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☆ CME profit rises as volatility spurred risk hedging
▼ + stars: | 2023-04-26 | by ( ) www.reuters.com time to read: +1 min

April 26 (Reuters) - CME Group Inc (CME.O) on Wednesday posted first-quarter profits that beat Wall Street expectations, as traders turned to the exchange operator's hedging products to navigate market volatility related to worries about the banking sector and slowing macroeconomic growth. Overall average daily volumes were up 4% at 26.9 million contracts. The beat was driven in part by higher-than-anticipated revenue per contract, which benefited clearing and transaction fees, Piper Sandler analyst Richard Repetto said in a client note. Clearing and transaction revenues in the quarter were up 5.5% at $1.2 billion. Reporting by Jaiveer Singh Shekhawat in Bengaluru; Editing by Krishna Chandra EluriOur Standards: The Thomson Reuters Trust Principles.

Microsoft Corp (MSFT.O) climbed 8.2% in premarket trading after it beat estimates for quarterly results, and said that artificial intelligence products were stimulating sales. Earnings forecasts have improved, with analysts expecting a 3.9% contraction in first-quarter profit for S&P 500 companies compared with a 5.2% decline estimated at the beginning of the earnings season. Of the 124 S&P 500 companies that reported first-quarter profit through Tuesday, 79% topped analysts' expectations, as per Refinitiv IBES data. Meta Platforms Inc (META.O) is scheduled to report results after market close on Wednesday. ET, Dow e-minis were up 62 points, or 0.18%, S&P 500 e-minis were up 11.5 points, or 0.28%, and Nasdaq 100 e-minis were up 139.75 points, or 1.09%.

☆ Teck Resources profit misses estimates as Glencore circles
▼ + stars: | 2023-04-26 | by ( ) www.reuters.com time to read: +1 min

Teck reported an adjusted profit of C$1.81 per share for the three months ended March 31, compared with the average analyst estimate of C$1.82, according to Refinitiv IBES data. read moreSome Teck shareholders have already cast their votes on the miner's proposal to split its coal and metals businesses. Glencore has said that there is no deal if shareholders vote in favor of Teck's split. Teck's quarterly gross profit for its copper business unit fell 42.1% due to a drop in sales volumes and average realized copper prices. Teck reported a revenue decline of 18% to C$3,785 million.

☆ Nasdaq futures rally over 1% after upbeat Microsoft, Alphabet results
▼ + stars: | 2023-04-26 | by ( ) www.reuters.com time to read: +3 min

SummarySummary Companies Futures up: Dow 0.10%, S&P 0.43%, Nasdaq 1.25%April 26 (Reuters) - Nasdaq futures rallied more than 1% on Wednesday after upbeat results from Microsoft and Alphabet dwarfed worries about the impact of rising interest rates on the U.S. economy. Microsoft Corp (MSFT.O) climbed 7.5% after it beat Wall Street estimates for quarterly results, and said that artificial intelligence products were stimulating sales. Of the 124 S&P 500 companies that reported first-quarter profit through Tuesday, 79% topped analysts' expectations, as per Refinitiv IBES data. ET, Dow e-minis were up 33 points, or 0.1%, S&P 500 e-minis were up 17.5 points, or 0.43%, and Nasdaq 100 e-minis were up 160.75 points, or 1.25%. PacWest Bancorp (PACW.O) rallied 17.4% as the regional lender beat estimates for first-quarter profit as it managed to stabilize deposit outflows.

☆ India's Bajaj Finance beats Q4 profit expectations on strong loan demand
▼ + stars: | 2023-04-26 | by ( ) www.reuters.com time to read: +1 min

BENGALURU, April 26 (Reuters) - Indian non-bank lender Bajaj Finance Ltd's (BJFN.NS) fourth-quarter profit beat estimates on Wednesday, led by strong customer addition on the back of demand for loans. Consolidated net profit rose 30.5% to 31.58 billion rupees ($386.4 million) for the quarter ended March 31, beating analysts' expectations of 30.93 billion rupees, according to Refinitiv IBES data. The company's customers increased by about 3.1 million in the fourth quarter, it said earlier this month. Net interest income, the difference between interest earned on loans and paid on deposits, rose 28% to 77.71 billion rupees, while interest income jumped 33.6% year-on-year. ($1 = 81.7400 Indian rupees)Reporting by Meenakshi Maidas in Bengaluru; Editing by Sonia CheemaOur Standards: The Thomson Reuters Trust Principles.

