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Key Insights Before Friday's Stock Market Opening Bell

Alex Vellor
08:23am, Friday, Apr 12, 2024

Photo: Unsplash by Ksystow Hepner

On Friday, major banks like JPMorgan Chase (NYSE: JPM), Citigroup (NYSE:C), and Wells Fargo (NYSE:WFC) will release their quarterly results. These reports are key indicators of the economy's health. Investors are especially interested in how changing interest rates might affect the banks' loan costs and commercial real estate holdings. With uncertainties around interest rates, there's a shadow over this earnings season. Analysts predict that S&P 500 companies will report a 5% earnings growth for the first quarter, a decrease from the previous quarter's 10.1% growth. What else will move markets today?

Attention on Federal Reserve Officials

Yesterday, the S&P 500 and Nasdaq Composite soared, driven by a tech stock rally. The S&P 500 went up by 0.74%, and the Nasdaq climbed 1.68%, reaching a new peak. In contrast, the Dow Jones slightly fell by 2.43 points, or 0.01%. Tech giants, referred to as the "Magnificent Seven," stood out. Nvidia soared 4.1%, Amazon grew by 1.7% to a record high, Alphabet increased over 2%, and Apple surged 4.3%.

On Friday, the focus will be on the Michigan consumer sentiment index for April, that will be released later today. One more spotlight will be a Federal Reserve remarks from speakers like Bostic and Daly. Investors are eager for clues about the Fed's upcoming interest rate moves. After Wednesday's unexpectedly high CPI figures and a strong jobs report, the chances of a June rate cut have diminished. Now, a rate cut is mostly anticipated to start in September.

Citigroup (NYSE: C) announced its Q1 earnings on Friday before the market opened

Category Details
Earnings (Per Share) $1.58 (expected $1.23)
Revenue $21.10 billion, vs. expected $20.4 billion
CEO Jane Fraser
Corporate Overhaul Completed, including thousands of layoffs
Impact to Employees Complete by March, with an update to severance expenses along with first-quarter results
Future Plans Plans to simplify management structure and reduce costs
Analyst Inquiry Ability to maintain full-year revenue and expense targets

Oil Prices Updates

Crude oil prices increased Friday due to high geopolitical tensions in the Middle East, with U.S. crude futures up 1.3% at $86.16 a barrel and Brent at $90.80, up 1.2%. This rise comes amid fears of an escalation between Iran and Israel following a recent incident.

There's concern over Iran's involvement in the Gaza conflict affecting oil supply. Despite this, oil prices are expected to drop this week due to worries about U.S. interest rates impacting the economy. The International Energy Agency also reduced its oil demand growth forecast for this year, signaling a slow down after the pandemic rebound.

Premarket Movers

Symbol Company Price Change
PARA Paramount Global 11.27 7.333%
AVGO Broadcom Inc 1,382.46 4.544%
AAPL Apple Inc 175.04 4.327%
NVDA NVIDIA Corp 906.16 4.11%
NKE Nike Inc 92 3.371%
SMCI Super Micro Computer Inc 937.28 3.163%
DAL Delta Air Lines Inc 47.63 3.006%
Symbol Company Price Change
GL Globe Life Inc 49.17 53.14%
KMX Carmax Inc 71.98 9.231%
FAST Fastenal Co 69.88 6.503%
GEN Gen Digital Inc 20.99 6.043%
BIO Bio Rad Laboratories Inc 311.87 5.805%
MS Morgan Stanley 86.84 5.248%

About The Author

Alex Vellor