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Friday’s premarket futures point to a modestly positive open after Thursday’s steep sell-off, with the S&P 500 edging up 0.2%, the Dow gaining 0.2%, and the Nasdaq rising 0.1%.
Earnings season opens with a bang — and a few warning flares
In premarket news, big-name financials including BlackRock (BLK+3.01%), JPMorgan (JPM+4.84%), and Morgan Stanley (MS+2.05%) posted stronger-than-expected first-quarter results, offering a glimpse into how Wall Street is weathering the latest round of economic uncertainty. But behind the headline numbers, executives struck a noticeably cautious tone.
BlackRock reported top-line growth, with revenue rising 12% to $5.28 billion and adjusted earnings per share of $11.30, beating analyst expectations of $10.19. Net inflows surged to a record $84 billion, led by iShares ETFs, and total assets under management climbed to $11.58 trillion. Shares were flat in premarket trading.
Morgan Stanley also turned in a strong performance, with net revenues of $17.7 billion, up from $15.1 billion a year earlier. The bank beat earnings-per-share estimates and highlighted robust momentum across trading, wealth management, and other segments. Shares rose 0.5% early in the morning but declined 2% just before the market open.
JPMorgan Chase reported first-quarter earnings of $5.07 per share on revenue of $46.01 billion, topping analyst expectations as profit rose 9% to $14.64 billion.
Excluding a one-time gain from the bank’s First Republic acquisition, adjusted EPS came in at $4.91, still beating estimates, with strong performances in trading, investment banking, and asset management driving the upside. Shares climbed over 1% in early trading but sank into the red as the bell neared.
Good results, cloudy outlook
In his comments, JPMorgan Chase CEO Jamie Dimon offered little room for celebration. In a statement, he warned the economy faces “considerable turbulence,” citing sticky inflation, high fiscal deficits, inflated asset prices, and an escalating wave of “tariffs and ‘trade wars.’”
“The potential positives of tax reform and deregulation are being offset by significant negatives,” Dimon said.
In other words, Wall Street’s balance sheets may still look strong, but its crystal ball is getting cloudier by the day.