SummarySummary Companies Microsoft up as quarterly results top forecastsCloud firms gain on Microsoft earnings cheerActivision Blizzard down as UK blocks Microsoft dealIndexes: Dow off 0.02%, S&P up 0.16%, Nasdaq climbs 1%April 26 (Reuters) - The tech-heavy Nasdaq advanced on Wednesday as strong Microsoft results offset concerns over rising interest rates and their effect on the U.S. economy, while an upbeat forecast from Boeing further boosted sentiment. Earnings forecasts have improved, with analysts expecting a 3.9% contraction in first-quarter profit for S&P 500 companies compared with a 5.2% decline estimated at the beginning of the earnings season. Of the 124 S&P 500 companies that reported first-quarter profit through Tuesday, 79% topped analysts' expectations, as per Refinitiv IBES data. Meta Platforms Inc (META.O) is scheduled to report results after market close on Wednesday. Declining issues outnumbered advancers by a 1.09-to-1 ratio on the NYSE, while advancers outnumbered decliners by a 1.04-to-1 ratio on the Nasdaq.

☆ Visa's payments business helps profit exceed Wall Street estimates
▼ + stars: | 2023-04-25 | by ( Mehnaz Yasmin | ) www.reuters.com time to read: +2 min

April 25 (Reuters) - Visa Inc (V.N) reported a better-than-expected second-quarter profit on Tuesday and bet on sustained growth at its payments business, as consumers brace for a milder recession than was once feared. The San Francisco-based payments processor's shares, up 11% so far this year, rose another 2.4% in after-hours trading. "Consumer payments remains a massive opportunity for Visa," Chief Executive Officer Ryan McInerney said on a post-earnings call. Visa's results follow peer American Express Inc (AXP.N), which stockpiled $1.1 billion to cover potential defaults and spent more on promotions, missing Wall Street estimates on Thursday. On an adjusted basis, Visa earned $2.09 per share in the quarter ended March, exceeding analysts' estimates of $1.99, according to data from Refinitiv IBES.

☆ Futures slip as investors brace for tech earnings, economic data
▼ + stars: | 2023-04-24 | by ( ) www.reuters.com time to read: +2 min

Market heavyweights including Alphabet Inc (GOOGL.O), Microsoft Corp (MSFT.O), Amazon.com Inc (AMZN.O) and Meta Platforms Inc (META.O), whose shares have supported markets this year, are scheduled to report results this week. Whether the rally continues could depend on the companies beating already-lowered first-quarter estimates. Of the 88 S&P 500 companies that reported results through Friday, nearly 76% beat analysts' first-quarter profit estimates, as per Refinitiv IBES data, above the long-term average of 66.3%. ET, Dow e-minis were down 80 points, or 0.24%, S&P 500 e-minis were down 9 points, or 0.22%, and Nasdaq 100 e-minis were down 19.5 points, or 0.15%. The regional bank, whose shares have sunk 88% this year triggered by the U.S. banking crisis, is set to report results after market closes on Monday.

REUTERS/Pierre AlbouyMILAN/LONDON, April 21 (Reuters) - Short-sellers who bet against European banks are set to lose a substantial amount of money in April after the sector bounced back from the shock downfall of Credit Suisse (CSGN.S) in anticipation of strong quarterly earnings. The STOXX European banks share index (.SX7P) has risen as much as 18% from late March's lows. But a Bank of America survey showed fund managers cut bank exposure in April to the lowest since May 2020, as they piled into more recession-proof defensive sectors. Ortex estimates short interest on European banks is close to 1% of the free share float, an 11-month high. One area of concern is exposure to commercial real estate and investors will be alert to any sign of emerging stress as European lenders report earnings next week.

