European GDP Contracts and Producer Prices Plummet: Morning Buzzers
Stock futures declined on Wednesday morning as Mr. Market digested news that the euro zone remained mired in recession in the first quarter. On the other side of the coin, the data released by Eurostat estimated first-quarter U.S. GDP growth at 0.6 percent.
Producer Prices fell 0.7 percent in April, the largest drop in three years. More than 80 percent of the decrease is attributable to a 2.5 percent drop in the price for finished energy goods.
At 8:45 a.m.: DJIA: -0.12%, S&P 500: -0.19%, NASDAQ: -0.10%.
Here’s what’s buzzing on Wednesday morning:
JPMorgan (NYSE:JPM) Chairman and CEO Jamie Dimon is likely to keep his dual roles, according to reports. The bank has faced calls recently to break the chairman role away from the CEO role, something that many company insiders and shareholders, as well as Dimon himself, disagree with. Shareholders will vote at the bank’s annual meeting on May 21.
HSBC (NYSE:HBC) will cut as many as 14,000 more jobs, as CEO Stuart Gulliver marches forward with a plan to reduce costs by $3 billion. The new cuts would reduce the bank’s headcount to about 240,000, down from 300,000 before major layoffs began. Gulliver has already managed to reduce costs at the bank by about $4 billion annually.
Boeing (NYSE:BA) resumed deliveries of the 787 Dreamliner on Tuesday. The news comes after the aircraft was grounded for months due to problems with an on-board lithium-ion battery. At the end of last week, the company rolled out its first 787 at an increased production rate of seven per month. By year-end, Boeing expects to be producing 10 Dreamliners per month.
Macy’s (NYSE:M) climbed as much as 2 percent in pre-market trading after reporting earnings. Revenue increased 4 percent on the year to $6.4 billion, about in line with expectations. Adjusted earnings increased 28 percent to $0.55 per share, beating the average estimate of $0.53 per share… (Read more.)
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