![]() ![]() House of Representatives could on Wednesday vote on a bill to sharply cut spending for a decade in exchange for a short-term hike in the debt ceiling, though it is unclear if it has enough support in the Republican majority to pass. sovereign credit default swaps creeping higher. debt ceiling standoff persisted, however, with Treasury Secretary Janet Yellen again warning of 'economic catastrophe' if the debt cap is not lifted and U.S. Overall, the news saw S&P500 futures gain 0.5% before the bell - recouping some of Tuesday's 1.5% drop and offsetting modest losses on many Asian and European bourses. The relatively mixed picture was also reflected in the incoming macro numbers - where a drop in April consumer confidence contrasted with further signs of a rebound in housing. And in Europe, Standard Chartered (STAN.L) shares bucked otherwise dour markets on a forecast-beating 21% jump in first-quarter profits.Īnd while the blizzard of corporate earnings this week makes it hard to see the wood for the trees, the aggregate readout on first quarter S&P500 earnings shows almost 80% of firms beating forecasts so far and the estimated annual profit contraction ebbing to 3.9% from more than 5% earlier this month. PacWest Bancorp's (PACW.O) shares jumped 15% in extended trading after the regional lender said deposits have been building recently. Judged by another near 50% drop in First Republic's already battered shares on Tuesday - amid reports of asset sales to fill the $100 billion hole in deposits that it reported from the March blowup - that banking instability smoulders.īut despite the fresh wobble across banking indices on Tuesday, it wasn't all bad news in the sector. With Meta (META.O) results out later, its stock was up 2% and Amazon (AMZN.O) raced ahead 4%.Īpple AAPL.0 reports next week, with some eyes on its move into financial services as it muscles in on high-yield savings accounts that pander to jittery depositors. banks, Big Tech mega caps seem to have calmed the investment world with cloud-covered earnings beats and giddy talk of the quantum leap in artificial intelligence.Īfter Tuesday's bank stress echo seeded the worst day on Wall St in over a month, Microsoft (MSFT.O) stock soared almost 10% ahead of Wednesday's open following a first-quarter profit beat that was driven by demand for its cloud computing, productivity software and AI products.Īlphabet (GOOGL.O) also gained 1% as it too trumpeted gains in cloud services and AI, alongside plans for a $70 billion buyback. Just as markets were getting all antsy again about regional U.S.
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