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    Wells Fargo earnings top estimates on $1.05 billion release of loan loss reserves

    In this articleWFCWells Fargo CEO Charles Scharf listens during the Milken Institute Global Conference in Beverly Hills, Calif., on April 30, 2019.Kyle Grillot | Bloomberg | Getty ImagesWells Fargo reported earnings and revenue that beat expectations for its first-quarter on Wednesday.Here’s how the results stacked up to Wall Street estimates.Earnings: $1.05 in earnings per share versus 70 cents a share expected, according to Refinitiv.Revenue: $18.06 billion versus $17.5 billion expected.Wells Fargo results were helped by a net benefit of $1.05 billion from reserve releases. Banks bulked up their credit loss reserves last year as the pandemic pulled the U.S. economy into a sharp recession, but the financial firms have started to release those reserves as the recovery takes shape.CEO Charlie Scharf, who took over in late 2019, is running a company that is still recovering from the aftermath of its 2016 fake accounts scandal.”Our results for the quarter, which included a $1.6 billion pre-tax reduction in the allowance for credit losses, reflected an improving U.S. economy, continued focus on our strategic priorities, and ongoing support for our customers and our communities,” Scharf said in the earnings release. “Charge-offs are at historic lows and we are making changes to improve our operations and efficiency, but low interest rates and tepid loan demand continued to be a headwind for us in the quarter.”Wells Fargo also reported a net interest margin of 2.05% and an efficiency ratio of 77% for the quarter. Analysts were expecting 2.10% and 78%, respectively, according to FactSet.Analysts will be keen to hear about any progress the bank is making in appeasing regulators, especially regarding a Federal Reserve order that caps the bank’s asset growth, on the earnings call on Wednesday morning.Of the six biggest U.S. banks, Wells Fargo has the smallest Wall Street trading and investment banking operations, areas that have been on fire in recent months thanks to a red-hot IPO market and unprecedented Fed support.Last year, Wells Fargo was the only bank among the six biggest U.S. lenders to be forced to cut its dividend after the annual Federal Reserve stress test. The firm also posted its first quarterly loss since the financial crisis and announced it was cutting billions of dollars in expenses.  Wells Fargo shares have climbed 33% this year, exceeding the 25% gain of the KBW Bank Index. The bank’s stock was down slightly in premarket trading after releasing its results.This story is developing. Please check back for updates.Enjoyed this article?For exclusive stock picks, investment ideas and CNBC global livestreamSign up for CNBC ProStart your free trial now More

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    Goldman Sachs reports record results that top the Street amid booming investment banking

    In this articleGSDavid Solomon, CEO, Goldman Sachs, speaking at the World Economic Forum in Davos, Switzerland, Jan. 23, 2020.Adam Galacia | CNBCGoldman Sachs on Wednesday blew past analysts’ expectations with record first-quarter net profits and revenues on strong performance from the firm’s investment banking and trading businesses.The bank posted per-share earnings of $18.60, crushing the $10.22 estimate of analysts surveyed by Refinitiv. The results represented growth of 498% from a year earlier. Revenue of $17.7 billion easily topped expectations of $12.6 billion.Shares of the New York-based bank rose 1.7% following the release, which showed that Goldman’s first-quarter revenues more than doubled on a year-over-year basis.”We have been working hard alongside our clients in preparation for a world beyond the pandemic and a more stable economic environment,” CEO David Solomon said in the earnings release. “Our businesses remain very well positioned to help our clients reposition for the recovery, and that strength is reflected in the record revenues and earnings achieved this quarter.”Expectations were high for Goldman as the economic recovery and record first-quarter issuance of blank-check special purpose acquisition companies were expected to lift investment banking revenues. Earlier on Wednesday, JPMorgan Chase posted robust trading results for the first quarter and a $5.2 billion tailwind from releasing funds it had set aside for loan losses that did not materialize.Here are Goldman’s numbers:Earnings: $18.60 per share vs. $10.22 per share expected by analysts polled by Refinitiv.Revenue: $17.7 billion vs. $12.6 billion expected.Trading Revenue: Fixed Income: $3.89 billion, Equities: $3.69 billionInvestment Banking: $3.77 billionAt Goldman, the deluge of SPACs helped push investing banking net revenues to a record $3.77 billion for the quarter, including record equity underwriting. The headline investment banking revenue number exceeded the $2.9 billion estimate and represented a 73% surge from a year earlier.Financial advisory revenues totaled $1.12 billion.”The increase in Underwriting net revenues was due to significantly higher net revenues in both Equity underwriting, primarily driven by strong initial public offerings activity,” the bank said in its release. “The increase in Financial advisory net revenues reflected a significant increase in completed mergers and acquisitions transactions.”Asset management generated record quarterly net revenues of $4.61 billion, reflecting record net revenues from equity investments.”Goldman is converting mind share to market share probably better than any player” quarter over quarter and year over year, wrote Wells Fargo analyst Mike Mayo. “The main question is sustainability, but our view is that Goldman is in the sweet spot for a booming [investment banking]/advisory business as each company in each industry globally has a rethink of its business strategy post-pandemic.”In its Global Markets unit, traders produced a 47% bump in revenue from a year earlier to $7.58 billion. That sum was split between $3.89 billion in fixed-income trading and $3.69 billion in equities, which reflected year-over-year growth of 31% and 68%, respectively.The bank said the strong growth in fixed-income trading was thanks in part to “significantly higher” net sales in mortgages and interest rate products.Of the six biggest U.S. banks, Goldman gets the largest share of its revenue from Wall Street activities including trading and investment banking. For the past few years that has been a detriment to the firm, as retail banking fueled by cheap consumer deposits had driven the industry’s record profits.That dynamic reversed during the coronavirus pandemic, when firms with sizable consumer operations had to set aside tens of billions of dollars for anticipated loan losses, causing banks like Wells Fargo to post their first quarterly loss since the financial crisis.Goldman shares have climbed 24% this year, roughly matching the gain of the KBW Bank Index.— CNBC’s Michael Bloom contributed reporting.Enjoyed this article?For exclusive stock picks, investment ideas and CNBC global livestreamSign up for CNBC ProStart your free trial now More

