JPMorgan Chase kicked off the earnings season with a disappointing report, falling short of expectations on both revenue and profits. The bank's results were weighed down by weaker fixed income trading revenue and rising expenses. CEO Jamie Dimon noted that trading and investment banking activity in its Wall Street unit had moderated somewhat. JPMorgan shares initially dropped over 3% in premarket trading but recovered after the bank raised its net interest income guidance for 2026.
Meanwhile, Goldman Sachs delivered a strong performance, beating revenue estimates with a 72% surge in equities trading revenue. The bank also set a record with $1.65 billion in advisory revenue, sending shares up more than 3.5%. Wells Fargo, however, missed revenue expectations despite beating earnings forecasts. CEO Charlie Scharf highlighted consumer resilience despite economic challenges like higher interest rates and inflation.
President Donald Trump defended his decision to ease regulations on Russian diesel exports, calling it the right choice. Despite the deal allowing Moscow to supply diesel globally for six months, Brent crude futures climbed to over $106 per barrel. While crude futures have since dipped slightly, oil prices remain a pressure point for the stock market.
Delta Air Lines postponed the launch of its nonstop service between Atlanta and Riyadh due to recent attacks on Riyadh's King Khalid International Airport. The airport remains closed after strikes by Yemen's Iran-backed Houthis. Delta's route, originally set to be the first nonstop commercial flight between the U.S. and Saudi Arabia, will now begin in March.
Meta introduced Muse Wonder, its most advanced AI model for digital assistants, available for a subscription costing at least $20 per month. The move reflects Meta's effort to diversify revenue beyond advertising. CEO Alexandr Wang emphasized the model's enhanced capabilities and safeguards against cyber misuse.
McDonald's is focusing on chicken and drinks to compete with rivals like Chick-fil-A, 7 Brew, and Starbucks. Meanwhile, Starbucks denied rumors of acquiring Chipotle, leading to a nearly 4% drop in Chipotle's shares. Cleveland Federal Reserve President Beth Hammack warned that persistently elevated inflation could entrench an inflationary mindset in the economy.