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Charles Schwab Misses First-Quarter Revenue View Despite Client Asset Growth

Charles Schwab's (SCHW) first-quarter results rose year over year amid a surge in client assets, even as revenue fell short of Wall Street's estimates.Per-share adjusted earnings rose to $1.43 for the March quarter from $1.04 a year earlier and surpassed the FactSet-polled consensus of $1.40. Revenue climbed 16% to $6.48 billion, while analysts expected $6.50 billion.The financial services provider's stock was down 4.8% intraday, and has fallen 4.5% since the start of the year."Client cash followed typical seasonal trends to begin the year," Chief Financial Officer Mike Verdeschi said during an earnings call, according to a FactSet transcript. "However, as volatility increased during the back half of the quarter, clients took a slightly more defensive posture."Client assets soared 19% annually to $11.768 trillion, with the company adding 1.3 million new brokerage accounts during the March quarter. That helped grow active brokerage accounts by 6% to 39.1 million."Clients continue to turn to us for more of their financial lives, helping wealth and banking solutions reach record levels in (the first quarter," Chief Executive Rick Wurster said in a statement.Net new assets surged to $139.9 billion from $132.4 billion a year earlier.Net interest revenue jumped 16% to $3.14 billion. Asset management and administration fees increased 15% to $1.76 billion, while trading revenue grew 20%, the company said.Charles Schwab is tracking higher than the $5.70 to $5.80 EPS range implied by the scenario outlined in January, Verdeschi told analysts."For the second quarter, we still anticipate the typical drawdown in client cash due to tax payments in April. And, similar to past years, we expect this activity to impact both transactional sweep cash, as well as other liquid cash alternatives, such as money market funds," Verdeschi said. "Beyond seasonal considerations, continued market volatility could influence client cash allocations."In a separate statement, Charles Schwab said it will soon start offering Schwab Crypto to retail clients interested in spot trading of bitcoin and ethereum. The company eventually intends to add additional cryptocurrencies to the platform.Price: $94.55, Change: $-5.72, Percent Change: -5.70%

$SCHW

US Markets68d ago

Abbott Cuts 2026 Earnings Outlook Following First-Quarter Beat

Abbott Laboratories (ABT) lowered its full-year earnings outlook on Thursday to reflect the acquisition of cancer diagnostics company Exact Sciences, while the healthcare firm reported first-quarter results above market estimates.The company now anticipates adjusted earnings of $5.38 to $5.58 per share for 2026, including a $0.20 dilution related to the Exact Sciences purchase. The company previously expected adjusted EPS to come in between $5.55 and $5.80 for the year, while the current consensus on FactSet is for $5.60.Abbott acquired Exact Sciences in March."The acquisition of Exact Sciences adds another high-growth business to the Abbott portfolio, further strengthening our confidence in delivering accelerating growth as we move through the year," Abbott Chief Executive Robert Ford said in a statement.Comparable sales, which includes the prior and current year sales of Exact Sciences, are pegged to grow by 6.5% to 7.5% for 2026, according to the company.Abbott's shares fell 4.1% in Thursday trade, taking its year-to-date loss to 22%.For the three-month period ended March, the firm's adjusted EPS rose to $1.15 from $1.09 the year before, surpassing the Street's view for $1.14. Sales improved 7.8% to $11.16 billion, topping the average analyst estimate of nearly $11 billion. Comparable sales were up 3.7%.Diagnostics sales rose 6.1% year over year to $2.18 billion, while the nutrition segment dropped 6% to $2.02 billion amid lower sales volume and pricing actions in the previous quarter, according to the company. Revenue in the established pharmaceuticals division climbed 13% to $1.43 billion.Sales in the global medical devices business jumped 13% to $5.54 billion, led by gains of 17% each in rhythm management and electrophysiology, Abbott said. Within the segment, the company recorded double-digit growth in heart failure and diabetes care.For the second quarter, Abbott forecasts adjusted EPS of $1.25 to $1.31, while the Street is looking for $1.36.Price: $97.09, Change: $-4.43, Percent Change: -4.36%

