Week ending April 11th, 2025
From Wall Street to Main Street
Highlights from the past week
Market / Macro Economic Summary Markets had a rebound last week despite it being quite a roller coaster. First off, I’d like to thank you for the kind words and calls after last week’s newsletter. I always strive to keep you up to date with my thoughts on the markets and appreciate that you know and reached out to me to let me know that my efforts to work hard and to stay on top of things are appreciated. Its always nice to hear your efforts are being valued and recognized. On to the markets, I asked for patience and this past week we were very much rewarded. As I’ve tried to stress the importance of staying in the markets and not trying to time when to get in or out, this week once again reminded investors of the perils of trying to “time the market.” On Wednesday, the Nasdaq jumped a jaw-dropping 12%……yes, you read that right, increased 12% on a single day. This is the third largest daily gain since World War II. The S&P and Dow Jones were also positive over 10% on Wednesday as well. On the week, the Dow Jones was up 5.%, the S&P 500 was up 5.7% and the Nasdaq was up 7.3%! This was solely due to the de-escalation of tariffs as President Trump announced a 90 day reprieve on all tariffs with everyone except China. This past week saw the start of earnings season as the banks kicked us off in strong fashion. Company Specific / Micro Economic Summary Delta Airlines (DAL) Shares rose 5.37% on the day they reported as they topped expectations. Earnings per share of $0.46 beat Wall Street estimates of $0.39 cents. Revenues of $14.0 billion was 4.3% higher than the calls for $13.5 billion. As expected to be a theme amid these tariffs, CEO Ed Bastian said with higher economic uncertainty the airline would be focusing on things they can control such as managing costs and decreasing capital expenditures. JP Morgan Chase (JPM) Shares rose 2.8% as the bank reported a strong first quarter of 2025. Revenues of $45.3 billion were much better than the $44.1 billion analysts were expecting. Earnings per share of $5.07 were also much better than the calls for $4.64. CEO Jamie Dimon touted a 12% increase in investment banking fees and Assets Under Management grew by $90 billion. Of course, he mentioned geo-political issues as the main driver of concern for the remainder of the year. Wells Fargo (WFC) Shares fell 2% as the bank delivered a mixed quarter. On the top line, revenues of $20.1 billion came in just below the Wall Street expectations of $20.8 billion. On the bottom line, earnings per share of $1.40 came in above the estimates of $1.22. CEO Charlie Scharf said a combined of work to reduce overall share count by 8%, fee-based revenue growth across multiple lines have all attributed to the bank’s turnaround. Morgan Stanley (MS) Shares rose 1% as the bank/investment house reported a first quarter beat on the top and bottom-lines. Earnings per share of $2.60 were far ahead of the calls for $2.21. Revenue of $17.7 billion was also ahead of the estimates of $16.6 billion. CEO Ted Pick said Equities division brought in a record $4.1 billion in revenue and wealth management brought in $94 billion in new assets. Parting Thoughts As I write this, markets are expected to rise strong again in the morning to kick off our week. President Trump announced that there would be some exemptions to tariffs to smartphones, computers and other consumer electronics from China. Hopefully this is the road to the final steps of resolution to these prolonged tariff deals. We welcome an opportunity to discuss the above detail and wish you much success in the rest of your week! Regards, Erick J. Palacios, MBA Wealth/Fiduciary Advisor Plan to Prosper Wealth Management’s clients & employees will from time-to-time hold securities mentioned above. Commentary is not endorsements or recommendations of any securities.