Financial News

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Wealth Brokers, Investment Banks Faced Uneven First-Quarter Activity, UBS Says

Wealth brokers and investment banks faced uneven market activity in the first quarter due to geopolitical uncertainty, UBS Securities said in client note sent Wednesday.For the first quarter, UBS is projecting earnings per share to be down 7% quarter on quarter and up 22% annually for wealth brokers. For investment banks, the broker is looking at a 29% slump in EPS on a quarterly basis and an 11% jump year over year."For wealth brokers, growth was tempered by lower March market levels, though retail trading picked up on volatility," UBS analysts, including Michael Brown, wrote. "Organic growth was solid versus expectations, with the setup improving into (2026)."Meanwhile, momentum faded for investment banks during the quarter as pipelines shrank from the year end, "with some deals likely paused pending macro clarity, creating an activity air pocket," Brown said.Late Tuesday, the US and Iran agreed to a two-week ceasefire. The war, which began at the end of February, spread across the Middle East and curtailed shipments through the crucial Strait of Hormuz.UBS named Charles Schwab (SCHW) and Stifel Financial (SF) as its top picks heading into the first-quarter earnings season, saying Evercore (EVR) is "favorably positioned." Moelis (MC), Lazard (LAZ), and Raymond James Financial (RJF) are expected to "lag on a relative basis," according to the brokerage.UBS upgraded LPL Financial (LPLA) to buy, citing an attractive valuation.UBS lowered its price targets for wealth brokers and investment banks by 8% and 2% on average, respectively.The brokerage expects artificial intelligence to be a key topic at the upcoming earnings season for wealth brokers."In the wealth space, we expect AI to improve advisor productivity, though see risks to sweep cash economics and to market share of advised assets," Brown said. "Ultimately, we see these threats as slower moving than the bears think and see forward-looking firms as well positioned to adapt and thrive."

Fed Should be 'Nimble' Amid War-Driven Macro Risks, March Meeting Minutes Show

The Federal Reserve should be "nimble" in adjusting monetary policy in light of heightened risks to inflation and employment driven by the Middle East conflict, minutes from the central bank's March 17-18 meeting showed Wednesday.At the meeting, the Federal Open Market Committee decided to keep its policy rate unchanged between 3.50% and 3.75% for a second straight time amid uncertainty around the US-Israel war with Iran. The FOMC's Summary of Economic Projections at the time continued to indicate potential policy easing this year."In light of the heightened degree of economic uncertainty, participants emphasized the importance of being nimble in adjusting the stance of policy in response to incoming data, the evolving outlook, and the balance of risks," the meeting minutes showed Wednesday. "Many participants judged that, in time, it would likely become appropriate to lower the target range for the federal funds rate if inflation were to decline in line with their expectations."A couple of policymakers pushed their expected timing of potential policy easing "further into the future," according to the document."The vast majority of participants judged that upside risks to inflation and downside risks to employment were elevated, and the majority of participants noted that these risks had increased with developments in the Middle East," the minutes showed.On Tuesday, the US and Iran agreed to a two-week ceasefire. The war, which began at the end of February, spread across the Middle East and curtailed shipments through the crucial Strait of Hormuz, driving up energy prices.West Texas Intermediate crude oil sank nearly 15% to $96.34 a barrel intraday, while Brent futures tumbled 12% to $96.55. Despite the declines, oil prices remained well above pre-war levels."Our baseline view is that as the (energy price) shock gradually fades, so too will inflation pressures," TD Economics Senior Economist Andrew Hencic said in a note Wednesday. "This may open the door for the Fed to normalize rates in the latter half of the year."Most policymakers were concerned that a prolonged war could soften labor market conditions, possibly warranting additional policy easing, the meeting minutes showed Wednesday.Earlier this month, official data showed that the economy added more jobs than expected in March, while the unemployment rate edged down to 4.3% from 4.4% sequentially."Many participants pointed to the risk of inflation remaining elevated for longer than expected amid a persistent increase in oil prices, which could call for rate increases to help bring inflation down to the committee's 2% objective and keep longer-term inflation expectations firmly anchored," according to the latest meeting minutes. "Participants anticipated that, under appropriate monetary policy, inflation would gradually move down toward the committee's 2% objective after the effect of increased tariffs and higher oil prices had faded."Markets widely expect the FOMC to keep interest rates unchanged later this month, according to the CME FedWatch tool.

