Wells Fargo, Morgan Stanley, and Bank of America also announced that they are releasing reserved cash that had been set aside for pandemic-related defaults. These actions suggest a vote of confidence that the U.S. is heading back to normal. The positive gesture is helping to push stocks higher before the open and the Volatility Index (VIX) AKA fear index has fallen 8% before the open.
A couple of health care stocks also reported Thursday morning. Despite the fallout around the COVID-19 delta wave, UnitedHealth (UNH) was trading 2.74% higher before the open in reaction to the company reporting better-than-expected earnings and revenue. Additionally, UnitedHealth raised its forward guidance.
Walgreens Boots (NASDAQ:WBA) also beat EPS and revenue expectations prompting a premarket rally of 1.35%. Pharmacy sales rose 8.1% in its U.S. operations and 11.4% in its U.K. operations. On top of pharmacy sales, the company increased retail sales by 8.9% in the U.S. and 15% in the U.K.
The global supply chain has been one of the causes of rising inflation. The Producer Price Index (PPI) measures inflation at the wholesale level. However, the PPI came in lower than expected which means inflation at this level isn’t growing as fast as analysts projected.
Some light was also shed on what Fed members are thinking. The FOMC Meeting Minutes were released Wednesday afternoon and confirmed what most already suspected—that the Fed could start tapering as soon as November. The discussion was around the current pace of buying securities. The plan appears to be reducing the amount of buying by $15 billion per month in Treasuries and mortgage-backed securities.
Chips and Dip
Some companies are tangential to semiconductor production but aid in getting them to market. For example, ASE Technology (NYSE:ASX) performs semiconductor testing, assembly, and packaging.
South Side Sox: While my Chicago White Sox cruised to a division title only to be knocked out in the first round of the playoffs, the SOX or PHLX Semiconductor Index appears to be finding support near the 3160 level. In the previous few months, the SOX has bounced off this level a few times, which my chartist friends tell me suggests that there’s demand for the industry group.
Because the SOX has pretty much moved with its sector and with the S&P 500 (SPX) since May, the question is, “Can the group breakout?” The answer to this rests with the ability of the group to meet the high demand.
By tracing the division of labor, we can see the demand for one product can influence the demand for other products.
TD Ameritrade® commentary for educational purposes only. Member SIPC.
Image Sourced from Pixabay
© 2026 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
To add Benzinga News as your preferred source on Google, click here.
