S&P 500, Nasdaq poised for muted open after mixed bank earnings; Twitter jumps

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A Wall Street sign is pictured outside the New York Stock Exchange in the Manhattan borough of New York, New York, U.S., April 16, 2021. REUTERS/Carlo Allegri/File Photo

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  • Twitter rides on Elon Musk’s $41 billion takeover bid
  • Goldman Sachs, Morgan Stanley and Citi rise after results
  • Wells Fargo slips after falling quarterly profits
  • Futures: Dow flat, S&P plunges 0.19%, Nasdaq down 0.18%

April 14 (Reuters) – The S&P 500 and Nasdaq were expected to open lower on Thursday, following mixed earnings from a slew of Wall Street lenders on the final day of a shortened holiday week, while shares of Twitter surged after billionaire Elon Musk’s takeover bid.

Twitter Inc (TWTR.N) jumped 6.4% in premarket trading after Tesla Inc (TSLA.O) CEO Elon Musk offered to buy the social media company for about $41 billion. dollars. Shares of the electric car maker fell 2.0%. Read more

Among the big banks, Morgan Stanley (MS.N), Citigroup Inc (CN) and Goldman Sachs Group Inc (GS.N) rose between 0.9% and 1.3% as they beat analysts’ earnings expectations despite a sharp fall in profits in the first quarter. Read more

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Wells Fargo & Co (WFC.N) fell 3.8% after reporting a 21% drop in quarterly profit. Read more

“The banks reflect some of the concerns that investors have with the market in general,” said Rick Meckler, partner at Cherry Lane Investments in New Vernon, New Jersey.

“Inflation has helped them on the revenue side, but hurt them on the cost side… when you consider the kinds of reserves they feel they need to take, they’re not producing the net growth that markets are becoming very dependent on. .”

Bank of America (BAC.N), slated for release on Monday, was trading flat.

Overall, analysts were less optimistic about earnings this quarter amid the ongoing war in Ukraine, soaring inflation and a more hawkish US Federal Reserve.

As of 8:43 a.m. ET, Dow e-minis were up 11 points, or 0.03%, S&P 500 e-minis were down 8.5 points, or 0.19%, and e-minis Nasdaq 100 were down 25.25 points, or 0.18%.

U.S. retail sales rose in March, mainly boosted by higher gasoline and food prices, but consumers are showing signs of reduced discretionary spending amid high inflation. Read more

Initial claims for state unemployment benefits rose slightly more than expected to 185,000 from an estimated 171,000 for the week ended April 9.

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Reporting by Bansari Mayur Kamdar and Devik Jain in Bengaluru; Editing by Shounak Dasgupta

Our standards: The Thomson Reuters Trust Principles.

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