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Big Banks Delivered Strong Capital Markets Performance in First Quarter, RBC Says

Major US banks delivered stronger-than-expected capital markets revenue in the first quarter amid solid gains in advisory and equities trading, RBC Capital Markets said in a note sent to clients Thursday.The combined capital markets revenue of JPMorgan Chase (JPM), Bank of America (BAC), Citigroup (C), Goldman Sachs (GS), and Morgan Stanley (MS) climbed nearly 20% year over year, according to the brokerage.Their aggregate advisory revenue soared 68%, led by Goldman, RBC said. Total investment baking fees increased 31% from the year-ago quarter, including a boost from equity capital markets."We saw increased advisory revenues due the large deals announced in 2025 that closed in (the first quarter of 2026) and ECM revenues benefited from increased follow-on and convertible offerings," Gerard Cassidy, co-head of global financials research at RBC, said in the note.Equities trading rallied about 26%, with Citigroup logging the strongest performance and JPMorgan showing the smallest gain among the five banks.The banks' combined fixed income, currencies, and commodities revenue grew 10%, Cassidy said. All five banks except for Goldman achieved year-over-year growth in FICC.The lenders were "cautiously optimistic" about investment banking activity in the near term, factoring in macroeconomic and geopolitical uncertainties, according to the brokerage.The deadline for the expiration of a two-week ceasefire between the US and Iran is close. The White House is optimistic about reaching a deal with Tehran, noting that a potential second round of talks would likely be held in Pakistan. Prior peace negotiations in Islamabad ended without a deal last weekend."Many of the investment banks pointed to solid backlogs in (the first quarter) which we believe could be monetized in less volatile market conditions," Cassidy said. "The longer economic uncertainty and heightened market volatility exist, however, the more difficult it will be for the companies to grow their investment banking revenues."Price: $309.39, Change: $+3.46, Percent Change: +1.13%

$BAC$C$GS$JPM$MS

US Markets113d ago

Pending Home Sales Log Biggest Drop in 12 Months as War, High Costs Hit Demand, Redfin Says

Pending home sales in the US posted the biggest drop in a year, as the Middle East conflict and high costs dampened demand, Redfin said Thursday.Sales fell 4.1% year over year to 86,665 units in the four weeks through Sunday, according to the online real estate brokerage. Sales decreased in all but seven of the 50 biggest US metro areas, led by a roughly 18% slump in Providence, Rhode Island. San Francisco saw the largest increase of 9.6%, the report showed."Would-be homebuyers are backing off partly because the Iran war is causing widespread geopolitical and economic uncertainty, making some Americans wary of making a big purchase," Redfin said in a report. "It has also contributed to higher mortgage rates."The average 30-year fixed mortgage rate reached 6.3% in the week ended Thursday, down from a six-month high two weeks earlier, Redfin said, citing Freddie Mac data. The median home-sale price was at $393,059 in the four weeks ended Sunday, up 2.3% year over year and the biggest increase in a year, according to the report.Since the start of 2026, home-touring activity was up 11% as of Sunday, compared with a 40% jump a year earlier, Redfin said, citing ShowingTime. The brokerage said this indicates "unseasonably slow" demand among buyers."Luxury buyers aren't letting the high interest rates dissuade them, but for buyers on a tighter budget, the difference can be enough to kill affordability," Stacey Bryant, a Redfin Premier agent, said. "Cost-conscious buyers are also jittery about the rising prices of other things -- like gas, food and energy -- cutting into their budgets."Energy prices have surged following the US-Israel war with Iran that started at the end of February, with the crucial Strait of Hormuz effectively closed. The White House is optimistic about reaching a deal with Iran, noting that a potential second round of talks would likely be held in Pakistan. Meanwhile, a two-week ceasefire between Washington and Tehran still holds."Mortgage rates may swing up or down in the next few weeks, depending on the direction of the Iran war, the outcome of negotiation talks and oil prices," Redfin said.