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    JPMorgan Chase beats profit estimates on strong trading, $5.2 billion release of loan-loss reserves

    In this articleJPMJPMorgan Chase on Wednesday reported profit and revenue that exceeded analysts’ expectations on robust trading results and a $5.2 billion benefit from releasing money it had previously set aside for loan losses that didn’t develop.The bank posted first-quarter profit of $14.3 billion, or $4.50 a share including a $1.28 per share benefit from the reserve release, higher than the $3.10 per share expected by analysts surveyed by Refinitiv.Companywide revenue of $33.12 billion exceeded the $30.52 billion estimate, driven by the firm’s trading operations, which produced about $1.8 billion more revenue than expected.JPMorgan’s release of $5.2 billion in reserves is the biggest sign yet that the U.S. banking industry is now expecting to have fewer loan losses than it did last year, when it set aside tens of billions for defaults anticipated from the coronavirus pandemic. A year ago, the firm had added $6.8 billion to credit reserves.”Overall, this was a great quarter for JPMorgan,” said Octavio Marenzi, CEO of consultancy Opimas. “It is now increasingly clear that the bank over-reserved, and that money is now flowing back into its earnings, concealing some of the weakness in consumer banking.”JPMorgan shares dipped less than 1% in premarket trading.Fixed income trading produced $5.8 billion in revenue, a 15% increase that exceeded analysts’ estimates by more than $800 million, on activity in securitized products and credit markets. Equities trading revenue surged 47% to $3.3 billion, a full $1 billion more than estimates, on “strong performance across products.”JPMorgan, with the world’s biggest Wall Street bank by total revenue, was expected to benefit from robust investment banking fees driven by record issuance of special purpose acquisition companies, which saw more activity in the first quarter than all of 2020, itself a record year.That came to pass: The firm said first-quarter investment banking revenue surged 222%, or a full $2 billion, to $2.9 billion, exceeding the estimate of $2.65 billion.Most of the quarter’s reserve release came from the bank’s retail division: The firm said $3.5 billion was tied to the bank’s credit card borrowers, and another $625 million from home loan borrowers.While that meant that the firm’s consumer and community banking division saw profit surge by $6.5 billion from a year earlier, to $6.73 billion, the bank said that card and mortgage revenue was impacted by lower balances as flush consumers pay down their debts.In the release, CEO Jamie Dimon called loan demand “challenged,” but during a call with reporters Wednesday, Dimon added that the dynamic would ultimately be good for loan demand because consumers were in good shape.Dimon struck an optimistic tone for the near-term economic future in the U.S., similar to comments he made this month in his annual shareholder letter.”With all of the stimulus spending, potential infrastructure spending, continued quantitative easing, strong consumer and business balance sheets and euphoria around the potential end of the pandemic, we believe that the economy has the potential to have extremely robust, multi-year growth,” Dimon said in the release.Analysts will also be curious about the pace of share repurchases the bank is expected to make. Last month, the Federal Reserve said banks that pass the industry’s 2021 stress test at mid-year will be allowed to resume higher levels of dividend payouts and buybacks starting June 30.Shares of JPMorgan rose 21% so far this year, compared to the 25% advance of the KBW Bank Index.After JPMorgan’s earnings statement, Goldman Sachs also released first-quarter results that crushed forecasts with record first-quarter net profits and sales due to strong performance in trading and investment banking.Here are the JPMorgan numbers:Earnings: $4.50 per share vs. $3.10 per share expected by analysts polled by Refinitiv.Revenue: $33.12 billion vs. $30.52 billion expected.Enjoyed this article?For exclusive stock picks, investment ideas and CNBC global livestreamSign up for CNBC ProStart your free trial now More

