Finance

The company set a “medium term” target for return on tangible common equity, a key banking industry metric, for “~11 – 12%,” according to slides released Wednesday.
Several analysts had expected Citigroup to aim slightly higher. For instance, Morgan Stanley’s Betsy Graseck said in a recent note that she expected a ROTCE target of “at least 12%.”
Analysts and investors have been anticipating a set of fresh financial targets and disclosures for the event, which went virtual after a pair of Citigroup executives caught the coronavirus.

Jane Fraser speaks during the Milken Institute Global Conference in Beverly Hills, California, U.S., on Monday, April 29, 2019.
Kyle Grillot | Bloomberg via Getty Images

Citigroup CEO Jane Fraser is setting the bar for her bank to improve its lagging performance – modestly so.
The company set a “medium term” target for return on tangible common equity, a key banking industry metric, for “~11 – 12%,” according to slides released Wednesday.

Analysts and investors have been anticipating a set of fresh financial targets and disclosures for the event, which went virtual after a pair of Citigroup executives caught the coronavirus. Fraser took over at Citigroup, the third biggest U.S. bank by assets, almost exactly a year ago.
The most crucial is the return target. Last year, the bank posted a 13.4% return, thanks in part to releasing reserves set aside for bad loans and booming Wall Street markets. Even then, Citigroup had the lowest returns of the six biggest U.S. banks.  
Several analysts had expected Citigroup to aim slightly higher. For instance, Morgan Stanley’s Betsy Graseck said in a recent note that she expected a ROTCE target of “at least 12%.”
Shares of New York-based Citigroup dipped 1% after the release, while rival banks including Bank of America and Wells Fargo were slightly higher in premarket trading.
“We’ve been getting a ton of questions on Citi over the last few weeks as investors position for Citi’s new CEO Jane Fraser to outline her strategy to grow the bank,” Graseck wrote. “Most frequent question is how will Citi deliver a higher ROTCE and narrow the return gap to peers?”

Analysts have also been concerned about expense growth at Citigroup, which is dealing with demands from regulators to overhaul its risk-management controls. The bank said that expenses would jump 5% to 6% this year, excluding the costs from divesting non-U.S. businesses.
This story is developing. Please check back for updates.

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Take a look at some of the biggest movers in the premarket:
Nordstrom — The retail stock spiked 30.5% in premarket trading after the company posted better-than-expected fourth-quarter results. Nordstrom reported earnings of $1.23 per share versus the Refinitiv consensus estimate of $1.02 expected. Revenue also topped expectations. The retailer highlighted improvements in its off-price business, Nordstrom Rack.

Salesforce — Salesforce shares rose 4% in the premarket after the software company’s fourth-quarter report beat Wall Street expectations and issued upbeat guidance. The company posted adjusted earnings of 84 cents per share on revenue of $7.33 billion. Analysts expected a profit of 74 cents per share on revenue of $7.24 billion, according to Refinitiv.
Ford — Ford shares added 4% in premarket trading after the automaker announced it will split its electric vehicle and legacy businesses into separate units. The company expects the move will streamline its growing electric vehicle business and maximize profits.
SoFi — Shares of the digital financial services company surged 15.5% premarket after SoFi’s quarterly report. SoFi posted a loss of 15 cents per share on revenue of $279.9 million versus the Refinitiv consensus estimate of a 17-cents loss per share on revenue of $279.3 million.
Ross Stores — Ross Stores added 6.3% in premarket trading after an earnings beat. The retailer reported fourth-quarter earnings of $1.04 per share on revenue of $5.02 billion. Analysts expected a profit of 87 cents per share on revenue of $4.96 billion.
Hewlett Packard Enterprise — Shares of Hewlett Packard added 5.5% premarket after the company reported a slight earnings beat for the most recent quarter, but a quarterly revenue miss. Earnings of 53 cents per share for the quarter beat analysts’ estimates by 7 cents. Revenue of $6.96 billion was below the consensus estimate of $7.03 billion.

