10 Mins Ago
Disney CEO responds to latest development in governor feud
Disney CEO Bob Iger said Florida Gov. Ron DeSantis actions against the company were “anti-business” and “anti-Florida.”
Iger responded to the latest developments in the feud between the company and the governor during the Disney shareholder meeting Monday. Earlier, DeSantis asked the state’s inspector general to determine whether an agreement signed by a Disney-allied board that limits control over the company and its district was legal, or if any company executives were involved.
He said the company, while noting the creation of jobs and tourism boost it provides to the state, was being retaliated against for free speech.
“A year ago, the company took a position on pending Florida legislation,” Iger said in an apparent reference to what critics have called the “Don’t Say Gay” bill. “And while the company may have not handled the position that it took very well, a company has a right to freedom of speech just like individuals do.”
Disney shares advanced 0.6% in the premarket. The stock closed Monday’s session down about 0.4%.
— Alex Harring, Sarah Whitten, Kevin Breuninger
31 Mins Ago
Stocks making the biggest moves during premarket trading
Here are some of the stocks making the biggest moves before the bell.
Etsy — The e-commerce company’s shares rose 3.9% after Piper Sandler upgraded them to overweight from neutral. The firm said that it thinks Etsy’s marketplace strengths will “help reaccelerate active buyer growth.” Shares are down 9.6% in 2023.
Virgin Orbit — The satellite launch company sank 14% in the premarket after filing for Chapter 11 bankruptcy protection. Virgin Orbit also said it would lay off nearly all of its workforce.
Boeing — The aerospace manufacturer’s stock dropped 0.8% after Northcoast Research downgraded shares to a sell rating. The research firm cited expected changes to commercial aircraft production, resetting of consensus forecasts and volume headwinds ahead for Boeing this quarter after communicating with its contacts in the sector.
Check out the full list here.
— Hakyung Kim
33 Mins Ago
The U.S. banking crisis is “stabilizing” and regulators are ready to step in again if necessary, Yellen says
U.S. Treasury Secretary Janet Yellen said the banking crisis is “stabilizing” and regulators are prepared to act again to protect deposits if necessary, according to Bloomberg News.
“My read is the outflows from smaller and medium-sized banks are diminishing and matters are stabilizing, but it’s a situation we’re watching very closely,” Yellen told reporters on Tuesday.
Yellen also pushed back against criticism toward the Financial Stability Oversight Council, which some GOP members have blamed for not identifying the banking crisis earlier. She said the crisis itself only afflicted “a couple of banks” which were extraordinarily exposed to the threat of runs.
“I don’t think there’s a fundamental problem with the banking system,” Yelled added.
— Brian Evans
46 Mins Ago
Virgin Orbit files for Chapter 11 bankruptcy protection
Virgin Orbit failed to secure enough funding to keep its business afloat and filed for Chapter 11 bankruptcy protection in the U.S. on Tuesday. The California-based satellite launch company is also looking to sell its assets and will lay off nearly all of its workforce.
“While we have taken great efforts to address our financial position and secure additional financing, we ultimately must do what is best for the business,” Virgin Orbit CEO Dan Hart said in a statement Tuesday.
Hart said Chapter 11 is the “best path forward” to sell the company. Shares of Virgin Orbit have tanked nearly 90% year to date.
See Chart…
Virgin Orbit year to date
— Michelle Fox, Sam Meredith
48 Mins Ago
West Texas Intermediate crude oil climbs for second straight day after OPEC+ output cut
Crude oil climbed on Tuesday, with the output cut from OPEC+ continuing to push prices above $80 per barrel.
West Texas Intermediate crude was 1% higher at $81.27 per barrel, while international benchmark Brent ticked up 0.9% to $85.75. The Energy Select Sector SPDR Fund (XLE) also headed higher on Tuesday.
The surprise output cut sent oil prices surging as much as 6% a day earlier, and added to worry that the move could stoke more inflation and add to recession fears.
The output cut amounts to 1.16 million barrels per day, and now puts the total amount of cuts from OPEC+ at 3.66 million barrels per day.
— Brian Evans
An Hour Ago
GDP tracker cuts outlook to 1.7% growth for the first quarter
The outlook for first-quarter economic growth has declined sharply in recent days, according to a tracker from the Atlanta Federal Reserve.
GDPNow, which adjust its outlook on the go as economic data rolls in, now sees the first three months of the year growing at just a 1.7% annualized pace. As recently as March 23, the tracker had been pointing to growth of 3.5%.
The latest leg down followed Monday’s release of the ISM Manufacturing Survey for March. The survey showed that just 46.3% of all manufacturers saw expansion for the month. That was the fifth straight month below 50%, which is the dividing line between expansion and contraction, and the lowest reading since May 2020.
Despite the relatively weak growth, expectations are tilting in favor of the Fed raising its benchmark borrowing rate by another quarter percentage point in May, according to the CME Group’s FedWatch tracker.
—Jeff Cox
2 Hours Ago
Citi sees 30% upside on Sarepta Therapeutics
Analyst Neena Bitritto-Garg initiated coverage of the biotechnology stock with a buy rating, saying in a Tuesday note to clients that a positive vote from a Food and Drug Administration advisory committee on its SRP-9001 therapy could give Sarepta 30% upside.
