Large financial companies are still monopolizing the earnings news. Bank of America (NYSE: BAC), Wells Fargo (NYSE: WFC), Morgan Stanley (NYSE: MS), Citigroup (NYSE: C), and U.S. Bancorp (NYSE: USB) all beat earnings and revenue expectations. The Financial sector has benefitted from rising interest rates. Despite the 10-year Treasury Yield (TNX) trading slightly lower before the open, rates may continue to rise as the Fed moves closer to tapering.
Wells Fargo, Morgan Stanley, and Bank of America also announced that they are releasing reserved cash that had been set aside for pandemic-related defaults. These actions suggest a vote of confidence that the U.S. is heading back to normal. The positive gesture is helping to push stocks higher before the open and the Volatility Index (VIX) AKA fear index has fallen 8% before the open.
A couple of health care stocks also reported Thursday morning. Despite the fallout around the COVID-19 delta wave, UnitedHealth (UNH) was trading 2.74% higher before the open in reaction to the company reporting better-than-expected earnings and revenue. Additionally, UnitedHealth raised its forward guidance.
Walgreens Boots (NASDAQ: WBA) also beat EPS and revenue expectations prompting a premarket rally of 1.35%. Pharmacy sales rose 8.1% in its U.S. operations and 11.4% in its U.K. operations. On top of pharmacy sales, the company increased retail sales by 8.9% in the U.S. and 15% in the U.K.
With the global supply chain suffering from congestion, the microchip shortage has been a major bottleneck. Therefore, Taiwan Semiconductor (NYSE: TSM) earnings are also attracting attention. The company reported higher-than-expected earnings despite lower-than-expected revenue. The stock was trading more than 3.8% higher in premarket trading. Taiwan Semi increased its gross margin from 51% to 53% on strong demand that Chief Financial Officer Wendell Huang projects will remain high.
The global supply chain has been one of the causes of rising inflation. The Producer Price Index (PPI) measures inflation at the wholesale level. However, the PPI came in lower than expected which means inflation at this level isn’t growing as fast as analysts projected.
Gold futures (/GC) climbed almost 2% on Wednesday in reaction to the …