Here Are 3 Hot Things to Know About Stocks Right Now

  • The Dow Jones Industrial Average rose, led by JPMorgan Chase (JPM - Get Report) , which posted first-quarter earnings that topped analysts' forecasts.
  • Chevron (CVX - Get Report)  fell 5% after announcing it would buy Anadarko Petroleum (APC) for $33 billion in cash and stock. Anadarko soared 32%.
  • Walt Disney (DIS - Get Report) climbed after unveiling its Disney+ streaming service. In addition, CEO Bob Iger said he plans to step down at the end of 2021 when his current contract ends.

Wall Street Overview

Stocks ended with solid gains Friday following JMorgan Chase's ( JPM - Get Report) first-quarter earnings beat and after Walt Disney  ( DIS - Get Report) unveiled its new streaming service.
 
JPMorgan Chase rose 4.7% to $111.21 after the the largest U.S. bank said first-quarter profit rose faster than expected, as the bank used a lower-than-expected tax rate, expense controls and growth in credit-card loans to overcome a slump in bond- and stock-trading. Net income rose by 5% from a year earlier to $9.18 billion, or $2.65 a share. Analysts surveyed by FactSet had estimated earnings of $2.35. 
 
Dow component Chevron ( CVX - Get Report)  lost ground after announcing  it would buy Anadarko Petroleum ( APC)  for $33 billion in cash and stock. Chevron said it will pay $65 a share to Anadarko shareholders, who will receive 0.3869 a share of Chevron and $16.25 in cash for each Anadarko share.
 
The total enterprise value of the transaction is $50 billion.
 
Shares of Chevron slumped 5% to $119.76, while Anadarko soared 32% to $61.78.
 
Walt Disney climbed 11.5% to $130.06 a share after the entertainment giant unveiled its streaming service Disney+, which  will launch on Nov. 12, 2019, and be priced at $6.99 a month, or $69.99 a year. Separately, Disney CEO Bob Iger said he plans to step down at the end of 2021 when his current contract ends.
 
Netflix ( NFLX - Get Report) fell 4.5% to $351.14 following Disney's announcement, as some investors and market-watchers feel the new service could cut into Netflix's dominance in the online streaming space.
 
The Dow Jones Industrial Average, which reached a high of 293 points, ended the day at 269 points, or 1.03%, to 26,412, while the S&P 500 climbed 0.66%, and the Nasdaq advanced 0.46%.
  
"There was a ton of anxiety going into earnings season, but I bet a lot of people are taking a breath of fresh air right now," said Mike Loewengart, E*Trade's vice president of investment strategy. "(Friday) is nothing if not encouraging about the strength of our economy and market. Despite the current interest rate environment, financials are persistently performing well on the earnings front. Also, the markets seem to like recent trade data out of China, and really any clarity on that front is a good thing."

However, Loewengart added that "we're destined to see more than a few disappointments in the coming weeks."

"The earnings landscape does remain pretty uncertain and key fundamental indicators like retail sales and housing data have been showing pockets of weakness," he said.

Wells Fargo (WFC - Get Report)   fell 2.6% to $46.49 after Chief Financial Officer John Shrewsberry told investors on a conference call that net lending revenue, one of the biggest earnings drivers, might drop this year.

He cited a potential increase in deposit rates, the sale of loans with high interest rates and the current state of U.S. markets, featuring a reduced gap between yields on short-term and long-term bonds. Since banks often rely on bond markets as a gauge for pricing loans and deposits, the result could be a smaller lending margin.

The factors look "a little bit softer," Shrewsberry said

Wells Fargo's first-quarter profit climbed by 14% from a year earlier, topping Wall Street estimates. Net income rose to $5.86 billion, the scandal-plagued lender said Friday. Earnings per share were $1.20, above the average analyst forecast of $1.11.
  
In economic news, U.S. consumer sentiment fell in April for the first time in three months. The University of Michigan's preliminary sentiment index dropped to 96.9 from the prior month's 98.4. The median estimate of economists was 98.2. The gauge of current conditions rose to a four-month high of 114.2, while the expectations gauge fell to 85.8.
 
"Consumer confidence continued its sideways shuffle in early April, posting an insignificant decline following the small gain recorded last month," Richard Curtin, the survey's director, said in a statement.
 
JPMorgan, Anadarko, and Walt Disney are holdings in Jim Cramer's Action Alerts PLUS member club. Want to be alerted before Jim Cramer buys or sells the stocks? Learn more now.