Here are the top news, trends, and analysis investors need to start their trading day:
1. Futures stable after further hot inflation, ahead of Powell’s statement
Federal Reserve Chairman Jerome Powell during a House Financial Services Committee hearing in Washington on December 2, 2020.
Swimming pool | Getty Images News | Getty Images
2. Financial firms continue to report profits this week
A woman is reflected in a puddle as she passes a Bank of America branch in New York’s Times Square.
Brendan McDermid | Reuters
Bank of America shares fell less than 2% pre-IPO after the company posted lower-than-expected second-quarter sales on Wednesday morning. Excluding a one-time tax gain of $ 2 billion, adjusted earnings of 80 cents per share beat estimates.
Citigroup grossed $ 2.85 per share in the second quarter. Sales were $ 17.47 billion. Both measures exceed estimates. The share gained 1.5% before the IPO. Quarterly results benefited from a $ 1.1 billion increase from the release of reserves the bank had previously earmarked for loan defaults.
A BlackRock Inc. sign hangs over their building in New York.
Lucas Jackson | Reuters
BlackRock, the world’s largest wealth manager, reported earnings growth of 28% in the second quarter on Wednesday morning, slightly beating estimates. Investors poured more money into the company’s funds, increasing assets under management 30% year over year to nearly $ 9.5 trillion. The share lost around 2% in the pre-trading period.
3. Airline stocks rise on promising quarterly results
A Delta Air Lines Airbus A330neo or A330-900 aircraft with neo-engine option from the European aircraft manufacturer, as seen on final approach for landing at Amsterdam Airport Schiphol AMS EHAM International after a long-haul transatlantic flight.
Nicolas Economou | NurPhoto | Getty Images
Delta Air Lines reported second-quarter revenue on Wednesday morning that beat estimates, saying that both vacation and business travel bookings rose sharply. The Atlanta-based airline made $ 652 million in profit and posted a five-quarter streak of losses thanks to federal coronavirus aid that offsets part of its costs. In pre-trading hours, stocks rose nearly 2%.
American Airlines planes at LaGuardia Airport
Leslie Josephs | CNBC
American Airlines shares rose more than 3% in the premarket on Wednesday, the morning after the airline forecast better earnings and reported a smaller loss than previously estimated for the second quarter. It is the latest sign that airlines are recovering from the travel expenses of the coronavirus pandemic.
4. Hospital stays are increasing again as the delta variant spreads
An intensive care respiratory therapist works with a positive coronavirus disease (COVID-19) patient in the intensive care unit (ICU) of the Sarasota Memorial Hospital in Sarasota, Fla., February 11, 2021.
Shannon Stapleton | Reuters
According to information from infectious disease specialists, the spread of the Covid Delta variant in unvaccinated bags in the USA leads to relapses in cases and leads to an increase in hospital admissions. New daily Covid infections are on the rise again as the highly transmissible Delta variant, first discovered in India, asserts itself as the dominant strain in the United States. Cases are increasing in Missouri, Arkansas, Nevada, Utah, and Florida at higher rates than in other states in recent weeks.
5. Senate Democrats reach budget agreement of $ 3.5 trillion
Senate Majority Leader Senator Chuck Schumer (D-NY) (R) listens as U.S. President Joe Biden speaks during an American bailout event in the White House Rose Garden on March 12, 2021 in Washington, DC.
Alex Wong | Getty Images
President Joe Biden was due to meet with Senate Democrats on Capitol Hill on Wednesday to discuss their budget agreement in their group. The deal, announced Tuesday evening, plans to spend $ 3.5 trillion over the next decade to pave the way for their efforts to invest federal funds in climate change initiatives as well as Biden-targeted health and family utilities. It is not clear whether the Democrats have all members of the expired Senate on board. Moderates like Sens. Joe Manchin, DW.Va., and Kyrsten Sinema, D-Ariz., Could ask for further changes.
– Reuters and The Associated Press contributed to this report. Follow all market activity like a pro on CNBC Pro. Get the latest on the pandemic with coronavirus coverage from CNBC.