Abercrombie & Fitch — Shares of Abercrombie & Fitch fell 8.1% premarket after the retailer missed top and bottom-line estimates. The company posted adjusted earnings of $1.14 per share on revenue of $1.16 billion. Analysts expected a profit of $1.27 per share on revenue of $1.18 billion, according to StreetAccount.
First Solar — Shares of First Solar sunk 12.4% premarket after the company missed revenue expectations for the fourth quarter. The solar-panel manufacturer also issued weak full-year guidance.
Dollar Tree — Shares of Dollar Tree were 1% higher premarket after a better-than-expected fourth-quarter report. The company posted earnings of $2.01 per share versus the StreetAccount consensus estimate of $1.78 per share. Revenue slightly missed analyst estimates.
DraftKings — DraftKings shares rose 2.3% before the bell after Morgan Stanley named the sports betting stock a top pick. “We expect the US online sports betting/iGaming market to be very large, with a few market share winners, including DKNG,” Morgan Stanley said.

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As the Ukrainian delegation arrived at the Belarus border for a first round of talks with Russia on Monday, Chinese state media was quick to update and even livestream the proceedings.
When the invasion began on Thursday, and China’s Foreign Ministry refused to categorize the attack as one.
Chinese state media has instead used the term “special military operations.”

The Shanghai branch of the Communist Party newspaper, People’s Daily, on Feb. 27, 2022.
Future Publishing | Future Publishing | Getty Images

BEIJING — In China, tightly controlled coverage of Russia’s invasion of Ukraine has focused heavily on negotiations.
Beijing’s line has been to promote negotiations, as China tries to position itself further away from Russia than was portrayed in early February during a high-profile meeting between Chinese President Xi Jinping and Russian President Vladimir Putin.

As the Ukrainian delegation arrived at the Belarus border for a first round of talks with Russia on Monday, Chinese state media was quick to update and even livestream the proceedings. State media had pushed out reports of Xi’s call with Putin late on Friday that focused on the Russian leader’s willingness to negotiate.
When the war began on Thursday, China’s Foreign Ministry maintained its emphasis on negotiations. And while it said it China did not like what it was seeing, it refused to categorize the attack as an invasion.

State media coverage

Chinese state media has instead used the term “special military operations.” State-run broadcaster CCTV’s daily evening news broadcast has mentioned the Russia-Ukraine conflict, but mostly in a brief segment toward the end of the roughly half-hour program in a section about international news.
Again, the discussion of the war has focused more on efforts toward negotiations, and less on Russia’s attack.
While state news agency Xinhua has published visual reports about Ukrainian refugees, some carried by Communist Party newspaper the People’s Daily claimed to show the refugees arriving at the eastern border with Russia.

Xinhua has livestreamed from Kyiv occasionally, mostly on the lives of local residents amid “conflict.”

The Chinese embassy in Ukraine over the weekend also released a nearly 10-minute video by the ambassador Fan Xianrong, in which he said he was in Kyiv and hearing sirens, explosions and gunshots.
Chinese Minister Wang Yi said in a call Tuesday with Ukrainian Foreign Minister Dmytro Kuleba that China is “deeply grieved” to see the conflict, according to an official English-language statement from China’s foreign ministry. Local media pushed out the Chinese version of the readout, which also said the call focused on the evacuation of Chinese citizens.
State-run financial media has discussed the war’s impact on commodity prices and markets.
But as is often the case in China, the media has focused overwhelmingly on Xi’s speeches and domestic events.
Beijing is focused on what is typically a politically sensitive time of the year — a largely symbolic gathering of delegates in the capital to approve the GDP growth target, national budget and other policy measures. The main meeting is set to kick off on Saturday and run for at least a week.

Talk of China-U.S. relations

Russia’s invasion of Ukraine coincided with the commemoration of the 50th anniversary of U.S. President Richard Nixon’s trip to China and a thaw in U.S. relations with Beijing.
Chinese Foreign Minister Wang has emphasized the importance of the U.S.-China relationship and the need to promote cooperation and a return to a “right” track, according to comments carried by Chinese state media.
However, China’s foreign ministry spokespeople have blamed the U.S. for exacerbating Russia-Ukraine tensions, and state media’s daily evening news broadcast has cast the U.S. as failing to handle the pandemic and maintain stability in the Middle East.
During a press conference Tuesday, the Chinese Ministry of Commerce did not take a single question from reporters about trade with Russia, Ukraine or the United States.