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    U.S. vaccination pace picks up as officials say Johnson & Johnson pause won't slow rollout

    Johnson & Johnson COVID-19 vial and box seen at a vaccination site. Doses of the Johnson & Johnson vaccine are being administered throughout the state of Florida despite a small number of patients who have experienced adverse reactions, including blood clots.Paul Hennessy | LightRocket | Getty ImagesCenters for Disease Control and Prevention data shows 2.6 million vaccine doses reported administered across the U.S. Tuesday, bringing the daily average of shots given over the past week to a fresh high of 3.4 million.U.S. officials say the Food and Drug Administration’s recommended pause on the use of the Johnson & Johnson vaccine will not slow down the vaccination campaign.Jeff Zients, the White House Covid-19 Response Coordinator, told reporters Tuesday that the Johnson & Johnson announcement “will not have a significant impact on our vaccination program.””The president has always said that this is a wartime effort, and as such we’ve mobilized a wartime effort so that we’re prepared for a wide range of scenarios” Zients said. “We have more than enough supply of Pfizer and Moderna vaccines to continue the current pace of about 3 million shots per day.”The Johnson & Johnson vaccine makes up 7.2 million of the total doses administered to Americans thus far, compared to 99.5 million doses of Pfizer and 85.4 million doses of Moderna. The single-dose Johnson & Johnson vaccine is responsible for 9.5% of the roughly 75 million Americans who are fully vaccinated, according to CDC data.Zoom In IconArrows pointing outwardsU.S. vaccine shots administeredWith 2.6 million shots reported administered Tuesday, the latest seven-day average of daily doses administered climbed higher to 3.4 million.Zoom In IconArrows pointing outwardsWhite House Covid-19 Data Director Cyrus Shahpar said in a tweet that this was the first Tuesday — a day that typically sees lower numbers due to weekly reporting patterns — with more than 2 million reported doses administered.U.S. share of the population vaccinatedMore than 75 million Americans are now fully vaccinated, according to CDC data, nearly 23% of the total population. About 122 million people, or 37% of the population, have received at least one dose.Zoom In IconArrows pointing outwardsOf those aged 65 and older, nearly 80% have received at least one dose and 62.5% are fully vaccinated.U.S. Covid casesCoronavirus case counts are on the rise in the U.S., according to data from Johns Hopkins University. The latest seven-day average of about 71,200 daily new cases represents a 10% increase from the prior week.Zoom In IconArrows pointing outwardsIn Michigan, the state seeing the highest level of daily new cases per capita, infection counts continue to climb. Michigan is recording about 7,800 new cases per day on average, close to the state’s pandemic high of more than 8,300 per day, recorded in December.Average daily case counts are on the rise in 35 states in total.U.S. Covid deathsThe seven-day average of daily reported Covid deaths in the U.S. is 973, JHU data shows.Zoom In IconArrows pointing outwardsThe trend in the death toll is currently obscured by a bulk data release of roughly 1,800 deaths in Oklahoma. The Oklahoma State Department of Health is transitioning to data reporting guidelines in line with CDC requirements. Those deaths are all being reported for April 7, even if they occurred previously.Prior to this reporting anomaly, the daily Covid death toll in the U.S. had been trending downward from the record levels seen in January. More

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    5 things to know before the stock market opens Wednesday