☆ India's HCLTech sees smaller-than expected FY revenue growth
▼ + stars: | 2023-04-20 | by ( ) www.reuters.com time to read: +1 min

BENGALURU, April 20 (Reuters) - HCLTech (HCLT.NS), India's No.3 IT services exporter, on Thursday forecast lower-than-expected revenue growth for the current fiscal amid worries of recession in major markets like the United States and Europe and global banking turmoil. HCLTech said it expects revenue to increase 6%-8% in the financial year ending March 2024 on constant currency basis, missing average analysts' estimates of 10.42%, according to Refinitiv IBES data. HCLTech's weak outlook followed disappointing earnings from market leader Tata Consultancy Services (TCS.NS) and No.2 Infosys Ltd's (INFY.NS) forecast of single-digit revenue growth this financial year. European clients were delaying decisions, HCLTech had said back in January, well before the current turmoil. It expects EBIT margins of 18% and 19% for FY 2024.

☆ AT&T misses quarterly revenue estimates; shares down
▼ + stars: | 2023-04-20 | by ( ) www.reuters.com time to read: +1 min

Still, AT&T added 424,000 postpaid phone subscribers in the latest quarter, above Factset estimate of 422,800 additions. Analysts and investors generally watch postpaid phone figures closely as those customers pay a recurring monthly bill, making them valuable to the carriers. Total revenue for the first quarter rose 1.4% to $30.1 billion, compared with $29.7 billion a year earlier. AT&T said the growth was also driven by higher revenue in broadband services, partly offseting lower equipment sales. Income from continuing operations was $4.5 billion, or 57 cents per share, in the quarter, compared with $5.1 billion, or 65 cents per share, a year earlier.

Major equity indexes have been largely stable during the early stages of a first-quarter earnings season that investors expect to show tepid results. The Dow Jones Industrial Average (.DJI) fell 79.62 points, or 0.23%, to 33,897.01; the S&P 500 (.SPX) lost 0.35 points, or 0.01%, at 4,154.52; and the Nasdaq Composite (.IXIC) added 3.81 points, or 0.03%, at 12,157.23. The defensive utilities group (.SPLRCU) gained most among S&P 500 sectors, rising 0.8%. S&P 500 companies overall are expected to post a 4.8% decline in first-quarter earnings from the year-earlier period, according to Refinitiv IBES. The S&P 500 posted 16 new 52-week highs and one new lows; the Nasdaq Composite recorded 59 new highs and 123 new lows.

Major equity indexes have been largely stable during the early stages of a first-quarter earnings season that investors expect to show tepid results. The defensive utilities group (.SPLRCU) gained most among S&P 500 sectors, rising 0.7%. S&P 500 companies overall are expected to post a 4.8% decline in first-quarter earnings from the year-earlier period, according to Refinitiv IBES. Shares of Western Alliance Bancorp (WAL.N) surged 23% after the company posted stronger-than-expected earnings, helping lift the SPDR S&P Regional Banking ETF (KRE.P) 4%. The S&P 500 posted 15 new 52-week highs and one new low; the Nasdaq Composite recorded 48 new highs and 111 new lows.

Abbott is the second major company to signal a recovery in medical device sales. Medical devices - Abbott's largest segment - clocked an 8.5% rise in sales to $3.90 billion, with $1.2 billion coming from glucose monitoring device Freestyle Libre. I don't think it's a bolus of backlog," Abbott CEO Robert Ford said about the recovery in medical device sales. The stronger outlook for its non-COVID business was the main takeaway as investors had priced in a fall in COVID testing sales, J.P. Morgan analyst Robbie Marcus said in a note. Abbott lowered its outlook for COVID testing sales this year to $1.5 billion from the $2 billion it forecast in January.

☆ Abbott beats profit estimates on strong medical device sales
▼ + stars: | 2023-04-19 | by ( ) www.reuters.com time to read: +1 min

April 19 (Reuters) - Abbott Laboratories (ABT.N) on Wednesday reported quarterly profit above expectations, driven by sales of its diabetes care devices and an improved demand for other devices due to a resumption in non-urgent medical procedures. Excluding one-off items, the company reported a profit of $1.03 per share for the first quarter ended March 31, higher than the average of analysts' estimates of 99 cents per share, according to Refinitiv IBES data. The healthcare giant retained its adjusted profit forecast for this year at $4.30-$4.50 per share, as it expects its non-COVID-testing-related revenue to offset its testing kit sales. Abbott cut its COVID-testing-related sales forecast to $1.5 billion from $2 billion earlier. Reporting by Leroy Leo and Khushi Mandowara in Bengaluru; Editing by Sherry Jacob-PhillipsOur Standards: The Thomson Reuters Trust Principles.