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Traders on the floor of the NYSE, Feb. 28, 2022.
Source: NYSE

Stock futures inched higher on Tuesday night as oil prices surged amid the ongoing conflict between Russia and Ukraine.
Futures tied to the Dow Jones Industrial Average rose 109 points, or 3%. S&P 500 and Nasdaq 100 futures also added 0.3%.

Earnings boosted several stocks in extended trading. Nordstrom spiked by more than 35% on strong earnings while SoFi surged about 20%.
In regular trading, the Dow fell 597 points, or 1.76%. The S&P 500 lost 1.55% and the Nasdaq Composite slid 1.59%.
Energy prices pushed higher Tuesday as Russia continued its assault on Ukraine. West Texas Intermediate crude futures broke above $107 per barrel Tuesday evening, after hitting its highest level in seven years earlier in the day.
“This dramatic dislocation is due to a flight to safety where U.S. production is viewed as more reliable than other global sources,” Jay Hatfield, founder and CEO of Infrastructure Capital Advisors, said of the spike in WTI. “However, it is unlikely to persist after the Ukraine situation stabilizes.”

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Investors are keeping a close eye on oil prices, which could drive inflation, choke the economy and create challenges for the Federal Reserve when shaping policy.

Energy stocks were a bright spot in the market Tuesday, while bank stocks took a hit, dragged down by a sharp decline in Treasury yields, representing a rush into safe-haven bonds amid the stock market turmoil.
The benchmark 10-year note dropped below 1.7% at several points during Tuesday’s session.
Fed Chair Jerome Powell will testify before Congress on Wednesday to give his semiannual monetary policy update. With fears over the Russian invasion of Ukraine causing turmoil in the financial world, Wall Street has quietly dialed down its expectations for Fed action.
Powell is now tasked with telling Congress this week that the central bank will be doing more to control inflation at a time when markets expect it will be doing less.

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Investors are also looking forward to employment data from ADP due out Wednesday, as well as mortgage application numbers.
President Joe Biden will deliver his first State of the Union address on Tuesday evening. Investors may be listening for updates on his economic agenda, though the global response to the conflict in Ukraine is likely to dominate instead.
Earnings season continues with several tech companies set to report on Wednesday. Okta, Pure Storage and C3 AI will report after the market closes. ChargePoint is also scheduled to report after the bell.

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Fed Chairman Jerome Powell addresses separate House and Senate panels this week as part of biannual hearings on monetary policy.
Fears over the Russian invasion of Ukraine have coincided with markets quietly dialing down their expectations for Fed action.
Powell will have to convince Congress the Fed is doing more to combat inflation at a time when the markets think it will be doing less.
“The balancing act is going to be difficult,” said Mark Zandi, chief economist at Moody’s Analytics.

U.S. Federal Reserve Board Chairman Jerome Powell attends his re-nominations hearing of the Senate Banking, Housing and Urban Affairs Committee on Capitol Hill, in Washington, U.S., January 11, 2022.
Graeme Jennings | Reuters

Federal Reserve Chairman Jerome Powell is tasked with telling Congress this week that the central bank will be doing more to control inflation at a time when markets expect it will be doing less.
With fears over the Russian invasion of Ukraine causing turmoil in the financial world, Wall Street has quietly dialed down its expectations for Fed action.

Where markets had been expecting the Fed to raise interest rates up to seven times in 2022, recent pricing now indicates just five moves. That would be the equivalent of bringing the Fed’s benchmark short-term borrowing rate up about 125 basis points, or to a range between 1.25%-1.5%.
The shifting winds mean Powell has a tightrope to walk as he explains during two days of congressional testimony that his institution is committed to taming inflation while also being mindful of the geopolitical turmoil.
“He has to thread a pretty thin needle. The balancing act is going to be difficult,” said Mark Zandi, chief economist at Moody’s Analytics. “My sense is he leads with the uncertainty that this all creates given that the Russian invasion could take many different paths, each one darker than the other. He’ll reinforce the point that in a period of such heightened uncertainty, it might make sense for the Fed to be a little more cautious in enacting policy.”
Up until a week or so ago, markets had been expecting the policymaking Federal Open Market Committee to approve 25 basis point hikes at each of its remaining seven meetings this year. There even was a strong lean to the first move, at the March 15-16 meeting, being 50 basis points.
Russia’s attack has taken that off the table, at least for now.

