To kick off earnings season Wells Fargo reported revenue of 17.78billion, which was lower than the expected 19.35 Billion. WFC posted an earnings .01cents per share, which is down from an earnings of .93 cents per share from their previous quarter. Their net income also dropped a staggering 89% to $653 million for this quarter.
JPMorgan reported revenue of 28.3 Billion, which was lower than the estimated 29 Billion. They also posted an earnings per share of .78 cents, well below the 1.84 estimates.
Both banks reportedly added billions to their reserves in anticipation for a high level of credit defaults from their customers and businesses.
$GE, $DIS, $XOM and $WBA have all made moves in regards to securing and rolling over their credit, as fear grows that they’ll run out of credit to maintain their operations. XOM issued 9.5 Billion in debt, while DIS extended their credit line by 5billion dollars.
Companies such as $F, $M, $DAL, and $GPS, have seen their Corporate bonds ratings drop to Junk bond status. Although the Fed has announced that they will be making purchases within the junk bond market.
Some estimates are predicting that the airline industry could take a 300billion dollar hit this year.
Vaccine manufacturers are under pressure to create vaccines faster than ever before, due to the belief that the economy can’t truly return back to normal until we have a vaccine. For every day the economy is shut down, it is estimated the US loses 25Billion dollars.
WeWork will not be paying their Manhattan rent for this month, joining a growing list of companies who told their landlords they will not be paying rent. WeWork is currently the largest tenant in Manhattan paying $500 million dollars a year in rent. The Cheesecake factory, and AMC are other notable names who have also told landlords they will not paying rent.
This has all been seen as fantastic news to investors, and reason to be bullish. Markets have now regained about 50% of their losses from March after having their best week in decades last week, the NASDAQ is on its longest winning streak since December, and the S&P500 is trading at 35x earnings. $TSLA is back above $700, and most tech stocks are racing towards their ATHs.
Edit *WeWork pays 500 million not billion a year for Manhattan rent.
Disclaimer: This information is only for educational purposes. Do not make any investment decisions based on the information in this article. Do you own due diligence.