$ABT

US Markets68d ago

PepsiCo Beats Fiscal First-Quarter Estimates; Maintains Full-Year Outlook

PepsiCo (PEP) reported higher-than-expected fiscal first-quarter results on Thursday amid affordability initiatives, while the beverage and snacks company reiterated its full-year outlook.Adjusted earnings came in at $1.61 a share for the quarter ended March 21, up from $1.48 the year before, topping the FactSet-polled consensus of $1.54. Revenue improved 8.5% to $19.44 billion, surpassing the Street's view of $18.95 billion. The stock increased 1.1% in the most recent premarket activity."We are pleased with our first-quarter results, which featured an acceleration in both net revenue and organic revenue growth," Chief Executive Ramon Laguarta said in a statement. "An extensive commercial agenda, which includes the restaging of large global brands, innovation activity and certain affordability initiatives, is being executed well and business performance improved."In February, PepsiCo announced plans to cut prices of several snack brands by up to 15%, including Lay's, Doritos and Cheetos. The move came after the company said in December that it was looking to lower prices and eliminate some of its products in the US to boost organic revenue growth following discussions with activist investor Elliott Investment Management.The company continues to project core EPS to rise by 5% to 7% on revenue growth of 4% to 6% for fiscal 2026. It also reaffirmed its organic revenue guidance of an increase of between 2% and 4%. The Street is looking for non-GAAP EPS of $8.60 and sales of $98.45 billion for the fiscal year."As we look ahead, the macroeconomic environment has become more volatile and uncertain because of ongoing geopolitical conflicts," Chief Financial Officer Steve Schmitt said in prepared remarks available on the company's website. "Systematic commodity hedging programs for market traded commodities are expected to provide some near-term protection and visibility on certain input costs."Overall net pricing had a positive impact of 2% on the topline in the first quarter, while consolidated organic volume was flat. Volume inclined 4% in the convenient food business and was unchanged in the beverages segment.PepsiCo's North America foods business, which includes Frito-Lay and Quaker Foods, advanced 2% to $6.33 billion. Sales in the North American beverages unit climbed to $6.39 billion from $5.88 billion. International beverages saw revenue jump 9% to $824 million."We are encouraged with the resilience of the international business while North America continued to make progress in the first quarter," according to Laguarta. "We aim to successfully execute our commercial plans and tightly manage costs to help fund investments to accelerate growth."

$PEP

US Markets68d ago

Stocks Rise Pre-Bell Amid Hopes for US-Iran Ceasefire Extension

US equity markets were tracking in the green before the opening bell Thursday amid rising optimism over a potential extension of the ongoing ceasefire between the US and Iran, while investors await the latest earnings from several major companies.The S&P 500 and the Dow Jones Industrial Average edged up 0.1% each in premarket activity, while the Nasdaq added 0.3%. The S&P 500 and the Nasdaq finished Wednesday trading with new closing highs, while the Dow ended in the red.Washington and Tehran are considering an extension of their ongoing ceasefire due to expire next week to allow more time to negotiate a peace deal, Bloomberg News reported Thursday, citing a person familiar with the matter.President Donald Trump reportedly said in an interview with Fox Business aired on Wednesday that the war with Iran is "very close to over" and that Iranian authorities are eager to make a deal."I think it's close to over, I view it as very close to over," Trump said in the interview. "We'll see what happens, I think they want to make a deal very badly.""We feel good about the prospects of a deal," White House Press Secretary Karoline Leavitt said Wednesday, CNN reported.US-Iran peace negotiations in Pakistan ended without a deal over the weekend."Markets have grown more confident that the Middle East crisis is moving toward a resolution, with the US and Iran arranging a second round of talks, and Tehran seemingly willing to halt shipments to avoid testing the US naval blockade," ING Bank said in a report on Wednesday.West Texas Intermediate crude oil rose 1.2% to $92.35 a barrel before the open, while Brent increased 1.3% to $89.23.Streaming giant Netflix (NFLX) is scheduled to report its latest financial results after the markets close. Pepsico (PEP), Abbott Laboratories (ABT), Charles Schwab (SCHW), Prologis (PLD), Bank of New York Mellon (BK), US Bancorp (USB) and Travelers (TRV) release their earnings before the bell, among others.Taiwan Semiconductor Manufacturing's (TSM) US-listed stock decreased 1.5% pre-bell after the chipmaker reported its latest financial results. J.B. Hunt Transport Services (JBHT) inclined 1.8% as the company recorded first-quarter results above market expectations.Hims & Hers Health (HIMS) gained 6.8% after closing the previous trading session up 14%.Thursday's economic calendar has the weekly jobless claims bulletin at 8:30 am ET, along with the Philadelphia Fed manufacturing index for April. Last month's industrial production report is out at 9:15 am.Federal Reserve Governor Stephen Miran is slated to speak at 10:35 am, while New York Fed President John Williams speaks earlier at 8:35 am.Treasury yields were moving downwards in premarket action, with the two-year rate retreating 1.7 basis points to 3.75% and the 10-year rate off 0.5 basis points to 4.27%.Gold nudged 0.1% higher to $4,829 per troy ounce, while bitcoin declined 0.7% to $74,459.

Dow JonesNasdaq CompositeS&P 500

US Markets68d ago

UK GDP Growth Beats Forecasts in February Amid Services Strength

The UK recorded a higher-than-expected gross domestic product growth in February, supported by higher month-over-month output in the services, production, and construction industries.The country's monthly real GDP rose 0.5% in February, following an upwardly revised 0.1% growth in January, according to data from the Office for National Statistics published Thursday. The latest figure came in above the consensus estimate of a 0.1% uptick.Annually, the British economy expanded by 1%, against the revised 0.7% gain and the expected 0.6% rise. In the quarter to February 2026, UK GDP edged up 0.5%, compared with the three months ended November 2025, mainly driven by broad-based growth in the services sector."Within services, growth was driven by wholesaling, market research, hospitality, and publishing, which all performed well in the three months to February. Meanwhile car production recovered from the effects of the autumn cyber incident," ONS Chief Economist Grant Fitzner said. "Growth in services and production was partially offset by another fall in construction, albeit at a slower rate than previously, with leasing and intellectual property licensing also continuing to contract."ONS data showed that monthly output in the services and production sectors both grew 0.5% in February, after a revised 0.1% gain and a 0.1% decline in January, respectively. Meanwhile, the construction industry saw a 1% increase in output, following a revised increase of 0.5% previously."UK output surged in February, but it's in line with a trend dating back to 2022, where growth is stronger in the first quarter than across the rest of the year. We're taking this latest data with a pinch of salt," ING said, noting that the apparent increase looks "too good to be true" and the outlook for the British economy points to a slowdown amid the ongoing war in the Middle East. "Growth is likely to slow regardless into the summer as inflation rises towards 4% beyond July."The research firm added that it remains unconvinced that the Bank of England will increase its key rate in 2026 amid higher energy prices and expectations of a decline in real wages."It's a close call, which becomes closer still if the disruption hasn't materially improved by the time of the June meeting. But for now, we're looking for rates to stay unchanged at 3.75% throughout 2026," ING said.The BoE is scheduled to hold its next monetary policy meeting on April 30.

