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Good Morning!
Get ready for a big day in finance! Here’s what we’re breaking down in this issue:
👉 Banks earnings season has arrived
👉 Oil surges on Russia sanctions
👉 Microsoft gets the green light for Activision Blizzard, Inc.
Let’s get into it!
BANKS: Earnings Season
JPMorgan, Wells Fargo, and Citigroup kicked off bank earnings on Friday morning amid worries about shrinking bond portfolios and escalating loan losses. JPMorgan surpassed profit forecasts, delivering stronger-than-anticipated interest income and credit expenses. Similarly, Wells Fargo and Citigroup exceeded expectations.
Source: Business Insider
Earnings breakdown:
JP Morgan's earnings came in at $4.33 per share vs $3.92 est., while their revenue was $40.69 billion vs $39.92 billion est.
Wells Fargo had a massive quarter with earnings per share of $1.48 vs $1.25 est. Revenue landed at $20.68 billion vs $20.16 billion est.
Citigroup posted earnings per share of $1.63 vs $1.22 est. with revenue of $20.14 billion vs $19.26 billion est.
🎯 GRIT TAKE:
Last month, bank shares took a hit after the Federal Reserve signaled they might maintain elevated interest rates for…
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OIL: Surges on Russian Sanctions
Oil prices surged by 4% on Friday following the U.S.'s decision to intensify sanctions on Russian oil exports. This move heightened supply worries in an energy market that was already finely balanced.
Source: Politico
The shift towards $90 per barrel was prompted by the U.S.'s decision on Thursday night to sanction two shipping firms. The U.S. claims these companies breached the G7's oil price ceiling, an initiative to maintain a consistent supply of Russian oil in the market while limiting the Kremlin's financial resources for warfare.
MICROSOFT: UK approves Activision
The UK's Competition and Markets Authority has given the green light to Microsoft Corp.'s $69 billion purchase of Activision Blizzard, Inc. This approval overcomes the last significant global regulatory obstacle for the most substantial gaming transaction.
Source: Reuters
To address competition concerns, Microsoft proposed adjustments, which included selling certain gaming rights to the French company Ubisoft Entertainment SA. The authority confirmed on Friday that this move would ensure competitive pricing and enhanced services.
Headlines You Need To Know: 🎙
BlackRock earnings are in
Israel calls for UN to evacuate Gaza
Why being an auto worker isn’t as lucrative as it used to be
PNC says 4% workforce reduction will save $35 million
Getting to 2% inflation won’t be easy
Americans failed to pay a record $688 billion in taxes
Inflation data won’t let the Fed declare victory yet
Ford says it can’t go any higher than the latest offer
Manhattan apartment hunters finally catch a big break
Flexport is laying off 20% of their staff
The Former Hedge Fund King!
This guy’s hedge fund pleaded guilty to insider trading, paid a $1.8 billion fine to the SEC, and was banned from trading stocks, but still made billions in profit that same year.
You might know Steve Cohen as the controversial owner of the New York Mets. However, he was a hedge fund king who dominated the stock market. Rumors started swirling that his firm, SAC Capital, was involved in insider trading. The SEC and FBI ignored these rumors for years due to the stellar reputation of SAC capital. However, things took a dramatic turn when a whistleblower turned over information to the SEC.
Source: CNBC
SAC Capital eventually pled guilty and was forced to pay $1.8 billion and stop trading. Cohen started buying up art, becoming one of the world's most valuable collections. He also bought the New York Mets for $2.4 billion. His art collection and Mets investment ultimately were better returns than the stock market.
Chart of the Day
📊 U.S. Workers Have More Than One Job
A record number of people hold two full-time jobs, which is unsurprising given inflation rates.
Source: @JoeConsorti
GRIT Meme of the Day 😂
Tag GRIT Capital on social media for a chance to be featured in our meme or Tweet of the day in our GRIT daily newsletter! 👇
Source: @alanwales_
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