Sector Update: Energy Stocks Fall Late Afternoon

Energy stocks were lower late Wednesday afternoon, with the NYSE Energy Sector Index falling 3.3% and the State Street Energy Select Sector SPDR ETF (XLE) dropping 3.5%.The Philadelphia Oil Service Sector Index was up 0.6%, and the Dow Jones US Utilities Index rose 0.9%.Front-month West Texas Intermediate crude oil tumbled nearly 15% to $96.34 a barrel, and the global benchmark Brent crude contract slumped 11.6% to $96.55 a barrel. Henry Hub natural gas futures fell 4.9% to $2.73 per 1 million BTU.US crude oil stocks, including those in the Strategic Petroleum Reserve, rose by 1.3 million barrels in the week ended April 3 following an increase of 5.1 million barrels in the previous week. Excluding inventories in the SPR, commercial crude oil stocks increased by 3.1 million barrels after a 5.5-million-barrel gain in the previous week, a larger increase than the 500,000-barrel gain expected in a survey compiled by Bloomberg.In corporate news, Talos Energy (TALO) shares fell 7.5% after Roth Capital Partners downgraded the company's stock to neutral from buy and adjusted the price target to $16 from $13.Exxon Mobil (XOM) expects its global oil-equivalent output to take a hit in Q1 on production disruptions caused by the Middle East conflict. Exxon shares fell 5%.Shell (SHEL) shares declined 2.2% after the company said it expects Q1 upstream production of 1.76 million to 1.86 million barrels of oil equivalent per day, compared with 1.89 million in Q4.EON Resources (EONR) said Wednesday it fully hedged 75% of its net production through 2027 to capitalize on oil prices exceeding $110 per barrel due to the Iran war. EON Resources shares dropped 5.8%.

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Sector Update: Financial Stocks Higher Late Afternoon

Financial stocks rose late Wednesday afternoon, with the NYSE Financial Index rising 2.8% and the State Street Financial Select Sector SPDR ETF (XLF) adding 2.4%.The Philadelphia Housing Index gained 4.4%, and the State Street Real Estate Select Sector SPDR ETF (XLRE) added 1.7%.Bitcoin (BTC-USD) was up 3.5% at $71,297, and the yield for 10-year US Treasuries fell 5.2 basis points to 4.29%.In economic news, Federal Open Market Committee participants emphasized the need to remain "nimble" in responding to incoming data, with views still mixed on the future policy path, minutes of the March 17-18 FOMC meeting released Wednesday showed.Mortgage applications in the US fell last week amid elevated rates and continued macro uncertainty, the Mortgage Bankers Association said Wednesday. The market composite index, which measures loan application volume, declined 0.8% for the week through Friday on a seasonally adjusted basis. Without adjustments, the index decreased 1% week over week.In corporate news, LPL Financial (LPLA) shares popped 4.5% after UBS upgraded the stock to buy from neutral while lowering its price target to $380 from $406.BlackRock's (BLK) Global Infrastructure Partners and KKR (KKR) are among the potential bidders for a controlling stake in Associated British Ports valued at about 10 billion British pounds ($13.47 billion), Bloomberg reported. BlackRock shares climbed 5.1%, and KKR added 3.4%.Apollo Global Management-managed (APO) funds, Brookfield Asset Management (BAM), Sumitomo, and SMBC Aviation Capital said Wednesday they completed the acquisition of Air Lease for about $7.4 billion, or $28.2 billion inclusive of debt obligations, and renamed the company Sumisho Air Lease. Apollo shares rose 0.9%, and Brookfield added 2.8%.