FTSE 100

US Markets68d ago

Tesco Issues Cautious Fiscal 2027 Outlook Amid Ongoing Middle East Conflict

Tesco (TSCO.L) delivered earnings growth in fiscal 2026, but cautioned for the year ahead amid heightened geopolitical risks in the Middle East, according to a Thursday earnings release.After posting 3.15 billion pounds sterling in adjusted operating profit for the 52 weeks ended Feb. 22, the grocery chain operator widened its guidance range to 3 billion pounds sterling to 3.3 billion pounds for fiscal 2027 to account for the economic uncertainty caused by the Iran war. It also aims to save an additional 500 million pounds through its Save to Invest program, supporting ongoing investment in the customer experience.Bernstein noted this guidance update as the "only note of caution" amid a "strong set of results" from Tesco. "The lower end of this guide has the risk of spooking the market and the mid-point of GBP3.15bn is below consensus of GBP3.2bn - we think that this is careful and conservative guidance in the face of the Middle East war and to avoid accusations of profiteering. We think with higher food inflation and higher fuel prices, they should be able to reach at least the upper end of this range. [Capital expenditure] is expected to be GBP1.6bn (vs. GBP1.5bn last year). A share buyback of GBP750m is confirmed for the next FY. They have updated their mid-term [free cash flow] target from GBP1.4-1.8bn to GBP1.5-2bn, which will be well received," the research firm wrote in a quick-take note.Tesco's attributable profit jumped to 1.79 billion pounds for the 53 weeks ended Feb. 28, 2026, against the 1.63 billion pounds for the 52 weeks ended Feb. 22, 2025. Revenue from the sale of goods and services also climbed to 73.71 billion pounds from 69.92 billion pounds, as like-for-like sales increased by 3.5% year over year.The retailer reported a 4.3% increase in sales at constant currency for the 52 weeks to 66.59 billion pounds, with growth observed across its operating segments. Group volumes "continued to grow" amid sustained investment in customer offerings to counter intensifying competition in the UK, Tesco added. By region, the UK and Ireland led with total sales growth of 5% at constant rates, followed by Central Europe at 3.7% and then Booker at 0.6%."We are committed to doing whatever we can to help keep down the cost of the weekly shop, and with the conflict in the Middle East creating further uncertainty for consumers and the economy more broadly, that commitment matters more than ever. Over the last year, despite cost pressures from new regulation, we have increased our investments in keeping prices low, further improving quality and offering even better service. Customers are choosing to shop more with us as a result, leading to our highest market share for over a decade," Chief Executive Ken Murphy said.Within this context, Tesco's board proposed a final dividend of 0.097 pound per share, up from the 0.0945 pound per share paid a year ago. The planned payout increases full-year dividend by 5.8% to 0.145 pound per share, consistent with the company's dividend policy of targeting a distribution of 50% of adjusted EPS.The London-listed stock was up 2% by midday on Thursday.

$TSCO.L

US Markets68d ago

Barry Callebaut Plunges 15% as Interim Volume Shrinks, Fiscal 2026 Profitability Outlook Weakens

Barry Callebaut (BARN.SW) shares dwindled 9% in early Thursday trading as fading demand, supply disruptions in North America, and a competitive overcapacity market dragged down interim sales volume and operating profit, forcing the Swiss chocolatier to downgrade its fiscal 2026 earnings guidance.Group volume in the six months ended Feb. 28 fell 6.9% year over year to 1,010,247 tonnes due to negative market dynamics, with global chocolate volumes dropping 5.1% and those for global cocoa declining 14.3%. Ultimately, the revenue of the chocolate and cocoa products company plunged to 6.75 billion francs from 7.29 billion francs a year ago.Operating profit or EBIT slipped 2.2% to 289.4 million francs and recurring EBIT by 5.7% to 310.9 million francs. Still, net profit attributable to Barry's shareholders surged annually to 89.4 million francs from 32.1 million francs amid lower income tax expenses. Additionally, a "significant and fast" decrease in cocoa bean prices, coupled with operational actions to reduce working capital, allowed the company to reduce net debt to 3.60 billion francs from 6.11 billion francs, which led to lower finance costs.As Barry intends to prioritize restoring volume and leading the market back to growth, it increased its fiscal 2026 volume outlook to expect a 1% to 3% volume decline, instead of the mid-single-digit decrease projected on Jan. 21. At the same time, Barry warned about a mid-teens contraction in recurring EBIT in local currencies during the 12-month term, with the profitability outlook subject to potential impacts from disruption in the Middle East.Previously, Barry anticipated a low- to mid-single-digit growth in recurring EBIT and a double-digit increase in recurring pretax profit in local currencies. Against this backdrop, the company noted that action was required to drive sustained profitable growth. While details will be announced in June, Barry intends to focus on key markets and segments, reintroduce a clear gourmet brand, and transition to a "smaller, more commercially focused" leadership team."As I reflect on my first few months at Barry Callebaut, it is clear that we have an unparalleled market position, deep expertise and fundamental growth opportunities. At the same time, we have significant work to do to reinvigorate the company after a turbulent period of industry disruption and transformation. We need to restore fundamentals, step-up service levels and empower our regional businesses," Chief Executive Officer Hein Schumacher said.

