We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
The economic prints keep coming, even on the last day of the trading week, and they continue to demonstrate the same thing: the economy is clearly slowing down. Retail Sales doubled their expected losses for March to -1.0%, the worst number since the -1.1% posted in November of last year. Subtracting volatile auto sales, this figure also was twice as low as predicted: -0.8%. These numbers come off upward revisions for both headline and ex-auto: -0.2% and 0.0%, respectively. We also note these are advance results, meaning we can expect revisions on the subsequent read.
Looking under the hood even further, ex-autos and gas prices came in at -0.3% — actually, twice as high as the -0.6% expected, and the only metric where we see stronger results from estimates. The Control Group — which is utilized by analytical bodies (like the Fed) up the food chain of retail pricing — also came in at -0.3%. So March Retail Sales was brought down further on headline by gasoline prices — something we should not expect for April.
Import Prices fell a half-point lower than predicted for March, to -0.6% from -0.1%, and -0.6% ex-petrol (fuel), as well. Export Prices month over month halved this total, -0.3%. Looking at year-over-year numbers, Import Prices were -4.6% last month and Exports were -4.8%. Without a doubt, we’re seeing more economic prints feeling the brunt of higher interest rate levels from the Fed, after raising rates 475 basis points (bps) in the last year.
Meanwhile, the unofficial Q1 earnings season has kicked off with JPMorgan (JPM - Free Report) posting a +20% positive earnings surprise: $4.10 per share versus $3.41 expected. Revenues of $38.35 billion in the quarter amount to a +9% positive surprise on the top line, partly on higher-than-expected Net Interest Income. Shares are up +5% on the news, swinging to positive stock movement year to date. So much for bank contagion leading to a near-term recession.
Citigroup (C - Free Report) also swept past estimates in its Q1 earnings release prior to today’s opening bell, posting $2.19 per share versus expectations of $1.66 and the year-ago print of $2.02 per share. Revenues reached #21.4 billion in the quarter, ahead of the $19.9 billion in the Zacks consensus. This marks the fourth earnings beat in the past five quarters for the company, which had already grown +4.6% year to date and is up +2% in early trading.
PNC Financial (PNC - Free Report) beat Q1 expectations on its bottom line by more than +10% to $3.98 per share versus $3.60 anticipated and $3.29 per share in the year-ago quarter. Revenues of $5.6 billion in the quarter were technically up but basically in-line: +0.06%, and up from $4.69 billion in the year-ago quarter. Shares of PNC had definitely borne some of the brunt of the SVB and other NoCal regional bank failures (even though the bank is based in Pittsburgh), and remains down -23% year to date.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Major Banks Kick Earnings Season Off With Beats
The economic prints keep coming, even on the last day of the trading week, and they continue to demonstrate the same thing: the economy is clearly slowing down. Retail Sales doubled their expected losses for March to -1.0%, the worst number since the -1.1% posted in November of last year. Subtracting volatile auto sales, this figure also was twice as low as predicted: -0.8%. These numbers come off upward revisions for both headline and ex-auto: -0.2% and 0.0%, respectively. We also note these are advance results, meaning we can expect revisions on the subsequent read.
Looking under the hood even further, ex-autos and gas prices came in at -0.3% — actually, twice as high as the -0.6% expected, and the only metric where we see stronger results from estimates. The Control Group — which is utilized by analytical bodies (like the Fed) up the food chain of retail pricing — also came in at -0.3%. So March Retail Sales was brought down further on headline by gasoline prices — something we should not expect for April.
Import Prices fell a half-point lower than predicted for March, to -0.6% from -0.1%, and -0.6% ex-petrol (fuel), as well. Export Prices month over month halved this total, -0.3%. Looking at year-over-year numbers, Import Prices were -4.6% last month and Exports were -4.8%. Without a doubt, we’re seeing more economic prints feeling the brunt of higher interest rate levels from the Fed, after raising rates 475 basis points (bps) in the last year.
Meanwhile, the unofficial Q1 earnings season has kicked off with JPMorgan (JPM - Free Report) posting a +20% positive earnings surprise: $4.10 per share versus $3.41 expected. Revenues of $38.35 billion in the quarter amount to a +9% positive surprise on the top line, partly on higher-than-expected Net Interest Income. Shares are up +5% on the news, swinging to positive stock movement year to date. So much for bank contagion leading to a near-term recession.
Citigroup (C - Free Report) also swept past estimates in its Q1 earnings release prior to today’s opening bell, posting $2.19 per share versus expectations of $1.66 and the year-ago print of $2.02 per share. Revenues reached #21.4 billion in the quarter, ahead of the $19.9 billion in the Zacks consensus. This marks the fourth earnings beat in the past five quarters for the company, which had already grown +4.6% year to date and is up +2% in early trading.
PNC Financial (PNC - Free Report) beat Q1 expectations on its bottom line by more than +10% to $3.98 per share versus $3.60 anticipated and $3.29 per share in the year-ago quarter. Revenues of $5.6 billion in the quarter were technically up but basically in-line: +0.06%, and up from $4.69 billion in the year-ago quarter. Shares of PNC had definitely borne some of the brunt of the SVB and other NoCal regional bank failures (even though the bank is based in Pittsburgh), and remains down -23% year to date.