The Daily Chase: Earnings season begins; gold rallies
New York (Apr 14) The most eagerly anticipated earnings season in recent memory is upon us, with early reaction suggesting investors are relieved by the results and commentary. JPMorgan Chase & Co. set the bar for America’s banks with some jaw-dropping numbers, including US$8.3 billion in credit loss provisions as CEO Jamie Dimon braces for a “fairly severe recession” and a 69 per cent year-over-year decline in net income. Nonetheless, shares moved higher in the immediate aftermath, perhaps thanks in part to the 34 per cent surge in fixed income trading and Dimon’s soothing commentary about liquidity. Meanwhile, Johnson & Johnson today raised its dividend 6.3 per cent while simultaneously slashing its full-year adjust profit forecast and reporting a mixed impact from COVID-19 across its business segments in the fiscal first quarter. Its shares are up more than three per cent in pre-market trading.
GOLD RALLY
Gold futures are extending yesterday’s rally that carried the metal to its highest level since 2012 as a world awash in stimulus spending propels the perceived safe haven. Andrew Bell will keep his eye on today’s moves and, if you missed it, check out his post on BNNBloomberg.ca
CINEWORLD CRASHES
Shares of the London-based theatre owner that’s attempting to buy Cineplex are plummeting today, down as much as 19 per cent -- joining a sector-based plunge that saw AMC Entertainment Holdings lose as much as a quarter of its value yesterday, while Cineplex and Cinemark also posted double-digit declines. The Telegraph reported yesterday that Cineworld’s banks are evaluating options for blocking the deal, while sources told the paper the company “is looking at options to trim the price.” Meanwhile, our partners at Bloomberg Intelligence say liquidity issues could upend the deal.
TEXAS WEIGHS OIL CURTAILMENTS
Just a few days after OPEC+ struck a deal to cut production by 9.7 million barrels per day, today the Texas Railroad Commission holds a hearing to consider a formal motion led by shale producers Pioneer Natural Resources and Parsley Energy to curb oil production in the state amid what they call an "extraordinary, unforeseeable crisis." We'll keep tabs on developments and look forward to hearing from the head of the American Petroleum Institute at 10:30 a.m. ET.
OTHER NOTABLE STORIES
-Yamana Gold today announced the Canadian Malartic mine (co-owned with Agnico-Eagle) will resume operations tomorrow after the Quebec government gave the green light for mining to resume in the province.
-Cameco has withdrawn its forecasts for this year and it’s also extending the shutdown at its Cigar Lake uranium mine in Saskatchewan.
-GMP Capital has announced the negotiation period to reach a definitive agreement on the Richardson GMP deal is being extended by 30 days as a result of COVID-19.
NOTABLE RELEASES/EVENTS
-Notable earnings: JPMorgan Chase & Co., Wells Fargo, Johnson & Johnson
-830: International Monetary Fund releases World Economic Outlook
-10:30 a.m. ET: Texas Railroad Commission holds public meeting regarding potential oil production curtailments
-11:15 a.m. ET: Prime Minister Justin Trudeau addresses Canadians from Ottawa
-3:30 p.m. ET: U.S. President Donald Trump meets with healthcare executives at the White House
-5:00 p.m. ET: U.S. Coronavirus Task Force holds briefing at the White House
-G7 finance ministers and central bankers hold virtual meeting
Bloomberg