$BARN.SW

US Markets68d ago

J.B. Hunt First-Quarter Results Top Street Views

J.B. Hunt Transport Services (JBHT) reported better-than-expected first-quarter results as the transportation and logistics company recorded revenue growth in most of its business segments amid robust demand for its service offerings.Net earnings increased to $1.49 per share for the March quarter from $1.17 the year before, the company said late Wednesday, topping the consensus on FactSet of $1.44. Revenue improved 5% to $3.06 billion, ahead of the Street's view for $2.96 billion.The stock rose 2% in Thursday's most recent premarket activity."We experienced strong demand for our service offerings as a predominantly supply-driven freight recovery continued to gain steam, coupled with some modest improvements in demand," Chief Financial Officer Brad Delco said during an earnings call, according to a FactSet transcript. "This momentum was partially offset by the impact of weather, which negatively impacted incremental margins in the quarter."The company saw fuel surcharge programs protect its operations from volatility in fuel prices, Delco said on the call. "Fuel is generally a pass-through expense and typically has a small impact on profit dollars quarter-to-quarter," the CFO added.Energy prices have soared in the aftermath of the US-Israel war with Iran that began at the end of February, curtailing shipments through the crucial Strait of Hormuz.Sales in J.B. Hunt's intermodal business increased 2% to $1.5 billion boosted by a 3% gain in load volume. "Intermodal is a very fuel efficient solution for our customers," Delco told analysts. "So higher fuel prices enhance the value proposition of our leading intermodal franchise."Dedicated contract services sales inclined 2% to $840.6 million, driven by a 2% rise in productivity, or gross revenue per truck per week. The integrated capacity solutions segment saw revenue jump 20% to $322.7 million as volume climbed 10% on a yearly basis, while truckload sales advanced 23% to $205.4 million.Revenue in the final mile services segment declined 6% due to the impact of previously disclosed lost business, as well as demand stabilization across many of the company's end markets, but at lower levels than the prior-year period, J.B. Hunt said."We are executing extremely well across the organization on operational excellence in service, safety and lowering our cost to serve," according to Delco. "Without any meaningful tailwinds from price driven by this recent market inflection, we have already put ourselves on a path to restoring our margins."

$JBHT

US Markets68d ago

Australian Unemployment Rate Holds Steady in April

Australia's seasonally adjusted unemployment rate logged at 4.3% in March, unchanged from March, reported the Australian Bureau of Statistics (ABS) on Thursday.The nation's labor participation rate, that is the percent of adults working or seeking work, also remained unchanged in March from February, at 66.8%.Likewise, the employment-to-population ratio remained at 64.0%, unchanged in March from the previous month.In March, there were 14.76 million people employed in Australia, up 0.2% on month and up 1.4% on year, reported the ABS.In somewhat better news, the cumulative number of hours worked by all employees in Australia in March rose 0.2% on month and 2.0% on year, said the ABS.Australia's employment picture may remain largely unchanged through 2026, if a recent forecast from the nation's central bank holds water.In February, the Reserve Bank of Australia said it expects Australian gross domestic product (GDP) expand by about 1.8% in 2026, undergirded by household consumption and public spending.The nation's unemployment rate should end the year near 4.3%, the same as the April rate, according to the RBA forecast.

ASX 200

US Markets68d ago

China's Economy Climbs 5% in Q1

China's economy accelerated in March as its production and demand grew despite the ongoing Middle East conflict.China's gross domestic product in the first quarter rose 5%, landing within the year's target range of between 4.5% and 5%, according to Thursday data from the National Bureau of Statistics.The official data beat market estimates of a 4.8% growth, which was also forecasted by analysts surveyed by Reuters. ING economists predicted 4.7% rise, while ANZ analysts foresaw a 4.6% increase.The NBS attributed the current GDP to an acceleration in the growth of the country's production and supply and improving market demand, as well as a rebound in market prices and stable employment.In a note, ANZ economists Raymond Yeung, Vicky Xiao Zhou and Zhaopeng Xing saw this as the end of deflation."Since the improvement in price is primarily due to cost push rather than demand pull, the risk has now shifted from deflation to stagflation," Yeung, Zhou and Xing said.The industrial output climbed 5.7% in March, weaker than the 6.3% rise in January and February but beating the 5.5% increase predicted by Reuters surveyed analysts. However, it missed the 5.8% predicted by ANZ.Meanwhile, retail sales, which increased 1.7% from a year earlier, missed expectations as it was lower than the 2.8% rise in the first two months of the year and the 2.3% increase predicted by Reuters-polled analysts and ANZ's 2.9% forecast.The unemployment rate averaged 5.3% in the first quarter and it was 5.4% in March.ING's chief economist for Greater China, Lynn Song, said China can withstand the effects of the ongoing war in Iran unless it is prolonged."China is well-placed to weather short-term disruptions, but could face more pressure if energy prices remain higher for longer," Song said. "We could see a greater impact of higher prices on import costs and input costs in the months ahead."ANZ maintained its full-year GDP outlook of 4.8% due to the strains of the Middle East war.

