Main subjects of the day
Dow Jones futures gained traction in premarket trading on Friday as investors received the first batch of corporate earnings from major banks with stronger-than-expected results.
At 10.09 am EST, futures contracts linked to the Dow Jones added 37 points, or 0.11%. S&P 500 futures were flat, and Nasdaq-100 futures were down 0.41%.
The tone was one of caution given the impact of the recent collapse of two US regional banking institutions. Sentiment changed after JPMorgan Chase (NYSE:JPM) posted record revenue that beat analysts’ expectations. Wells Fargo (NYSE:WFC) shares gained in premarket trade after reporting rising profits. Shares in PNC Financial Services Group (NYSE:PNC) rose after beating earnings expectations. Citigroup (NYSE:C) reported rising net income and better-than-expected revenue for the first quarter. Investors were also awaiting results from Black Rock (NYSE:BLK) and healthcare giant UnitedHealth Group (NYSE:UNH) before the market opened.
The round of US indicators to be released this morning focuses on economic activity. March retail sales is the main highlight and is expected to contract by 0.4% in March, after a similar drop in February. The report will be released at 10:30 am. At the same time, the import price indicator for March will be released. Industrial Production for March is out at 11:15 am and University of Michigan Preliminary Consumer Confidence for April is out at 12:00 am.
The results and economic data also adjust expectations about the position of the Federal Reserve, the US central bank, after the relief of recent inflation data gave impetus to the still minority bet that the cycle of high interest rates should end.
Wall Street Corporate Highlights for Today
Express (NYSE:EXPR) – Express jumped 18% on news that the clothing brand, along with WHP Global, would be buying e-commerce clothing company Bonobos from Walmart (NYSE:WMT).
Lucid (NYSE:LCID) – The luxury electric vehicle maker fell 6.6% after it said it delivered fewer of its Air sedans to customers than it produced in the first quarter, which could be seen as a sign of weak demand. The company’s number of deliveries was also below analysts’ expectations.
Boeing (NYSE:BA) — Shares fell 5.9% in premarket after Boeing warned it will likely have to reduce deliveries of its 737 Max plane due to an issue with a part made by supplier Spirit AeroSystems.
Apple (NASDAQ:AAPL) – An unlikely report from Apple analyst Ming-Chi Kuo suggests Apple Glasses may not be mass-produced until 2026 or 2027.
ConocoPhillips (NYSE:COP) – ConocoPhillips CEO Ryan Lance told the Financial Times that President Biden is still not allied with the oil industry, even after recently approving the company’s large Willow oil project in Alaska.
BP (NYSE:BP) – BP has successfully started oil production on its Argos offshore platform.
Earnings
JPMorgan Chase (NYSE:JPM) – The banking giant soared more than 5% after posting record revenue that beat analysts’ expectations due to higher interest rates. JPMorgan Chase reported revenue of $39.34 billion, beating estimates of $36.19 billion by analysts polled by Refinitiv.
Wells Fargo (NYSE:WFC) – The bank rose 3.1% after beating Wall Street expectations in the earnings release. Earnings per share came in at $1.23, 10 cents more than analysts polled by Refinitiv had expected. The company posted revenue of $20.73 billion, higher than the $20.08 billion expected by Wall Street.
BlackRock (NYSE:BLK) – Shares in the investment management company rose 1.6% after reporting first-quarter earnings. BlackRock reported $7.93 in adjusted earnings per share, above the $7.76 estimate from analysts polled by Refinitiv. Revenue was in line with expectations at $4.24 billion.
PNC (NYSE:PNC) – Shares rose 1.3% after the bank reported first-quarter results. PNC reported $3.98 in earnings per share, beating the $3.67 expected by analysts. The bank said revenue came in at $5.60 billion, slightly below expectations of $5.61 billion. PNC also reported a slight increase in deposits, although it noted that its allowance for loan losses was down from the previous quarter.
Citigroup (NYSE:C) – Shares rose 2.5% after the bank’s first-quarter revenue beat expectations.
UnitedHealth Group (NYSE:UNH) – Shares in UnitedHealth rose slightly after the health insurance provider beat Wall Street estimates and raised its 2023 earnings outlook. The company reported adjusted earnings of $6.26 per share on revenue of $91.93 billion. Analysts had forecast earnings per share of $6.13 and revenue of $89.78 billion, according to Refinitiv.
Market Vision
Amazon (NASDAQ:AMZN) – Stocks fell slightly as investors continued to peruse CEO Andy Jassy’s annual letter to shareholders. Bank of America and UBS said they would maintain their buy ratings for the shares after the letter is released.
Hello Group (NASDAQ:MOMO) – The Chinese entertainment company jumped 5.2% after JPMorgan raised shares from neutral to overweight. JPMorgan said Hello Group was a preferred stock in the live streaming space.
Carisma Therapeutics (NASDAQ:CARM) – The clinical-stage biopharmaceutical company advanced 3.2% after Baird began hedging the stock with an outperform rating. The company said it was optimistic ahead of new data due later this year.
LiveOne (NASDAQ:LVO) – Stock gained 2.1% after Roth MKM began coverage of the audio stock with a buy rating. The company said shares rose as a subsidiary was spun off.
VF Corp (NYSE:VFC) – The parent company of apparel retailers such as Vans and The North Face rose 5% after Goldman Sachs raised shares citing the company’s latest strategic moves as potential boosts for shares. Thanks to VF’s strong management strategy and new products, the stock could rise more than 20%, Goldman said.
Rivian (NASDAQRIVN) – Shares fell 2.5% after a downgrade to neutral from overweight by Piper Sandler. The company said the company will need to deal with funding difficulties to compete with Tesla (NASDAQ:TSLA). Tesla shares were down 1% premarket.
With information from CNBC and Seeking Alpha