U.S. stock markets opened lower this morning, as investors stayed cautious amid continued geopolitical tension concerning North Korea. U.S. homebuilding fell more than expected and the US dollar has fallen into the 99 handle.
Here is the current market situation from CNN Money
European markets are broadly lower today with shares in London off the most. The FTSE 100 is down 2.03% while France's CAC 40 is off 1.29% and Germany's DAX is lower by 0.79%.
WASHINGTON (Reuters) - U.S. homebuilding fell more than expected in March as the construction of single-family homes in the Midwest recorded its biggest decline in three years, but an increase in building permits suggested the housing market recovery remained intact.
BEIJING (Reuters) - The United States should "use every arrow" in its quiver to ensure a level commercial playing field in China, a U.S. business lobby said on Tuesday, warning that 2017 could be the toughest year in decades for American firms in the country.
(Reuters) - Johnson & Johnson reported on Tuesday quarterly revenue that missed estimates due to slowing pharmaceutical sales, but the company, which is in the process of closing its $30 billion acquisition of Actelion, raised its 2017 forecast.
(Reuters) - UnitedHealth Group Inc , the largest U.S. health insurer, reported better-than-expected quarterly results, driven by strength across its businesses, and raised its profit and revenue forecast for the year.
TOKYO (Reuters) - U.S. Vice President Mike Pence on Tuesday put Japan on notice that Washington wants results "in the near future" from talks it hopes will open markets to U.S. goods, adding that the dialogue could lead to negotiations on a two-way trade deal.
SHANGHAI (Reuters) - China's auto industry is charging ahead with aggressive plans to electrify cars even as policymakers scale back subsidies aimed at building sales from relatively low levels and consider tapping the brakes on sales quotas for plug-in cars.
One week after "unnamed sources" reported that Saudi Arabia had backed the proposed 6 month extension to oil production cuts, this morning oil is lower after the world's biggest oil producer appeared to backtrack on its trial balloon from last week, when Saudi Arabia's energy minister said it is "too early" to decide whether OPEC will extend its crude-production-cutting agreement for the rest of the year.
Quoted by the WSJ, Khalid al-Falih, told reporters in Riyadh Monday that "it is premature to talk about extending the cut." OPEC's 13 national ministers are scheduled to decide that question on May 25.
Falih's unexpectedly cautious tone "has taken some of the wind out of the bulls' sails," according JBC analysts.
It wasn't just the sudden Saudi retiscence: as the WSJ adds, Falih's comments were among a range of factors keeping pressure on oil prices, chief among them that U.S. drilling is now set to increase by 123,000 barrels a day in May, according to the U.S. Energy Information Administration, the steepest monthly rise since February 2015. The EIA figures are the latest sign that U.S. companies have been quick to increase production because of higher prices and has "added another bearish element to the market," said JBC analysts.
A surge in U.S. production is a major threat to OPEC's effort to reset the still-oversupplied global oil market. The U.S. oil rig count has been on the rise 13 weeks and now stands at its highest level in two year ...
Unlike the other big banks, Goldman's earnings release is a breeze: since the bank has virtually no balance sheet to use as a source of income (or loss), it is all about the income statement. And it was here that there was a big surprise, because despite expectations of a blowout result, with whisper numbers well above consensus estimates, Goldman unexpectedly disappointed, reporting Q1 revenues of $8.03BN, below the $8.53BN expected, translating to EPS of $5.15, fractionally below the $5.17 estimate, which nonetheless was 92% higher compared to EPS of $2.68 reported one year ago.
Unlike other banks Goldman did not benefit as much from a pick-up in trading activity during the period: net revenues from the institutional client services division were up 25% from a year earlier to $3.4bn, below the $3.62bn expected, of which FICC contributed $1.685 billion, which also missed expectations of a $2 billion number.
Despite the miss in FICC, Goldman reported beats in virtually every other revenue line time,
"The operating environment was mixed, with client activity challenged in certain market-making businesses and a more attractive backdrop for underwriting in our investment banking franchise," said Lloyd C. Blankfein, Chairman and Chief Executive Officer. "As the economy improves, we are wellpositioned to not only meet our clients' diverse needs, but also to generate operating leverage for our shareholders."
Broken down by key operating group, most segments reported numbers that beat expectations with the exception of FICC:
FICC sales & trading revenue was $1.695bn, missing estimates of $2.03bn
Overall sales and trading revenue $3.36 billion, missing estimates of $3.62 billion
Investment banking revenue of $1.7bn beating estimates of $1.56bn.
Investment and Lending, formerly known as prop, reported $1.48bn in revenue, virtually unchanged from a year ago.
Wall Street looked set for a downbeat open Tuesday, as a spate of weak earnings compounded concerns over this weekend's French election and U.S.-North Korea tensions, helping to keep a lid on stock futures.
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