“Though AdCom meetings do increase risk/volatility into a PDUFA date, we like the setup for shares from here, as we believe the AdCom vote could be positive if focus is on benefit/risk and the relationship between SRP-9001 microdystrophin expression and clinical endpoints,” she wrote.
CNBC Pro subscribers can read more here.
— Samantha Subin
2 Hours Ago
Jamie Dimon warns banking crisis is not over
JPMorgan Chase CEO Jamie Dimon wrote in his annual letter to shareholders that the U.S. banking crisis is still not over.
“The current crisis is not yet over, and even when it is behind us, there will be repercussions from it for years to come,” Dimon said.
“Any crisis that damages Americans’ trust in their banks damages all banks – a fact that was known even before this crisis. While it is true that this bank crisis ‘benefited’ larger banks due to the inflow of deposits they received from smaller institutions, the notion that this meltdown was good for them in any way is absurd,” Dimon added.
— Jesse Pound
3 Hours Ago
CNBC Pro: As Wall Street turns bearish on the U.S., here’s where the pros say to invest
Wall Street strategists appear unconvinced that U.S. stocks are the best place to be looking ahead — despite a strong first quarter performance.
Against this backdrop, where should investors put their money?
— Zavier Ong
5 Hours Ago
European markets open modestly higher
European markets opened modestly higher Tuesday, seemingly brushing off concerns over oil price rises following a surprise production cut by the OPEC+ alliance.
The pan-European Stoxx 600 index was up 0.4% at the start of trade, with all major bourses and sectors trading in the green. Mining stocks led gains with a 1.2% uptick, followed by bank stocks, which were up 0.8%. Oil and gas stocks were up 0.4%.
— Hannah Ward-Glenton
8 Hours Ago
Australia’s central bank keeps rates unchanged at 3.6%
The Reserve Bank of Australia has held its its benchmark interest rate at 3.6%.
“The decision to hold interest rates steady this month provides the Board with more time to assess the state of the economy and the outlook, in an environment of considerable uncertainty,” the central bank said in its statement.
This marks the first halt in the RBA’s hiking cycle since it started raising rates in April 2022.
The Australian dollar weakened following the move to 0.6782 against the U.S. dollar.
– Lim Hui Jie
14 Hours Ago
A recession coming ahead as the full effects of rate hikes loom, says Evercore’s Julian Emanuel
Evercore expects an economic downturn this year as the effects of the Federal Reserve’s tightening monetary policy continue to ripple through the economy.
“If you think about it, [we’ve had] a year’s worth of tightening. … If you think about all that tightening to us, [right now] is likely only the beginning of the effects of the tightening, rather than the end of it,” Evercore ISI’s senior managing director Julian Emanuel said on CNBC’s “Fast Money.”
“We do think there’s probably more to come—and in that respect, we’re going to have a recession, even if it’s mild, as we expect. We think stocks will bear the brunt of it,” Emanuel continued.
Emanuel anticipates that companies will see their earnings soften in the second quarter of 2023, which could potentially call into question the Nasdaq’s strong year-to-date rally. The tech-heavy index has jumped 17.3% in 2023.
He mentioned that Evercore has added small-cap stocks to its portfolio today as a defensive play in the current market.
“Small caps actually have a larger-than-normal weighting towards the more defensive sectors, including healthcare and energy — which we think makes a lot of sense right here,” Emanuel said.
“Basically what it does is it gives you the put-option protection through high free cash flow. If the economy turns down as we expect —or importantly, if there’s a credit crunch —you’re protected with free cash flow, and then the call optionality part of it is in an environment where earnings estimates have been coming in across the broad spectrum of stocks. These stocks are still having upward revisions. That’s a good thing,” added Emanuel.
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Nasdaq Composite
9 Hours Ago
JPMorgan says OPEC+ move to cut supply targets is ‘preemptive’
JPMorgan analysts said that the move by OPEC+ was a “preemptive” move and that it had expected similar measures to come earlier.
“We view the current reduction in supply as a preemptive measure, assuring that surpluses that started accumulating in the global oil market fitness since mid-2022 don’t extend into the second half of 2023 as the global economy slows following almost 400 bps of cumulative hikes since 2022,” analysts including Natasha Kaneva wrote in a late Sunday note.
Contrary to Goldman Sachs that raised its forecast for Brent oil rising to $95 per barrel by December 2023, JPMorgan said their forecast remains unchanged at $89 in the second quarter of this year – rising to $94 by the fourth quarter of 2023 and ending the year at $96 per barrel.
– Jihye Lee
14 Hours Ago
Stock futures open flat
Stock futures were little changed to begin trading Monday evening.
Dow Jones Industrial Average futures inched down by 30 points or 0.09%. S&P 500 futures slipped by 0.08%, and Nasdaq 100 futures dipped by 0.14%.
In regular trading the Dow rose 327 points, or 0.98%, and the S&P 500 added 0.37%. The Nasdaq Composite slid 0.27%.
— Tanaya Macheel
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