The Rundown - Live Nation Faces Lawsuit from DOJ, Bank of America Tops Earnings Estimates

Episode Date: April 16, 2024

Stock market update for April 16, 2024. Check out the ⁠Leading Indicator⁠ podcast by Public.com. Get started with Public: ⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠Click here⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠ The content of the podcast is for general and informational purposes only. All views presented in this show reflect the opinions of the guest and the host. You should not take a mention of any asset, be it cryptocurrency or a publicly traded security as a recommendation to buy, sell or hold that cryptocurrency or security. Guests and hosts are not affiliated with or endorsed by Public Holdings or its subsidiaries. You should make your own financial and investment decisions or consult respective professionals. Full disclosures are in the channel description. Learn more at Public.com/disclosures. Past performance is not a guarantee of future results. There is a possibility of loss with any investment. Historical or hypothetical performance results, if mentioned, are presented for illustrative purposes only. Do not infer or assume that any securities, sectors or markets described in the videos were or will be profitable. Any statements of future expectations and other forward-looking statements are strictly based on the current views, opinion, or assumptions of the person presenting them, and should not be taken as an indicator of performance nor should be relied upon as an investment advice.The content of the podcast is for general and informational purposes only. All views presented in this show reflect the opinions of the guest and the host. You should not take a mention of any asset, be it cryptocurrency or a publicly traded security as a recommendation to buy, sell or hold that cryptocurrency or security. Guests and hosts are not affiliated with or endorsed by Public Holdings or its subsidiaries. You should make your own financial and investment decisions or consult respective professionals. Full disclosures are in the channel description. Learn more at Public.com/disclosures. Past performance is not a guarantee of future results. There is a possibility of loss with any investment. Historical or hypothetical performance results, if mentioned, are presented for illustrative purposes only. Do not infer or assume that any securities, sectors or markets described in the videos were or will be profitable. Any statements of future expectations and other forward-looking statements are strictly based on the current views, opinion, or assumptions of the person presenting them, and should not be taken as an indicator of performance nor should be relied upon as an investment advice.

Public.com presents the rundown, your daily market update in five minutes. My name is Zaid Mani, and today is Tuesday, April 16th. In today's episode, we recap Big Bank earnings. Also, Live Nation is about to get hit with an antitrust lawsuit. And stick around to the end of the show to learn how much time Americans spend filing their taxes. Spoiler alert, it's a lot. All right, let's get into it. Well, guys, tough start to the week on Wall Street.

The Dow, S&P, and NASDAQ, were all down on. Monday because investors seem to be worried about increased tensions in the Middle East. Now, we did get some positive economic data yesterday, which I briefly mentioned in yesterday's show. U.S. consumer spending was up 0.7% in March, which was much higher than what was expected. But some investors didn't actually like this news because stick with me here, high consumer spending can lead to more inflation. And more inflation means less chance of interest rate cuts by the Fed anytime soon.

And that caused Treasury yields to spike yesterday. So the markets have been in a bit of a funk over the last couple weeks because of fears of increased inflation and tensions overseas. So the next few weeks are going to be pretty critical. We're about to get into the thick of earnings season. And maybe if we get strong earnings from companies over the next few weeks, we'll get some optimism back into the markets. Fingers crossed. All right, let's run through some headlines. Bank earnings continue to roll in today and they continue to beat expectations.

Let's start with Bank of America, which reported earnings this morning. Bank of America's revenues fell by 2% and their net income dropped by 18%, but both of them were still higher than what analysts were expecting. And that's really all that matters, right? Beating expectations. Now, the reason that Bank of America saw a dip in their net income was because of lower net interest income. We talked about what this was in Friday's show last week. It's the interest income that banks collect on loans minus the interest paid on customer deposits, you know, like the money that you have in your savings account. Also, Bank of America had to pay the FDIC $700 million because of the bank failures last year.

Morgan Stanley reported earnings this morning, and they also had a solid quarter. Their earnings were up 14% from a year ago, which came in higher than estimates. Their investment banking revenue was up 16% because they're helping more companies IPO or gather debt funding through sales of bonds. Q1 was also the first quarter

with new CEO Ted Pick, who's been at the company since 1990. So great start for him. So the overall big picture is that this bull market has been great for big banks, with more companies IPOing or trying to secure debt financing, they're needing the services of these big banks to do that.

All right, let's talk about some stocks making moves today. United Healthcare stock is up more than 7% this morning after the healthcare company posted better than expected revenues and profits for Q1. Now, heading into this earnings report, investors were kind of worried about two things. There was a costly cyber attack that hit the company back in February, and they were also worried about rising medical expenses.

Well, the company said that medical expenses came in as expected, but they did say that the cyberstance, cyber attacks reduced their earnings by $872 million. Man, that is an expensive cyber attack. But more than two-thirds of that is being excluded from the adjusted earnings. I feel like this cyber attack went somewhat underreported because this cyber attack pretty much messed up United Health Care's payments and data networks, which is used by many operators within the health care system.

So because of this attack, you had patients not able to get their medicine, you had medical offices not able to get paid. I mean, it was a total mess. And United Health Care is still working. working on repairing the system, so the full impact of the fallout might still be unclear. But today, investors are happy with the earnings results. On the flip side, Live Nation stock is down more than 8% today because they're about to get sued by the Justice Department in the next couple weeks because of anti-competitive practices, according to

the Wall Street Journal. Live Nation merged with Ticketmaster back in 2010, and it's estimated that the company controls about 70% of the ticketing and live events venue market. I mean, Live Nation and Ticketmaster might have one of the lowest approval ratings in America. They've received so much criticism for all the hefty ticketing fees and service fees and a not-so-great customer service. They're kind of acting like a monopoly, you know? And Live Nation came under heavy fire after its disastrous pre-sale for Taylor Swift concert tickets back in 2022. I mean, the entire system crashed.

I don't know anyone that's had a good experience with Live Nation. But we'll make that the Spotify poll today. Have you had a bad experience with Live Nation slash Ticketmaster? Tap the episode and vote in today's poll. I got a feeling this is going to be like 90%. Yes. All right, let's wrap the show with a fun fact. Today's fun fact is about taxes. Taxes were due yesterday. Hopefully everybody got them in on time. And look, they're pretty annoying to do, okay? Well, Americans spend about 6.6 billion hours each year doing their taxes with

an average person spending about 13 hours on their taxes. I mean, look, I know it's a meme at this point, but like if the IRS knows how much money I owe them, just send me a bill, all right? Let's just save us all this time. Now, one good thing is, after filing taxes, 90% of refunds are issued within 21 days. And the average refund this year is expected to be $3,200 per website wallethub.com. At least we get the refunds pretty quickly. Well, all right, guys. That's all I got for you guys today.

If you guys enjoyed today's episode, consider giving us a five-star rating on Apple and Spotify. We are very close to 1,000 5-star ratings on Spotify. So if you want to help us reach that goal, tap today's episode and hit the show with a 5-star rating. Thank you guys again for listening. to it to Mike and Connor for all the work behind the scenes. We'll see you guys back here tomorrow. 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 guests.

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. Learn more at public.com disclosures. In partnership with Zayid Mani, brokerage services for U.S. registered, registered securities are offered by Open to the Public Investing Incorporated, member FINRA and SIPC.