Shanghai Composite^SZSE

US Markets69d ago

Nasdaq, S&P 500 Hit New Highs Amid US-Iran Peace Talk Prospects

The Nasdaq Composite and the S&P 500 notched record highs on Wednesday, buoyed by hopes that another round of peace talks between the US and Iran will likely result in a deal.The Nasdaq rose 1.6% to 24,016, marking the 11th consecutive one-day gain in a row, while the S&P 500 advanced 0.8% to 7,023. Both are new closing highs. The Dow Jones Industrial Average fell 0.2% to 48,463.7.Most sectors ended in the red, led by materials, while tech saw the biggest gain.Microsoft (MSFT) shares climbed 4.6%, the top gainer on the Dow, with fellow tech majors Salesforce (CRM), Apple (AAPL), and IBM (IBM) among the best performers on the index.Reports suggest Washington and Tehran could return to Pakistan for a second round of talks ahead of the deadline for a two-week ceasefire between the US and Iran. The first round of negotiations in Islamabad ended without a breakthrough."We feel good about the prospects of a deal," White House Press Secretary Karoline Leavitt said Wednesday, CNN reported."Markets have grown more confident that the Middle East crisis is moving toward a resolution, with the US and Iran arranging a second round of talks, and Tehran seemingly willing to halt shipments to avoid testing the US naval blockade," ING Bank said in a report.West Texas Intermediate crude oil was down 0.1% at $91.16 a barrel in Wednesday late-afternoon trade, while Brent gained 0.1% to $94.91.In company news, shares of retail brokers jumped, with Robinhood Markets (HOOD) up 10%, the best performer on the S&P 500. Webull (BULL) jumped 11%, while Interactive Brokers Group (IBKR) rose 3.4%.The rally followed the approval by the US Securities and Exchange Commission of a rule change that would eliminate the $25,000 minimum equity requirement for so-called "pattern day traders."Morgan Stanley (MS) and Bank of America's (BAC) first-quarter results topped Wall Street's estimates. Morgan Stanley's shares climbed 4.5%, while Bank of America rose 1.8%.Snap (SNAP) rallied 7.9%. The social media company plans to lay off about 1,000 employees, or roughly 16% of its full-time workforce, as part of Chief Executive Evan Spiegel's efforts to reduce costs.In economic news, US homebuilder confidence sank this month to the lowest since September amid economic uncertainty, as well as increasing building material costs and interest rates, the National Association of Home Builders and Wells Fargo said."Builder sentiment has fallen back in spring as buyers face ongoing elevated interest rates and growing economic uncertainty," NAHB Chairman Bill Owens said. "The year started with hopes for housing momentum growth, but risks with respect to the Iran war, energy costs, and declines for consumer confidence have slowed the market."US Treasury yields were higher, with the 10-year rate up 2.8 basis points at 4.28% and the two-year rate rising 1.5 basis points to 3.77%.Gold was last down 0.7% at $4,816.50 per troy ounce, while silver fell 0.3% to $79.32 per ounce.

Dow JonesNasdaq CompositeS&P 500$AAPL$BAC$BULL$CRM$HOOD$IBKR$IBM$MS$MSFT$SNAP

US Markets69d ago

Fed's Beige Book Shows Growth in Economic Activity Despite Middle East Tensions

Most Federal Reserve districts saw growth in economic activity since early March despite hostilities in the Middle East, the US central bank said in its latest Beige Book released Wednesday.Eight districts reported a slight to moderate rise in economic activity, while the remaining four saw little change or declining activity, according to the latest document, prepared by the New York Fed based on data collected by April 6.The previous Beige Book, which was released March 4, showed that most Fed districts reported economic growth since mid-January, while the overall outlook was "optimistic." Information for that report was collected before the US-Israel war with Iran broke out at the end of February."The conflict in the Middle East was cited as a major source of uncertainty that complicated decision-making around hiring, pricing, and capital investment, with many firms adopting a wait-and-see posture," according to the latest report Wednesday.Reports suggest Washington and Tehran could return to Pakistan for a second round of talks ahead of the deadline for a two-week ceasefire between the US and Iran. The first round of peace talks in Islamabad ended without a breakthrough.Consumer spending edged higher despite a harsh winter weather in some areas and higher fuel prices, the Fed said."Many districts continued to report signs of consumer financial strain, increased price sensitivity, and rising demand at food banks and other social service organizations, while spending among higher-income consumers was resilient," the Beige Book showed.Activity was described as mixed in the agriculture sector, with rising crop prices offsetting the surge in fertilizer and fuel costs.US farmers are facing fertilizer affordability constraints as supply disruptions caused by the effective closure of the Strait of Hormuz have pushed prices higher, according to the American Farm Bureau Federation.A vast majority of districts saw moderate price increases overall, although all reported sharp gains in energy and fuel costs due to the Middle East conflict, according to the Beige Book. US consumer inflation accelerated to its highest monthly reading in nearly four years in March, the Bureau of Labor Statistics reported Friday.Employment was steady to up slightly, with one district reporting a slight decline, the Fed document showed. On the labor front, demand was seen stable in most districts amid low turnover and minimal layoffs, the Fed document showed."Business outlooks varied amid widespread uncertainty about future conditions," the Beige Book said.The Fed should be "nimble" in adjusting monetary policy in light of heightened risks to inflation and employment driven by the Iran war, minutes from the central bank's March 17-18 policy meeting showed last week.