US Markets113d ago

Equity Markets Rise Intraday as Trump Announces Israel-Lebanon Ceasefire

US benchmark equity indexes were higher intraday as President Donald Trump said Lebanon and Israel agreed to a 10-day ceasefire, adding to optimism around prospects for peace in the Middle East.The Nasdaq Composite was up 0.4% at 24,100.4 after midday Thursday, while the S&P 500 rose 0.2% to 7,037.9. Both benchmarks closed at record highs in the previous session. The Dow Jones Industrial Average was 0.1% higher at 48,528.2 intraday Thursday.Among sectors, energy paced the gainers, while health care saw the biggest drop.Trump said Thursday the ceasefire between Lebanon and Israel would begin at 5 pm ET."I will be inviting the Prime Minister of Israel, Bibi Netanyahu, and the President of Lebanon, Joseph Aoun, to the White House for the first meaningful talks between Israel and Lebanon since 1983," Trump said in a social media post. "Both sides want to see peace, and I believe that will happen, quickly."Lebanese Prime Minister Nawaf Salam welcomed Trump's announcement, which seeks to pause hostilities between Israel and Iran-backed Hezbollah in Lebanon, CNN reported. Hezbollah will abide by the ceasefire if Israeli attacks stop, the news outlet reported, citing a leading Hezbollah legislator, Ibrahim Moussawi.West Texas Intermediate crude oil was up 4.4% at $95.29 a barrel intraday, while Brent jumped 5.1% to $99.76."Oil is up over doubts that the Strait of Hormuz disruption will ease soon," D.A. Davidson said in a report.It will take about six months for the US and Iran to reach a peace deal, and the two sides should extend their ceasefire to cover that period, Bloomberg News reported Thursday, citing Gulf Arab and European officials familiar with the matter.US Treasury yields were higher intraday, with the 10-year rate up three basis points at 4.31% and the two-year rate rising one basis point to 3.77%.In company news, IBM (IBM) shares rose 2.4%, the second-top gainer on the Dow. The tech giant will likely exceed Wall Street's estimates for the first quarter and raise its revenue guide amid momentum in the software segment and an earlier completion of the Confluent acquisition, Oppenheimer said in a note.Abbott Laboratories (ABT) shares dropped 6.8%, the steepest decline on the S&P 500, after the healthcare company lowered its full-year earnings outlook to reflect the acquisition of cancer diagnostics firm Exact Sciences.Charles Schwab (SCHW) followed Abbott on the S&P 500, down 6%. The financial services provider's first-quarter results rose year over year amid a surge in client assets, though revenue fell short of the Street's estimates.In economic news, US industrial production unexpectedly decreased in March, Federal Reserve data showed.It's too soon to blame the Middle East conflict for the drop, which driven by "sharply falling" output in the mining and utilities sectors, Oxford Economics said in a note.Gold was down 0.3% at $4,807.10 per troy ounce, while silver fell 1.6% to $78.38 per ounce.

Dow JonesNasdaq CompositeS&P 500$ABT$IBM$SCHW

US Markets113d ago

Ford's Restructuring 'Makes Sense,' EV Chief's Departure Risks Unsettling Investors, UBS Says

Ford Motor's (F) reorganization announced late Wednesday "makes sense," though the departure of electric vehicle chief, Doug Field, risks unsettling investors, UBS Securities said in a note emailed Thursday.The company merged its electric vehicle, digital and design team with the global industrial system into a new organization, to be led by Chief Operating Officer Kumar Galhotra. As part of the reshuffle, Chief EV, Digital and Design Officer Field will leave Ford."By uniting advanced technology with industrial execution, we can make decisions faster, eliminate complexity, and deliver great vehicles and digital experiences with the quality and efficiency our customers and shareholders expect," Galhotra said in a statement on Wednesday.UBS analysts, including Joseph Spak, said thinking about products holistically can create efficiencies."This type of reorganization makes sense," Spak wrote. "Better alignment, if achieved, could lead to more discipline and more on-time, on-budget launches."Ford said it plans to refresh 80% of its North American portfolio and 70% of its global portfolio by 2029.Field's departure may be viewed negatively as he was a key EV leader, UBS said. "This may cause investors to question upcoming (Universal Electric Vehicle) platform," Spak wrote.Ford's shares fell nearly 2% in Thursday trade.Alan Clarke became vice president of advanced development projects, and will continue to head the advanced EV development team, Ford said."We believe (Clarke) is well respected and liked so retention, talent and execution risk (from a reorganization) may be limited," Spak wrote.Price: $12.51, Change: $-0.20, Percent Change: -1.60%

US Markets113d ago

March Industrial Production Unexpectedly Drops; Oxford Economics Says Too Early to Blame War

US industrial production saw a surprise decrease in March, Federal Reserve data showed, though Oxford Economics said it's too soon to blame the Middle East conflict for the drop.Industrial output fell 0.5% last month following an upwardly revised 0.7% growth in February, the Fed said Thursday. The consensus was for a 0.1% increase in March in a survey compiled by Bloomberg."Industrial production was unexpectedly weak in the first month that covered the US/Israel-Iran war," Oxford Economics Lead US Economist Bernard Yaros said in remarks e-mailed to. "However, we wouldn't draw too many conclusions from March's decline, which was driven by sharply falling output in the mining and utilities sectors."Mining output dropped 1.2% last month, compared with a 2.1% rise in February, while utilities saw a 2.3% decrease after a gain of 1.8%, Fed data showed.Manufacturing output fell 0.1% in March following a 0.4% rise the month prior. The durable manufacturing index shed 0.2%, largely weighed down by a 3.7% drop in the motor vehicles and parts component."Production of motor vehicles and parts was a notable drag on factory activity, and this is one of the most vulnerable segments within manufacturing to the consumer impact from oil price shocks," Yaros said.Energy prices have soared amid the Iran war that started at the end of February, curtailing shipments through the crucial Strait of Hormuz. Over the weekend, US-Iran peace negotiations in Pakistan ended without a deal, but a two-week ceasefire between Washington and Tehran still holds."Since the outbreak of the Iran war, we have dialed back our forecast for growth in industrial production over the balance of 2026," Yaros said. "For now, the forecast doesn't anticipate any outright (quarter-over-quarter) industrial production declines, as key factors such as the (artificial intelligence) buildout and the investment incentives in last year's fiscal package will lend crucial support."Earlier in the week, government data showed that producer prices growth steadied in March as wholesale costs of energy surged amid volatility stemming from the Middle East conflict.

