The Banks Tank, Presidential Debate, August CPI And The Fed
Market Commentary: JP Morgan (JPM) is down 7% today after President and COO Daniel Pinto said “Net interest income (NII) expectations are a bit too high. Next year is going to a bit more challenging” at an industry conference. Ally Financial (ALLY) is down nearly 20% on comments that auto delinquencies and net charge offs are up more than expected. The KBW Bank ETF (KBWB) is down 3%.
Presidential Debate: Tonight Presidential Candidates Donald Trump and Kamala Harris debate in Philadelphia at 9pm EST for the first and probably last time. With Kamala saying so little about her policies, undecided voters will be tuned in to what she has to say. The Presidential Election is important to the stock market for a number of reasons including tax policy as well as the country’s health overall.
August CPI Report: Lastly, the August CPI Report will be released Wednesday morning at 8:30am EST. The market is expecting a 0.2% increase in headline and core. If the report comes in inline that would give the Fed even more cover to cut 50 if they want to start moving quickly. Fed Futures markets are currently pricing in a 2/3 chance of a 25 basis point cut and 1/3 chance of a 50 basis point cut.