What's moving markets today: April 12, 2019
JPMorgan's stock jumps after better-than-expected first quarter results
JPMorgan's (JPM) stock bounced more than 2% higher in premarket trading after the largest US bank reported better-than-expected revenues of $29.9 billion, up 5%.
JPMorgan's investment banking revenue grew 10%, driven by debt underwriting and advisory, which rose 21% and 12%, respectively.
Earnings per share were $2.65, compared with consensus estimates of $2.35.
Even amid some global geopolitical uncertainty, the US economy continues to grow, employment and wages are going up, inflation is moderate, financial markets are healthy and consumer and business confidence remains strong," said CEO Jamie Dimon in a press release.
Anadarko shares soar on deal with Chevron
Shares of Anadarko Petroleum soared after the announcement that it would be purchased by Chevron for $33 billion.
The deal, which still needs the approval of regulators and shareholders, would value Anadarko at $65 a share based on Thursday's closing price of Chevron. The purchase is being done 75% with Chevron stock and 25% with cash.
Shares of Anadarko (APC), which had previously been up 7% for the year, were up above $62. Shares of Chevron (CVX) slipped on the news, despite its estimate that the deal would add to earnings per share a year after it closes, assuming the price of a Brent crude stays above $60 a barrel.
Big news for Tesla customers
Tesla (TSLA) just made several changes to its model offerings and pricing:
- The carmaker said that all of its vehicles will now come with autopilot as standard. It said the feature would be included for less than the prior cost of the autopilot option.
- It will stop selling its cheapest Model 3 online.
- It also said it would start leasing the Model 3 — but the cars must be returned at the end of the lease for use in a Tesla ride-hailing network.
ICYMI: The company endured a tough 2018 after months of manufacturing hangups and delays in rolling out the Model 3. But it surprised investors by posting back-to-back quarterly profits at the end of last year.
Shares are up more than 1% in premarket trading.
Uber's historic IPO
Uber on Thursday filed paperwork for an IPO that is likely to be one of the biggest public offerings ever for a technology company.
Uber CEO Dara Khosrowshahi admitted to the company making "missteps" on its road to go public. The startup has faced a long list of scandals, including allegations of sexism and harassment.
The transportation company lost $1.8 billion in 2018, an unprecedented sum for a company about to go public.
Documents filed by Uber revealed that its revenue was up 42% in 2018 to $11.3 billion.
In its fourth quarter, Uber had 3.9 million drivers on its platform and users took 1.5 billion trips.
Checking in on global markets
- US stock futures are pointing higher.
- European and Asian markets were mostly lower.
- Thursday's US close: The Dow Jones industrial average dipped 0.1%. The S&P 500 closed flat and the Nasdaq ended down 0.2%.
Here's what investors are watching:
- 🏦Big bank earnings today. Stay tuned here for live updates.
- 🇨🇳Chinese trade data for March published today. While exports were stronger than anticipated, imports came bellow expectations and the outlook for exports remains gloomy.