The S&P 500 fell 0.9%, heading for another week of losses. The Dow Jones industrial average fell slightly higher earlier in the session to move below the flat line. The Nasdaq Composite fell 1.7%, reversing gains from the 2% jump on Wednesday at its best session since March 18. Shares of Twitter (TWTR) rose as much as 13% in early trading after Tesla CEO Elon Musk offered to buy the social media giant for $ 54.20 a share, or about $ 41 billion in cash, according to with a new SEC deposit on Thursday. Musk said the social media company he has often criticized must be privatized in order for effective change to take place. The climate on Wall Street recovered on Wednesday, as inflation data scared investors to start the week. Traders weighed in first-quarter earnings from JPMorgan Chase (JPM), Delta Air Lines (DAL) and Bed, Bath & Beyond (BBBY). Delta rose 6.2% despite another loss in its quarterly results after the airline said it returned to profitability in March after Omicron hit companies and forecast revenue of between 92% and 97%. before the pandemic this quarter. Meanwhile, shares of JPMorgan closed 3.2% at its lowest level since January 2021, after the largest US bank in assets reported a 42% drop in profits from last year due to losses associated with higher inflation and Russia’s war. in Ukraine. Bed, Bath & Beyond also declined after losing sales expectations. The initial batch of reports predicts a milder quarter for profit growth compared to previous periods. However, the gains are expected to be a bright spot for investors who for most of this year have so far experienced sharp market fluctuations associated with worsening geopolitical risk, inflationary pressures and fears that monetary tightening could lead to in economic contraction, as the Federal Reserve sets rating hiking plans. The story goes on Analysts have cut their first-quarter earnings expectations, lowering overall EPS forecasts for the first quarter from 0.2% to $ 52.21 to $ 51.83, according to FactSet . On the other hand, EPS forecasts for the second quarter increased by 1.6% from $ 55.16 to $ 56.07, by 2.4% from $ 57.82 to $ 59.23 for the third quarter, by 3.9% from $ 58.31 to $ 60.59 for the fourth quarter and by 2.0% from $ 223.43 to $ 227.80 for 2022 overall. Bank of America economists in a note this week also forecast a solid quarterly earnings despite gloomy macroeconomic headlines throughout the period. “Top brands and early reporters indicate a high probability of EPS gaining in the first quarter,” BofA said, adding that the financial institution expects a rise of 4% or $ 53.50 versus $ 51.54 consensus. However, the bank warned that analysts’ expectations for record margins in the coming quarters were “very high”. “History shows that oil crises cause weaker consumption with a delay of three to four quarters, indicating a slowdown of 2 hours,” the note said. –
12:51 p.m. ET: All three indexes stumble to become negative in overnight trading
Here were the main moves in the markets from 12:51 p.m. ET:
S&P 500 (^ GSPC): -37.81 (-0.85%) at 4,408.78 Dow (^ DJI): -22.15 (-0.06%) at 34,542.44 Nasdaq (^ IXIC): -234.79 (-1.72%) at 13,408.79 Crude (CL = F): + $ 0.36 (+ 0.35%) at $ 104.61 per barrel Gold (GC = F): -11.60 $ (-0.58%) at $ 1.973.10 per ounce 10-year Treasury (^ TNX): +12.3 bps for a yield of 2.8100%
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11:30 a.m. ET: Consumers are slightly more optimistic in early April
The US consumer climate recovered unexpectedly in early April from a decade low, boosted by the positive outlook for wage growth amid a strong labor market and falling gasoline prices that have allayed some inflation concerns. The University of Michigan Consumer Emotion Index rose to 65.7 on a preliminary level this month from a final close of 59.4 in March, the lowest level since 2011. Economists surveyed by Bloomberg expected a measure of 59. Improved outlook was boosted by a 29.4% rise in financial terms for next year and a 17.2% rise in personal financial expectations, according to research director Richard Curtin. “A strong labor market boosted the wage expectations of consumers under the age of 45 to 5.3% – the highest expected profit in more than three decades since April 1990,” he said in a statement. –
10:25 a.m. ET: Mortgage rates hit 5% to mark highest level in more than a decade
Mortgage rates have skyrocketed since the beginning of 2022, with the most common mortgage rate reaching 5% this week – the highest level since February 11th. The 30-year fixed mortgage rate jumped to 5% from 4.72% last week, according to Freddie Mac. A year ago at this time, the cost of borrowing for 30 years was on average 3.04%. In the last five weeks alone, the rate has risen by 1.24 percentage points and is 1.89 points higher than at the end of 2021. “This week, mortgage rates averaged five percent for the first time in more than a decade,” said Sam Khater, chief economist at Freddie Mac. “As Americans face historically high inflation, the combination of rising mortgage rates, rising housing prices and tight inventory makes homeownership pursuit more expensive in a generation.” –
