© Reuters.
Investing.com – Wall Street’s major indexes opened lower on Friday, after weak retail sales data in March indicated the economy was slowing, while strong earnings from three big U.S. banks helped ease fears of further pressure on the sector.
Meanwhile, the recent comments added more confusion to the markets after Fed member Waller stressed that the Fed’s job is not over yet.
As a result of these sudden statements, it fell by more than 2% during these moments of today’s trading, to fall below $2,000 in spot trading, in conjunction with a return to the rise after it was in a downward range.
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Federal remarks
A senior official in the country said today, Friday, that there has been little progress in controlling inflation, indicating that more increases are needed to bring it under control.
Fed board member Christopher Waller did not specify how many more increases he would support, but said in written remarks that inflation “remains too high and therefore the Fed’s mission is not done.”
Last month, inflation slowed as food and gas prices fell, but excluding those volatile categories, “core” prices have continued to rise and are 5.6% higher than a year ago. Waller noted that core prices have risen at the same pace or higher since December 2021.
Waller’s comments expressing support for further rate hikes followed Fed economists’ forecasts, which were disclosed in Fed minutes on Wednesday, for a “moderate recession” later this year.
Waller said he, like most of his colleagues, is watching closely whether the collapse of two big banks last month leads to a broad cut in lending by the banking system, which could slow the economy.
But he said that so far it is not clear how big the impact will be, job growth remains strong and inflation is well above the Fed’s 2% target, “so monetary policy needs to be tightened further.”
His words echo those of many of his colleagues, who have said in recent weeks that they support at least one rate hike. That would put the Fed’s benchmark interest rate at around 5.1%, the highest rate in 16 years.
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Bank profits
JPMorgan (NYSE:)
It rose from the current year, as soaring prices underpinned its consumer business in a period that saw two of the biggest banking failures in US history.
The bank’s profit rose 52% to $12.62 billion, or 4.10 per share, in the three months ended March 31, compared to $8.28 billion, or $2.63 per share, a year earlier.
Black Rock
BlackRock reported a 19% year-on-year increase to $1.1 billion as the world’s largest financial manager struggled with squeezed margins, weak markets and lower performance fees.
BlackRock’s revenue fell 10 percent to 4.2 billion from the same period a year earlier.
Assets under management rose to $9.1 trillion, more than analysts polled by Bloomberg had expected. However, it is well below the $10 trillion peak at the end of 2021.
The increase was driven by a partial recovery in the markets after last year’s lows. The US money manager generated net inflows of $110 billion, with bond exchange-traded funds doing well.
Wales graduates
Wells Fargo’s first-quarter earnings rose with the help of the US Federal Reserve’s more hawkish monetary policy, the lender said just now.
It reported $4.99 billion, or $1.23 per share, for the quarter ended March 31, compared to $3.79 billion, or 91 cents per share, a year ago.
The bank set aside $1.21 billion in the quarter to cover potential loan losses, compared to issuing $787 million in the previous year.
The bank said the approval included an increase of $643 million in allowance for credit losses, reflecting an increase in commercial real estate loans, especially office loans, as well as an increase in credit cards and car loans.
Citigroup
(NYSE:) in the first quarter exceeded Wall Street’s expectations on Friday, supported by an increase in its gains due to the increase in the interest charged to borrowers on loans amid the monetary tightening policy by the Federal Reserve (the Central Bank of America).
However, it set aside $241 million this quarter to cover potential loan losses on the back of a slowing economy and compared to a reserve release of $138 million a year ago.
The bank’s deposit growth was stable at $1.33 trillion on a quarterly basis and also on an annual basis, with investors shifting their money into money market funds in search of greater returns.
Indicators at the time of writing
The industrial index fell 0.6% to 33,831 points.
It fell by 0.45%, at 4,127 points.
While the compound fell 0.65% to 12088 points.
Markets at the time of writing
It fell 2.15% to 2010 dollars.
And it fell by 2.12% at 1996 dollars an ounce.
While it rose by 0.65%, to score 101.32 points.
Crude futures rose at 86.4 a barrel, or 0.3%.
US West Texas Intermediate crude also rose, at $82.7 a barrel, by 0.7%.
