The week ended Friday was marked by keen observations of Federal Reserve Chair Jerome Powell's recent comments on inflation and the implications of third-quarter earnings on growth, according to Brian Sozzi of Yahoo Finance. Amid a week filled with earnings reports and Powell's address, investors also closely watched the significant surge in Treasury yields.
American Express (NYSE:AXP) surpassed quarterly estimates, contributing to Wall Street's discourse about the U.S. economy. Despite an increase in charge-offs attributed to first-time cardholders experiencing financial stress due to high inflation, American Express reported positive sales and outlook. In contrast, United Airlines reported disappointing results, flagging risks from higher oil prices.
Sozzi noted the impact of rising mortgage rates and car finance costs on potential homeowners due to the return of student debt. He also highlighted significant trends among younger consumers and their financial behaviors.
Two weeks into the earnings season, the market is preparing for results from big tech players like Microsoft (NASDAQ:MSFT) and Alphabet (NASDAQ:GOOGL). Sozzi pointed out concerns raised by Jamie Dimon about this being one of the most dangerous times he can recall. The stock market is adjusting to Treasury yields surpassing 5%.
Executives remain cautiously optimistic about the potential of Artificial Intelligence (AI), but there is near-term concern about the impact of interest rates on consumer spending. Data indicates increased charge-offs and caution among retailers and restaurants, with a slight pullback in travel.
Looking forward, Sozzi previewed the upcoming Yahoo Finance Invest conference on November 7, which will feature interviews with notable guests including Jeff Zucker as CNN seeks its next generation of viewers under new CEO Mark Thompson, Kevin Mayer advising Bob Iger on Disney's ABC assets, and sports stars Naomi Osaka and Lindsey Vonn.
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