What to Watch For: Tax Cuts and Bank Earnings
• President Trump plans to unveil a tax cut blueprint. It is expected to include a 15 percent business tax rate, and increase the standard deduction for individuals.
• Investors liked the sound of that, sending the Nasdaq above 6,000 for the first time. Stocks are up 5 percent since President Trump took office, on top of 6 percent gains in the time between his election and inauguration.
• Credit Suisse returned to profit in the first quarter. The bank also announced that it would raise $4 billion in fresh capital and retain full ownership of its Swiss universal bank.
• Twitter’s revenue, though better than predicted, was down.
• Don’t forget to read the DealBook Morning Agenda.
Strong Bank Earnings
The banks Santander and Standard Chartered reported strong growth in their profit in the first quarter, continuing a trend of positive earnings among banks.
Profit rose 14 percent in the first three months at Santander, driven by gains in net interest income and fee revenue for the Spanish bank. Despite the increase in profit, the bank’s shares were down slightly in midmorning trading in Madrid on Wednesday.
Standard Chartered, which is based in Britain but generates much of its profit in Asia, said that its pretax profit nearly doubled to $990 million in the first quarter as the bank continued reshaping under Chief Executive William T. Winters.
Shares of Standard Chartered rose about 3 percent in midmorning trading in London. — CHAD BRAY
McDonald’s Shelves Japan Stake Sale
Call it the Pokémon Go bounce.
After reporting strong sales for the first three months of the year, McDonald’s said it was putting off a plan to sell a stake in its Japan arm. Once unprofitable, the Japan operation now expects to be in the black.
Analysts credit popular menu items and a lift from its tie-in with Pokémon Go, which lured players to the fast-food chain. — CARLOS TEJADA