And welcome to power lunch. Im melissa lee. A winning month with a losing day. The major averages lower across the board here. We did hit record highs with the nasdaq and dow jones utility average before the markets went lower. Crude oil, meantime, hitting threemonth lows. Traders are worried the opec led cuts to reduce global inventories are being undermined by those outside of the deal. Financials, big hit here. Regional banks on pace for the third consecutive day of losses. Im michelle carusocabrera. Here is what else is happening this hour. New york times offering buyouts. The move aimed at cutting the number of editors in its newsroom. Contracts to buy previously owned homes are falling for a second straight month amid a supply squeeze. Jetblue launching its first of its kind selfboarding Program Using facial recognition software. More on that intriguing story ahead. Brian . Michelle, welcome back. Well, if you are just a casual market observer, you probably know the stock markets
Are justified by profits. Thats big request. Strong results could send the market even higher. Poor ones could have the opposite effect. And yes, weve gotten some guidance already. In fact, an upbeat outlook today came from a surprising place. Retail. Target said more customers were coming to its stores and it expecting sales to be up and raised its profit forecast. Tomorrow, we hear from three of the biggest banks in america. Jpmorgan, wells fargo and citigroup and expectations are high and growing. Bob pisani reports. Stocks are holding up well because earnings have been improving since the earnings recession ended last year. Were expecting 7 growth for the Second Quarter and Revenue Growth has returned, expected b to be up almost 7 this quarter. The markets are relying on growth for its two biggest s sector, technology and techs worry about names like facebook b as well as google. The biggest banks are expected to report good numbers. Stocks an bonds have improved and while longterm
We do start out with nice Cool Temperatures around the bay area and it will be a fairly warm afternoon. We are right now at 62 degrees in the peninsula as we look live in daly city for the peninsula and trivalley. Live from pleasant ton 58 degrees, 55 in the north bay and we also see those low clouds looking at San Francisco, 55 degrees there and our highs this afternoon will reach into the mid 90s for concord, antioch up to 96 degrees, morgan hill 95, san jose in the upper 80s. Palo alto will be at 84, oakland 76 and 70 today in San Francisco. Our temperatures ramp up several more degrees tomorrow, i will talk more about this coming up in a few minutes. Mike starts up out with a traffic break. The sig alert issued by chp look at most of your bay is moving well, a couple pronounced slow downs as well, but the north bay update the good enough and i have to cover this the crash was completely cleared from the roadway, this one northbound 101 has completely cleared the roadway. Heading aw
Alibaba came public in 2014. Snap, and it went off like a snap, without a hitch. Believe me, it could have been dreadful. It could have been like the facebook deal. Boo which caused tremendous concern about the entire underwriting process. It could have been like twitter, which was way too hot, too soon. It could have been like zinga or groupon, two deals that spiked as only a small amount of stock was offered, socalled sliver deals and then cost aftermarket buyers loads of money. Instead the snap deal went off pretty much like clockwork. Congratulations, New York Stock Exchange. Causing nary a hiccup for the rest of the market. Dow sinking 113 points. S p backsliding 0. 59 . Nasdaq declining 0. 73 . The stock of snap, the company that has pioneered social picture messaging opened up at 24, a pleasant, not too hot, not too cold, gold i locks like 7 premium to its 17 ipo price. It went smoothly and while you may regard the stock as hopelessly overvalued, it could have played havoc with
Stronger dollar story. People are still going shopping in the u. K. Retail Sales Numbers really strong in the u. K. Yields up by around two basis points. Much more on that in just a moment. Most the yields rose the it almost a year. Abn egypt air an egyptair flight has gone missing over the Mediterranean Sea. We have the latest with riad hamade in dubai. Please tell us what we know at this point about this egyptair flight. Unfortunately, we know very little. It took off from paris, disappeared around 2 30 a. M. Egypt time from the radar. Airbus 320. Is an it was given to egyptair in 2003. It is not a very old airplane. The pilots were very experienced. Right now, the militaries of egypt and greece are searching forn any debris. David weve heard president that no causeris has been ruled out. Was it at cruising altitude and what was the weather like . Riad as far as we know, the weather was good. This is from the air traffic controllers. It was at cruising altitude come a sudden disappea