US Markets113d ago

Homebuilders' Earnings Likely to be Weighed Down by War Fallout, Soft Spring Selling Season, Truist Says

Several key US homebuilders' earnings this year are likely to take a hit, as the economic fallout from the Middle East conflict weighs on an already-soft spring selling season, Truist Securities said Thursday.The brokerage lowered its bottom-line estimates for the upcoming quarter and full year for six homebuilders. These are D.R. Horton (DHI), Meritage Homes (MTH), NVR (NVR), PulteGroup (PHM), Taylor Morrison Homes (TMHC), and Toll Brothers (TOL).Truist also trimmed its price targets for the six stocks, as it factored in inflation and the erosion in consumer confidence amid higher oil prices driven mainly by the US-Israel war with Iran that broke out at the end of February."The timing of this war was very unfortunate," Truist analyst Jonathan Bettenhausen said in a note to clients. "While we think industry expectations for this spring selling season were already calling for a roughly down low-single-digit environment from last year, we find it unlikely that a significant deterioration in the geopolitical environment was factored into those expectations."The brokerage said that while it's not expecting "many beats" among the stocks it covers, its favorite going into the latest quarterly print is Taylor Morrison. That stock likely has "the most bad news priced in," Bettenhausen wrote."We think any optimism on the spring selling season has effectively evaporated, and we have lowered our demand assumptions accordingly for (the first half) quarters, but also for the back half of the year on worse spring (build-to-order) new order demand," the analyst said.With new home sales and new residential construction data for March yet to be released, alternative market indicators such as mortgage reports and Google Trends "do not yield encouraging demand trends, which in our view, confirms the prevailing market sentiment on demand," according to the note.On Wednesday, the National Association of Home Builders and Wells Fargo said 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 White House is optimistic about reaching a deal with Iran, noting that a potential second round of talks would likely be held in Pakistan. Over the weekend, US-Iran peace negotiations in Islamabad ended without a deal. Meanwhile, a two-week ceasefire between Washington and Tehran holds.Price: $144.72, Change: $+0.52, Percent Change: +0.36%

$DHI$MTH$NVR$PHM$TMHC$TOL

US Markets113d ago

IBM Seen Beating First-Quarter Estimates, Oppenheimer Says

IBM (IBM) will likely exceed Wall Street's estimates for the first quarter and raise its revenue guide amid momentum in the software segment and an earlier completion of the Confluent acquisition, Oppenheimer said in a note Thursday.The brokerage raised IBM's first-quarter revenue estimate to $15.7 billion from $15.6 billion and reduced the earnings per share outlook to $1.70 from $1.77.IBM's software segment is seeing a pricing uplift on renewals of enterprise license agreements, according to the note. Open hybrid cloud technology company RedHat's contract values are trending 10% to 15% higher at renewal.Oppenheimer analysts, including Param Singh, expect IBM to raise its full-year revenue guidance by a percentage point to more than 6% at constant currencies, including a tailwind from an earlier close of the Confluent deal.IBM completed the acquisition of data streaming platform Confluent in March.IBM's software portfolio excluding Confluent, HashiCorp and RedHat is estimated to rise 7% in the calendar year 2026, driven by higher ELA pricing and larger contract sizes, Singh said.The company's consulting business is projected to grow 2.1% for 2026, excluding foreign exchange volatility, compared with consulting competitor Accenture (ACN), which recently guided to full-year 3% to 5% revenue growth, according to the note. IBM may face pressure from the US Department of Homeland Security shutdown that began on Feb. 14.The shutdown resulted from a legislative deadlock between Congress and President Donald Trump over immigration and customs reforms.Oppenheimer revised its price target on IBM's stock to $320 from $380, citing "recent compression in market multiples." The brokerage maintained its outperform rating.Price: $248.40, Change: $+3.60, Percent Change: +1.47%

$IBM

US Markets113d ago

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 Markets113d 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 Markets113d 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 Markets113d 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 Markets113d 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 Markets113d 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 Markets113d 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 Markets113d 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 Markets113d 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 Markets113d 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 Markets114d 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.

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US Markets114d 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 Markets114d 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.

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US Markets113d ago

Tesco Issues Cautious Fiscal 2027 Outlook Amid Ongoing Middle East Conflict

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