US stocks mixed after Fed holds rates steady

By CNN Business

Updated 8:57 p.m. ET, April 28, 2021
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8:27 a.m. ET, April 28, 2021

Record-shattering demand growth will trigger $80 oil, Goldman Sachs predicts

From CNN Business' Matt Egan

Here comes $80 oil. At least that's what Goldman Sachs says.

The Wall Street investment bank predicted Wednesday the easing pandemic will cause the biggest jump in oil demand on record. Goldman Sachs expects demand will rise by 5.2 million barrels per day over the next six months.

For context, that would be 50% bigger than the next largest demand spike since the bank began tracking in 2000, the bank said. That's why Goldman Sachs said commodity investors "have looked through" the spike in Covid-19 cases in India.

"Activity levels as measured by mobility have resumed their upward trajectory, particularly with the vaccination rollout in Europe now gaining momentum," Goldman Sachs analysts wrote.

That in turn is boosting demand for gasoline and jet fuel — both of which cratered last spring as the pandemic erupted. The unprecedented collapse in oil demand, along with excess supply, briefly sent US oil prices below zero for the first time ever.

Oil prices have since rebounded with Brent crude, the world benchmark, climbing above $67 a barrel Wednesday.

The rally may still have legs. Goldman Sachs expects Brent crude will reach $80 a barrel over the next six months before cooling off.

7:40 a.m. ET, April 28, 2021

America's economy is rebounding. But it is still in a deep hole

From CNN Business' Anneken Tappe

America is emerging from the worst of the pandemic, and that will mean some eye-popping figures when the government releases economic growth data Thursday.

But the big jump — fueled by resurgent consumer spending after a year in lockdown — will still be starting from a deep hole.

Economists predict that the US economy grew at an annualized rate of 6.1% in the first three months of the year — faster the than the 4.3% recorded at the end of 2020, but far slower than the enormous 33.4% jump in the second quarter of 2020 when the economy started to reopen.

An "annualized" rate is not the same as measuring one quarter to the next; annualizing assumes a quarterly rate would continue for a full year. Economists typically use the annualized rate for US GDP because it makes it easier to compare numbers over different periods of time.

Read more here.

6:30 a.m. ET, April 28, 2021

US stocks point to mixed open

From CNN Business' Jordan Valinsky

US stock futures were mostly flat once again as investors await more corporate earnings and signs that the global economic recovery is taking hold. Wall Street will be watching Federal Reserve Chairman Jerome Powell’s press conference carefully this afternoon for signs of how the recovery is proceeding. 

Here's where things stand as of 6:15 am ET:

6:20 a.m. ET, April 28, 2021

Starbucks sales are finally on the rise in the US

From CNN Business' Danielle Wiener-Bronner

After a difficult year, Starbucks (SBUX) sales are finally bouncing back.

Sales at US stores open at least 13 months jumped 9% in the three months ending March 28 compared with the same period last year. The results pointed to a "full sales recovery" in the United States, CEO Kevin Johnson said in a statement Tuesday.

Globally, same-store sales increased 15%, missing Wall Street's expectations of 16.8% growth. Shares of the company fell about 2% after the bell.

While some restaurants, like pizzerias, have seen sales soar during the pandemic, cafes like Starbucks have struggled. Stay-at-home orders disrupted people's regular commute to work, and many started drinking their morning coffee at home instead of buying it to-go.

In the last three months of 2020, Starbucks' US same-store sales fell 5%. In fiscal year 2020, the year leading up to late September 2020, US same-store sales fell 12%.

6:23 a.m. ET, April 28, 2021

Google parent Alphabet sees revenue jump 34% to $55.3 billion in the first quarter

From CNN Business' Rishi Iyengar

Alphabet (GOOG) kicked off a big week for tech earnings as the industry starts to look ahead to a post-pandemic economy by reporting a characteristically strong start to 2021.

Google's parent company reported revenues of $55.3 billion for the first three months of the year — a 34% jump from the same period last year — and made close to $18 billion in profit, comfortably blowing past analyst estimates. It also announced a $50 billion stock buyback.

The company's stock jumped 5% in premarket trading Wednesday.

Read more here.