The U.S. retail sector saw an unexpected surge in September, with Retail Sales figures increasing by a higher-than-expected +0.7% month over month. This rise is up from August's upwardly revised figure, contradicting recession predictions and indicating potential Q3 GDP growth. Excluding auto sales, the figure remained strong at +0.6%. The bond market also reflected a robust economy, with the 10-year yield nearing 4.8% and the 2-year yield surpassing 5.1%.
Tuesday's earnings reports showed mixed results for major corporations. Johnson & Johnson (NYSE:JNJ) exceeded Q3 expectations with earnings of $2.66 per share and revenues of $21.35 billion. Despite these figures being lower than the previous year, the company raised its forward guidance, causing a jump in pre-market trading.
Bank of America reported Q3 earnings of 90 cents per share and revenues of $25.17 billion, marking a +3% year-over-year increase. While the bank's year-to-date performance has declined by -19% and credit quality has decreased, it emphasized its stronger capital position.
Goldman Sachs revealed Q3 earnings of $5.47 per share and revenues of $11.82 billion, a +7.42% surprise compared to expectations. Despite lower earnings than last year and an -8% year-to-date performance, this marks its second positive earnings surprise in the past four quarters. However, pre-market trading remained flat following the announcement.
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