Good Evening. Investors digested a flurry of bank reports and reeled from fresh red-hot CPI statistics as U.S. stocks sank Thursday, capping another dismal week on Wall Street.
The S&P 500 and the tech-heavy Nasdaq both fell 1.21% and 2.14%, respectively, to four-week lows. The Dow Jones Industrial Average fell 0.33% percent after making a small gain earlier in the session. Meanwhile, Treasury yields rose, with the 10-year benchmark hitting 2.80%, its highest level in a week.
Citigroup (C) first-quarter profit fell 46% due to provisions for Russia-related losses, a drop in underwriting fees, and more significant expenses.
The banking behemoth increased its reserves by $1.9 billion in the third quarter to brace for losses from direct Russian exposures and the economic impact of the country’s war in Ukraine. Citi is the most international of the American banks. Credit expenses rose to $755 million as a result of the decision, compared to a $2.1 billion benefit a year ago when loss reserves built up during the COVID-19 epidemic were released.
Citi cut its Russian exposure to $7.8 billion, down from $9.8 billion in December, and lowered its worst-case loss estimate to no more than $3 billion, down from over $5 billion last month.
In the meantime, net income dropped to $4.30 billion, or $2.02 per share, from $7.94 billion, or $3.62 per share, a year before.
As of closing, Citi ended up 1.17% at $50.93 per share
According to a new SEC filing on Thursday, Tesla (TSLA) CEO Elon Musk has proposed to buy Twitter (TWTR) for $54.20 per share, or $41 billion in cash. Musk stated that in order to make substantial improvements, the social media firm he has frequently criticized must become private.
Musk’s offer represents a 38% premium over Twitter’s closing price on April 1, the last trading day before the billionaire announced his purchase of a 9.2% interest in the firm.
“I invested in Twitter as I believe in its potential to be the platform for free speech around the globe, and I believe free speech is a societal imperative for a functioning democracy,” Musk wrote in a letter to Twitter Chairman Bret Taylor, as disclosed in the filing. “However, since making my investment I now realize the company will neither thrive nor serve this societal imperative in its current form. Twitter needs to be transformed as a private company.”
“My offer is my best and final offer and if it is not accepted, I would need to reconsider my position as a shareholder,” he added. “Twitter has extraordinary potential. I will unlock it.”
As of closing, Twitter was up 1.35% at $45.08 per share