Investor concerns rise over inflation
Consumer prices rose higher than expected in September
As the September consumer price data came in worse than expected, investors grew concerned as the chances that the Fed might continue to raise interest rates solidified further. However, reports showed that consumer sentiment improved in October and the retail data also showed steadiness in consumer spending.
Top Stories
- JPMorgan posts upbeat quarterly results
- Netflix shows to have Nielsen ratings
- Moderna shares soar on cancer vaccine news
JPMorgan posts upbeat quarterly results
JPMorgan Chase & Co (JPM) reported third-quarter results that beat Wall Street expectations on topline and bottomline, helped by the Fed’s interest rate hikes. The stock gained about 4% over the last week.
- Analyst rating: RBC Capital analyst Gerard Cassidy maintains a “Buy” rating on JP Morgan stock with a $130 price target.
- Future outlook: The bank raised estimates for its net interest income, excluding markets, for the year by $3.5 billion to $61.5 billion.
Netflix shows to have Nielsen ratings
As Netflix (NFLX) is all set to launch its ad-supported subscription plan on November 3, the streaming giant said it will begin using Nielsen’s ratings on its content sometime in 2023 to show advertisers the size of its audience. The stock gained 1.9% over the last week.
- Analyst rating: Wedbush analyst Michael Pachter maintains a “Buy” rating on Netflix stock with a $280 price target.
- Future outlook: As per JP Morgan analyst Doug Anmuth, Netflix’s ad-supported tier in the U.S./Canada segment can help generate $600 million in ad sales in 2023 and $2.65 billion by 2026.
Moderna shares soar on cancer vaccine news
Moderna (MRNA) announced it would jointly develop a skin cancer vaccine with the pharma behemoth Merck & Co (MRK). Moderna stock gained 12.5% while Merck shares added 2.5% over the last week.
- Analyst rating: Goldman Sachs analyst Salveen Richter maintains a “Buy” rating on Moderna stock with a $296 price target.
- Future outlook: Moderna’s vaccine is currently being studied in combination with Merck’s Keytruda treatment in a phase two trial. The trial results are expected to be out in 4Q2022.
