Marketbites: JPMorgan Chase Reports Record Revenue
Portfolio Manager Commentary:
The Dow Jones Industrial Average fell Friday as investors assessed a weak retail sales report that dented enthusiasm around a stronger-than-expected start to corporate earnings. Advance retail sales in March showed consumer spending fell twice as much as expected. Retail sales declined by 1% last month, more than the 0.5% fall expected by economists polled by Dow Jones, in part because consumers paid less for fuel.
“Retail sales came in weaker than expected, but a lot of the miss had to do with lower gas prices, which all things being equal is a slight positive for spending,” wrote Chris Zaccarelli, chief investment officer at Independent Advisor Alliance.
The disappointing retail sales data offset excitement around strong corporate earnings. JPMorgan Chase reported record revenue that beat analyst expectations, with the stock rising more than 7%. Wells Fargo shares briefly rose as much as 2.1% after reporting growing profits, before closing about flat. These were the first bank earnings since the collapse of Silicon Valley Bank and Signature Bank last month. Meanwhile, Boeing fell more than 5% after the aircraft maker warned of delivery delays for some of its 737 Max planes.
Chart of the Day:
Gold prices hit their highest level of 2023 on bets that inflation will remain sticky despite recent declines. The most actively traded gold-futures contract is up 13% year to date putting it within striking distance of its record high seen in the summer of 2020. Some investors value gold as a hedge against inflation, expecting the precious metal to hold up in value if other assets fall. The rally this week comes despite data points that show inflation is slowing.
What else is happening:
Air guardsman is charged over leaked documents - read here
Evan Gershkovich's family speaks out for the first time since his arrest - read here
Americans pull back on big-ticket purchases - read here