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Insider Trading2d ago

Credo Technology Group Holding Insider Sold Shares Worth $2,837,844, According to a Recent SEC Filing

Chi Fung Cheng, Director, Chief Technology Officer, on April 06, 2026, sold 27,500 shares in Credo Technology Group Holding (CRDO) for $2,837,844. Following the Form 4 filing with the SEC, Cheng has control over a total of 6,271,156 ordinary shares of the company, with 108,786 shares held directly and 6,162,370 controlled indirectly.SEC Filing:https://www.sec.gov/Archives/edgar/data/1807794/000162828026024230/xslF345X05/wk-form4_1775677455.xmlPrice: $110.20, Change: $+3.41, Percent Change: +3.19%

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Sector Update: Tech Stocks Climb Late Afternoon

Tech stocks were higher late Wednesday afternoon, with the State Street Technology Select Sector SPDR ETF (XLK) rising 2.8% and the State Street SPDR S&P Semiconductor ETF (XSD) climbing 5.2%.The Philadelphia Semiconductor index gained 6%.In corporate news, Firefly Aerospace (FLY) and Nvidia (NVDA) said Wednesday they collaborated to enable rapid on-orbit data analysis for a lunar imaging service using a specialized computing module. Nvidia shares rose 2.1%, and Firefly added 6.6%.Meta Platforms (META) shares jumped 6.4% after it launched Muse Spark, a new multimodal reasoning model and the first in its Muse family, as the company steps up efforts to build what it calls "personal superintelligence."Micron Technology (MU) and Sandisk (SNDK) shares gained after fellow memory chipmaker Samsung Electronics projected increased Q1 sales and profits. Micron shares rose 7.3%, and Sandisk climbed about 9%.Elon Musk on Tuesday amended his lawsuit against Microsoft-backed (MSFT) OpenAI to request that any damages awarded be directed to the organization's charitable arm rather than to himself, as the high-profile case heads toward trial later this month in Oakland, California, The Wall Street Journal reported. Musk is seeking more than $150 billion in damages from OpenAI and its partner Microsoft, alleging the company departed from its original nonprofit mission and misled him as an early donor while shifting toward a for-profit structure. Microsoft shares were fractionally lower.

Sector Update: Health Care Stocks Advance Late Afternoon

Health care stocks rose late Wednesday afternoon, with the NYSE Health Care Index adding 1.6% and the State Street Health Care Select Sector SPDR ETF (XLV) up 1.8%.The iShares Biotechnology ETF (IBB) climbed 1.6%.In corporate news, Novavax (NVAX) shares rose 4.8% after it said Tuesday in a regulatory filing that shareholder Shah Capital plans to vote against the re-election of board nominees and the company's executive compensation package at its upcoming annual meeting.AbbVie (ABBV) said Wednesday it has filed a lawsuit seeking to narrow and clarify the definition of an eligible patient under the federal 340B drug discount program. Its shares rose 2.5%.Bausch + Lomb (BLCO) shares gained 3.1% after it said Wednesday the US Food and Drug Administration cleared its dual-port vitrectomy cutter and a fluidics software update for its vision enhancement system, used for retinal surgery.GSK (GSK) shares gained 2.7% after it said China's National Medical Products Administration approved its biologic medication Exdensur as a supplemental therapy for adults suffering from chronic rhinosinusitis with nasal polyps.

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Sector Update: Consumer Stocks Rise Late Afternoon

Consumer stocks were higher late Wednesday afternoon, with the State Street Consumer Staples Select Sector SPDR ETF (XLP) increasing 1.5% and the State Street Consumer Discretionary Select Sector SPDR ETF (XLY) gaining 2.6%.In corporate news, CarMax's (KMX) fiscal Q4 results are likely to come in better than expected amid improved industry trends, RBC Capital Markets said in a note sent to clients Wednesday. CarMax shares rose 3.2%.Airline and cruise operator stocks advanced following the overnight US-Iran ceasefire deal that boosted investor confidence and lowered geopolitical risk. Carnival (CCL) shares soared 10%, and United Airlines (UAL) surged 8.3%.Delta Air Lines (DAL) shares jumped 4.5%. The company on Wednesday reported better-than-expected Q1 results amid robust corporate and leisure demand, although it flagged a fuel expense increase of more than $2 billion in the current three-month period due to the Middle East war.Levi Strauss (LEVI) shares climbed 10% after the denim maker lifted its full-year outlook and reported an unexpected year-over-year increase in fiscal Q1 earnings.

