Tesla Shares Sink as Red Sea Fighting Forces Production Pause in Germany
33 minutes ago
Shares of Tesla (TSLA) fell more than 2% after the electric vehicle maker said it would pause production at its largest European factory for two weeks because of shipping delays caused by unrest in the Middle East.
The company plans to halt production at its Gigafactory Berlin-Brandenburg between Jan. 29 and Feb. 12 after parts deliveries were delayed by attacks on Red Sea shipping lanes by Yemen-based Houthi militants.
The pause amplifies concerns that Israel’s war in Gaza and military responses by its Middle East neighbors could spark a European supply-chain crisis.
Iran-backed Houthis began attacking commercial ships in the Red Sea late last year, leading major shipping companies to reroute Europe-bound traffic around Africa. The U.S. and a coalition of allies have responded by intercepting Houthi drones and missiles and bombing military installations in Yemen.
JPMorgan Shares Rise on Q4 Earnings Beat
1 hr 8 min ago
JPMorgan Chase & Co.’s (JPM) shares rose Friday morning after reporting record net interest income in the fourth quarter, taking the edge off an earnings miss due to an FDIC special assessment.
JPMorgan earnings by the numbers:
- Net revenue: $39.9 billion vs. $40.39 billion expected, according to analyst estimates compiled by Visible Alpha
- Earnings per share: $3.04 vs. $3.43 expected
- Net income: $9.3 billion vs. $10.64 billion expected
A $2.9 billion special assessment from the Federal Deposit Insurance Corporation (FDIC) shaved 74 cents per share from the bank’s profit.
The bank’s net interest income (NII) got a boost from the Federal Reserve’s anti-inflation interest rate hike campaign. In the fourth quarter, JPMorgan posted NII of $24.1 billion, up 19% compared to the year-ago period and above the $22.98 billion analysts expected.
UnitedHealth Shares Tumble on Rising Medical Costs
1 hr 44 min ago
UnitedHealth Group’s (UNH) shares dropped roughly 3% in early trading despite reporting better-than-expected revenue and profit in the fourth quarter as higher-than-expected claims costs spooked investors.
UnitedHealth earnings by the numbers:
- Revenue: $94.4 billion vs. $92.1 billion expected, according to analyst estimates compiled by Visible Alpha
- Adjusted earnings per share: $6.16 vs. $5.78 expected
Medical loss ratio, or the percentage of premiums the company pays out to cover claims, is a key indicator of profitability for a company like UnitedHealth. The higher the medical loss ratio, the less room the company has to make a profit.
In the fourth quarter, the company’s medical loss ratio increased to 85%, higher than analysts expected.
Stocks Making the Biggest Moves Premarket
2 hr 44 min ago
Gains:
- Oil tankers: Shares of oil shipping companies and oil futures jumped after the U.S. led airstrikes against Yemen-based Houthi militants who have been targeting shipping lanes in the Red Sea for weeks in protest of Israel’s bombardment of Gaza.
- JPMorgan Chase (JPM): The bank’s shares rose about 2% after its quarterly earnings topped estimates as it reported a seventh consecutive quarter of record net interest income.
- Citigroup (C): Shares of the bank also rose 1.5% after reporting a net loss of $1.8 billion due to several one-time charges. CEO Jane Fraser expressed confidence that her restructuring plan will make 2024 a turning point for the bank.
Losses:
- Delta Airlines (DAL): Shares fell more than 5% after the company’s fourth-quarter earnings beat analyst estimates but its full-year profit forecast fell short of prior guidance.
- UnitedHealth Group (UNH): Shares fell more than 4% after the health insurer said medical costs jumped 16% year-over-year in the fourth quarter.
- Tesla Inc. (TSLA): Shares slid about 3% after the EV maker said it would pause production at its Berlin factory for two weeks as attacks on shipping in the Red Sea have delayed parts shipments.
Stock Futures Dip Ahead of PPI
3 hr 39 min ago
Futures contracts connected to the Dow Jones Industrial Average were down about 0.4% in early trading Friday.
S&P 500 futures were off about 0.3%.
Nasdaq 100 futures also slipped 0.3%.
Read More: Stocks Mixed After Big Bank Earnings, Falling Wholesale Prices