US Markets69d ago

Retail Brokers Rally as SEC Approves Proposal to End Pattern Day Trade Minimum Balance

Shares of retail brokers rallied on Wednesday after the US Securities and Exchange Commission approved a rule change that would eliminate the $25,000 minimum equity requirement for so-called "pattern day traders."Under the original rule that dates back to 2001, pattern day traders, or investors who execute four or more day trades within five business days, were required to keep a minimum $25,000 equity in their margin accounts.The Financial Industry Regulatory Authority, Wall Street's self-regulatory watchdog, had proposed a rule change to replace that restriction with intraday margin provisions reflecting investors' market exposure.The SEC approved FINRA's proposal, according to a notice issued Tuesday.Shares of retail brokerage Robinhood Markets (HOOD) rallied 10% on Wednesday, while Webull (BULL) jumped 11%. Interactive Brokers Group (IBKR) rose 3.4%.The SEC notice must be published in the Federal Register to take effect, The Wall Street Journal reported.The new framework allows investors to execute trades without frequency limits and redeploy capital throughout the same trading session, Webull said on Wednesday."The shift in intraday margin rules represents a meaningful evolution in how active traders can participate in the markets," Webull Group President Anthony Denier said in a statement.

$BULL$HOOD$IBKR

US Markets69d ago

Starbucks Turnaround Strategy Delivering Results, Tigress Financial Says

Starbucks' (SBUX) turnaround efforts are delivering tangible results, as comparable sales turned positive for the first time in eight quarters in the company's fiscal first quarter, Tigress Financial Partners said Wednesday.The coffee giant launched its "Back to Starbucks" strategy in September 2024 to reignite traffic growth and unlock long-term margin expansion.The first quarter offered early evidence that the strategy is working, Tigress said in a note to clients Wednesday. In January, the company reported that revenue for the three months through December rose 5.5% year over year to $9.92 billion, surpassing the FactSet-polled consensus at the time. Global comparable store sales grew 4%."(The first quarter) marked a definitive inflection point, delivering the first US transaction growth in two years and the first positive comparable sales in eight quarters," Tigress Director of Research Ivan Feinseth said.The brokerage resumed coverage of the Starbucks stock with a buy rating and a $122 price target, saying bullish drivers include a new joint venture in China and its artificial intelligence-driven "Deep Brew" predictive inventory management platform."(Starbucks') turnaround execution, capital-efficient licensed model, historically supported multiples, and clear growth catalysts in store expansion and emerging markets will drive a reacceleration of business performance trends," Feinseth said.The company is scheduled to report second-quarter results April 28.Price: $98.83, Change: $+0.36, Percent Change: +0.37%

$SBUX

US Markets69d ago

Equities Mostly Rise Intraday as Trump Reportedly Says War Likely 'Very Close to Over'

US benchmark equity indexes were mostly higher intraday as President Donald Trump reportedly said the Iran was likely "very close to over."The Nasdaq Composite was up 1% at 23,873.7 after midday Wednesday, while the S&P 500 rose 0.4% to 6,998.1. The Dow Jones Industrial Average fell 0.3% to 48,376.9. Among sectors, consumer discretionary and technology paced the gainers, while industrials saw the steepest drop.Microsoft (MSFT) shares were up 4.4%, the top gainer on the Dow, with fellow tech majors Salesforce (CRM), Apple (AAPL), and IBM (IBM) among the best performers on the index.Trump said he sees the US-Israel war with Iran "as very close to over," news outlets reported, citing an interview on Fox Business Network conducted Tuesday and broadcast Wednesday. "We'll see what happens," Trump reportedly said. "I think they want to make a deal very badly."The army chief of mediator Pakistan arrived in Iran to try to prevent a renewal of the conflict, media outlets reported Wednesday."Markets have grown more confident that the Middle East crisis is moving toward a resolution, with the US and Iran arranging a second round of talks, and Tehran seemingly willing to halt shipments to avoid testing the US naval blockade," ING Bank said in a report.Iran's military has threatened to shut down shipping operations in the Red Sea, as well as the Persian Gulf and Sea of Oman if a US blockade of its ports continues, CNN reported.West Texas Intermediate crude oil was up 0.7% at $91.87 a barrel intraday, while Brent gained 0.6% to $95.40.In economic news, US homebuilder confidence sank this month to the lowest since September amid economic uncertainty, as well as increasing building material costs and interest rates, the National Association of Home Builders and Wells Fargo said."Builder sentiment has fallen back in spring as buyers face ongoing elevated interest rates and growing economic uncertainty," NAHB Chairman Bill Owens said. "The year started with hopes for housing momentum growth, but risks with respect to the Iran war, energy costs, and declines for consumer confidence have slowed the market."US Treasury yields were higher intraday, with the 10-year rate up 3.2 basis points at 4.29% and the two-year rate rising 2.1 basis points to 3.78%.In company news, Morgan Stanley (MS) and Bank of America's (BAC) first-quarter results topped Wall Street's estimates. Morgan Stanley's shares were up 4.6%, while Bank of America rose 2.2%.Snap (SNAP) shares jumped 7.6%. The social media company plans to lay off about 1,000 employees, or roughly 16% of its full-time workforce, as part of Chief Executive Evan Spiegel's efforts to reduce costs.Gold was down 0.7% at $4,815.30 per troy ounce, while silver fell 0.4% to $79.18 per ounce.

