Ray: Good morning, this is Biscuits and Tickers for Wednesday, October 14. I'm Ray.

Nora: And I'm Nora. It is CPI morning. Stock futures are modestly higher ahead of the September inflation report, Bank of America slides after a one point two billion dollar regulatory fine, and Morgan Stanley and BlackRock beat. Let's get to it.

Ray: Start with the scoreboard. On Tuesday the S and P 500 closed essentially flat at 7,805, down two points. The Nasdaq 100 slipped about three tenths of a percent to 30,569 as the chip sell-off lingered. This morning, according to Yahoo Finance and Invezz, Dow futures are up about 145 to 160 points, roughly three tenths of a percent. S and P futures are up about two tenths of a percent, and Nasdaq futures are close to flat. Small caps are firmer, with Russell futures up about four tenths of a percent.

Nora: Bonds are steady. The ten-year Treasury yield is near 5.22 percent, down about two basis points and near a two-week low. Oil stays elevated. Brent crude is up about six tenths of a percent to around 106 dollars a barrel, and U.S. crude is up about one percent near 95 dollars, per the Associated Press. The dollar is little changed, around 158 and a half yen, with the euro near 1.12 dollars. Gold is near 4,155 dollars an ounce, bitcoin is around 83,600 dollars, and the VIX sits near 15.3, a calm reading heading into a big data print.

Ray: Overseas, Tickmill reports the MSCI Asia Pacific index rose about half a percent after two days of losses, with Korea and Japan rebounding from this week's chip sell-off. China's CSI 300 fell again and is more than 15 percent below its June peak. In Europe, the DAX is up about six tenths of a percent and the CAC 40 about half a percent, per the AP.

Nora: The main event is the September consumer price index at 8:30 a.m. Eastern. A FactSet survey cited by the AP expects headline inflation of 3.6 percent from a year earlier, up from 3.4 percent in August, driven by gasoline and energy. Month over month, economists look for a gain of six tenths of a percent on the headline, and two tenths on core, which strips out food and energy.

Ray: Why it matters: Fed officials are leaning hawkish. Bloomberg reports New York Fed President John Williams said one more rate hike this year is appropriate, though further tightening likely won't be needed in 2027. Boston's Susan Collins and Richmond's Tom Barkin also pointed toward higher rates. BMO's Ian Lyngen warned a big upside surprise could revive talk of more tightening, possibly as soon as this month.

Nora: On earnings, Bank of America, Morgan Stanley, BlackRock, State Street, ASML and Fastenal reported before the bell, and Progressive is due this morning. After the close, regional banks Synovus, Pinnacle Financial and Home BancShares report. Tomorrow brings Taiwan Semiconductor, Schwab, U.S. Bancorp, PNC and BNY.

Ray: Our first story. Bank of America, ticker B A C, reported third-quarter earnings of 1.08 dollars a share, three cents below estimates, on revenue of about 29.96 billion dollars versus roughly 30.58 billion expected, according to 24/7 Wall Street. That snaps a six-quarter streak of beats.

Ray: The swing factor was a one point two billion dollar settlement with the Treasury Department's FinCEN and the Office of the Comptroller of the Currency over anti-money-laundering and sanctions compliance failures. The penalty is not tax deductible and cut seventeen cents from earnings per share. Underneath, net interest income rose 8 percent and average loans grew 6 percent. The shares are down roughly 4 to 5 percent in pre-market trading.

Nora: Elsewhere in financials, the results were stronger. Morgan Stanley, ticker M S, earned 3.03 dollars a share on revenue of 20.34 billion dollars, topping estimates, according to Quartz, with equities trading the standout. Reports put the equities trading beat at about 909 million dollars above forecasts. Even so, the stock is slightly lower pre-market.

Nora: BlackRock, ticker B L K, reported adjusted net income up 37 percent to 2.62 billion dollars, with assets under management at a record 15.49 trillion dollars. Its shares are up roughly 3 to 4 percent before the open. State Street, ticker S T T, went the other way. Benzinga says adjusted earnings of 3.69 dollars a share edged past estimates, but revenue of just over 4 billion dollars came in light, and the stock is down 6 to 8 percent.

Ray: Next, the A I supply chain. ASML, ticker A S M L, the Dutch maker of chipmaking lithography machines, reported third-quarter net profit of 4.96 billion euros on 11.66 billion euros in sales. It raised full-year revenue guidance to 44 to 45 billion euros.

Ray: ASML said demand for advanced lithography could exceed its capacity through 2028, and that customers are discussing orders into 2029 and 2030. Tickmill notes that the warning on supply weighed on Nasdaq and European futures early, but the U.S. shares are roughly flat pre-market. This sets up Taiwan Semiconductor's report tomorrow as the next read on A I chip demand.

Nora: A brief follow-up on the Middle East. After this week's Houthi strikes on Saudi Arabia, the Financial Times, via Invezz, reports two vessels were struck near the Strait of Hormuz, in the most intense wave of shipping attacks since the conflict began. Tickmill also cites a Houthi attack that hit Saudi Aramco's headquarters. That is keeping Brent above 105 dollars and energy front and center in the inflation story.

Ray: Now the movers. Liquidia, ticker L Q D A, is up more than 40 percent after settling six lawsuits with United Therapeutics, clearing the way for continued sales of its lung drug Yutrepia, per Invezz. Fastenal, ticker F A S T, is down about 4 to 5 percent after its quarterly report. Progressive is down a couple of percent ahead of its results.

Ray: Biomea Fusion is down nearly 29 percent after early-stage data for its oral weight-loss drug candidate, according to Benzinga, and Skydance is down about 16 percent. In tech, Micron and Intel are lower as investors keep weighing the memory-pricing threat from China's C X M T, while Nvidia is roughly flat. Dell, Hewlett Packard Enterprise and SK hynix are each off about 3 to 4 percent.

Nora: On sectors: financials are mixed, with brokers and asset managers outperforming lenders and custody banks. Energy remains supported by oil above 100 dollars, and semiconductors are steadier after Tuesday's slide but still volatile.

Nora: Here is what to watch today. One, September CPI at 8:30 a.m. Eastern, especially whether energy costs are spilling into core prices. Two, how the ten-year yield, now near 5.22 percent, reacts to that number. Three, the Bank of America and Morgan Stanley earnings calls this morning, and Progressive's results. Four, oil and any new headlines on Gulf shipping. And five, after the close, regional bank earnings, ahead of Taiwan Semiconductor tomorrow morning.

Ray: That's Biscuits and Tickers for Wednesday, October 14. This briefing is information, not investment advice. I'm Ray.

Nora: And I'm Nora. We'll see you tomorrow morning.