Wednesday, April 14, 2021 – U.S. equities are higher in early trading Wednesday as investors digest profit tallies from some of Wall Street’s biggest banks. Expectations are elevated, with S&P 500 earnings projected to grow 23.8% year-over-year during the first quarter according to Bloomberg data. This would be the fastest rate of annualized growth since the third quarter of 2018, according to FactSet. The Dow and S&P 500 are each rising to fresh all-time highs, up 166 points and 0.2%, respectively. The Nasdaq Composite is adding 0.1%, trading within 0.5% of its February 12 record level.
In earnings, Goldman Sachs is advancing 3.4% after easily surpassing analysts’ expectations with record first-quarter net profits and revenues. JPMorgan is down 1.4% after CEO Jamie Dimon noted loan demand remains a challenge following a top and bottom line beat. Elsewhere, Bed Bath and Beyond is slumping 13.9% after the retailer reported a 16% decline in net sales in the latest quarter. Breadth is positive on issues by roughly 3:1 on both the NYSE and the Nasdaq.
On the data front, import prices rose 1.2% in March, above expectations for a 0.9% uptick. The year-over-year figure jumped 6.9%, the largest annual increase since January 2012. Export prices climbed 2.1% month-over-month, more than doubling consensus estimates. Central bank news will be in focus, with Federal Reserve Chair Jerome Powell headlining a busy day of Fedspeak and the latest Beige Book published at 2pm ET. Treasuries are declining, with the yield on the 10-year note yield adding two basis points to 1.64%.
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Brought to you by Benjamin J. Chuckrow
Benjamin J. Chuckrow
Senior Vice President – Branch Manager
Wells Fargo Advisors
37 Henry Street, Suite 201
Saratoga Springs, NY 12866