5 things to know before the stock market opens Wednesday - CNBC

1. Dow set to drop after Tuesday's sharp rebound

Flags fly at full staff outside the NYSE on April 09, 2020 in New York City.

Kena Betancur | Getty Images

Tuesday's rally resumed a sharp rebound from the market lows on March 23. Depressed airline stocks were surging in Wednesday's premarket as U.S. carriers and the Treasury Department reach agreements on billions in coronavirus aid. Bank of America, Goldman Sachs and Citigroup report earnings before the bell, a day after JPMorgan Chase and Wells Fargo saw quarterly profits fall because they set aside billions of dollars for credit losses.

2. BofA, Goldman and Citi add to loan loss reserves

Bank of America said Wednesday that per-share profit dropped over 40% to 40 cents in the first quarter on revenue net of interest expense of $22.8 billion. Earnings were below expectations of 46 cents, while revenue basically matched forecasts. Like its rivals, BofA added $3.6 billion to loan loss reserves in the quarter. Goldman reported that quarterly earnings fell 45% to $3.11 per share, missing estimates. However, revenue of $8.74 billion exceeded projections. Goldman increased its reserve for credit losses to $937 million compared to $224 million a year ago. Citigroup saw per-share earnings drop over 40% to $1.05 per share, a penny better than expectations. Revenue of $20.7 billion beat estimates. Citi also added to its loan loss reserve.

3. US airlines, Treasury reach coronavirus aid deal

A delta crew wearing masks wait for a ride outside the Washington National Airport (DCA) on April 11, 2020 in Arlington, Virginia.

Daniel Slim | AFP | Getty Images

Delta, American, JetBlue and Southwest said they reached deals for portions of $25 billion in payroll grants to help them get through the coronavirus-driven economic downturn. The largest ever government airline aid package requires that the carriers not furlough or cut the pay rates of employees through Sept. 30. The grants were part of the more than $2 trillion relief package, which was passed by Congress and signed into law by President Donald Trump last month. The virus and harsh measures to stop it from spreading, such as state stay-at-home orders, have driven air travel demand to the lowest levels in decades.

4. Trump: Some states to open economies before May

President Donald Trump speaks during a news conference in the Rose Garden of the White House in Washington D.C., U.S. on Tuesday, April 14, 2020.

Stefani Reynolds | CNP | Bloomberg via Getty Images

Trump said he believes some states will be able to reopen their economies before the end of April. U.S. coronavirus cases, while slowing, topped 600,000 with 26,059 deaths. Global cases neared 2 million with 127,590 deaths. At Tuesday evening's coronavirus briefing, the president also said the U.S. will suspend funding to the World Health Organization, claiming it "severely" mismanage and covered up the spread of the outbreak. Paper checks of coronavirus relief payments to Americans will have Trump's name printed on them, a Treasury Department official confirmed to NBC News.

5. Goldman Sachs sees Tesla shares jumping 20%

Nora Tam | South China Morning Post | Getty Images

Let's block ads! (Why?)

"Market" - Google News
April 15, 2020 at 07:20PM
https://ift.tt/2XBklB7

5 things to know before the stock market opens Wednesday - CNBC
"Market" - Google News
https://ift.tt/2Yge9gs
Shoes Man Tutorial
Pos News Update
Meme Update
Korean Entertainment News
Japan News Update