“Play it by ear would be his best message,” said Peter Boockvar, chief investment officer at Bleakley Advisory Group. “That would allow him to sort of skate around the very difficult position that he’s currently in. We’re going to deal with inflation, but — and that ‘but’ is let’s see how the economy goes from here.”
Economists largely expect growth to be solid this year if a bit less than in 2021, which was the strongest since 1984. Fed officials in December projected GDP to accelerate at a 4% pace in 2022.
However, unrelenting inflation, at its fastest level in 40 years, along with the prospects that the Russia-Ukraine situation could add to inflation and further complicate supply chains puts another wrinkle in the Fed policy outlook.

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“We’re entering a period of stagflation,” Boockvar said, referring to higher inflation and low growth. “The question is, does [Powell] focus more on the ‘stag’ or does he focus more on the ‘flation’? Just based on the history of the post-Volcker way of running monetary policy, the Fed focuses on growth.”
Other economists, though, disagree.
In a note to clients Sunday, Goldman Sachs said “very high inflation” this year “should make an easy case” for seven rate hikes this year. Bank of America also has not relented from its forecast of seven moves, and Citigroup economist Andrew Hollenhorst wrote Tuesday that “the market has been a bit too quick to price-out the potential for a 50 [basis point” hike at this month’s FOMC meeting.
Nonetheless, as of Tuesday noontime, the market had completely taken a half-percentage-point hike off the table and in fact assigned a tiny possibility to no move at all, according to the CME Group. Futures pricing can be volatile, so the probabilities could swing back if inflation slows or the Ukraine situation is resolved.
Powell, delivering his mandated semiannual update to a House panel Wednesday and then to a Senate committee Thursday, will have to address a wide range of views on where it should be at a critical time for monetary policy.
“We think Powell will emphasize that amid heightened geopolitical uncertainty the Fed remains focused on its macro objectives and will continue to move ahead with policy normalization with a view to bringing inflation back towards target while sustaining employment,” Krishna Guha, head of central bank policy strategy for Evercore ISI.
“We think he will acknowledge that the Russia Ukraine crisis and its stagflationary impulse from higher energy prices (inflation higher, growth lower) creates additional challenges for policy,” Guha added.

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A person walks into the Nordstrom store open for business as New York City moves into Phase 2 of re-opening following restrictions imposed to curb the coronavirus pandemic on June 29, 2020 in New York, New York.
Rob Kim | Getty Images

Check out the companies making headlines after hours.
Nordstrom — Shares of the retailer spiked 30% after hours after the company reported a beat on quarterly earnings and revenue and issued guidance for fiscal 2022 projecting revenue up 5% to 7% compared with 2021 levels. Analysts were looking for growth of 3.7%. Nordstrom also highlighted improvements in its off-price business, Nordstrom Rack, following underperformance in recent quarters.

SoFi — The fintech company’s shares surged by about 16% following its quarterly earnings report. The digital financial services company reported a quarterly loss of 15 cents per share, which was narrower than the consensus estimate of a 17 cent per share loss. Revenue came in at $278.8 million, slightly beating estimates of $279.3 million.
Salesforce — The software company got a roughly 3% boost in extended trading after it reported better-than-expected earnings and revenue for its most recent quarter. It also issued upbeat guidance for the 2023 fiscal year projecting between $32 billion and $32.1 billion in revenue. Analysts surveyed by Refinitiv had been looking for $31.78 billion in revenue.
Hewlett Packard Enterprise — Shares of Hewlett Packard added 1.5% after the company reported a slight earnings beat for the most recent quarter, but a quarterly revenue miss. Earnings of 53 cents per share for the quarter beat analysts estimates by 7 cents. Revenue of $6.96 billion was below the consensus estimate of $7.03 billion.

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Ricardo Mojana | Getty Images

About 47 million workers left their jobs in 2021 amid the Great Resignation.
Many of them did so for less pay.

