JPMorgan Chase, Wells Fargo, and Citi Report Strong Earnings, While AT&T Faces Downgrade
New York, U.S. – In premarket trading today, several companies are making headlines with their earnings reports.
JPMorgan Chase, one of the leading banks, saw its stock climb by 2.7% after reporting better-than-expected earnings. The bank attributed this success to higher interest rates and strong bond trading from the investment bank side. JPMorgan Chase reported an adjusted $4.37 per share and $42.4 billion in revenue, surpassing analysts’ estimates of $4 a share and $38.96 billion, according to Refinitiv.
Meanwhile, Wells Fargo shares climbed nearly 4% after an earnings beat, fueled by a significant 29% increase in interest income. The company reported an adjusted $1.25 per share and $20.53 billion in revenue, surpassing analysts’ consensus of $1.16 per share and $20.12 billion.
Citi, another major financial institution, also outperformed expectations, with its stock adding nearly 2% in premarket trading. Citi reported an adjusted $1.33 per share and $19.44 billion in revenue, surpassing analysts’ estimates of $1.30 per share and $19.29 billion.
On the flip side, investment firm BlackRock saw its shares slip approximately 1% after reporting its quarterly results. The company reported an adjusted $9.28 per share and $4.46 billion in revenue, slightly missing analysts’ expectations of $8.45 per share and $4.45 billion.
Crypto exchange Coinbase experienced a minor setback, with shares pulling back 1.2% in premarket trading. However, the previous day’s strong rally was driven by a favorable ruling in a case concerning the cryptocurrency XRP. A judge in New York’s Southern District stated that the token may not classify as a security.
Plug Power, a leading battery stock, witnessed an increase of nearly 6% after receiving an upgrade to outperform from Northland Capital Markets.
Microsoft, a major player in the tech industry and an AI-focused company, gained 1.8% after being upgraded to buy from neutral by UBS. The Wall Street firm cited recent weakness in the stock as an opportunity for investors. UBS also raised its price target to $400, implying a more than 16% upside. Microsoft has already seen a significant increase of 42% this year.
In contrast, shares of telecommunications giant AT&T slipped 1.3% after JPMorgan downgraded the stock to neutral. The downgrade was attributed to increased competition in both its wireless and cable segments.
UnitedHealth Group, a major healthcare company, experienced a 3.4% climb in its stock after beating on earnings. The company reported an adjusted $6.14 per share and $92.9 billion in revenue, exceeding analysts’ expectations of $5.99 and $91 billion.
Alcoa, an aluminum supplier, saw its stock fall 2.3% after being downgraded to neutral by JPMorgan due to weaker near-term metal prices.
Overall, the market is witnessing varying performances from different industries and sectors. While some companies are riding high on strong earnings, others are facing challenges due to changing market dynamics and increased competition.
CNBC’s Sarah Min contributed to this report.
Disclaimer: This article is for informational purposes only and does not constitute financial advice.