and battery projects.

The QCC analysis is timed to energise the state’s election campaign and point candidates and leaders to the huge potential in renewables in the sunshine state.

Queensland’s environment minister, Leeanne Enoch, told an environment forum that a re-elected Palaszczuk government would develop a climate action plan to set out how the state would meet its targets on lowering greenhouse gas emissions up to 2030.

Related: Net zero emissions target for Australia could launch $63bn investment boom

The state government has targets to cut emissions by 30% from 2005 levels by 2030 and have half of the state’s electricity generated from renewables by the same year. The government aims to reach net-zero emissions by 2050.

Guardian Australia has been told by sources familiar with the matter that work on an expected green paper that would have laid out the government’s plans to reach the 2050 target has stopped, and is likely to have been shelved.

Tristan Edis, a renewable energy analyst who was commissioned by QCC to look at existing and planned renewable projects, said the state had “world-class” opportunities in renewables simply because of the amount of sunshine and land available.

“What we see here is that maybe Queenslanders have not been told that they have plenty of potential to generate enough electricity for what they can consume, and then more,” he said. “We really have to start planning out the infrastructure

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Analysis: ‘I have failed’ – Kim Jong Un shows tearful side in confronting North Korea’s hardships

Analysis: ‘I have failed’ – Kim Jong Un shows tearful side in confronting North Korea’s hardships

SEOUL (Reuters) – North Korean leader Kim Jong Un appeared to shed tears at the weekend as he thanked citizens for their sacrifices, in the most striking demonstration yet of how he is relying on his “man of the people” persona to tackle his country’s deepening crises.

North Korean Leader Kim Jong Un reacts during a speech at a military parade marking 75th founding anniversary of Workers’ Party of Korea (Wpk), in this still image taken from video on October 12, 2020. KRT TV/ via REUTERS

Though the young leader has consolidated his rule over the isolated nation with ruthless purges, North Korea watchers say he has also sought to portray himself as a more traditional political leader than his eccentric father, Kim Jong Il.

Speaking at a military parade on Saturday, Kim became emotional as he paid tribute to troops for their response to national disasters and preventing a coronavirus outbreak and apologised to citizens for failing to raise living standards.

“Kim’s modesty and candour, and his tears and choking, were all highly unusual, even for someone who publicly acknowledges shortcomings and has an established pattern of being expressive,” said Rachel Minyoung Lee, an independent researcher and former open-source North Korea analyst for the U.S. government.

The speech, which was clearly carefully designed to resonate with the domestic audience, likely cemented Kim’s image as a competent, charismatic leader who also has a human side to him, she said.

‘I AM SORRY’

Kim – who broke into wide smiles when huge new ballistic missiles were displayed in the parade – blamed North Korea’s continuing economic hardships on international sanctions, the coronavirus crisis and a series of damaging typhoons and floods.

Since succeeding his father in 2011, Kim has made economic progress a cornerstone of his agenda. He also U.S. President

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Whale’s Resurfacing Shows Options Market a Source of Turbulence

Whale’s Resurfacing Shows Options Market a Source of Turbulence

(Bloomberg) — Traders piling back into megacap technology shares need to keep an eye on the options market, where still-elevated activity sets the stage for heightened stock volatility.

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While the frenetic pace of speculation in derivatives has eased a bit recently, it hasn’t stopped, and a chorus of analysts warns the trading remains capable of exacerbating swings. Monday brought the biggest rally for the Nasdaq 100 Index since April, with options-derived measures of volatility climbing in tandem.

One proxy for the froth still latent in equity derivatives, the percentage of overall volume represented by single-stock contracts, remains up 19% from a year ago, according to JPMorgan Chase & Co. Most of it is concentrated in megacap technology and momentum-driven shares.

Meanwhile, a large buyer of tech calls dubbed the Nasdaq whale recently resurfaced, purchasing around $200 million worth of call contracts on tech stocks in a single day. The Nasdaq 100 Index has gained in all but two sessions this month and just notched its best week since July after last month’s sharp drop. It’s up 3.3% as of 12:55 p.m. in New York on Monday.

The situation is another thing for traders to worry about in whipsawing markets where liquidity remains thin. Trading in options showed itself capable of influencing share movement in August and September, when dealer hedging — demand from people who sell options for the underlying stock — created feedback loops that helped drive the Nasdaq 100 higher. That dynamic can also add fuel to downside moves as well as sellers adjust positions.

“This low liquidity environment lays the groundwork for dealer positioning (i.e., gamma imbalances) that can further exacerbate existing market trends,” wrote JPMorgan analysts including Shawn Quigg in a note Tuesday. “Exceptionally large trades in thin markets, especially in sectors (e.g., technology)

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Analysis: ‘I Have Failed’ – Kim Jong Un Shows Tearful Side in Confronting North Korea’s Hardships | World News

Analysis: ‘I Have Failed’ – Kim Jong Un Shows Tearful Side in Confronting North Korea’s Hardships | World News

SEOUL (Reuters) – North Korean leader Kim Jong Un appeared to shed tears at the weekend as he thanked citizens for their sacrifices, in the most striking demonstration yet of how he is relying on his “man of the people” persona to tackle his country’s deepening crises.

Though the young leader has consolidated his rule over the isolated nation with ruthless purges, North Korea watchers say he has also sought to portray himself as a more traditional political leader than his eccentric father, Kim Jong Il.

Speaking at a military parade on Saturday, Kim became emotional as he paid tribute to troops for their response to national disasters and preventing a coronavirus outbreak and apologised to citizens for failing to raise living standards.

“Kim’s modesty and candour, and his tears and choking, were all highly unusual, even for someone who publicly acknowledges shortcomings and has an established pattern of being expressive,” said Rachel Minyoung Lee, an independent researcher and former open-source North Korea analyst for the U.S. government.

The speech, which was clearly carefully designed to resonate with the domestic audience, likely cemented Kim’s image as a competent, charismatic leader who also has a human side to him, she said.

Kim – who broke into wide smiles when huge new ballistic missiles were displayed in the parade – blamed North Korea’s continuing economic hardships on international sanctions, the coronavirus crisis and a series of damaging typhoons and floods.

Since succeeding his father in 2011, Kim has made economic progress a cornerstone of his agenda. He also U.S. President Donald Trump, forming an unprecedented personal relationship that included flowery letters.

But ambitious plans for international trade, construction projects, and other economic measures have stalled in the face of sanctions imposed over his nuclear weapons and ballistic missile programmes.

The economy took

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