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Here are the most important news, trends and analysis investors need to start their trading day:
1. Futures are stable after higher inflation, before Powell’s testimony
Federal Reserve Chairman Jerome Powell during a House Financial Services Committee hearing on December 2, 2020 in Washington.
Swimming pool | Getty Images News | Getty Images
2. Financial companies continue to report earnings this week
A woman is reflected in a puddle as she walks past a Bank of America branch in Times Square in New York City.
Brendan McDermid | Reuters
Bank of America shares fell less than 2% pre-market after the company reported lower than expected second-quarter earnings on Wednesday morning. Excluding a one-time tax gain of $ 2 billion, adjusted earnings of 80 cents per share were slightly above estimates.
Citigroup posted a second quarter of $ 2.85 per share. Revenue was $ 17.47 billion. Both measures exceed estimates. Stocks gained 1.5% pre-market. Quarterly results received a boost of $ 1.1 billion resulting from the release of reserves the bank had previously set aside for loan losses.
A sign for BlackRock Inc hangs above their building in New York City.
Lucas Jackson | Reuters
BlackRock, the world’s largest asset manager, on Wednesday morning announced a 28% increase in second-quarter profits, significantly beating estimates. Investors put more money into the firm’s funds, increasing its assets under management by 30% year-over-year to nearly $ 9.5 trillion. The shares fell about 2% in the pre-market.
3. Airlines Shares Rise on Promising Quarterly Results
A Delta Air Lines Airbus A330neo or A330-900 with the European aircraft manufacturer’s neo engine option, seen on final approach for landing at AMS EHAM Amsterdam Schiphol International Airport after a long-haul transatlantic flight .
Nicolas Economou | NurPhoto | Getty Images
Delta Air Lines reported higher than estimated second quarter revenue on Wednesday morning, saying leisure and business travel bookings have risen sharply. The Atlanta-based airline posted a profit of $ 652 million, breaking a five-quarter loss streak, thanks to federal coronavirus aid that offset some of its costs. Stocks rose nearly 2% in pre-market trading.
American Airlines planes at LaGuardia airport
Leslie Josephs | CNBC
American Airlines shares rose more than 3% on Wednesday before market, the morning after the carrier forecast better earnings and reported a smaller loss than previously estimated for the second quarter. This is the latest sign that airlines are recovering from the coronavirus pandemic’s toll on travel.
4. Hospitalizations increase again as the delta variant spreads
An intensive care respiratory therapist works with a coronavirus disease (COVID-19) positive patient in the intensive care unit (ICU) at Sarasota Memorial Hospital in Sarasota, Fla. On February 11, 2021.
Shannon Stapleton | Reuters
The spread of the Covid delta variant in unvaccinated pockets of the United States is causing outbreaks of cases and leading to an increase in hospitalizations, infectious disease specialists say. New daily Covid infections are on the rise again as the highly transmissible delta variant, first detected in India, takes hold as the dominant strain in the US Cases increase in Missouri, Arkansas, Nevada, Utah and Florida at higher rates than other states in the past two weeks.
5. Senate Democrats reach $ 3.5 trillion budget deal
Senate Majority Leader Senator Chuck Schumer (D-NY) (R) listens to US President Joe Biden speak at a US bailout event in the Rose Garden of the White House on March 12 2021 in Washington, DC.
Alex Wong | Getty Images
President Joe Biden was scheduled to meet with Senate Democrats on Capitol Hill on Wednesday to discuss their budget deal in their caucus. The deal announced Tuesday night envisions spending $ 3.5 trillion over the next decade, paving the way for their willingness to allocate federal resources to climate change initiatives, as well as health care programs and family services sought by Biden. It is not clear whether Democrats have all of the members on board in the overthrown Senate. Moderates like Sens. Joe Manchin, DW.Va., and Kyrsten Sinema, D-Ariz., May still demand further changes.
– Reuters and The Associated Press contributed to this report. Follow all the market action like a pro on CNBC Pro. Get the latest pandemic news with CNBC’s coronavirus coverage.
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