    Here are the most important news, trends and analysis that investors need to start their trading day:Stocks set to rise after S&P 500 closed at another recordBank earnings beat estimates, surge past last yearCoinbase gets $250 per share reference price ahead of direct listingCDC to convene advisory panel on J&J Covid vaccineModerna issues data on its Covid vaccine six months out1. Stocks set to rise after S&P 500 closed at another recordTraders on the floor of the New York Stock Exchange.Source: NYSEU.S. stock futures rose Wednesday, a day after the S&P 500’s modest gain pushed the index to another record close. The Nasdaq jumped 1% on Tuesday, moving it within 1% of February’s record close. The Dow Jones Industrial Average’s late-day comeback stalled and reversed, resulting in its second straight decline from Friday’s record finish. Reopening trades came under pressure Tuesday after the FDA recommended a pause in Johnson & Johnson’s one-shot Covid vaccine after reported rare cases of blood clotting.2. Bank earnings beat estimates, surge past last yearPeople pass the JP Morgan Chase & Co. Corporate headquarters in the Manhattan borough of New York City.Mike Segar | ReutersThe flood of earnings from the nation’s biggest banks began Wednesday with Dow stocks JPMorgan Chase and Goldman Sachs. JPMorgan and Goldman handily beat estimates with first-quarter profit and revenue and blew past the results from their year-earlier periods, which were hit by the early days of the Covid pandemic.3. Coinbase gets $250 per share reference price ahead of direct listingThe Coinbase logo shown on a smartphone.Chris Delmas | AFP via Getty ImagesNasdaq gave Coinbase Global a reference price of $250 per share ahead of Wednesday’s planned direct listing. That would value the cryptocurrency exchange at about $65 billion, nearly eight times its $8 billion valuation in its last private fundraising round in 2018. Bitcoin has been surging in recent sessions, ahead of the Coinbase debut. Early Wednesday, bitcoin hit new heights near $65,000. The world’s biggest cryptocurrecy has more than doubled this year.4. CDC to convene advisory panel on J&J Covid vaccineZenobia Brown, MD, of the Northwell Health house calls program prepares a dose of the Johnson & Johnson coronavirus (COVID-19) vaccine in the Astoria neighborhood of Queens borough on April 07, 2021 in New York City.Michael M. Santiago | Getty ImagesThe CDC is set to convene a meeting of the Advisory Committee on Immunization Practices on Wednesday to further review the six cases of rare but severe blood-clotting issues that lead federal regulators to recommend pausing J&J’s Covid vaccine. All six cases occurred in women ages 18 to 48, with symptoms developing six to 13 days after they received the shot. One of the women died. Another one is in critical condition.5. Moderna issues data on its Covid vaccine six months outWalmart pharmacist Carmine Pascarella administers a Moderna coronavirus disease (COVID-19) vaccine for local resident Jeff Stone inside a Walmart department store as Walmart and other major U.S. pharmacies take part in the Federal Retail Pharmacy Program, to increase vaccinations in the U.S. in West Haven, Connecticut, February 17, 2021.Mike Segar | ReutersModerna, citing updated trial data, said its two-shot Covid-19 vaccine was more than 90% effective at protecting against Covid and more than 95% effective against severe disease up to six months after the second dose. Earlier this month, Pfizer said its vaccine, which uses technology similar to Moderna’s, was around 91% over the same period. Both vaccines from Pfizer-BioNTech and Moderna, along with J&J’s, are the three that have been cleared for emergency use in the U.S.— Follow all the market action like a pro on CNBC Pro. Get the latest on the pandemic with CNBC’s coronavirus blog. More

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    Gary Gensler has a full agenda as he gets set to take over the SEC