☆ Analysis: Banking crisis scars struggling U.S. real estate stocks
▼ + stars: | 2023-04-19 | by ( Lewis Krauskopf | ) www.reuters.com time to read: +5 min

After slumping 28% last year, the S&P 500 real estate sector (.SPLRCR) has gained about 1% in 2023, lagging an 8% rise for the overall S&P 500 (.SPX). Real estate is the only one of the 11 S&P 500 sectors to underperform the benchmark index in both 2022 and so far in 2023. The real estate sector has slumped 2% since SVB's troubles came to light on March 8, compared to a 4% rise for the S&P 500. “There is nothing about the current banking situation ... that made life easier for real estate companies,” said Peter Tuz, president of Chase Investment Counsel. S&P 500 real estate company earnings are expected to fall 0.3% this year after rising almost 11% in 2022, according to Refinitiv IBES.

☆ Abbott's medical device sales recovery aids quarterly profit beat
▼ + stars: | 2023-04-19 | by ( ) www.reuters.com time to read: +2 min

[1/2] Boxes of Abbott's heart stents are pictured inside a store at a hospital in New Delhi, India, April 27, 2018. REUTERS/Adnan AbidiApril 19 (Reuters) - Abbott Laboratories (ABT.N) reported quarterly profit above expectations on Wednesday, underpinned by sales of its diabetes care devices and an improved demand for other devices due to a resumption in non-urgent medical procedures. The upbeat sales of Abbott's medical devices mirror a trend seen by rival Johnson & Johnson (JNJ.N), which also posted better-than-expected sales for the business on Tuesday. Sales of medical devices - Abbott's largest segment - grew 8.5% to $3.90 billion, of which $1.2 billion worth revenue was clocked in by glucose monitoring device Freestyle Libre. Abbott, which witnessed first-quarter sales worth $730 million in global COVID-19 test kits, slashed its annual revenue forecast for these devices to $1.5 billion from $2 billion.

April 19 (Reuters) - Citizens Financial Group Inc's (CFG.N) first-quarter profit missed Wall Street estimates as deposits declined and it set aside more rainy-day funds to cover for souring loans. The potential economic downturn prompted Citizens to set aside $168 million in case its customers default on their loans, compared with $3 million a year earlier. Citizens gradually set aside more money to cover potential losses on office loans, where it predicts weakness as remote working becomes more popular, while rising interest rates and a weaker economy put pressure on borrowers. Average deposits fell 2.6% to $174.4 billion in the three months ended March 31, compared with $179 billion at the end of the previous quarter. Citizens reported an underlying profit of $1.10 per share; analysts' on average had expected it to report $1.13 per share, according to Refinitiv IBES data.

[1/2] A Bank of America logo is pictured in the Manhattan borough of New York City, New York, U.S., January 30, 2019. The company "had a strong Q1 as higher interest rates continued to boost its net interest margin despite rising deposit costs," David Fanger, senior vice president at Moody's Investors Service, said. Reuters GraphicsEconomists expect the U.S. economy to slow in the second half of the year as the Federal Reserve raises interest rates to tame inflation. It expects NII to fall 2% in the second quarter compared with the first three months of this year. The company's revenue, net of interest expense, increased 13% to $26.3 billion, beating estimates of $25.13 billion.

J&J (JNJ.N) shares fell 2.8% after the healthcare conglomerate cautioned investors over the lingering impact of inflation-driven costs this year. Goldman (GS.N) shares dropped 1.7% after the Wall Street firm's profit fell 19% as dealmaking and bond trading slumped. The early quarterly results from S&P 500 companies come as investors have been bracing for a gloomy reporting season, fearing the economy may be on the cusp of a downturn. S&P 500 company earnings are expected to have declined 4.8% in the first quarter from a year earlier, according to Refinitiv IBES data as of Friday. The S&P 500 posted 28 new 52-week highs and no new lows; the Nasdaq Composite recorded 66 new highs and 143 new lows.

