CE100 Index Shrugs Off JPMorgan and Delta’s Warnings and Rallies 4.9%

The whipsaw action in stocks — as tariffs were on, then (largely) off with a 90-day pause, and then focused on China (mostly) — brought the markets back from the brink of bear territory by the end of last week.

But the volatility, of course, is not over yet.

As earnings season got off to its official start, executives sounded the alarm on consumer spending. Beyond earnings, the latest survey by the University of Michigan on consumer sentiment indicated that households are more pessimistic about inflation, the current state of affairs and the future than they have been in years.

The 90-day pause on tariffs led to a relief rally. Investors snapped up shares at the end of the week, helping drive the CE 100 Index up by 4.9%.  All pillars gained ground.

Banking stocks in the CE 100 index nudged up 5.6% last week compared to the prior week, according to PYMNTS data. The trend reversed some losses that had been hitting the sector for several days after the initial round of tariffs was announced early in the month.

JPMorgan Weighs In

The top earnings newsmaker among financial institutions in the CE 100 index last week was J.P. Morgan, whose stock spiked 12.3% for the week. The bank announced $14.6 billion in first-quarter earnings on Friday (April 11), a 9% boost compared to the year-ago level.

In PYMNTS’ coverage of Friday’s earnings, the bank increased loan loss provisions designed to cover possible loan losses amid economic turbulence.  Spending on credit and debit cards slowed a bit, to 7% in the first quarter, and down from the 8% pace seen in the final three months of the year.

Commentary on the call indicated that consumers were “front-loading” their spending amid fears of a trade war. “The economy is facing considerable turbulence (including geopolitics), with the potential positives of tax reform and deregulation and the potential negatives of tariffs and trade wars, ongoing sticky inflation, high fiscal deficits and still rather high asset prices and volatility,” CEO Jamie Dimon said in a Friday press release. “As always, we hope for the best but prepare the firm for a wide range of scenarios.” The data showed that credit costs were $3.3 billion, with net charge-offs of $2.3 billion and a net reserve build of $973 million.

Payments Name Gain Ground

Payments-focused names in the CE 100 index gathered 7.7%. Affirm and Sezzle led advancing stocks in the group, up a respective 34.5% and 13.3%.  In company-specific news, Affirm and Shopify have expanded their pay-later offering beyond U.S. borders.  Shopify merchants in Canada who have signed up for early access can begin offering the Affirm-powered Shop Pay Installments program, marking its first availability outside the U.S.

Mastercard and crypto platform Kraken launched a payments-focused partnership. The collaboration will allow Kraken customers in the United Kingdom and Europe to spend crypto assets at more than 150 million merchants that accept Mastercard.  The payments network’s shares gained 4.1% through the week.

Even companies in the Move segment of the CE 100 index that were explicit about the uncertain state of affairs gained momentum.  As reported this past week,  and in its earnings report, Delta Air Lines saw year-over-year revenue growth of 3.3% in the March quarter as it dealt with what management termed “broad economic uncertainty.”

Revenues aligned with expectations, but the firm offered no updates on its outlook for the current year.  Elsewhere in Delta’s financials,  revenue was up 7% in premium products, 11% in loyalty travel rewards and mid-single digits in its international business, while revenue was down 1% in the main cabin and 3% in domestic segments.

Among declining names, Zillow shares lost 8%. The real estate platform said this week it would ban certain listings — namely, those marketed to select buyers.

“If a listing is marketed directly to consumers without being listed on the MLS and made widely available where buyers search for homes, it will not be published on Zillow,” the company said.

Nike’s stock lost 5% as the tariff-related tumult weighed on the name.  Nike has particular exposure to Vietnam for its supply chain; China is also a key market for its top line.