Big banks have begun reporting their second-quarter earnings, with JPMorgan Chase and Wells Fargo leading the way. JPMorgan exceeded expectations with revenue of $50.99 billion and earnings per share of $6.12. However, its shares are down 1% in premarket trading, while Wells Fargo is seeing a 6% drop as it reported a 9.4% decrease in net interest income. JPMorgan CEO Jamie Dimon cautioned that inflation and interest rates may remain higher than anticipated due to various factors.
The Russell 2000 index of small-cap companies surged 3.6% on Thursday, outperforming the S&P 500 and Nasdaq Composite. This rise came as investors shifted from large-cap tech stocks to companies expected to benefit more from potential Federal Reserve rate cuts.
Tesla shares are down over 1% in premarket trading following a report that the company is delaying the unveiling of its robotaxi by two months. This news comes after Tesla experienced the largest decline among S&P 500 constituents on Thursday, dropping 8.4%. The company had been on an 11-session winning streak prior to this setback.
The European Union has issued a formal warning to X, the social media network owned by Elon Musk, for violating online content rules. The EU charged X with breaching the Digital Services Act by allowing users to purchase blue checkmarks that could mislead others about the credibility of content.
Novo Nordisk’s American depositary receipts are up over 1% in premarket trading following a study from Oxford that found their Ozempic diabetes drug is associated with lower rates of dementia and other mental health issues. The research, published in The Lancet’s eClinicalMedicine journal, revealed a 48% reduction in dementia risk for patients taking Ozempic compared to an older drug, sitagliptin. This study highlights the potential benefits of semaglutide, the active ingredient in Novo Nordisk’s Ozempic and Wegovy medications, beyond just diabetes and weight loss.