What's moving markets today: April 26, 2019

By CNN Business

Updated 4:56 p.m. ET, April 26, 2019
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9:36 a.m. ET, April 26, 2019

American Airlines has a $1 billion problem

From CNN Business' Jordan Valinsky

The grounding of its Boeing 737 Max fleet and rising oil prices will cost American Airlines (AAL) nearly $1 billion dollars.

"We presently estimate the grounding of the 737 MAX will impact our 2019 pre-tax earnings by approximately $350 million. With the recent run-up in oil prices, fuel expenses for the year are also expected to be approximately $650 million higher than we forecast just three months ago," the airline said in a release.

These troubles forced the airline to cut its full-year earnings forecast. It did turn a first-quarter profit.

American's shares are down 2% in early trading.

8:26 a.m. ET, April 26, 2019

Uber gets $500 million investment from PayPal

From CNN Business' Jordan Valinsky

PayPal (PYPL) is buying $500 million worth of Uber's common stock, the company said in an updated regulatory filing.

The company also said it's offering 180 million shares at between $44 and $50 per share, valuing the company at $84 billon on the high end.

Uber filed paperwork to go public earlier this month in what is likely to be one of the biggest public offerings ever for a technology company.

The listing follows an aggressive overhaul of the company's internal culture.

6:48 a.m. ET, April 26, 2019

Intel sinks 8% after it slashed its full-year forecast

From CNN Business' Jordan Valinsky

Intel (INTC) shares sunk 8% in premarket trading after it slashed its full-year revenue forecast and issued a warning on its sales in China.

Intel CEO Robert Swan said in an earnings call Thursday that "China headwinds have increased, leading to a more cautious IT spending environment." He added that its full-year revenue forecast will be 3% lower than expected from its previous estimate.

This is Swan's first full quarter as Intel's permanent CEO. He took over as temporary chief after former CEO Brian Krzanich was forced to resign in June 2018 because of a "past consensual relationship with an Intel employee."

6:43 a.m. ET, April 26, 2019

Remember when Amazon didn't make money? Profit tops $1 billion for sixth straight quarters

From CNN Business' Seth Fiegerman

Amazon's profit machine shows little sign of slowing down.

The company on Thursday reported:

  • A record $3.6 billion in profit for the first three months of 2019, more than doubling from $1.6 billion the year prior. Amazon's profits have now topped $1 billion for six straight quarters.
  • Revenue of nearly $60 billion for the quarter, an increase of just 17% from the year prior, its lowest growth rate since 2015.

For years, Amazon was known for bleeding money as it invested heavily in its businesses and rapidly increased revenue.

Now, it has entered a new era with comparatively sluggish sales growth, but a consistently profitable business.

Shares of Amazon (AMZNinitially rose 3% in after-hours trading Thursday following the earnings report, before giving up some of the gains.

6:21 a.m. ET, April 26, 2019

What to expect from US report on GDP this morning

From CNN Business' Lydia DePillis

The US Bureau of Economic Analysis is due to report GDP on Friday, and economists polled by Refinitiv are now projecting 2.1% annualized growth for the first quarter.

That would be only slightly lower than the previous quarter's 2.2% — which followed two robust quarters in mid-2018.

Some forecasters are even more rosy: The Federal Reserve Bank of Atlanta's GDPNow tracker is running at 2.8%, up from 0.3% at the beginning of March.

What a difference a few months makes: Just a few months ago, forecasters saw trouble ahead for the American economy.

6:02 a.m. ET, April 26, 2019

What's next for Deutsche Bank?

From CNN Business' Charles Riley

After ending merger talks with its rival Commerzbank on Thursday, Deutsche Bank (DB) has posted a 67% profit increase for the first quarter of 2019.

But revenue fell 9%, and the company said it would be "essentially flat" for the year. Its investment bank saw revenues slump 13%.

How will the German bank now address concerns over its ability to compete with US rivals? Investors aren't sure. Shares fell almost 3% in early trading in Frankfurt.

6:03 a.m. ET, April 26, 2019

Global markets check

From CNN Business' Charles Riley

US stock futures are little changed.

In Europe, London's FTSE 100 opened in negative territory, while Paris' CAC 40 and Frankfurt's DAX posted small gains. Stocks in Asia closed mixed.

Thursday's close: The Dow closed down 0.5% while the S&P 500 was little changed. The Nasdaq added 0.2% but fell just short of a fresh record close.

Here's what investors are looking at:

  • Sony (SNE) warned investors that its annual profit would drop in the 2019 fiscal year as sales of its aging PS4 console decline.
  • France's Renault (RNLSY) reported that its revenue dropped 4.8% in the first quarter. Global vehicle sales declined 5.6% to 908,348 after US sanctions forced the carmaker to shutter its operations in Iran.
  • American Airlines (AAL), Chevron (CVX), Exxon Mobil (XOM), Goodyear Tire (GT), IMAX (IMAX) and LendingTree (TREE) will release earnings before the open in New York.