US stocks tumble on worsening economic data and falling oil prices: April 15, 2020

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1:28 p.m. ET, April 15, 2020

Bank of America quadruples provision for credit losses to $4.8 billion

From CNN Business' Matt Egan

Bank of America is preparing for a spike in bad loans linked to the coronavirus crisis.

The No. 2 US bank announced Wednesday it set aside $4.8 billion for credit losses during the first quarter. That's up sharply from $1 billion a year before, reflecting the collapse of the economy because of the pandemic.

Bank of America (BAC) built its loss-absorbing reserves by $3.6 billion. The bank cited a "deteriorating economic outlook related to COVID-19."

First-quarter profit dropped by a steeper-than-expected 45% to $4 billion. However, that's a more moderate decline than rivals Wells Fargo (WFC) and JPMorgan Chase (JPM) reported Tuesday.

Bank of America emphasized it continues to lend to consumers and small businesses.

As of April 8, Bank of America received 279,000 small business loan applications worth $43 billion under the stimulus package's forgivable loan program, called the Paycheck Protection Program.

The bank's loan balances ended the quarter at $1 trillion, up 7% from the end of 2019. Deposits climbed 6% to $1.4 trillion.

Bank of America said it provided nearly 1 million payment deferrals through April 8.

"We are taking extraordinary steps to support our employees, clients and communities during this humanitarian crisis," said CEO Brian Moynihan.

7:33 a.m. ET, April 15, 2020

UnitedHealth still on track for improved earnings, as coronavirus has only a 'minimal impact' on first quarter

From CNN Business' Chris Isidore

UnitedHealth Group Inc. headquarters is pictured in Minnetonka, Minnesota, in 2016.
UnitedHealth Group Inc. headquarters is pictured in Minnetonka, Minnesota, in 2016. Mike Bradley/Bloomberg/Getty Images

UnitedHealth Group, the nation's largest health insurer, said its results aren't being hurt by the COVID-19 outbreak.

The insurer said the pandemic had only "minimal impact" on its first quarter results, as it reported a 7% gain in revenue in the quarter to $64 billion. And while its profit and earnings per share declined slightly, it beat Wall Street estimates for a bigger decline.

At a time when many companies are dropping their guidance on earnings for the rest of year, UnitedHealth reiterated its guidance for between an 8% and 10% rise in adjusted earnings per share for the year. It said it will not request, nor does it expect to need any government assistance. 

Shares of UnitedHealth gained 2.6% in premarket trading on the news. Shares are down 8% so far this year through Tuesday's close.

8:43 a.m. ET, April 15, 2020

US airline stocks set to open higher after accepting stimulus funds

From CNN Business' Jordan Valinsky and Greg Wallace

Major US airlines have accepted the government's terms to receive billions of aid and keep hundreds of thousands of employees on the payrolls, the Treasury Department announced Tuesday.

The package includes a combination of grants, which the airlines do not need to pay back, and low-interest loans, which the airlines and labor unions heavily resisted.

American Airlines, Southwest Airlines, Delta Air Lines and United Airlines are among those who have accepted the bailout offer.

Shares of the major airlines are rising in premarket trading:

  • American Airlines (AAL) is up 7%
  • Southwest (LUV) rose 4%
  • Delta Air Lines (DAL) and United Airlines (UAL) are up nearly 6%
6:28 a.m. ET, April 15, 2020

Dow futures sink 350 points

From CNN Business' Jordan Valinsky

US stock futures are lower, shadowing a trend in global markets.

Here's where they stand as of 6:30 am ET: 

8:40 a.m. ET, April 15, 2020

Global stocks retreat as China cuts a key lending rate

From CNN Business' Laura He and Charlies Riley

Global stocks retreated Wednesday, with European and Asian markets falling after a Chinese rate cut.

China's central bank cut a key interest rate to a record low — an expected measure that indicates how the country is trying to help banks and borrowers weather the ongoing economic turmoil wrought by the coronavirus pandemic.

Here's how Asian markets reacted:

  • Japan's Nikkei 225 (N225dropped 0.5%
  • China's Shanghai Composite (SHCOMPslumped 0.6%
  • Hong Kong's Hang Seng (HSI) was last down 1.4%

Stocks also lost ground in Europe:

  • The FTSE 100 (UKXdipped 1.5%
  • France's CAC 40 (CAC40lost 1.4%
  • Germany's DAX (DAXshed 1.5%
6:33 a.m. ET, April 15, 2020

Oil slumps below $20

From CNN Business' Laura He and Charlies Riley

Oil prices slumped again on a dire forecast for demand.

US crude futures dropped 2.5% to under $20 a barrel after the International Energy Agency warned that global demand would plunge by 29 million barrels per day in April, dropping to a level last seen in 1995.