Good morning! Here’s what you need to know in markets on Wednesday.
1. US stocks fought back on Tuesday, with the Dow Jones industrial average roaring into the market close a day after its biggest point drop in history. After opening down 568 points, the Dow surged more than 1,000 points intraday. The index of 30 large stocks including Apple and Goldman Sachs finished up 567 points, or 2.3%.
2. Oil prices rose on Wednesday amid a recovery in global stock markets, supported by a report that U.S. crude inventories fell last week and positive comments by OPEC.Brent crude futures were at $US67.43 per barrel at 6.45 a.m. GMT, up 57 cents, or 0.85%, from the previous close.
3. Snap crushed Wall Street’s revenue targets in its fourth quarter, as it filled its Snapchat app with more ads than ever and tapped into a broader group of consumers. The Snapchat maker’s stock rose as much as 30% in after-hours trading as Wall Street cozied up to the fact that the company is making big changes to its business after its rockyIPO last year that sent its valuation tanking.
4. Allianz Chief Economic Adviser Mohamed El-Erian told Business Insider he sees US economic growth reaching 3% on a sustained basis as long as policymakers stay the course. “I see economic growth picking up toward the 3% level, if not beyond that, provided the economy continues to sidestep the triple risk of a major geo-political shock, a policy mistake, and a huge market accident,” he said.
5. Airbnb had a very good 2017. It blew by its own internal forecasts to bring in $US93 million in profit on $US2.6 billion in revenue, reports Bloomberg’s Olivia Zaleski.But an internal war between cofounder CEO, Brian Chesky, and CFO Laurence Tosi, the former Blackstone Group CFO, means that the company is not going public anytime soon, Zaleski reports.
6. Royal Bank of Scotland on Tuesday denied a British lawmaker’s allegation that its executives misled a parliamentary committee over the extent to which the bank mistreated small businesses during and after the financial crisis.The chief executive and chairman of state-owned RBS were questioned extensively last week by Britain’s Treasury Select Committee (TSC) over a restructuring unit that is alleged to have pushed struggling firms into bankruptcy in order to be able to pick up their assets on the cheap.
7. Just two days after the market’s most notorious volatility bull extended his bullish wager on the Cboe Volatility Index (VIX) he’s now returned to harvest the gains he made when stocks went berserk.The profit-taking was a long time coming for the mysterious “VIX Elephant,” who made a name for himself by stubbornly clinging to a wager the fear gauge would climb to levels not seen in the last couple years.
8. The CEO and chairman of Wynn Resorts, Steve Wynn, has resigned.The company, which owns and operates Wynn and Encore Las Vegas, Wynn Macau, and Wynn Palace, Cotai, made the announcement “reluctantly” on Tuesday night. The news came fewer than two weeks after allegations of decades of sexual misconduct were made against Wynn.
9. In a February 2 letter to investors, Paul Tudor Jones, the billionaire founder of $US7 billion Tudor Investment Corp., said he feels like he’s in his 20s again. That’s after a difficult three years, where macro volatility has been almost non-existent, and his fund has struggled. “Being first a commodities and then macro trader in the late 70s and early 80s was simply an incredible time to ply the craft,” he said. “The opportunity set was so large as the marker was coming due for the previous misjudgments of errant central banking.”
10. SoftBank Group Corp said on Wednesday it had started preparations to list shares of its core Japanese telecoms unit, SoftBank Corp, as the parent company speeds up global investments under its Vision Fund.SoftBank Corp would remain a consolidated unit even after listing, SoftBank Group said in a statement.
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