Last year, 53% of workers who left their jobs said they made less money in their new roles, according to a January online survey of 1,000 adults by Real Estate Witch.
The average pay cut was around $8,000 per year, according to the survey, but some workers indicated they would be willing to take an even bigger reduction. What’s more, those who quit in 2021 but have yet to find another job said they would take an average $23,000 pay cut, the survey found.
The catalyst for taking that lower-paying job? Overall satisfaction and work/life balance. More than 60% of those surveyed said they were happy in their new roles, and those who said they were very satisfied compared to their previous position jumped nearly 50%.

An earlier survey of workers from Paro, which provides accounting and finance solutions for businesses, focused on workers who do mental tasks for a living — such as programmers, pharmacists and lawyers. The survey found the group also prioritized their work/life balance over making more money.
“The pandemic and experiences they have had have shifted their values,” said Anita Samojednik, CEO of Paro. “Right now, the salary is just not enough.”

To be sure, many people who switched jobs have seen increases in take-home pay. A survey from The Conference Board found that about one-third of workers who left jobs during the pandemic are making 30% more in new roles. However, about 27% who switched jobs said pay was the same or less in their new job.
What to consider
Of course, taking a pay cut will directly affect your finances and may not be advisable right away, according to Tania Brown, an Atlanta-based certified financial planner and founder of FinanciallyConfidentMom.com.
If you’re considering taking a job where you will make less money, there are a few things you need to consider before you do so, she said.
First, ask yourself why you want to leave your current job, she said. Are you burned out? Will a different job or career be more fulfilling? Are you planning to move?
Contemplating the answers to these questions will help ensure that you don’t make a rash decision you’ll later regret, said Brown.
“Emotions have no logic, and you’re trying to make a math decision based on emotion,” Brown said. “It’s just not going to turn out.”
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Additionally, if you’re only a few months from paying off debts or hitting a similar financial goal, you may want to hold off.
Plus, you may realize you don’t want to leave your job, but instead would like more flexibility or a change in your role. If that is the case, now is a great time to ask for a different schedule, to take on different responsibilities or to try to introduce other flexibilities into your job, Samojednik said.
She said she’s seen many people dip their toes into freelancing in addition to a full-time job to test the waters of a new gig or becoming their own boss.
Doing the math
If you discover that switching jobs is truly what you want, then you have some important math to do, Brown said.
That includes doing a deep dive into your current budget needs and financial goals and seeing if you can achieve your objectives on a smaller income.
Brown suggests you should over a trial period of a few months, say, try to see if you can meet your goals on smaller take-home pay. That test run could help you decide if a pay cut is right for you. More

The price of wheat climbed to its highest levels in more than a decade as Russia’s invasion of Ukraine advanced.
Wheat futures closed at 984 cents per bushel, the high of the session.
The commodity traded “limit up.”
Russia is the largest exporter of wheat and Ukraine is among the four biggest exporters of the commodity, according to JPMorgan.

Ears of wheat are seen in a field near the village of Hrebeni in Kyiv region, Ukraine July 17, 2020.
Valentyn Ogirenko | Reuters

The price of wheat on Tuesday climbed to its highest levels in more than a decade, with traders concerned about global supply disruption as Russia’s invasion of Ukraine advanced.
A convoy of Russian military vehicles is approaching Ukraine’s capital of Kyiv, satellite imagery taken Monday indicated.

Wheat futures rose closed up 5.35% at 984 cents per bushel, at the highs of Tuesday’s session. That marks the highest price since April 4, 2008, when wheat traded as high as 985.5 cents per bushel.

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The grain traded “limit up” during the day, meaning to the highest amount the price of a commodity is allowed to increase in a single day.
Russia is the largest exporter of wheat and Ukraine is among the four biggest exporters of the commodity, according to JPMorgan.
Of the 207 million ton international wheat trade, 17% comes from Russia and 12% comes from Ukraine, according to Bank of America.
“Wheat and corn are the most exposed agricultural markets to any potential escalation in tensions,” JPMorgan’s Marko Kolanovic said in a Feb. 14 note.

Corn futures on Tuesday also closed 5.07% higher at 725.75 cents per bushel, their highest level since May. Trading of corn futures was also halted.

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— CNBC’s Pippa Stevens contributed to this report.

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