Browsed by
Tag: soar

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

Read the rest
Wisconsin businesses brace for economic impact as COVID-19 cases soar

Wisconsin businesses brace for economic impact as COVID-19 cases soar

CLOSE

Owner of Q-Tea Premium Tea House and The Sense Spa + Wellness Center, Quan Hoang, pictured on Thursday, Oct. 8, 2020, at 124 S. Military Ave., Green Bay, Wis. “We have to be super careful,” he said. “Customers are required to wear a mask when they enter the building. They are asked to wash their hands once they enter the building and we have installed air ventilation systems which we hope can keep us safe.” (Photo: Ebony Cox/USA TODAY NETWORK-Wisconsin)

The region’s explosion of coronavirus cases doesn’t just threaten more lives but could reverse Wisconsin’s economic recovery as it infects more of the workforce and saps consumer demand. 

Wisconsin’s Department of Health Services is reporting more than 2,300 new, positive test results each day right now with the Green Bay, Appleton, Oshkosh, Fond du Lac and Marinette areas all in counties with very high case activity. They’re among the 20 U.S. metro areas with the greatest number of positive COVID-19 tests per 100,000 people, according to the New York Times.

The impact is being felt by large and small businesses, alike. 

The Green Bay Packers, for instance, announced Tuesday fans would not be allowed to attend home games indefinitely, citing the rampant community spread of the coronavirus. Two miles from Lambeau, the owner of a small tea shop says he’s selling only a few dozen cups a day compared with a few hundred during normal times. 

Noah Williams, director of the University of Wisconsin-Madison’s Center for Research on the Wisconsin Economy, said the state’s economic recovery seems to have slowed, if not reversed, with the increasing number of COVID-19 cases.

“Clearly it’s going to depend on how long it takes to get this spike under control and get things back to normal,” Williams said. “But I think there’s already

Read the rest