    Gary Gensler, then-chairman of the U.S. Commodity Futures Trading Commission (CFTC).Simon Dawson | Bloomberg | Getty ImagesThe Senate is likely to confirm Gary Gensler as the new chairman of the Securities and Exchange Commission either Wednesday or later this week, and crypto assets — including bitcoin — are likely high on his agenda.With Democrats in control of all three major branches of government, and the SEC commissioners now with a 3-2 Democratic majority, Gensler is likely to face calls from progressives to act on several fronts, including ESG, the Gamestop fallout, the Archegos fiasco, payment for order flow, fiduciary obligations, and especially regulations around securities in the crypto space, including a bitcoin ETF.What’s likely on the top of the list?Environmental, Social and GovernancePresident Biden has pledged swift action to tackle what he calls a “climate emergency.” Acting Commissioner Allison Herren Lee has already indicated that the commission will focus on greater transparency and how corporate actions may be affecting the climate.Climate change, Herren Lee has argued, fits squarely in the SEC’s mandate of providing data for investor protection.That mandate can be fairly broad: In a recent speech, she argued that even political spending disclosure can be linked to ESG issues.Gamestop falloutThe Gamestop situation has led to numerous calls for investigations around gamification of trading, market manipulation, and whether it is feasible to move from the current two-day settlement period for stocks (T + 2) to a one-day settlement period.In a recent call with reporters, Christopher Gilkerson, Charles Schwab’s senior vice president and general counsel, said any reform initiated by Gensler “would focus on rapidly moving to T+1 settlement, better surveillance on potential market manipulation through social media and better disclosure for short sellers. And probably a focus on gamification of investing.”Pat Healy of Issuer Network, who advises companies on going public, believes that more transparency around short sales is a clear priority.”The SEC should create a minimal level of short sale disclosure,” he told me. “That would alert the market that a big fish is taking a position, which is the parallel disclosure that is done when investors take long positions. This is the only part of the market that has no disclosure requirements.”Archegos ramificationsThe recent Archegos fiasco, where a trader was able to attain massive positions in several stocks using swaps, will also likely attract Gensler’s attention, particularly since he was previously chairman of the Commodities Futures Trading Commission, where he was involved in implementing rules governing the swaps market following the Great Financial Crisis in 2008-2009.The Archegos debacle caused significant losses to investors in many large companies and fits squarely in the SEC’s historic mission.During his March 2 appearance before the Senate Banking Committee, Gensler noted the SEC’s historic role in protecting investors, and he promised to continue the SEC’s goals of “strengthening transparency and accountability in our markets, so people can invest with confidence, and be protected from fraud and manipulation.”One delicate issue: Archegos was a family office that was exempt from registration with the SEC. “This guy was trading his own money,” Amy Lynch, a former SEC compliance official now with Frontline Compliance, told me.”They are likely to take a look at the whole family office structure,” she said. Not having to register “makes sense for the average family office, but in the case of Archegos there was a lack of transparency — Credit Suisse didn’t know what Morgan Stanley was doing with the transactions.”Lynch says they are likely to look at more reporting requirements around family offices, and perhaps even consider registration.Payment for order flowMany financial service firms charge nothing for commissions, but receive payment from broker-dealers to route orders to them, a process known as “payment for order flow.” Some claim receiving payment for order flow comes at the expense of best execution, but that is hotly disputed.Healy says that Gensler “will likely pay lip service to looking at payment for order flow but is unlikely to do anything about it.”The reason is that it is well-known that “the average retail investor is able to execute trades at a lower cost and with better pricing than several decades ago. The one thing that may be needed more is disclosure.”Standards of care for broker-dealersThe SEC put in place Regulation Best Interest (Reg BI) last year, which established new standards of conduct for broker-dealers and requires them to recommend products that are in their customer’s best interest.The SEC is unlikely to make substantive changes in the rule, but they are likely to seek vigorous enforcement of the rule.”They will have to do more examinations to determine their actual practices are matching their disclosures,” Lynch told me.Bitcoin ETFBitcoin is a commodity that is regulated by the CFTC, but a bitcoin ETF would be a security regulated by the SEC. The SEC has consistently denied requests to create a bitcoin ETF for the last eight years, citing concerns over fraud, custody, and excessive volatility.Gensler is likely to continue to focus on the safety of those assets. Indeed, the SEC’s Examination Priorities cited digital assets and the “safety of client funds and assets” as a top priority.Still, crypto investors are optimistic about Gensler, noting that he taught blockchain and digital currencies while a professor at MIT.They also are hopeful that many of the concerns cited by the SEC are being addressed.”A few years ago there was no regulated futures market, now there is, and the volumes are much bigger,” Matt Hougan, chief investment officer of Bitwise Asset Management, told me. “There were also no regulated custodians with insurance, now there is. We have made a huge amount of progress, whether we have made it over the goal line is not clear, but we are getting close.”Digital securities and assetsGiven the Coinbase direct listing and the explosion of crypto assets, many believe that Gensler’s biggest area of focus will be in the cryptoasset space.”I think digital assets will be his legacy,” said Michelle Bond, a former senior counsel at the SEC who is now CEO of the Association for Digital Asset Markets, an association of firms in the digital marketplace.”This is a global phenomenon. He is going to focus on registration of exchanges, regulation, retail protection, and he will be looking to root out fraud and manipulation,” Bond said. “This is a man who created a regulatory framework for swaps, and he has all the expertise to create a firmer regulatory framework for digital assets.”The only constraint is that the SEC’s mandate is digital asset securities.Subscribe to CNBC PRO for exclusive insights and analysis, and live business day programming from around the world. More

