Good morning traders!
The S&P 500 ($SPY) is trading near Friday close. Let’s get into it…
U.S. stock futures edge lower this morning as the focus is on tech conglomerates that are set to release earnings this week, such as Alphabet, Microsoft, Amazon, and Meta. Positive earnings have largely been in line with Wall Street expectations, with about 60% of companies beating sales and 70% topping earnings estimates. The energy market will also be in focus, as some of the largest players post earnings at the end of the week.
In the news, First Republic Bank saw a 41% drop in deposits, equivalent to nearly $100 billion, during the March banking turmoil. To cope with the unprecedented customer withdrawals, the bank plans to cut 20% to 25% of its jobs and cut executive pay. The bank’s revenue fell 13.4%, and net income dropped 33% year over year. Despite the drop in deposits, the bank’s shares closed up 12% on Monday, but were trading around 20% down in the Tuesday premarket. To stabilize withdrawals, the bank plans to bring in new deposits and sell mortgages to reduce the size of its balance sheet. The bank has also suspended quarterly cash dividend payments on its preferred stock, and its board is pursuing strategic options.
Tuesday Economic Events:
Redbook Sales 8:55am ET
Case Shiller HPI 9:00am ET
FHFA HPI 9:00am ET
Consumer Confidence 10:00am ET – High Volatility Expected
New Home Sales 10:00am ET – High Volatility Expected
Richmond Fed Mfg Index 10:00am ET
API Crude Oil Data 4:30pm ET
Fed Speaker Scheduled:
No Fed Speakers Schedule
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