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Sector Update: Energy

Energy stocks were lower late Wednesday afternoon, with the NYSE Energy Sector Index falling 3.7% and the State Street Energy Select Sector SPDR ETF (XLE) dropping 3.4%.The Philadelphia Oil Service Sector Index was up 0.5%, and the Dow Jones US Utilities Index rose 0.9%.Front-month West Texas Intermediate crude oil tumbled nearly 15% to $96.11 a barrel, and the global benchmark Brent crude contract slumped past 11% to $96.53 a barrel. Henry Hub natural gas futures fell 4.7% to $2.73 per 1 million BTU.In corporate news, Talos Energy (TALO) shares fell 7.6% after Roth Capital Partners downgraded the company's stock to neutral from buy and adjusted the price target to $16 from $13.

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Sector Update: Financial

Financial stocks climbed in late Wednesday afternoon trading, with the NYSE Financial Index rising 2.8% and the State Street Financial Select Sector SPDR ETF (XLF) adding 2.4%.The Philadelphia Housing Index gained 4.4%, and the State Street Real Estate Select Sector SPDR ETF (XLRE) advanced 1.7%.Bitcoin (BTC-USD) was declining 1% to $71,190, and the yield for 10-year US Treasuries fell 5.2 basis points to 4.29%.In corporate news, LPL Financial (LPLA) shares popped 4.6% after UBS upgraded its rating on the company's stock to buy from neutral and adjusted its price target to $380 from $406.

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Sector Update: Health Care

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Oil Risk Premium Eases but Supply Tightness Persists, Rystad Energy Says

Oil prices fell below $100 per barrel after the ceasefire, with the 2026 Brent outlook cut to $87/bbl from $97/bbl, signaling easing panic premiums, Rystad Energy strategists said in a Wednesday note.Rystad said the truce has reduced some geopolitical pressure but not the full risk premium, and prices are unlikely to return to pre-conflict levels due to ongoing supply disruptions."Oil plunged below $100 per barrel after the US and Iran agreed to a two-week ceasefire," said Janiv Shah of Rystad Energy, noting expectations for reduced military activity.He said "refiners should use this window to resume more opportunistic buying," but warned that delaying purchases could worsen product tightness even as tensions ease.The ceasefire has allowed futures markets to quickly adjust, reflecting lower disruption risks, though physical oil markets remain tight and slower to normalize, the analysis said.Rystad noted that current conditions reflect controlled access through the Strait of Hormuz, with transit still dependent on coordination with the Islamic Revolutionary Guard Corps and technical limitations rather than full normalization.Reports suggest Iran and Oman may charge transit fees during the ceasefire, reinforcing selective access and continued control over shipping flows, the analysis said.The restart of tanker activity is expected to be gradual, as shipowners and insurers await clearer signs that operational risks have declined, Rystad said.This has widened the gap between futures and physical markets, with prices falling while physical premiums, tanker rates, and supply concerns remain elevated, the report said.Rystad said geopolitical risks may ease faster than operational risks, keeping physical markets tight despite improved sentiment in paper markets.Markets still need to watch for longer-term pricing shifts as ceasefire details emerge, with risks including restricted tanker access, weaker export reliability, and continued safety concerns in Gulf transit, the analysis said.Shipowners' sentiment remains key, as fears of vessel damage, including from underwater mines, could keep operators cautious and limit a full recovery in shipping activity, the report said.In an escalation scenario, futures would react first and most sharply, with near-term contracts absorbing higher premiums as traders price in supply risks, tanker disruptions, and the potential for wider regional conflict, the analysis said.The backwardation structure has weakened notably, with middle distillates seeing declines of up to 40%, as premiums tied to near-term contracts eased with fading war-related pressures, the analysis said.The Brent-Dubai spread remains elevated at about $9 for June, limiting arbitrage opportunities and restricting flows from the Atlantic Basin to Asia, the report said.Asian buyers face constrained supply, with Gulf shipments delayed and Atlantic cargoes uneconomical, leaving refiners with limited purchasing options, Rystad said.The ceasefire does little to resolve near-term supply issues, as shipments to Asia could take three to six weeks to normalize, leaving the region under continued pressure, according to the analysis.

