Economy

Chicago – United Airlines reported a solid second quarter, driven by rising demand for international travel. However, the carrier’s less-than-stellar third-quarter outlook cast a shadow over its otherwise strong performance. The airline's Q2 earnings beat analysts' expectations, fueled by a 23% increase in profits from a year earlier. The growth was attributed primarily to a resurgence in international travel, a trend that has been a boon to the industry since the pandemic. Despite solid quarterly results, United’s third-quarter forecast fell short of Wall Street projections. The disappointment was largely attributed to overcapacity issues across the industry, which put downward pressure…

Royal Caribbean Cruises is charting a new course to capture the evolving preferences of vacationers. As competition for leisure dollars intensifies, the cruise line is focusing on shorter itineraries packed with diverse activities and unique experiences. The company’s CEO, Jason Liberty, believes shorter cruises better align with the vacation plans of younger travelers, who make up more than half of the cruise line’s clientele. To cater to this demographic, Royal Caribbean has introduced Utopia of the Seas, a massive ship boasting a wide array of amenities, including multiple pools, dining and entertainment options. Despite concerns about a potential economic downturn,…

Key points Retail and transportation stocks shine: Shares of Five Below and JB Hunt rose after the close of trading, reflecting positive developments in the retail and transportation sectors, respectively. Interactive Brokers faces headwinds: Interactive Brokers' stock price fell after the stock market closed, likely due to investor concerns following the release of mixed financial results. Spirit Airlines continues its upward trajectory: Shares of Spirit Airlines maintained their bullish momentum in after-hours trading, demonstrating continued investor optimism. Details Five below (FIVE): Shares of the teen-focused retailer gained 2.07% after the close, likely helped by positive investor sentiment following solid retail…

Goldman Sachs is set to report its second-quarter results on Monday, sparking excitement on Wall Street. With the financial sector recovering after a slow 2023, analysts are eager to see how the investment giant will fare. Goldman Sachs Market Forecast Earnings: Analysts polled by LSEG expect earnings per share of $8.34. Income: LSEG estimates revenue will reach $12.46 billion. Trading revenue: StreetAccount expects fixed income revenue of $2.96 billion and equity revenue of $3.17 billion. Banking Investment: StreetAccount forecasts investment banking revenue to reach $1.80 billion. Goldman Sachs: A heavy dependence on volatile markets Goldman Sachs relies heavily on investment…

The Federal Reserve’s path to lower interest rates gained clarity after a key inflation report Thursday. The consumer price index (CPI), a gauge of consumer goods and services, fell 0.1% in June from May, marking the first monthly decline in more than four years. The welcome news brings the annual inflation rate to 3%, near a three-year low. Creating momentum for policy change June data reinforces the case for the Fed to ease borrowing costs later this year. Stock markets reacted positively, with futures rising while Treasury yields fell. Analysts now believe a September rate cut is a strong possibility,…

Citigroup defied analysts' expectations on Friday, reporting a strong second quarter, fueled by a surge in Wall Street activity. The strong performance comes as the bank grapples with ongoing regulatory concerns. Profit and revenue forecasts Citigroup beat analysts' estimates for both profit and revenue. Earnings per share reached $1.52, beating expectations of $1.39. Total revenue rose to $20.14 billion, beating expectations of $20.07 billion. Breakdown of figures The bank's net income jumped 10% year over year to $3.22 billion, or $1.52 a share. Equity trading revenues rose a significant 37%, driven by strong derivatives and growing hedge fund balances. The…

JPMorgan Chase beat analysts' estimates for both profit and revenue in the second quarter, fueled by a surge in investment banking business. Here's a breakdown of the key results: Earnings: $4.26 per adjusted share, beating analysts' consensus of $4.19. Income: $50.99 billion, beating the estimate of $49.87 billion. Annual growth: Net income jumped 25% to $18.15 billion, while revenue rose 20% to $50.99 billion. Investment banking boom: Investment banking fees rose 52% year over year to $2.3 billion, beating expectations. Cautious optimism despite geopolitical concerns CEO Jamie Dimon acknowledged potential risks such as inflation and rising interest rates, despite positive…

Thursday's highly anticipated June CPI release will likely shape market sentiment regarding potential Federal Reserve rate cuts. Recent economic data, including rising unemployment, suggests both inflation and economic growth are cooling. Federal Reserve Chairman Jerome Powell acknowledged a more balanced risk outlook for inflation and recession in his testimony to Congress this week. He hinted at the possibility of rate cuts without waiting for inflation to hit the 2% target. Economists forecast a 0.1% monthly increase and a 3.1% annual increase in the consumer price index. The core consumer price index, excluding volatile food and energy prices, is forecast to…

Consumer inflation in China continued its downward trend in June, rising just 0.2% year-on-year, according to data released Wednesday. That was lower than analysts' expectations and adds to concerns about potential deflation in the world's second-largest economy. A Reuters poll had forecast a 0.4% rise in consumer prices in June. Meanwhile, the producer price index, which tracks factory-gate inflation, fell 0.8% from a year earlier, in line with forecasts. This subdued inflation is in stark contrast to the situation in many other countries struggling with rising prices. Weak domestic demand in China appears to be the main culprit. “The risk…