Stock prices fell on Wednesday, as the street awaited key data on retail sales and industrial/manufacturing production for insights on the toll of the Covid-19 pandemic.
Contracts on all three major benchmarks retreated after the S&P 500 (+2.95%) closed at a one-month high a day earlier; where JPMorgan (JPM: -2.74%) and Wells Fargo (WFC: -3.98%) reported their earnings.
Profits fell at both JPMorgan and Wells Fargo, after both banks set aside billions of dollars in anticipation of failing loan payments; a reminder of the economic contraction that financial institutions are anticipating.
Ahead, today's economic calendar includes; Retail Sales for March at 8:30am EST, Industrial and Manufacturing Production data for March at 9:15am EST, followed by Crude Oil Inventories at 10:30am EST.
In earnings; Bank of America (BAC), UnitedHealth (UNH), Citigroup (C), Goldman Sachs (GS), PNC Financial (PNC), Aphria (APHA) and Bed Bath & Beyond (BBBY) are all scheduled to report today.
TODAY'S TOP HEADLINES
Coronavirus: US to Cut Funding to World Health Organization Over Coronavirus Response. (The WSJ)
President Trump said the US would halt funding to the World Health Organization while his administration investigates what he called the group’s mismanagement of the coronavirus response.
Today's Economical Announcements.
08:30AM - ★★★ - C. Retail Sales (Mar) (Previous: -0.4%)
08:30AM - ★★★ - Retail Sales (Mar) (Previous: -0.5%)
09:15AM - ★★☆ - Industrial Production (Mar) (Previous: 0.6%)
09:15AM - ★★☆ - Manufacturing Production (Mar) (Previous: 0.1%)
10:30AM - ★★★ - Crude Oil Inventories (Previous: 15.177M)
STOCKS IN THE SPOTLIGHT
Pre-Market Movers & News Related Stocks.
United Airlines (UAL), American Airlines (AAL), Delta Air Lines (DAL), Southwest (LUV), JetBlue (JBLU): [NEWS] The Trump administration struck an agreement in principle on financial aid.
Tesla (TSLA): [RATING] Rated “buy” in new coverage at Goldman Sachs. Goldman said that Tesla has a significant lead in the electric vehicle market, which it expects will experience long-term secular growth.
Bank of America (BAC): [EARNINGS] Earned 40 cents per share for the first quarter, 6 cents below estimates, with revenue in line with Wall Street forecasts. Overall profit was down by nearly half compared to a year ago, with $3.7 billion being added to loan loss reserves. The bank did say its liquidity position was very strong, with nearly $700 billion in global liquidity.
UnitedHealth Group (UNH): [EARNINGS] Beat estimates by 9 cents with adjusted quarterly profit of $3.72 per share, with revenue also above estimates on strength across all its businesses. The company also maintained its prior full year outlook, although it said it would continue to evaluate the impact of the Covid-19 pandemic.
Goldman Sachs (GS): [EARNINGS] Reported quarterly earnings of $3.11 per share, missing the consensus estimate of $3.35, although revenue exceeded analyst projections. Goldman increased its reserve for credit losses to $937 million comApared to $224 million a year ago.
Teladoc Health (TDOC): [NEWS] Expects to see first quarter revenue above prior forecasts, as the virus outbreak creates unprecedented demand for its services.
Procter & Gamble (PG): [DIVIDEND] Raised its quarterly dividend by 6% and moved up its quarterly earnings report date to Friday. The consumer products giant has seen a surge in demand for household staples amid the coronavirus outbreak, but added that reporting quarterly numbers earlier than originally scheduled should not be seen as either a positive or negative indication.
J.C. Penney (JCP): [NEWS] Is exploring a bankruptcy filing, according to a Reuters report, as the virus outbreak closes the retailer’s stores and disrupts its turnaround plans.
J.B. Hunt Transport (JBHT): [EARNINGS] Fell a penny short of estimates with quarterly earnings of 98 cents per share, although the trucking company’s revenue topped Wall Street forecasts. The company said virus-related disruptions began to appear in March and escalated through the end of the quarter.
Target (TGT): [UPGRADE] Upgraded to “outperform” from “perform” at BMO Capital, which predicts the retailer will emerge from the pandemic in an even stronger position relative to its peers.
General Mills (GIS), Campbell Soup (CPB): [UPGRADE] Upgraded to “overweight” from “neutral” at Piper Sandler. The firm points to surveys that suggest consumers will continue to eat more food at home even after restaurants reopen, and that both food producers will benefit from this trend.
Canada Goose (GOOS): [UPGRADE] D.A. Davidson upgraded the outerwear maker to “buy” from “neutral”, saying weakness in the wholesale chain is built into the stock’s price and that inventory issues would dissipate as the Covid-19 pandemic resolves.
GAINERS: SPCE, IOVA, YETI, COUP, PING, CVNA, ZM, NFLX, AMZN
WE WILL SHOW YOU THE WAY!