Treasury2d ago

US Treasury Closing Levels

3:00 Wednesday vs 3:00 Tuesday2yr 100-05 vs 100-02; 3.790% vs 3.829%5yr 99-25+ vs 100-18+; 3.918% vs 3.971%10yr 98-21+ vs 98-09+; 4.289% vs 4.337%30yr 97-27+ vs 97-12; 4.885% vs 4.915%2/10 49.745 bps vs 50.551 bps5/30 96.448 bps vs 94.366 bps

CarMax Poised For Fourth-Quarter Beat Amid Better Industry Trends, RBC Says

CarMax's (KMX) fiscal fourth-quarter results are likely to come in better than expected amid improved industry trends, RBC Capital Markets said in a note sent to clients Wednesday.The used-vehicle retailer is scheduled to release its quarterly and full-year results next Tuesday.RBC continues to expect fourth-quarter adjusted earnings of $0.34 per share for the company, ahead of Wall Street's forecast that the brokerage put at $0.20. RBC now expects a 4.4% year-over-year drop in revenue, compared with its previous estimate of a 6.8% slump. The market view calls for a 5.6% decline."The raise is driven by several data sources pointing to better overall industry trends," RBC analyst Steven Shemesh wrote.Shares of CarMax were up 4.4% in Wednesday afternoon trade amid a broad rally on Wall Street following a two-week ceasefire between the US and Iran.On Tuesday, Cox Automotive said wholesale prices of used vehicles in the US last month hit the highest point since summer 2023 as demand remained robust despite the Middle East conflict."The broader category seems to have improved and it's difficult at this point to decipher how much of the improvement stemmed from recent company-specific actions," Shemesh said. "On the call, we'll be looking for specific evidence that these actions are driving results."RBC has a sector perform rating on CarMax's stock and a $37 price target."We skew slightly more cautious on the sustainability of recent momentum, especially as gas prices rise, offsetting the benefit of higher tax refunds (year over year) and weighing on consumer confidence," Shemesh said.Price: $45.50, Change: $+2.19, Percent Change: +5.06%

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US Crude Update: Futures Fall as Markets Weigh US-Iran Ceasefire

