Wall Street Selloff, Bank Earnings and Tesla’s Flying Car

0:00 Speaker 1 With us is John Terrett, and he usually on Sunday mornings gives us an update of what the heck happened in the markets this last week.

0:10 Speaker 2 Good morning, John. Well, it was a nervous, edgy end to the week on Friday, I’m afraid to say. The global chip sell-off going on the longest since 2008, which is the era of the global financial crash. Eight days and the worst week for chips since July. S & P 500 closing down 2% on Friday. But really, last

0:28 week was about the banks. Of course, the earnings were mixed. We had strong earnings from Morgan Stanley and Goldman Sachs. Disappointment from JPMorgan Chase and Bank of America. It’s a bit of a laundry list, but let me run through this as quickly as I can because it is important.

0:40 Here goes. JPMorgan Chase, the biggest of them all. They did bring in $ 15. 3 billion, but they missed Wall Street estimates for the first time in three years, and they were punished for that. Goldman Sachs was the standout performer, a 72% jump in equities trading. Citigroup, the global behemoth, profit up 40%, the best in 10 years. Morgan Stanley,

1:00 higher profits thanks to record wealth management revenue. And Bank of America, profits falling 17%. and taking a $ 1. 2 billion fine from the federal authorities for failing to report suspicious transactions. Now, I know that you are good friends with Brian Moynihan, who heads up Bank of America, and I know that he’s cross about this. He’s cross that it even came

1:23 to this, and he’s embarrassed that it happened at all. And he’s put on board 1,000 contractors today. to make sure that that never happens again. Overall, the summary is that with bond yields rising in volatile markets, you get some winners and some losers, even in the banking sector on Wall Street. In the week ahead, John, earnings come

1:41 from Netflix on Tuesday. They laid off 1,000 people last week, the most they’ve done since 2022. We get Tesla earnings as well. They introduced the flying car, the new Roadster and Texas on Thursday, this extraordinary vehicle that has rockets on the side that can take off and jump over cars and jump over obstacles and do somersaults in the air.

2:02 I want one very badly, especially when I’m driving on the Jersey Turnpike. But they’re not starting to make them until 2028, and there’s no price attached to it yet. We also hear from Meta Platforms and American Express. That’s on Friday. And as they used to say, that, sir, will do nicely. John.

2:18 Speaker 1 John Tarrick, thank you for the update. Do you need a pilot’s license to go above the other cars?

2:25 Speaker 2 Don’t get me started on this, because of course you do. If it’s going to fly any substantial distance, especially if it’s going to go higher than 200 feet, of course you need a pilot’s license. So there’s a lot of red tape to go through before we see these things flying around New York.

2:41 Speaker 1 John Terrett, thank you for the update, and we’ll talk again real soon. Thanks, John.

2:46 Speaker 2 See you next week.