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US Markets69d ago

Homebuilder Confidence Tumbles to Lowest Since September Amid Macro Woes

US homebuilder confidence sank this month to the lowest since September amid economic uncertainty, as well as increasing building material costs and interest rates, the National Association of Home Builders and Wells Fargo said Wednesday.The housing market index, which covers new single-family homes, fell four points sequentially to 34 in April. The consensus was a 37 reading in a survey compiled by Bloomberg."Builder sentiment has fallen back in spring as buyers face ongoing elevated interest rates and growing economic uncertainty," NAHB Chairman Bill Owens said. "The year started with hopes for housing momentum growth, but risks with respect to the Iran war, energy costs, and declines for consumer confidence have slowed the market."A US navy blockade of Iranian ports in the Strait of Hormuz has been enforced after the US-Iran peace negotiations in Pakistan over the weekend ended without a deal. Still, a two-week ceasefire between Washington and Tehran holds. The war started at the end of February, sending energy prices soaring amid the closure of the crucial strait.The index gauging sales expectations decreased seven points sequentially to 42 in April, the NAHB survey showed Wednesday. The measure charting prospective buyers fell three points to 22, while current sales conditions moved down four points to 37, according to the report.About 36% of homebuilders cut prices this month, compared with 37% in March. The average price reduction was 5% in April, down from 6% the month prior, while the use of sales incentives was 60%, down from 64%."With oil prices higher in the US, 62% of builders reported suppliers have increased building material costs due to higher fuel prices, including gas and diesel," NAHB Chief Economist Robert Dietz said. "With near-term economic risks elevated, 70% of builders reported challenges pricing homes given uncertainty about material costs."Separately, the Mortgage Bankers Association said Wednesday mortgage applications in the US rose 1.8% in the week through Friday on a seasonally adjusted basis as rates fell. Without adjustments, applications increased 2%."Given the evolving situation in the Middle East and its impact on energy and commodity prices, mortgage rates declined last week," with the 30-year fixed rate hitting 6.42%, its lowest in a month, said Joel Kan, the MBA's deputy chief economist. "This dip in rates helped to support an increase in conventional refinance applications, which had declined for five consecutive weeks."The refinance index increased 5% week over week, while the seasonally adjusted purchase index decreased 1%, according to the report.

US Markets69d ago

US Farmers Face Fertilizer Affordability Challenges Amid Hormuz Closure, Survey Shows

US farmers are facing fertilizer affordability constraints as supply disruptions caused by the effective closure of the Strait of Hormuz have pushed prices higher, according to the American Farm Bureau Federation.A survey conducted by the advocacy group between April 3 and April 11 showed that about 70% of more than 5,700 farmers surveyed couldn't afford all their fertilizer requirements.The ongoing fertilizer affordability challenges appeared to be "most acute" in the South and Northeast regions, with farmers also hit by soaring farm diesel prices, according to a Tuesday report posted on the Farm Bureau's website."Nearly six in 10 farmers report worsening finances, reflecting rising fertilizer and fuel costs during spring planting and underscoring the urgent need for immediate economic assistance to keep farms gates open," said the author of the report, Faith Parum, who is an economist at the American Farm Bureau Federation.Shipments through the Strait of Hormuz have been disrupted as Iran prevented commercial vessels from passing through the narrow waterway since the war with the US and Israel started at the end of February. The strait carries around one quarter of global seaborne oil trade and about one-third of all seaborne trade in fertilizers, according to a recent UN Trade and Development report.A US navy blockade of Iranian ports in the strait has been enforced after the US-Iran peace negotiations in Pakistan over the weekend ended without a deal. Still, a two-week ceasefire between Washington and Tehran holds."Fuel and fertilizer markets are the most volatile since Russia's invasion of Ukraine, and the duration of disruptions in the Middle East and closure of the Strait of Hormuz will ultimately determine farm production expenses in the months ahead -- a variable that significantly impacts farm margins given historically low crop prices," Parum said.The survey showed that just 19% of farmers in the South were able to secure their fertilizer purchases ahead of the spring planting season, compared with 67% in the Midwest.Farm diesel prices have surged 46% since the start of the war, Parum said."Higher energy prices also increase the cost of producing nitrogen fertilizer, which relies heavily on natural gas as feedstock," she said. "These overlapping increases in fuel and fertilizer expenses help explain why more than 90% of farmers surveyed reported that their financial conditions have worsened or remained the same since last year."

