Coffee With Greta: Earnings Kickoff With Big Banks
DJIA Futures: -9 (-0.03%)
SPX Futures: -7 (-0.2%)
NASDAQ Futures: -93 (-0.7%)
Good morning friends!
Futures are mostly lower as traders digest first-quarter earnings from big banks and new data on the U.S. consumer.
Let’s get right to it!
JPMorgan Chase Reports Record Revenue
JPMorgan Chase (JPM) shares are rallying 6.1% ahead of the open after beating Q1 expectations on the top and bottom line.
Here’s how the largest U.S. bank’s results compared to analysts’ estimates:
- Adjusted EPS: $4.32 vs $3.41 expected
- Revenue: $39.34 billion vs $36.19 billion expected
Net interest income surged nearly 50% year over year which pushed quarterly revenue to a new record.
CEO Jamie Dimon said, “The U.S. economy continues to be on generally healthy footings —consumers are still spending and have strong balance sheets, and businesses are in good shape.”
But he also warned, “the storm clouds that we have been monitoring for the past year remain on the horizon, and the banking industry turmoil adds to these risks.”
Wells Fargo Tops Q1 Expectations
Wells Fargo (WFC) shares are up 3.8% in premarket trade after beating Q1 expectations on the top and bottom line.
Here’s how the bank’s results compared to analysts’ expectations:
- GAAP EPS: $1.23 vs $1.13 expected
- Revenue: $20.73 billion vs $20.08 billion expected
Wells Fargo’s net interest income surged 45% year over year as interest rates rose.
CEO Charlie Scharf said, “We had strong results in the first quarter including revenue growth from both the fourth quarter and a year ago, and we continued to make progress on our efficiency initiatives.”
Wells Fargo set aside $1.2 billion for credit losses during the quarter.
Citigroup Rises On Earnings Beat
Citigroup (C) shares are up 1.6% ahead of the open after beating Q1 expectations on the top and bottom line.
Here’s how the investment bank’s results compared to analysts’ estimates:
- Profit: $4.6 billion vs $4.3 billion expected
- Revenue: $21.45 billion vs $19.99 billion expected
Personal banking revenue rose 18% year over year while fixed-income markets revenue rose 4%.
But Citigroup did see declines in investment banking and equity markets revenue.
UnitedHealth Group Raises Outlook After Earnings Beat
UnitedHealth Group (UNH) shares are up 0.4% in premarket trade after beating Q1 expectations on the top and bottom line and hiking its outlook.
Here’s how the health insurer’s results compared to analysts’ expectations:
- EPS: $6.26 vs $6.16 expected
- Revenue: $91.9 billion vs $89.7 billion expected
In a statement, the company said, “In the first quarter of 2023, UnitedHealthcare grew to serve nearly 2 million more people than a year ago, with broad-based growth across the company’s commercial, community-based and senior benefit offerings.”
UnitedHealth hiked its full-year earnings outlook to between $24.50 and $25 per share vs $24.40 to $24.90 previously.
Retail Sales Fall More Than Expected
Retail sales fell more than expected in March as consumers pulled back.
The Commerce Department reported retail sales dropped 1% last month to $691.7 billion.
That was worse than expectations for a 0.5% decline.
Here’s a look at the monthly change in retail sales by category:
- -5.5% gas stations
- -2.5% department stores
- -2.1% electronics stores
- -2.1% building supply stores
- -1.7% clothing retailers
- -1.6% cars, parts stores
- -1.2% furniture stores
- 0.0% grocery stores
- +0.1% restaurants, bars
- +0.2% sporting, hobby stores
- +0.3% health, personal care stores
- +1.9% online