Here are the top news, trends and analysis investors need to start their trading day:
1. Stock futures fall when the 10-year Treasury yield breaks a 3-year high
Traders on the NYSE floor, April 14, 2022.
Source: New York SE
2. BofA issues stronger revenue as it frees up reserves for bad loans
A woman is reflected in a puddle as she walks past a Bank of America branch in New York’s Times Square.
Brendan McDermid | Reuters
Bank of America, the last of the big banks to report earnings, posted better-than-expected earnings of 80 cents a share on revenue of $23.33 billion on Monday. BofA’s decision to release $362 million in loan loss reserves came in contrast to JPMorgan Chase, which announced last week that it had decided to build $902 million in reserves. JPMorgan said profit also slumped on losses related to Russia sanctions. Goldman Sachs, Morgan Stanley and Citigroup all beat expectations with stronger than expected trading results. Wells Fargo missed sales as mortgage lending fell.
3. Elon Musk’s tweet suggests an appeal directly to Twitter shareholders
Elon Musk posted a tweet Saturday saying “Love Me Tender,” days after he made an unsolicited $43 billion cash offer to buy Twitter. After a TED Talk Thursday, Musk hinted at the possibility of a hostile bid in which he would bypass the social media company’s board and make the offer directly to shareholders.
The tweet seemed to imply that Musk, the world’s richest person and CEO of Tesla and SpaceX, could be looking to buy shares from investors in a so-called takeover bid. Twitter launched a “poison pill” on Friday to limit Musk’s ability to increase his stake in the company. Shares of Twitter are up more than 3.5% in premarket trading.
4. China’s first quarter GDP beats estimates despite Covid lockdowns
A health worker wears a protective suit while disinfecting an area outside a barricaded community put under lockdown for health surveillance after recent cases of COVID-19 were found in the area in Beijing, China, March 28, 2022.
Kevin Frayer | Getty Images
China’s gross domestic product grew faster-than-expected by 4.8% in the first quarter despite the impact of the Covid lockdowns in March. For the past month, China has been struggling to contain its worst Covid outbreak since the pandemic’s early stages in 2020. Three people had died as of Sunday, lockdown Shanghai officials said, attributing the deaths to pre-existing health conditions. Shanghai began a two-tier lockdown and mass virus testing in late March, which was scheduled to end a little over a week later. But authorities have yet to set an end date.
5. Russian attacks kill at least 7 people in Lviv, Ukrainian officials say
Dark smoke rises after an airstrike in the western Ukrainian city of Lviv April 18, 2022.
Yuriy Dyachyshyn | AFP | Getty Images
Russian missiles struck Lviv in western Ukraine on Monday, killing at least seven people, Ukrainian officials said, as Moscow’s troops stepped up strikes on infrastructure in preparation for a full-scale attack in the east. Mariupol, the besieged city to the east, has rejected Russia’s demand for surrender. The mayor of Mariupol said last week that 10,000 civilians had died there. “The targeting of populated areas in Mariupol is consistent with Russia’s approach to Chechnya in 1999 and Syria in 2016,” Britain’s MoD said in an intelligence update.
– Hannah Miao, John Melloy, Sarah Min, Tanaya Macheel, Hugh Son, Evelyn Cheng, Natasha Turak and Ted Kemp from CNBC, as well as Reuters and The Associated Press contribute to this report.
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