☆ Charles Schwab beats profit estimates on higher rates; deposits drop
▼ + stars: | 2023-04-17 | by ( ) www.reuters.com time to read: +2 min

April 17 (Reuters) - Charles Schwab Corp (SCHW.N) beat first-quarter profit estimates as rate hikes by the Federal Reserve boosted the financial services provider's interest income, even as it struggled with a decline in deposits from the U.S. banking crisis last month. They shed 37% in the first quarter after Charles Schwab was caught up in the banking turmoil triggered by the collapse of two regional U.S. banks last month. Deposits shrank at Charles Schwab as customers moved capital to chase greater returns from other asset classes. The firm's deposits fell to $325.7 million in the first quarter from $366.7 million in the prior quarter. Total net revenue rose 10% to $5.12 billion from $4.67 billion a year earlier.

☆ State Street profit misses on lower fee income; shares fall
▼ + stars: | 2023-04-17 | by ( ) www.reuters.com time to read: +1 min

State Street, the world's largest custodian bank, saw its assets under custody or administration fall 10% to $37.6 trillion in the first quarter. Along with a number of other large U.S. banks, State Street provided $1 billion of liquidity to First Republic Bank (FRC.N) last month. State Street set aside $44 million as provision for credit losses in the reported quarter as steep rate rises stoke fears of an economic slowdown. Analysts had expected State Street to earn $1.64 per share, according to Refinitiv IBES data. "We are optimistic about client onboardings and we expect revenue growth in the coming quarter," State Street Chief Executive Officer Ron O'Hanley said.

☆ M&T Bank Corp beats profit estimates as interest income doubles
▼ + stars: | 2023-04-17 | by ( ) www.reuters.com time to read: +1 min

April 17 (Reuters) - M&T Bank Corp (MTB.N) beat Wall Street estimates for first-quarter profit on Monday, as the U.S. Federal Reserve's rapid rate hikes to tame high inflation boosted the lender's interest income. Shares of M&T Bank rose nearly 3% to $120 in premarket trading. Net interest income for the bank doubled to $1.83 billion in the first quarter ended March 31, compared with $907 million, a year earlier. Total deposits for M&T Bank fell nearly 3% to $159.1 billion, compared with $163.5 billion at the end of the previous quarter. M&T Bank reported a profit of $4.01 per share in the quarter, above analysts' average estimate of $3.99 per share, according to Refinitiv IBES data.

☆ India's Infosys tumbles 15% on downbeat revenue outlook
▼ + stars: | 2023-04-17 | by ( ) www.reuters.com time to read: +1 min

BENGALURU, April 17 (Reuters) - Infosys Ltd (INFY.NS) shares slumped nearly 15% on Monday and dragged stocks of peers, after the IT services exporter's dismal revenue outlook highlighted the impact of banking turmoil in major markets, the United States and Europe. Infosys' outlook followed a disappointing quarterly report from larger rival Tata Consultancy Services (TCS.NS), highlighting worries for the sector which earns more than 25% of its revenue from just the U.S. and European banking, financial, services and insurance sector. Infosys saw its biggest intraday percentage drop since October 2019, and dragged other IT stocks, with the Nifty IT index (.NIFTYIT) dropping as much as 7.6%. "Given the uncertain environment in the near term, growth can be back ended for Infosys, in our view," PhillipCapital said in a note. ($1 = 81.9020 Indian rupees)Reporting by Nishit Navin; editing by Eileen SorengOur Standards: The Thomson Reuters Trust Principles.

Wells Fargo executives detailed the bank's exposure to CRE at length during a conference call with analysts. Deposits at Wells Fargo fell 2% to $1.36 trillion at the end of March, compared with $1.38 trillion at the end of last year. "Both Wells Fargo and JP Morgan delivered very, very solid results, blowing past the expected earnings. Reuters GraphicsAverage loans in the bank's commercial banking division rose 15%, while commercial loans rose roughly 7% from a year earlier. Wells Fargo is also still working to contain the fallout from a scandal over its sales practices that led to hefty fines and an asset cap imposed by the Fed.

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