5 Things to Know Before Markets Open

News of the day for April 25, 2023

First Republic storefront

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First Republic Bank shares declined after the bank's deposits fell by 40% and UBS profits sank in the first quarter as it prepares to take over Credit Suisse. Here’s what investors need to know today.

1. First Republic Bank Shares Drop on Deposit Flight

First Republic Bank (FRC) shares are sinking over 20% in pre-market trading after the bank said it will cut about a quarter of its staff to reduce expenses after deposits plunged by 40% to $104.5 billion in the first quarter. Most analysts had expected the bank to hold on to $137 billion of deposits.

2. UBS Profits Sink Ahead of Credit Suisse Takeover

UBS reported profits sank 52% in the first quarter but also reported strong customer inflows for deposits as it prepares to acquire rival Credit Suisse. UBS said its wealth management arm gained $28 billion in new money, including $7 billion in the last ten days of March, after UBS said it would buy Credit Suisse.

3. Apple Wins App Store Appeal But Case Could Force Payment Changes

A U.S. appeals court sided with Apple and upheld a federal court’s order that mostly supported Apple’s App Store policies but could force Apple to change payment practices in its App Store. The court upheld the order in an antitrust case brought by Fortnite creator Epic Games that would require Apple to allow developers to provide links and buttons for third-party in-app payment options that would avoid paying sales commissions to the iPhone maker, but also declared that Apple doesn’t have monopolistic control over mobile game transactions.

4. Alphabet Earnings Offers Look at Cloud, Advertising Businesses

Alphabet is expected to report a 1.3% rise in its first-quarter revenue boosted by growth in its cloud segment. Analysts and investors will be looking for guidance and commentary on demand for digital advertising and the slowing growth rate of Google Cloud.

5. Whirlpool Shares Rising on Strong Revenues

Shares of appliance maker Whirlpool (WHR) are up 3.6% in pre-market trading after the company beat analyst estimates for earnings and revenues. Whirlpool's first quarter sales came in at $4.65 billion, beating estimates of $4.5 billion. Its earnings per share came in at $2.66, above expectations of $2.28 per share. The company also reaffirmed its 2023 sales guidance of $19.4 billion, but revised its earnings outlook for the year to $13 per share from $16 per share.

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  1. Yahoo Finance. “First Republic lost $72 billion in deposits amid bank turmoil.”

  2. CNBC. “UBS profits hit by legacy legal costs as it nears Credit Suisse merger.”

  3. Bloomberg. “Apple App Store Policies Upheld by Court in Epic Games Antitrust Challenge.”

  4. MarketWatch. “Alphabet earnings: What to watch for beyond Google's AI efforts.”

  5. Reuters.  “Appliance maker Whirlpool's results beat on N. America strength.”

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