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    Bed Bath & Beyond shares fall on mixed results, backs forecast as turnaround continues

    In this articleBBBYSource: Bed Bath & BeyondBed Bath & Beyond on Wednesday reported a double-digit decline in fiscal fourth-quarter sales, as ongoing store closures and divestments that are part of a bigger turnaround plan continue to weigh on results.Its shares fell more than 8% in premarket trading, as some investors expected to find clearer signs of progress.”There are some positive things, but it’s still moving,” said Jessica Ramirez, a retail research analyst for Jane Hali & Associates. “Knowing the Street, they want these turnarounds quite quickly. By this time, investors want things to be a bit in better shape.”The big-box retailer reaffirmed a prior sales outlook for the coming fiscal year, noting that positive sales momentum has carried into the current quarter. Many Americans have turned to the company’s stores and website during the Covid pandemic to buy cleaning supplies, kitchen appliances, bedding and other items for their homes.Results in its first quarter, however, are going to be messy, Chief Executive Mark Tritton explained in an interview. In the year-ago period, all of Bed Bath & Beyond’s stores were shut due to the health crisis, and it was totally reliant on its digital business to fuel sales. That’s unlike some retailers, notably Walmart and Target, that have been able to keep their stores open throughout the pandemic.”What you see is some number turbulence,” Tritton said. “You’re going to see a bifurcation in the retail market.”Here’s how the company did during the quarter ended Feb. 27, compared with what analysts were anticipating, using a survey by Refinitiv:Earnings per share: 40 cents adjusted vs. 31 cents expectedRevenue: $2.62 billion vs. $2.63 billion expectedBed Bath & Beyond’s net income during the period grew to $9.1 million, or 8 cents per share, compared with a loss of $65.4 million, or 53 cents per share, a year earlier. Excluding one-time adjustments, the company earned 40 cents per share, better than the 31 cents expected by analysts, polled by Refinitiv.Net sales fell about 16% to $2.62 billion from $3.11 billion a year earlier. That was slightly short of the $2.63 billion that analysts were anticipating.The company said the year-over-year decline was driven, in part, by the sale of its Christmas Tree Shops and Cost Plus World Market businesses, as well as ongoing store closures.Same-store sales rose 4%, the company said. Online sales surged 86% during the fourth quarter, but that wasn’t enough to totally offset reported double-digit declines of in-store traffic. The company noted that 41% of online sales were fulfilled by stores.Within the namesake Bed Bath & Beyond business, it saw the most growth in home organization, followed by kitchen food prep, indoor decor and then bedding. Same-store sales at the Bed Bath & Beyond banner were up 6%.Bed Bath & Beyond reaffirmed its fiscal 2021 sales outlook that it gave back in January, which calls for sales to be within a range of $8 billion and $8.2 billion. Analysts were estimating 2021 sales of $8.18 billion, according to Refinitiv.The current quarter will be impacted by not only store closures in the year-ago period, but also by the company’s ongoing restructuring. Its four core banners are Bed Bath & Beyond, Buybuy Baby, Harmon Face Values and Decorist.The retailer is forecasting first-quarter net sales to increase by more than 40% year over year. Analysts had been calling for a 45.8% jump. Excluding the impact from divested businesses, however, Bed Bath & Beyond said sales from its four core banners could grow upwards of 65% to 70%.’Early days’Bed Bath & Beyond CEO Mark TrittonSource: Bed Bath & BeyondTritton played a crucial role in his previous gig as chief merchant at Target, to help the big-box retailer build excitement with customers around exclusive brands and refurbished stores. Wall Street is still waiting to see if he can achieve the same success at Bed Bath & Beyond.As part of Tritton’s turnaround plans, Bed Bath & Beyond is in the process of remodeling roughly 130 to 150 stores this fiscal year, including 26 remodels during the first quarter. It just completed its first batch in the Houston market in February.The company said it will spend about $250 million over the next three years to remodel roughly 450 Bed Bath & Beyond shops, in total. That involves decluttering aisles and removing sky-high piles of merchandise often seen on top shelves, adding fresh signage and installing more modern light fixtures.”It’s early days,” Tritton told CNBC about the remodels. “Normally we have a period of adjustment as we go through every remodel … it’s about a 12-week process.”Bed Bath & Beyond is also bolstering its roster of private labels across different categories of home goods. It’s planning to launch at least eight brands this year, hoping the exclusivity will be enough to drive people to its stores over the competition, which includes Amazon.Last month, it debuted Nestwell, which sells bed and bath items. Haven, a spa-inspired bath brand, will launch next week.Bed Bath & Beyond has said it expects its private-label sales will grow to represent 30% of its business within three years, up from about 10% from today. The company said these efforts should also help boost its profitability.As the year progresses, Bed Bath & Beyond said it expects sequential improvement in profit margins. Its hope is that pressures from heightened freight costs, which have impacted many retailers over the course of the pandemic, will ease.”In 2020, our mix of digital to stores was outsized,” Tritton said. “A digital sale, because of the shipping costs, is always a little different. We’re going to see that recalibrate in 2021.”This year, the company plans to buy back $325 million of its own stock, up from $300 million last year. Its three-year repurchase authorization was increased to $1 billion, from $825 million.Bed Bath & Beyond shares are up about 57% year to date, as of Tuesday’s market close. The company has a market cap is $3.4 billion.Find the full earnings press release from Bed Bath & Beyond here.—CNBC’s Courtney Reagan contributed to this reporting. More