Crude oil futures slipped in midday trading on Wednesday as a two-week ceasefire between the US and Iran eased immediate fears of supply disruption and boosted hopes of reopening the Strait of Hormuz.Front-month West Texas Intermediate crude futures fell 15.81% to $95.81 per barrel, while Brent futures were down by 12.89% to $95.22/bbl.US crude stockpiles rose by 3.1 million barrels to 464.7 mmbbls in the week ended Apr. 3, the Energy Information Administration said in its weekly report on Wednesday. Crude inventories are now about 2% above the five-year average for this time of year.On Wednesday, President Trump said he had agreed to suspend planned attacks on Iranian infrastructure for two weeks, subject to Tehran agreeing to a "complete, immediate, and safe" passage via the Strait of Hormuz."Further price direction will hinge on whether talks translate into a durable agreement and a sustained normalization of flows through the strait, with volatility likely to persist during negotiations later this week," ING strategists said.However, mixed signals have emerged on vessels transiting the strait.According to ship-tracking firms, overall traffic through the Strait has not picked up 12 hours into the ceasefire, amid doubts about the shape of a final peace agreement. Two ships have passed through the Strait of Hormuz since Iran agreed to reopen the waterway as part of a ceasefire deal, according to Marine Traffic.On Wednesday, Iran closed the Hormuz and fired dozens of missiles across the Arabian Gulf in response to strikes at its Lavan oil refinery and Israeli attacks on Lebanon.Iran's Foreign Minister, Seyed Abbas Aragchi, said that if attacks against his country stop, Tehran would cease counter-attacks and provide safe passage in coordination with its armed forces, "and with due consideration of technical limitations."During a press briefing on Wednesday, White House Press Secretary Karoline Leavitt, however, maintained that an uptick in vessel traffic has been observed and that the US is continuously monitoring the strait.Though the ceasefire creates a window for transit via the strategic waterway, flows remain conditional and operationally constrained.Kpler strategists said that 172 million barrels of crude and products are still on the water in the Arabian Gulf, spread across about 187 laden tankers.The analysts said three-quarters of the volume is crude and condensate, heavily concentrated on VLCCs and dominated by medium- and heavy-sour grades from Saudi Arabia, Iraq and the UAE.

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Equity Markets Jump Intraday, Oil Sinks Following US-Iran Ceasefire

US benchmark equity indexes rallied intraday, while oil prices slumped after Washington and Iran agreed to a two-week ceasefire.The Nasdaq Composite jumped 2.9% to 22,651.5 after midday Wednesday, while the Dow Jones Industrial Average increased 2.6% to 47,803.5. The S&P 500 advanced 2.4% to 6,778.6. Barring energy's 4.6% decline, all sectors were in the green, led by a 3.9% rise in communication services.West Texas Intermediate crude oil sank 15% to $95.85 a barrel intraday, while Brent futures tumbled 13% to $95.40.US President Donald Trump, who had set an 8 pm ET, Tuesday, deadline for Tehran to fully reopen the Strait of Hormuz, agreed to suspend planned attacks on Iran for two weeks upon Pakistan's request. Tehran said it would allow "safe passage" through the key trading route, subject to coordination with Iranian authorities.However, reports about ceasefire violations signified the possible fragile nature of the pact."While markets are hailing the agreement as cause for celebration, it remains to be seen if the ceasefire will hold, and if flows resume through the Strait of Hormuz," Stifel said in a note.Iran halted oil tanker traffic through the waterway after Israel attacked Lebanon, CNN reported Wednesday, citing semi-official news agency Fars. Separately, Kuwait and the United Arab Emirates reportedly said they were targeted with Iranian drones and missiles.Airline and cruise operator stocks jumped intraday, with Carnival (CCL) up 11%, the top gainer on the S&P 500. United Airlines (UAL) surged 9.9%, among the best performers on the index. Southwest Airlines (LUV) and American Airlines (AAL) were also up sharply, along with Norwegian Cruise Line (NCLH) and Royal Caribbean Cruises (RCL).US Treasury yields were lower intraday, with the 10-year rate down 6.4 basis points at 4.28% and the two-year rate dropping six basis points to 3.77%.In company news, Meta Platforms (META) shares soared 7.9%, among the best performers on the S&P 500, after the tech giant unveiled its Muse Spark artificial intelligence model.Delta Air Lines (DAL) logged better-than-expected first-quarter results amid robust corporate and leisure demand. The air carrier's shares were up 5.8% intraday.Exxon Mobil (XOM) expects its global oil-equivalent output to take a hit in the first quarter due to production disruptions caused by the Middle East conflict. Shares of the US oil giant were down 5.9%, while smaller rival Chevron (CVX) fell 5.5%, the steepest decline on the Dow.Gold was up 1.7% at $4,764.70 per troy ounce, while silver gained 4.7% to $75.35 per ounce.

Vance, Witkoff, Kushner to Head to Islamabad for 1st Round of Iran Talks on Saturday: Leavitt