Bank of America reported strong first-quarter results on Tuesday, with earnings and revenue surpassing analysts’ expectations.
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The bank posted earnings per share of $0.90 on revenue of $27.51 billion, boosted by better-than-expected trading revenue and net interest income. Our team delivered another quarter of strong results,” said Bank of America CEO Brian Moynihan.
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We earned $7.4 billion this quarter as we continued to invest in our people, technology, and capabilities to support our clients and communities.
The bank’s net interest income, a key measure of profitability, rose to $14.6 billion for the period. This strong performance follows other major banks that also recently beat first-quarter estimates.
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However, Bank of America’s stock faces pressure in premarket trading on Tuesday due to ongoing concerns about the global economy.
Shares are down nearly 2% despite the earnings beat. On Wall Street, stock futures have changed a little as investors monitor the latest developments in U.S.-China trade tensions. The Dow Jones Industrial Average is set to open slightly lower, weighed down by a decline in Boeing shares.
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Boeing stock fell about 3.5% in premarket trading after a report that Chinese officials have instructed their airlines to halt deliveries of Boeing jets.
Bank’s strong Q1 results boost profits
This move comes amid escalating tariffs between the U.S. and China.
On the positive side, Netflix shares are up more than 2% in premarket trading following reports of ambitious financial goals at the streaming giant. Executives reportedly aim to double revenue by 2030 and reach a market capitalization of $1 trillion. Johnson & Johnson topped estimates and raised its full-year operational sales outlook in other earnings news.
The company reported adjusted earnings per share of $2.77 on revenue of $21.89 billion, beating expectations. Despite the strong results, Johnson & Johnson shares are down about 1% in premarket trading on Tuesday. The stock remains up approximately 7% year-to-date.
Investors are also monitoring the Federal Reserve as concerns about inflation continue to mount. Fed Governor Christopher Waller recently likened his outlook to a football “tush push,” referencing the central bank’s incorrect prediction that pandemic-induced inflation would be temporary. Overall, it’s shaping up to be another choppy day on Wall Street as investors navigate a complex landscape of corporate earnings, economic data, and geopolitical tensions.
Stay tuned for more updates throughout the trading session.
