Search

Banking sector sell-off

Markets

Nikkei 225

39,209.50

▼ -357.50 / -0.90%

SSE Composite

3,057.38

IBOVESPA

125,946.09

▼ -1,450.26 / -1.41%

Straits Times

3,183.61

▼ -33.30 / -1.04%

BMV IPC

56,565.92

▼ -264.40 / -0.47%

Dow Jones

37,983.24

▼ -475.84 / -1.24%

DAX 30

18,170.94

▲ +240.62 / +1.34%

BSE SENSEX

73,399.78

▼ -845.12 / -1.14%

FTSE 100

7,999.04

▲ +3.46 / +0.04%

JSE Top 40

68,988.50

▼ -220.44 / -0.32%

Last Week’s Highlights

JPMorgan misses interest income expectations

JPMorgan Chase reported a Q1 2019 profit of $13.42bn, beating estimates, but its shares fell 6% after forecasts for interest income fell short of analysts’ expectations. The bank slightly increased its estimate for net interest income (NII), but investors wanted more, hoping that the bank would reap greater benefits from a prolonged period of higher interest rates. The bank cited global conflicts, inflationary pressure and quantitative tightening as reasons for its cautious view on the economic outlook. Despite the warning, JPMorgan said that the US economy remained strong and that consumers still have excess money. 

Wells Fargo’s Q1 beats estimates

Wells Fargo has reported better-than-expected Q1 earnings with total revenues of $20.86 billion, beating consensus estimates of $20.15 billion. The bank’s earnings per diluted share were $1.20, compared to $1.23 in the same period last year and surpassed analysts’ expectations. However, the bank’s net interest income showed a decline of 8% YoY to $12.23 billion in Q1, due to higher interest rates affecting funding costs and customers migrating to deposit products with a higher yield. The bank’s management stated that investments across its businesses boosted its revenue from non-interest sources, making up for the decline in net interest income. 

Coming Up This Week

Salesforce to acquire Informatica

Salesforce is reportedly in discussions to acquire Informatica, a cloud-based data management company with over 5,000 active customers. The potential acquisition, which could be announced soon, would be Salesforce’s largest deal since it acquired Slack Technologies in 2020. The price being negotiated is said to be lower than Informatica’s current share price of $38.48. If the transaction is completed, it would be further evidence of increased merger and acquisition activity in the technology industry, which accounted for the majority of M&A transactions during the first quarter of 2023. 

Tesla to lay off 10% of workforce to cut costs

Tesla is set to cut over 10% of its global workforce following a review of the company to reduce costs and increase productivity, according to a memo sent by CEO Elon Musk. The job cuts come as Tesla grapples with falling sales and an intensifying price war for electric vehicles, with its shares falling about 31% so far this year. The automaker’s latest annual report shows it had 140,473 employees globally as of December 2023.  

All information provided was collected up to the last business day of the previous week of the release of this NewsFlight. The purpose of NewsFlight is to summarize and make accessible information on a variety of topics within the world of investing and personal finance, and thus cannot be considered formal research or reports. All sources utilized to compile the NewsFlight newsletter are considered trustworthy by the FlexInvest team. FlexInvest is not affiliated with and does not receive remuneration from the news sources used to compile NewsFlight. As well, any images or logos incorporated into the NewsFlight newsletter are not necessarily property of FlexInvest and may solely be included to provide context for the news covered. NewsFlight should not be taken as advice to sell or buy securities or to make any investment. When investing in securities or other financial products, there is always the potential to lose money or asset value. FlexInvest recommends that its users consider their investment objectives and risks before investing. Additionally, any projections or analysis made by authors of NewsFlight cannot be considered as a promise of future trends or returns. Opinions expressed in NewsFlight are not representative of FlexInvest.

Market News

The U.S. stock market had a rough time on Friday, with major banks’ underwhelming results leading to a sell-off. This capped off a week of market-moving events, including inflation data, shifting expectations for U.S. Federal Reserve policy, and growing geopolitical tensions.

Unfortunately, the S&P 500 index saw its biggest weekly percentage loss since January, while the Dow Jones Industrial Average’s weekly loss was its steepest since March 2023.

The Dow Jones Industrial Average fell by a substantial 475.84 points, or 1.24%, to 37,983.24. Meanwhile, the S&P 500 lost 75.65 points, or 1.46%, closing at 5,123.41. The Nasdaq Composite also dropped 267.10 points, or 1.62%, to 16,175.09.

Wild Card

Analysts are bullish on this MedTech S&P 500 stock.

More things to sip on...

Is British American Tobacco nearing a buy point?
Microsoft-backed Rubrik aims to raise $713M with IPO.
Apple’s smartphone shipments take a dip.

Latest Market Insights

Google finds a dividend

Alphabet announces its first dividend ever, while Microsoft beats expectations. Intel forecasts disappoints and Apple to grow in AI.

Should you stay away from Boeing stock?

Get the latest update on Boeing stocks and their turbulent journey. Find out what’s causing the decline and the potential implications for investors.

Banking sector sell-off

JPMorgan beats profits estimates but misses income expectations. Salesforce plans a big acquisition, while Tesla to layoff 10% of workforce.