Futures tied to the S&P 500 and the Dow pared losses on Friday as resilient earnings from big U.S. banks helped assuage fears of further stress in the sector after the failure of two mid-sized lenders last month sparked concerns about a potential recession.
Market Snapshot
At 8:08 a.m. ET, Dow e-minis were up 43 points, or 0.13%, S&P 500 e-minis were flat, and Nasdaq 100 e-minis were down 57 points, or 0.43%.
Pre-Market Movers
JPMorgan Chase (ticker: JPM) reported first-quarter profit of $12.6 billion, or $4.10 a share, beating analysts’ estimates of $10.2 billion, or $3.41 a share. The stock was rising 5.7% in premarket trading.
Wells Fargo (WFC) reported first-quarter earnings and revenue that beat analysts’ expectations and net interest income above consensus as a result of rising interest rates. The stock gained 2.8%.
Citigroup (C) Q1 Non-GAAP EPS of $1.86 beats by $0.17. Revenue of $21.4B (+12% Y/Y) beats by $1.34B. Citigroup stock jumped 2.58% after posting financial results.
PNC Financial Services Group (PNC) delivered first-quarter earnings of $3.98 a share on revenue of $5.6 billion, while analysts had expected earnings of $3.66 a share on revenue of $5.61 billion. Shares were rising 2.9%.
BlackRock (BLK) was rising 1.5% after posting first-quarter earnings that beat Wall Street forecasts.
Boeing (BA) sank 6.1% in premarket trading after the aerospace giant halted deliveries of its 737 MAX jet after the discovery of a parts compliance problem from a supplier.
“A supplier has notified us that a nonstandard manufacturing process was used during the installation of two fittings in the aft fuselage section of certain [737 MAX] airplanes, creating the potential for a nonconformance to required specifications,” a Boeing spokeswoman told Barron’s in an emailed statement. The spokeswoman added it wasn’t an “immediate safety of flight issue.”
CNBC identified the supplier as Spirit AeroSystems (SPR), which was falling 14.2% in premarket trading.
Lucid Group (LCID) declined 6.4% after first-quarter deliveries at the electric-vehicle maker missed analysts’ expectations.
UnitedHealth (UNH) reported first-quarter earnings that beat analysts’ estimates and the nation’s largest health insurer by enrollees raised full-year guidance. The stock rose 0.7% in premarket trading.
Faraday Future Intelligent Electric (FFIE) said it would start deliveries of its FF 91 vehicle at the end of May. Last month, the company said a launch event for the ultra-luxury electric vehicle was set for April 26. Faraday also said it needed “substantial additional financing to start the second- and third-phase delivery and is in discussions with additional potential investors.” Faraday shares fell 6.5% to about 29 cents.
Market News
JPMorgan Chase Posts Record Revenue That Tops Expectations on Higher Interest Rates
JPMorgan Chase reported first-quarter earnings before the opening bell Friday. Revenue rose 25% to $38.35 billion, a quarterly record. Wall Street was looking for $36.13 billion, according to FactSet. Profit rose 52% to $12.62 billion, or $4.10 per share. Analysts expected $3.41 per share.
Deposits rose by $37 billion from December to $2.38 trillion. People and businesses seeking a safe harbor in the banking crisis moved their money to megabanks like JPMorgan.
Wells Fargo Profit Rises As Higher Rates Bolster Interest Income
The San Francisco bank earned $4.99 billion, up 32% from $3.79 billion a year earlier. That amounts to $1.23 per share, above the $1.13 analysts polled by FactSet had expected.
Revenue rose 17% to $20.73 billion. That beat the $20.09 billion expected by analysts.
BlackRock First-Quarter Profit Beats on Robust Inflows
BlackRock Inc reported a quarterly profit on Friday that beat analysts' estimates as investors continued to pour money in its various funds, cushioning the hit to its fee income from a global banking rout that rippled through financial markets.
Net inflows for the first quarter were at $110 billion, compared with $86 billion a year earlier.
UnitedHealth Ups Profit View As Lower Medical Costs Drive Quarterly Beat
UnitedHealth Group Inc beat Wall Street estimates for quarterly profit on Friday and raised its annual forecast, after a slow recovery in non-urgent procedures helped lower medical costs at its insurance unit.
The industry bellwether expects costs from medical claims to stabilize this year after fluctuating during the pandemic, as inflation and labor shortages could hinder the number of non-urgent procedures that hospitals perform.
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