US stocks struggle as earnings season kicks off

By CNN Business

Updated 6:21 a.m. ET, October 20, 2021
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8:46 a.m. ET, October 13, 2021

JPMorgan CEO Dimon on record number of workers quitting: ‘That’s okay’

From CNN Business' Matt Egan

JPMorgan Chase CEO Jamie Dimon said Wednesday the record number of Americans quitting their jobs is a consequence of the shock caused by the pandemic.

“People are making different decisions, they’ve moved to different places,” Dimon in response to a question from CNN during a call with journalists.

A government report released Tuesday showed 4.3 million people quit in August, the highest amount since tracking began in late 2000.

“Covid has affected their mindset. There’s more churn. That’s okay and that will normalize over time,” Dimon said.

The record number of people quitting is evidence of the considerable leverage workers have in today’s economy. Many businesses are desperate to hire, giving workers bargaining power to get raises or find jobs with higher pay.

“Wages are going up. That’s a good thing,” Dimon said.

The JPMorgan CEO added that there are many signs of a “strong consumer” and strong business environment, “dampened a little bit” by supply chain problems and other issues. 

8:47 a.m. ET, October 13, 2021

JPMorgan Chase posts $11.7 billion profit

From CNN Business' Paul R. La Monica

JPMorgan Chase, the biggest bank in America, reported blockbuster earnings for the third quarter Wednesday. The bank earned $11.7 billion in the quarter, an increase of 24% from a year ago which works out to $3.74 a share. Analysts were expecting a profit of $3 a share. Revenue was up slightly from a year ago and roughly in line with forecasts.

Earnings were helped by the fact that JPMorgan Chase released $2.1 billion in credit reserves during the quarter, thanks to the improving economic outlook and fewer concerns that loans would go bad.

The bank also got a lift from booming demand for initial public offerings and a surge in merger activity. JPMorgan Chase's investment banking revenue hit $1.3 billion in the quarter, a jump of 60% from a year ago.

CEO Jamie Dimon took an upbeat tone about the results, although he also pointed out two big challenges.

"The economy continues to show good growth - despite the dampening effect of the Delta variant and supply chain disruptions," Dimon said in a press release.

Shares of JPMorgan Chase (JPM) were flat in premarket trading. The company will host calls for reporters and analysts later this morning. It will be interesting to see if Dimon has more colorful comments about bitcoin in store.

7:45 a.m. ET, October 13, 2021

Delta returns to profitability

From CNN Business' Chris Isidore

Delta reported a quarterly operating profit in the third quarter, the first major US passenger airline to post earnings since the start of the pandemic.

The company earned $194 million in the quarter, adjusted for special items. That's down from $1.5 billion it earned in the quarter in 2019, the year before pandemic uprooted air travel around the globe.

But last quarter was much better than the losses it and other airlines have reported since the start of 2020. Delta's (DAL) operating losses have totaled $9.8 billion heading into this quarter.

The company reported a net income in the second quarter but that was primarily due to a final infusion of government support it and other airlines received in the quarter.

Read more here

8:09 a.m. ET, October 13, 2021

Boeing tells US employees Covid-19 vaccinations are mandatory 

From CNN Business' Rob McLean

Boeing issued a vaccine mandate to US-based employees Tuesday evening, as it prepares to comply with the Biden administration's rules for Covid vaccine requirements for federal contractors.

Although the rules have not yet been published, several companies have begun preparing their employees in the meantime.

“To ensure compliance with President Biden’s executive order for federal contractors, Boeing is requiring its U.S.-based employees to either show proof of vaccination or have an approved reasonable accommodation (based on a disability or sincerely held religious belief) by Dec. 8," the company said in a statement.

It remains unknown if all employees of a company that contracts with the government must be vaccinated. The Biden administration also plans to require companies with 100 or more employees to implement vaccine mandates or test their employees weekly for Covid.

Boeing employs 140,000 workers worldwide. Roughly, 11 percent of those workers are based overseas, according to a company spokesperson.

6:51 a.m. ET, October 13, 2021

US stocks point to a higher open

From CNN Business' David Goldman

US stock futures were slightly higher ahead of the start of earnings season, kicked off by a number of banks’ quarterly financial updates. Investors will also be looking at a key inflation report due at 8:30 am ET.

Here's where things stand as of 6:15 am ET:

  • Dow futures were up 40 points or 0.1%
  • S&P 500 futures rose 0.2%.
  • Nasdaq futures were 0.4% lower.

US markets fell slightly Tuesday after investors grew increasingly cautious about the pace of the economic rebound.

6:51 a.m. ET, October 13, 2021

Peak oil is coming. That won't save the world

From CNN Business' Julia Horowitz

The shift to clean energy is sending the oil industry into decline. But the world needs a much more ambitious plan to save the climate and achieve net-zero emissions by 2050.

That's according to the International Energy Agency, which said in its global energy outlook published Wednesday that more aggressive climate action is needed as world leaders prepare for the crucial COP26 summit in Glasgow in November.

"The world's hugely encouraging clean energy momentum is running up against the stubborn incumbency of fossil fuels in our energy systems," Executive Director Fatih Birol said in a statement. "Governments need to resolve this at COP26 by giving a clear and unmistakeable signal that they are committed to rapidly scaling up the clean and resilient technologies of the future."

More than 50 countries and the European Union have pledged to meet net zero emissions targets. If they live up to those commitments, demand for fossil fuels will peak by 2025, but global CO2 emissions would only fall 40% by 2050, far short of net zero.

In that scenario, the world would still be consuming 75 million barrels of oil per day by 2050 — only 25 million barrels per day less than today.

Read more here

6:49 a.m. ET, October 13, 2021

Biden to discuss supply chain crisis with US ports and carriers

From CNN Business' Anneken Tappe

The US government is stepping up its efforts to relieve the supply chain nightmare that has led to shortages of some goods, higher prices for consumes and now threatens to slow the economic recovery.

The White House will work with companies and ports on a "90-day sprint" to alleviate bottlenecks, according to a senior administration official. Some will start working 24/7 to address the backlogs.

The Port of Los Angeles will move to 24/7 service, bringing it into line with operations at the Port of Long Beach, which is already working on a 24/7 schedule, the official said. Those two ports handle 40% of container traffic in the US.

Around the world, ports are congested as a result of the rapid rebound in demand for commodities and goods as much of the global economy has recovered from the pandemic. Shipping costs have soared, and companies wanting to move goods around are struggling because there just aren't enough ships or containers available. All the while prices are going up for consumers.

Read more here

6:45 a.m. ET, October 13, 2021

Jamie Dimon bashes bitcoin again, calling it 'worthless'

From CNN Business' Paul R. La Monica

Say what you want about JPMorgan Chase CEO Jamie Dimon, but he's consistent about his disdain for bitcoin.

Dimon once again attacked the top cryptocurrency, calling it "worthless" during a virtual summit Monday.

"I personally think bitcoin is worthless, but I don't want to be a spokesperson," he said during a virtual appearance at the Institute of International Finance Meeting before adding, "I don't care, it makes no difference to me. I don't think people should smoke cigarettes."

Read more here.