The Rundown - Big Banks Deliver Mixed Earnings, AMD & Intel Dragged Down by China Restrictions

Starting point is 00:00:00 Public.com presents the rundown, your daily market update in five minutes. My name is Zadadmani, and today is Friday, April 12th. In today's episode, we discussed the big bounce back in the stock market and the tech stocks that are making all-time highs. Also, earnings season kicks off today with a ton of big banks reporting earnings. And finally, stick around to the end of the show to learn how much money Coachella makes and why those numbers are going down this year. All right, let's get into it. We had an episode. big bounce back from the stock market on Thursday, especially tech stocks. In fact, the NASDAQ made record highs on Thursday, finishing up 1.7%. The S&P was also on the green on Thursday, but the

Starting point is 00:00:41 Dow did have a down day. But, you know, nobody should care about the Dow. We also had some notable stocks make all-time highs as well. Like Amazon hit all-time highs for the first time since July of 2021. And Google also made all-time highs yesterday. The rally yesterday was sparked by the softer than expected PPI report, which came out Thursday morning. The people, PPI measures inflation in wholesale prices. It was up 0.2% in March, which is below estimates and below the 0.6% in February. So now investors are kind of confusing what the Fed might do with rate cuts because the CPI report on Wednesday showed that inflation was too hot. But then the PPI on Thursday shows that inflation is kind of cool and off.

Starting point is 00:01:18 So we have some conflicting data right now when it comes to inflation. But that report was enough to get some optimism back into the stock market. I mean, I'll take it. All right, let's run through some headlines. Q1 earnings season unofficially kicks. off today and a ton of big banks reported earnings this morning, like JP Morgan Chase, Wells Fargo, and City. J.P. Morgan beat estimates for revenue and earnings, but their stock is trending lower this morning because they missed on net interest income. Net interest income for a bank is the profit

Starting point is 00:01:45 the bank makes from loans after paying out interest to customers for their deposits. You know, like what you earn from your savings account. Well, JP Morgan didn't make as much as Wall Street thought they were going to make. Also, as part of the earnings release, JP Morgan's CEO, Jamie Diamond delivered a warning about risks related to wars, geopolitical tension, inflationary pressures, and quantitative tightening. Moving on to Wells Fargo, they took a hit on their profits due to an 8% drop in net interest income, and they think that net interest income can fall 7 to 9% this year. Some Wall Street analysts were hoping for a positive guidance on net interest income due to recent projections that the Federal Reserve will keep interest rates higher for longer,

Starting point is 00:02:22 which tends to favor banks. But that's not what the banks are telling us right now. Oh, and lastly, a quick hit on Citigroup, the bank topped its revenue expectations thanks to a boost in its trading business and also beat on profits. So overall, a mixed bag when it comes to these big bank earnings today. We got a lot more earnings coming up next week, including Netflix. So make sure you guys check back into the rundown next week. Oh, and speaking of big banks, Morgan Stanley's stock took a dive yesterday after a report from the Wall Street Journal that federal regulators are looking into Morgan Stanley's efforts to prevent money laundering by their wealthy clients. It looks like Morgan Stanley might have been doing business with some shady, wealthy clients and not going far enough to, like,

Starting point is 00:02:58 verify their identification or their source of wealth. The story is still developing. I'm sure we'll be getting more information about this over the next few days and weeks. Morgan Stanley reports earnings next Tuesday, by the way, so I'm sure that's going to come up. Let's shift gears and talk about Apple's plans for their upcoming Mac computers. Apple's planning to release a new line of Mac computers that will have the power to host AI, according to Bloomberg. The new line of Macs are expected to be released later this year and will run on Apple's new custom and M4 chip. And this processor will make using AI possible on Apple's new computers. But like the big question for me is, what kind of AI tools are we talking about? Apple really hasn't announced

Starting point is 00:03:35 any big AI stuff yet. They are expected to announce their AI plans at their annual developer conference in June, but we haven't only gotten much yet. There was a report earlier this year that Apple and Google and Google and Google's AI tool Gemini into the next iPhone, but no deal has been publicly announced yet. And the New York Times reported that Apple was also talking to other AI providers. So there's still a lot that we don't know. Are we going to get Gemini or chat GPT integrated into the next MacBook? Is Apple going to have their own in-house AI product? I guess we'll find out in June. Let's talk about some stocks making moves today. Black Rock stock is up more than 2% this morning after the world's largest asset manager reported a new record of nearly $10.5 trillion

Starting point is 00:04:14 under management. That's up 15% from last year. Now, although assets under management hit new highs, quarterly total net inflows to its products fell by almost half from a year ago. The company added $67 billion to its ETF in Q1 and $14 billion to its Bitcoin ETF that launched at the beginning of this year. The company also beat earnings and revenue guidance for the quarter. A couple of companies not doing so good this morning are Intel and AMD. Both are down more than 2% this morning. After China ordered players in the telecom industry to stop using foreign chips for

Starting point is 00:04:46 its networks by 2027. Intel and AMD have exposure to China's telecom industry. They're one of the largest suppliers of network processors in China. Now, this is not the first time that China has made a move against American's semiconductor companies. Last month, China announced that it would phase out AMD and Intel chips from its government technology, including computers and servers. So they just continue to tighten their grip. All right, let's wrap the show with a fun fact. Today's fun fact is about Coachella.

Starting point is 00:05:13 Coachella kicks off today. And it looks like the demand for Coachella is down compared to previous years. years. The Wall Street Journal reported that all short-term rentals in the Coachella Valley, things like Airbnb's and VRBOs, are down 12% from last year for the first concert weekend. Now, don't get me wrong, Coachella is still a big deal. On average, around 125,000 people attend Coachella every day over its two weekends, and it's estimated that Coachella makes over $100 million over the two weekends, but the demand isn't what it used to be. Like, tickets usually sell out immediately for Coachella, but this year, you can still buy tickets for the

Starting point is 00:05:46 second weekend. They're not sold out. Look, I'm pretty sure we're going to have our social feeds full of pictures from the festival. With all the interesting outfits and everything. I much prefer Couchella where I'll be sitting on my couch watching golf all weekend. That to me as a 32-year-old dad of two sounds a lot more fun to me than going to Coachella. So shout out to all my Couchella attenders this weekend. That was a terrible joke. All right, guys, that's all I got for you guys today.

Starting point is 00:06:08 Thank you guys so much for tuning in today. If you enjoyed today's podcast, we have another podcast called The Leading Indicator by Public.com. and the latest episode is with entrepreneur and professor Scott Galloway, and it's hosted by Kyla Scanlan. The podcast is about how to get wealthy in an economy that is flawed for the younger generation. It's a great listen, highly recommended. The leading indicator podcast features interviews with leaders in business, finance, and technology. So be sure to go check that out and give it a follow.

Starting point is 00:06:33 Thank you guys so much for listening. Have a great weekend, and we'll see you guys back here on Monday. This is the rundown, your real-time resource for news events and trends in the markets. All views presented in this show reflect the opinions of the game. You should not take any mention of a publicly traded security as recommendation to buy, sell or hold that security. Rundown guests are not financial advisors and are not affiliated with public holdings or its subsidiaries. You should make your own financial and investment decisions or consult. Respective professionals.

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The Rundown - Big Banks Deliver Mixed Earnings, AMD & Intel Dragged Down by China Restrictions

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