Good Evening. After scathing comments from JPMorgan (JPM) CEO Jamie Dimon warning of a “hurricane” coming down on the US economy, US markets lost ground on the first trading day of June.
On Wednesday, the S&P 500 sank 0.75%, the Dow down 0.54%, and the Nasdaq plummeted 0.72%.
EARNINGS
An excellent earnings report from Salesforce (CRM) late Tuesday boosted investor mood early Wednesday, as the software business lifted its profit projection and stated that macroeconomic uncertainty had no meaningful influence on operations.
Despite four decades of high inflation and declining consumer demand, the business said on Tuesday that there was a substantial demand for its software from companies trying to increase efficiencies and incorporate modern-day workflows, including hybrid labor.
Earnings per share: $0.98 vs. $0.94 estimate
- Revenue: $7.41 Billion vs. $7.38 Billion estimate
“We’re just not seeing material impact on the broader economic world that all of you are in,” Salesforce Chief Executive Officer Marc Benioff said in an earnings call.
In contrast, some corporate counterparts reported disappointing quarterly results, indicating that rising costs and supply chain imbalances may be a problem in the future.
ECONOMY
Jamie Dimon, the CEO of JPMorgan (JPM), made headlines on Wednesday with his remarks at an investor conference.
Dimon, speaking at Bernstein’s Strategic Decisions Conference, claimed the US economy is facing a “storm” as the Federal Reserve continues to normalize interest rates. Dimon claimed he’d previously referred to the economy’s future issues as “storm clouds.”
“Right now, it’s kind of sunny, things are doing fine,” Dimon told the conference, according to a transcript from S&P Capital IQ. “Everyone thinks the Fed can handle this. That hurricane is right out there down the road, coming our way. We just don’t know if it’s a minor one or Superstorm Sandy.” Dimon said that the banking industry and customers, with over $2 trillion in savings, are in a good position to weather the storm.