BlackRock (NYSE:BLK) stock rose on Thursday after the publication of its third-quarter report in the morning. The stock sank 5.2% at the opening bell but then rocketed higher throughout the day, finishing up 6.6% to $566 per share. BlackRock stock (NYSE:BLK) is still down 38% for the year.
Despite initially falling, all of the main US indices finished Thursday’s session higher, with the S&P 500 up 93 points (2.6%), the Dow Jones Industrial Average up 828 points (2.8%), and the Nasdaq Composite up 232 points (2.2%).
Market Analysis of BlackRock Stock
The third-quarter earnings from BlackRock stock (NYSE:BLK) were a mixed bag. The world’s biggest investment manager exceeded profit expectations but fell short of sales projections. Its net income was $1.4 billion ($9.25 per share), a 16% decrease year on year. However, profits exceeded expectations. Revenue fell 15% to $4.3 billion, falling short of the $4.4 billion average projection.
Long-term net inflows (excluding money market funds) were $65 billion in the quarter and $248 billion for the first three quarters of the year. Bond exchange-traded funds (ETFs) received $37 billion in inflows during the quarter, while actively managed institutional equity funds received $71 billion, offsetting net withdrawals from retail funds and institutional index funds. Net inflows into ETFs totaled $22 billion.
Total assets under management fell almost 6% to $7.96 trillion. Decreased asset totals led to lower management fees, resulting in reduced overall revenue. This decrease in sales was compensated by a 10.6% decrease in total expenditures, allowing the business to surpass profit projections.
So, what now?
For the most part, BlackRock stock (NYSE:BLK) will follow the market, so a scenario in which the main benchmark indices are down 20% or more would not be favorable.
However, the market recovered after negative inflation data knocked share prices down early in Thursday’s session. In September, inflation was 0.4% higher than in August and 8.2% higher than in September of the previous year.
This likely means that the Fed will maintain its aggressive interest rate rise program to bring inflation back under control. However, some market observers were confident that the September Consumer Price Index spike was the top.
In addition, several experts, like Ari Wald, head of technical research at Oppenheimer, believe a bear market bottom is emerging. Wald said on Thursday that the Russell 2000 index had maintained its June lows, which is a good indicator. It indicates to him that the small-cap portion of the market is firming up, which might be a positive indicator for the bigger market.
BlackRock is the market leader and the biggest supplier of exchange-traded funds (ETFs). Its business is likewise cyclical, so when the market begins to flatten out and go higher, BlackRock STOCK (NYSE:BLK) investors will benefit.
Featured Image – Megapixl © Casimirokt
Author Okoro Chinedu 
