- Increasing auto insurance is playing a role in higher inflation.
- The S&P 500 and the Nasdaq Composite had sharp rebounds.
- Big banks started reporting earnings.
Here are the most important news items that investors need to start their trading day:
1. Back to record territory
The S&P 500 and the Nasdaq Composite jumped Thursday, led by a surge in tech stocks. The S&P 500 increased 0.74%, while the Nasdaq gained 1.68% to end the day at a new high. The Dow Jones Industrial Average was the outlier, underperforming and slipping 2.43 points, or just 0.01%. Members of the “Magnificent Seven” excelled, as Nvidia jumped 4.1%, Amazon added about 1.7% and hit an all-time high, while Alphabet rose more than 2% and Apple popped 4.3%. Investors also got some relief as the producer price index reading for March came in below estimates. Follow live market updates.
2. Bank earnings
JPMorgan Chase, the biggest U.S. bank by assets, reported first-quarter profit and revenue that beat expectations Friday. The company also said trading revenue and credit costs came in better than expected. Despite the beat, shares of JPMorgan fell roughly 4% in premarket trading. Wells Fargo shares also fell in early trading Friday after the bank reported first-quarter earnings that beat expectations but showed a decline in interest income.
3. Sweeping decisions
Andy Jassy, CEO of Amazon, speaks with CNBC’s Andrew Ross Sorkin (not pictured) on April 11th, 2024.
Amazon CEO Andy Jassy on Thursday criticized regulators blocking mergers after they stepped in to express concerns about the company’s planned acquisition of robotic vacuum maker iRobot. That deal fell through earlier this year due to antitrust concerns. Jassy told CNBC’s Andrew Ross Sorkin that regulators blocked the potential deal “because they worry that we’re going to feature our vacuum cleaner, the Roomba, vs. others, which of course is not our model.” The decision came as regulators have taken a more aggressive approach in trying to block Big Tech companies from further expansion.
4. Driving up inflation
A worker prepares to park a Tesla electric car at a Tesla dealership on January 16, 2024 in Burbank, California.
A rise in auto insurance costs contributed to higher inflation in March as expenses for vehicle owners continued to skyrocket. Car insurance prices as part of the consumer price index rose by an unadjusted 2.7% in March and 22.2% year over year, according to data released Wednesday. Auto insurance costs have only been on the rise since December 2021. “There’s not a single factor, but I think the biggest factor is a combination of new cars and more expensive, so if you total your car the replacement cost is really high and a fender bender is very expensive right now,” said Sean Tucker, senior editor at vehicle valuation and automotive research company Kelley Blue Book. “The technology in the cars, it’s a very specific problem.”
5. Wild takeout
Buffalo Wild Wings on Wednesday opened its 100th Go location, which is a smaller, takeout-focused spinoff of the sports bar chain. BWW Go sells the restaurant’s iconic chicken wings and other menu items as the chain aims to build its brand in the takeout category. Though Buffalo Wild Wings’ revenue fell 1% in 2023, a fast-growing spinoff like Go can bolster the company’s image to potential public market investors. BWW is part of Inspire Brands, which is reportedly considering going public in late 2024 or 2025, seeking a valuation of $20 billion. The chain plans to open another 50 Go locations by the end of the year.
— CNBC’s Hakyung Kim, Hugh Son, Yun Li, Annie Palmer, Michael Wayland and Amelia Lucas contributed to this report.
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