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    Stocks making the biggest moves in the premarket: Goldman Sachs, Bed Bath & Beyond, JetBlue & more

    Here are some of the companies making headlines in premarket trading:Goldman Sachs (GS) — Goldman shares rose more than 1% in premarket trading after the company’s first-quarter results handily topped Wall Street’s expectations. The bank earned $18.60 per share, compared to the $10.22 per share expected by analysts surveyed by Refinitiv. Revenue came in at $17.7 billion, which was ahead of the expected $12.6 billion. JPMorgan Chase (JPM) also beat top- and bottom-line estimates for the first quarter.Bed Bath & Beyond (BBBY) — Shares of the retailer tumbled 7% in the premarket after the company said net sales during the fourth quarter fell about 16%. During the period the company earned an adjusted 40 cents per share on $2.62 billion in revenue. Analysts surveyed by Refinitiv were expecting 31 cents per share and revenue of $2.63 billion.JetBlue Airways (JBLU) — JetBlue stock rose 3% after JPMorgan upgraded the stock to “overweight” from “underweight.” The firm expects the airline to continue to focus on cost controls in the wake of the pandemic, and noted that the current valuation is attractive. JPMorgan also upgraded Spirit Airlines (SAVE) to “overweight” from “underweight,” while lifting its rating on Southwest (LUV) to “neutral.”Moderna (MRNA) — Shares of Moderna jumped more than 3% in premarket action after the company said new data show its Covid vaccine is more than 90% effective six months after the second shot. The data was based on more than 900 cases of the virus.Occidental (OXY) — Shares of the energy company gained more than 2% in the premarket after MKM Partners upgraded the stock to a “buy” rating. “OXY has depreciated over 20% since early March (vs. XOP down 15%-20%) and reflects approximately 30% equity value upside, thus meriting an upgrade from Neutral to Buy,” the firm said in a note to clients.Discovery (DISCA) — Class A shares of the media company slid more than 4% after CNBC reported that Credit Suisse is still unloading its position in the wake of Archegos Capital Management’s blowup. According to people familiar with the matter, the bank was selling 19 million shares of Discovery’s class A stock on Tuesday.Harley-Davidson (HOG) — Shares of the motorcycle company rose more than 2% in premarket trading after Bank of America initiated coverage on the stock with a “buy” rating. The firm said the company’s new strategy is “elevating an iconic global brand.”Snap (SNAP) — The social media company’s stock was up more than 2% after Wedbush assumed coverage of the stock with an “outperform” rating. The firm said in a note that Snap is “uniquely positioned” as a video-centric platform, and sees opportunities around the company’s augmented reality and social commerce divisions.Enjoyed this article?For exclusive stock picks, investment ideas and CNBC global livestreamSign up for CNBC ProStart your free trial now More