U.S. stock futures point to a mixed opening after a 3-day holiday as the U.S. Treasury yields continue to climb. The 10-year bond yield is trading above 2.87%. The yield has jumped from 1.71% about 45 days ago. Investors remained worried that the rising inflation and elevated crude oil prices are exacerbating consumer price increase and overwhelming corporate earnings growth. About 300 companies are scheduled to release earnings this week.
Grew loans; controlled expenses; maintained strong credit quality
Raised quarterly common stock dividend 20% to $1.50 per share on April 1, 2022.
PNC
PNC
Tech stocks led the losers after inflation worries dominated trading and investors reviewed a barrage of earnings from large banks. Though there were signs of hope, all major banks reported a sharp decline in earnings. Crude oil price spiked up again and surpassed $105 a barrel in New York and $110 in international trading. 10-year Treasury yield inches to a new 3-year high of 2.83%.
NKE CAT TWTR AMZN FDX
NKE CAT TWTR AMZN FDX
Morgan Stanley said March quarter revenues declined 6% to $14.8 billion and net income fell 11% to $3.5 billion from a year ago. Earnings per share fell 8% to $2.02 on 6% decline in outstanding shares. Wealth management revenues were flat at $5.9 billion and institutional Securities unit revenues fell 10% to $7.7 billion but were supported by higher trading revenues and advisory fees.
MS
MS
Ally Financial said first quarter revenues rose 23% to $1.69 billion and net income fell 18% to $627 million from a year ago. Earnings per share declined 11% to $1.86 from $2.11. Net interest margin in the quarter increased 77 basis points to 3.93% Credit loss provision increased to $180 million from $167 million in the prior year period. Retail banking customer base increased to 2.5 million.
ALLY
ALLY
Goldman Sachs said total revenues in the March quarter declined 27% to $12.9 billion and net income fell 42% to $3.9 billion from a year ago. Earnings per share fell 42% to $10.87 a share in the period. Investment banking unit fees decreased 36% to $2.4 billion and global markets trading revenues including fixed-income trading rose 4% to $7.8 billion. Asset management unit revenues plunged 88%.
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GS
Citigroup Inc said first quart revenues declined 2% to $19.2 billion from $19.7 billion, net income dropped 46% to $4.3 billion from $7.9 billion. Earnings per share fell 44% to $2.02 from $3.67 in the year ago quarter. The global bank repurchased $4 billion of its share in the quarter and now has 6% fewer outstanding shares. Investment banking and corporate lending revenues declined 32%.
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C
Wells Fargo said total revenues in March quarter fell 5% from a year ago to $9.2 billion and net income dropped 21% to $3.67 billion and earnings per share fell 14% t0 88 cents from $1.02. Total deposits rose 5% to $1.464 trillion and net interest margin increased to 2.16% from 2.05%. The bank also repurchased 110.1 million shares for $6 billion in the quarter. Consumer lending fell 8%.
WFC
WFC
UnitedHealth Group reported 14% increase in revenues to $80.1 billion from a year ago and earnings rose slightly to $5.0 billion from $4.8 billion. Earnings per share increased to $5.27 from $5.08. The insurance company added 1.5 million new customers driven by a sustained growth in its Medicare and Medicare plans. UnitedHealth lifted its full-year earnings per share outlook to $20.30 to $20.80.
UNH
UNH
In a non-binding letter to the SEC, Elon Musk, Tesla CEO offered to buy remaining shares of Twitter Inc for $54.20 a share in cash. The offer values the company at $43 billion. Musk added that the company has extraordinary potential but it can only be realized as a private company. Twitter jumped 4% in trading after the social media platform operator said it will carefully review the offer.
TSLA TWTR
TSLA TWTR
Bank earnings dominate morning trading sentiment and stock index futures are pointing to flat opening. Citigroup, Morgan Stanley, and Goldman Sachs reported better than expected earnings. Wells Fargo said quarterly profit declined 21% on weaker than expected mortgage lending. Retail spending rose modest 0.5% in March and new weekly jobless claims last week were 185.000.
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GS MS C TWTR
Infosys reported revenues of $4.3 billion in the quarter ending in March 2022 and earnings rose 8% to $753 million from a year ago quarter. Earnings per share increased to 18 cents from 16 cents. For the year, the company said revenues rose 19.7% to $16.3 billion and digital revenues comprise 57% of total revenues. Return on equity was 29% and free cash flow rose 2.8% to $3 billion in fiscal 2022.
INFY
INFY
Hooker Furnishing reported sales fell 13.4% to $134.8 million in the final quarter ending in February 2022. The furniture maker struggled with the Asian factories closure during the resurgent virus pandemic. In the quarter furniture maker lost $4 million compared to profit of $8.5 million a year ago representing 33 cents per share vs 72 respectively. For the year sales rose 10% to $594 million.
HOFT
HOFT
Fastenal, the distributor of industrial and construction supplies said March quarter revenues rose 20% to $1.7 billion and earnings rose 28% to $269 million from a year ago. Earnings per share increased 28% to 47 cents from 37 cents. Revenues through electronic interface increased 55.6% and comprised 16% of total sales in the period. The wholesaler added a record 106 new onsite locations.
FAST
FAST
Benchmark indexes accelerated gains in the final hours of trading as investors remained focused on latest earnings announcements. Travel and airline stocks gained after Delta Air offered an optimistic view for the current quarter. American Airlines, Southwest, Carnival and Expedia led gainers. Tech stocks reversed three days of losses and 10-year bond yield edged down to 2.70%.
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DAL AAL LUV CCL EXPE