Bank of America, Citigroup, American Airlines, Coronavirus, Airbnb - 5 Things You Must Know Wednesday

Stock futures fall as investors focus on corporate earnings reports Wednesday from Bank of America, Citigroup and Goldman Sachs; U.S. airlines reach preliminary agreements with the Treasury Department to access $25 billion in aid; President Trump temporarily halts funding to the World Health Organization.
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Here are five things you must know for Wednesday, April 15:

1. -- Stock Futures Point to a Weaker Wall Street Open

Stock futures fell Wednesday and shares in Europe and Asia declined as investors focused on corporate earnings during the coronavirus pandemic that could see the global economy suffer its worst year since the Great Depression of the 1930s, according to the International Monetary Fund.

Contracts linked to the Dow Jones Industrial Average declined 413 points, futures for the S&P 500 were down 54 points and Nasdaq futures tumbled 119 points.

Stocks finished with solid gains Tuesday after JPMorgan Chase  (JPM) - Get Report and Wells Fargo  (WFC) - Get Report kicked off earnings season and investors were heartened by signs the coronavirus outbreak was leveling off and efforts were being made to reopen businesses shut during the coronavirus pandemic.

The Dow gained 559 points, or 2.39%, to close at 23,949. The S&P 500 rose 3.06% and closed at a one-month high. The Nasdaq jumped 3.95%, led higher by sharp gains in tech giants Microsoft  (MSFT) - Get Report and Apple  (AAPL) - Get Report.

The IMF said Tuesday the global economy will contract 3% in 2020 as countries went into lockdown to try to prevent the spread of the virus. The IMF had forecast in January that GDP would rise 3.3%.

“It is very likely that this year the global economy will experience its worst recession since the Great Depression," said Gita Gopinath, the IMF’s chief economist, in the group's latest World Economic Outlook report.

2. -- Bank of America, Citigroup and Goldman Sachs Report Earnings

Bank of America  (BAC) - Get Report earned 40 cents a share in the first quarter, below analysts' expectations of 49 cents. Net interest income in the quarter was $12.13 billion vs. estimates of $11.74 billion.

The bank recorded a $4.8 billion provision for credit losses in the period. 

UnitedHealth  (UNH) - Get Report posted stronger-than-expected first-quarter earnings and maintained its full-year earnings guidance as it continues to monitor the impact of the coronavirus pandemic on its U.S. operations.

Earnings are also expected Wednesday from Citigroup  (C) - Get Report, Goldman Sachs  (GS) - Get Report, PNC Financial  (PNC) - Get Report, Aphria  (APHA) - Get Report and Bed Bath & Beyond  (BBBY) - Get Report.

Citigroup and Goldman Sachs 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.

The economic calendar in the U.S. on Wednesday includes Retail Sales for March at 8:30 a.m. ET, the Empire State Manufacturing Survey for April at 8:30 a.m., and Industrial Production for March at 9:15 a.m.

3. -- Airlines Reach Preliminary Pact With U.S. Government for Assistance

U.S. airlines were rising in premarket trading Wednesday after they reached preliminary agreements with the Treasury Department to access $25 billion in aid for an industry that has been crushed by sharp declines in air travel during the coronavirus pandemic.

The deal covers all major carriers, according to the Treasury Department.

American Airlines  (AAL) - Get Report said it would receive $5.8 billion in aid, while Southwest Airlines  (LUV) - Get Report will get $3.2 billion in assistance.

Treasury Secretary Steven Mnuchin said the program “will support American workers and help preserve the strategic importance of the airline industry while allowing for appropriate compensation to the taxpayers.”

JetBlue  (JBLU) - Get Report CEO Robin Hayes told the airline's employees that the agreement “buys us some much-needed breathing room."

JetBlue will receive $685.1 million in direct support and $250.7 million in loans which must be repaid beginning in October.

4. -- Coronavirus - The Latest

The number of confirmed global cases of the coronavirus has risen to 1,986,986, according to the Johns Hopkins Center for Systems Science and Engineering, and deaths increased to 126,812.

The U.S. has 609,516 cases of the coronavirus, the most in the world, according to Johns Hopkins CSSE. Deaths in the U.S. have risen to 26,057, also the most in the world.

New York City added 3,778 people to its virus death toll, accounting for victims who were presumed to have died of Covid-19 but who hadn’t tested positive for the virus. The additions pushed the death toll in the city to more than 10,000. 

President Trump said the U.S. temporarily will suspend funding to the World Health Organization because of what he claimed was the group’s mismanagement of the coronavirus response.

“The WHO failed in its basic duty and must be held accountable,” Trump said Tuesday at a White House press conference.

The president said the coronavirus might have been contained in China if the WHO had acted more quickly. 

A senior administration official said the funding halt would go into effect immediately, according to The Wall Street Journal. The U.S. provided $453 million to the WHO in fiscal 2019, the official said.

5. -- Airbnb Raises Another $1 Billion

Airbnb secured a $1 billion loan, just a week after receiving the same amount, as the home-sharing company takes a hit from the collapse in demand for travel during the coronavirus pandemic.

The second funding round comes from a group of more than 20 investors, including Silver Lake, the largest participant, Bloomberg reported, citing people with knowledge of the matter. Other investors are BlackRock, Eaton Vance, Fidelity Investments and T. Rowe Price.  

Airbnb has suffered a blow from widespread travel restrictions and shelter-in-place orders underway around the world.

The company has instituted a number of measures to preserve its cash, including a hiring freeze, executive pay cuts and suspending marketing expenditures.

Airbnb had been planning to go public sometime this year but it's unknown whether those plans will go forward.