US Markets69d ago

Morgan Stanley's Quarterly Results Beat Estimates Amid Investment Banking, Trading Gains

Morgan Stanley (MS) on Wednesday posted stronger-than-expected first-quarter results as sharp gains in investment banking and trading activity helped boost revenue to a record.Earnings per share jumped to $3.43 for the March quarter from $2.60 a year earlier and surpassed the FactSet-polled consensus of $3. Revenue climbed 16% to $20.58 billion, while analysts expected $19.74 billion.Revenue in the institutional securities division rose to $10.72 billion from $8.98 billion in the prior-year period, driven by a 36% surge in investment banking to $2.12 billion. Equity and fixed income groups also posted strong gains, at 25% and 29%, respectively.Wealth management revenue advanced 16% to a record $8.52 billion."Institutional securities benefited from robust client engagement and strength globally," Chief Executive Ted Pick said in a statement. "Wealth Management demonstrated continued momentum, with net new assets of $118 billion and fee-based asset flows of $54 billion."Shares of Morgan Stanley were up 5.5% intraday. The stock has risen 8.9% so far this year.Bank of America (BAC) reported its first-quarter performance on Wednesday, with both earnings and revenue topping market estimates amid double-digit gains in investment banking and asset management fees.JPMorgan Chase (JPM) and Citigroup (C) reported better-than-expected first-quarter results on Tuesday, while Wells Fargo's (WFC) revenue missed market views. On Monday, Goldman Sachs (GS) posted financials above Street projections.Price: $192.50, Change: $+9.16, Percent Change: +5.00%

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US Markets69d ago

Snap to Cut 16% of Global Workforce; Stock Gains

Snap (SNAP) plans to lay off about 1,000 employees, or roughly 16% of its full-time workforce, as part of Chief Executive Evan Spiegel's efforts to reduce costs.The job cuts are aimed to reallocate resources to high-priority initiatives, the social media company said in a Wednesday regulatory filing. In addition, the group is closing more than 300 open roles.Snap expects to reduce its annualized cost base by more than $500 million by the second half, "helping to establish a clearer path to net-income profitability," Spiegel said in a note to staff."While these changes are necessary to realize Snap's long-term potential, we believe that rapid advancements in artificial intelligence enable our teams to reduce repetitive work, increase velocity, and better support our community, partners, and advertisers," Spiegel said.The company estimates pretax charges of $95 million to $130 million from the workforce reductions, majority of which are expected to be incurred during the second quarter, the company said in the filing.Snap's shares rallied 6.3% in Wednesday trade. The stock has lost 26% so far this year.In 2024, the company disclosed plans to reduce its global headcount by about 10%, less than two years after it said it will lay off 20% of its workforce and discontinue certain projects.As a result of the latest job cuts, Snap expects adjusted operating expenses of roughly $2.75 billion for 2026, down from its previous guidance of about $3 billion, according to an investor presentation. The company reiterated its infrastructure cost outlook of $1.6 billion to $1.65 billion.For the first quarter, the Snapchat parent projects revenue of about $1.53 billion, representing annual growth of 12%, at the high end of its previously issued guidance range. The current consensus on FactSet is for sales of $1.52 billion.Price: $5.91, Change: $+0.31, Percent Change: +5.45%

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US Markets69d ago

South Korea Unemployment Rates Declines to 2.7% in March

Despite Persian Gulf turmoils, South Korea's seasonally adjusted unemployment rate declined to 2.7% in March, down from 2.9% in February, striking a four-month low, reported the Ministry of Data and Statistics (MDS) on Tuesday.The economically active population, that is, citizens aged 15 or more and employed or seeking work, rose to 28.8 million in March, up from 28.6 million a year earlier.The number of unemployed persons in March fell 884,000, down from 993,000 in February, added the MDS.Despite the generally good overall employment numbers in March, some details of the South Korean worker picture "remain weak," said ING Think, an arm of the Dutch investment house.The decline in the March unemployment rate "for example, was partly due to workers exiting the labor market rather than to job growth," said ING Think. "Also, most of the job growth was concentrated in low-wage, low-skilled service positions and self-employment. By contrast, manufacturing and salary-based employment declined."While good-paying factory jobs became more scarce, the most jobs added in March were in the categories of eating out, accommodation, transportation, and information & communications, said ING Think."These jobs are mostly non-regular and low-wage, having a limited positive impact on household spending. We think this trend indicates subdued domestic demand," advised ING Think.The Middle East and related supply snags, including tight oil markets, are likely to worsen the South Korea employment picture in coming months, added ING Think."We are also concerned that supply disruptions lasting beyond two months could weaken labor market conditions across a broader range of industries. Petrochemical activity, including Naphtha Cracking Centers utilization rates, have already dropped to their lowest levels in March," said ING Think. "This type of enforced production slowdown is expected to become widespread and to start hurting employment in other sectors."

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US Markets68d ago

Tesco Issues Cautious Fiscal 2027 Outlook Amid Ongoing Middle East Conflict

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