Key insights
- JPMorgan and Citigroup reported strong earnings, particularly in fixed income, boosting market sentiment. However, JPM lowered its net interest income forecast, causing some pre-market concern. Oracle's investment in Bloom Energy yielded a significant gain, highlighting potential in the fuel cell sector. Overall, the news leans slightly positive for US equities, driven by strong bank earnings.
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Good morning. If you're looking for someone to blame for the rising cost of your Netflix subscription, you might take a look at Wall Street. CNBC's Sarah Whitten and Lillian Rizzo explain how investors' focus on profitability is prompting streamers to hike their prices.
Stock futures are higher this morning following a positive day for all three major indexes.
Here are five key things investors need to know to start the trading day:
Stocks rose yesterday, boosted by investors' optimism that the U.S. and Iran would reach a peace deal. The gains came even as U.S. forces began blockading Iranian ports in the Persian Gulf. The S&P 500 added 1.02% in Monday's session, erasing its losses since the Iran war began.
Here's what to know:
JPMorgan Chase topped analysts' first-quarter earnings and revenue expectations this morning, reporting a 13% annual increase in net income and 10% annual increase in revenue.
The bank posted particularly strong results for its fixed-income unit: Trading revenue was 21% higher than the year-ago period, or about $370 million above analysts' estimates. But JPMorgan also lowered its net interest income forecast for 2026, sending shares lower in pre-market trading.
Citigroup also beat expectations on the top and bottom lines this morning. The bank posted $24.63 billion in revenue for the quarter, its best in a decade. Earnings per share also impressed with a 56% jump from a year ago.
Last Thursday, Oracle was issued a warrant to buy up to 3.53 million shares of Bloom Energy's stock. Its investment, if it exercises the warrant, is already up more than $300 million.
Shares of Bloom rose more than 15% in post-market trading yesterday after the two companies announced they are expanding a preexisting partnership. That put the fuel cell maker's share price at $203, representing a $316 million gain for Oracle, which has until Oct. 9 to exercise the warrant.
Shares of Oracle were already higher on Monday, posting their best day since September as software stocks across the industry gained. Buoyed by optimism about a potential U.S.-Iran peace deal, traders bought shares of software names that have been hit hard by fears of artificial intelligence disruption.
CNBC's Morning Squawk recaps the biggest stories investors should know before the stock market opens, every weekday morning.
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Democratic Rep. Eric Swalwell said last night that he will resign from Congress as he faces allegations of sexual misconduct. The announcement came just one day after Swalwell, who denies the accusations, suspended his campaign for California governor.
An hour later, Rep. Tony Gonzales, R-Texas, announced that he plans to file his retirement from office today. Gonzales has admitted to having an affair with a staffer who later died by suicide. He and Swalwell faced potential expulsion measures.
Meanwhile, the two parties are gearing up for November's midterm elections, where Republicans hope to hold onto slim majorities in both chambers of Congress. CNBC's Justin Papp reported this morning that the National Republican Congressional Committee is launching a digital ad campaign focused on GOP-led tax breaks in nearly a dozen competitive districts.
As airlines spruce up their premium seat options in hopes of winning over wealthier passengers, Delta yesterday revealed an updated Delta One suite available on some of its long-haul flights.
The revamped suites feature beds that are three inches longer than prior models with a new pillow-top cushion. They will be available on Delta's Airbus A350-1000 aircraft beginning in 2027.
Here's a look at Delta's new suites.
Facing backlash from across the political spectrum, Trump on Monday deleted an image he posted to Truth Social that appeared to depict himself as Jesus. He gave this explanation when asked by a reporter about the post:
— CNBC's Sarah Whitten, Lillian Rizzo, Kevin Breuninger, Sean Conlon, Sarah Min, Jeff Cox, Hugh Son, Leslie Picker, Jordan Novet, Samantha Subin, Justin Papp, Leslie Josephs and Dan Mangan contributed to this report. Terri Cullen edited this edition.