9:30 a.m. ET: Shares remain stable as investors digest bank profits
Here were the main moves in the markets at the start of Thursday’s session:
S&P 500 (^ GSPC): +4.82 (+ 0.11%) at 4,451.41 Dow (^ DJI): +141.03 (+ 0.41%) at 34,705.62 Nasdaq (^ IXIC): -12.24 (-0.09%) at 13,631.35 crude (CL = F): -1.53 $ (-1.47%) at $ 102.72 a barrel Gold (GC = F): -4.20 $ (-0.21%) to $ 1.980.50 per ounce 10-year Treasury (^ TNX): +3.3 bps for a yield of 2.7200%
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8:58 a.m. ET: Retail sales are rising despite rising price levels
US consumers continued to spend in March, even amid inflationary pressures that led to rising costs for food, gasoline and other commodities. US retail sales rose 0.5% after revising 0.8% from January to February. Wage earnings, steady recruitment and more money in bank accounts have fueled spending. The 4.9% increase in January was the biggest jump in spending since March 2021, when U.S. households received a final federal incentive check of $ 1,400. The Department of Commerce reported that general merchandise stores increased by 5.4%, while sales in clothing stores increased by 2.6%. Online sales increased by 6.4% and restaurant sales increased by 1%. –
8:45 a.m. ET: Another 185,000 Americans filed new claims last week
Unemployment insurance claims rose slightly more than expected in recent weekly data, but remained close to the 54-year low set earlier this month. The Labor Department’s latest weekly unemployment benefit report showed that 185,000 applications were submitted in the week ending April 9, slightly more than the 170,000 economists surveyed by Bloomberg. Last week’s new requirements fell to their lowest level since 1968 at 167,000. This compares with an average of approximately 218,000 new claims filed in the week before 2019 before the pandemic. Given the increase and subsequent decrease in unemployment applications, the Ministry of Labor has also now restructured the way it adjusts its weekly data to take into account seasonal factors. Since last week, the Ministry of Labor has returned to the use of “multiplier” seasonal adjustment factors for the data. For much of the pandemic, the department used “additional” seasonal adjustments to help smooth out large fluctuations in weekly numbers. –
8:15 a.m. ET: Citi Earnings Decrease 46% Due to Loan Loss Provisions and Slower Transactions
Citigroup (C) recorded a 46% drop in first quarter earnings as it accepted forecasts for losses related to Russia, falling contract fees and higher costs. The banking force added $ 1.9 billion to its reserves in the quarter to prepare for losses from direct exposure to Russia and the economic effects of the war in Ukraine. Citi is the most global of US banks. The move pushed credit costs to $ 755 million, up from a gain of $ 2.1 billion a year ago, when it released damage reserves that had accumulated during the COVID-19 pandemic. Citi reduced its exposure to Russia to $ 7.8 billion, from $ 9.8 billion in December, also reducing its worst-case loss estimate to no more than $ 3 billion, from nearly $ 5 billion last year. month. Meanwhile, net income fell to $ 4.30 billion, or $ 2.02 a share, from $ 7.94 billion, or $ 3.62 a share, a year earlier. Citigroup shares rose 3% in pre-market trading. –
8:03 a.m. ET: Goldman Sachs reports a 42% drop in first quarter earnings
Goldman Sachs (GS) saw its first-quarter earnings halved in the first quarter as capital market activity slowed from levels in the same period last year that affected the bank’s investment banking operations. Earnings for common stock fell to $ 3.83 billion, or $ 10.76 a share, in the quarter ended March 31, from $ 6.71 billion, or $ 18.60 a share, a year earlier. Total net income fell to $ 12.93 billion in the quarter, down nearly 27% from last year. “It was a turbulent neighborhood dominated by the catastrophic invasion of Ukraine,” said David Solomon, chief executive officer. “The rapidly evolving market environment has had a significant impact on customer activity, as risk mediation has come to the fore and the issuance of shares has almost stopped. “Despite the environment, our quarterly results show that we have continued to effectively support our customers.” Shares of Goldman Sachs rose 1.3% before the purchase. –
7:52 a.m. ET: Morgan Stanley’s first-quarter profit down 11% due to lower trading revenue
Morgan Stanley (MS) reported an 11% drop in first-quarter earnings after falling earnings from last year’s highs. The company, however, jumped in revenue from advice due to higher levels of integrated mergers and acquisitions. The big bank …
