What's moving markets today: April 17, 2019

9:16 a.m. ET, April 17, 2019

American Airlines still doesn't know how much the 737 Max grounding will cost it

The grounding of American Airlines' Boeing 737 Max planes has forced the airline to cancel flights into mid-August. But the impact that has on its bottom line remains unclear.

This is what American Airlines (AAL) said in a new regulatory filing:

The financial costs of this disruption cannot be forecasted at this time and will be dependent upon a number of factors, including the period of time the aircraft are unavailable and the circumstances of any reintroduction of the aircraft to service."

The stock is up nearly 2% in premarket trading.

7:47 a.m. ET, April 17, 2019

Morgan Stanley reports revenue drop but beats earnings expectations

Morgan Stanley (MS) reported better-than-expected earnings in the first quarter, but sales fell.

Investment banking rival Goldman Sachs (GS) showed similar patterns in its results on Monday.

The bank's net revenue was $10.3 billion between January and March, down 7% thanks to a 24% and 15% drop in revenues from investment banking and sales and trading, respectively. Earnings per share were $1.39, more than analysts had expected.

"We delivered solid earnings despite a slow start to the year following the turbulent markets in the fourth quarter," said CEO James Gorman in a press release.

Morgan Stanley shares were up 2.3% in premarket trading.

7:07 a.m. ET, April 17, 2019

Netflix's stock is down 1%. That's a reasonable reaction to its earnings guidance

Netflix (NFLX) reported in yesterday's earnings that it beat analysts' expectations in subscriber numbers and revenue, but the stock is falling in premarket trading.

Here's why according to our Paul R. La Monica:

  • The stock is up more than 30% for the year.
6:49 a.m. ET, April 17, 2019

Sprint and T-Mobile shares decline after potential merger trouble

Shares of T-Mobile (TMUS) and Sprint (S) stocks are slipping in premarket following a report that the US Department of Justice is unlikely to allow the companies' proposed $26 billion merger to go forward.

Following the Wall Street Journal report Tuesday, both Sprint's and T-Mobile's stocks tumbled. Here's where they stand right now:

  • Sprint is currently down 5% — clawing back some of its losses.
  • T-Mobile held steady at 4%.

T-Mobile CEO John Legere punched back at the story on Twitter, posting that the "premise of this story, as summarized in the first paragraph, is simply untrue."

9:45 a.m. ET, April 17, 2019

Qualcomm shares spike after Apple settlement

Chip maker Qualcomm (QCOMclosed 23% higher on Tuesday, after it announced it reached a settlement and license agreement with Apple (AAPL) over patents.

The stock extended its gains in early trading: It's up 15%.

The two companies will still work together. Apple and Qualcomm announced a new six-year license contract, with the option to add two more years. It also announced a multi-year chipset supply agreement.

Intel (INTC) shares are up 4% in premarket trading after it announced it will stop making 5G chips for smartphones. Apple used Intel chips in their iPhone XS line, but faced a shaky future with the company because of today's Qualcomm deal.

6:46 a.m. ET, April 17, 2019

Pepsi pops on good chip sales

Shares of PepsiCo (PEP) rose about 2% before trading hours on Wednesday after the company reported earnings that beat Wall Street's expectations.

The beverage company Frito-Lay business was particularly successful in North America. Organic sales of Frito-Lay, which includes Cheetos, Lay's, Doritos, Sun Chips, Fritos and more, grew 6% in the most recent quarter, PepsiCo said. The company's North American beverage business also performed well, with 2.5% growth in organic sales.

Ramon Laguarta, PepsiCo CEO since October, said he is "pleased" with the results, noting that "Frito-Lay North America ... delivered particularly strong operating performance."

Overall, net revenue grew 2.6% to $12.9 billion in the first quarter, a result that Laguarta said was negatively affected by foreign exchange rates. He added that organic growth for the quarter was over 5%.

6:46 a.m. ET, April 17, 2019

China's economy is showing renewed signs of life

China's economy grew slightly more than expected in the first quarter of 2019, official data showed Wednesday.

It expanded by 6.4% compared to a year ago, beating economists' forecasts of 6.3%.

The big picture is that policy stimulus is clearly working and should help to shore up China's economy in the coming quarters," said Julian Evans-Pritchard, Senior China Economist at Capital Economics.