 The Market Sum | Insight after the bell
By Caleb Silver, Editor in Chief Friday's Headlines 1. Markets Rally on Bank Earnings and a Major Oil Merger Markets Close
Year-to-Date
 What Happened
U.S. Markets end the Week with a Bang Investors were looking for something to get excited about, and they got a handful of good news to end the week. The DJIA closed 1% higher for the day, while the S&P 500 climbed 0.6%, making it three straight weeks of gains.
JPMorgan Chase, the biggest bank in the U.S. by assets, reported record earnings that exceeded forecasts. The bank earned a record profit of $9.18 billion on revenue of $27.9 billion. Those are excellent profit margins for any company - especially a bank.
Wells Fargo also reported first quarter results with net income (profit) of $5.9 billion on revenue of $21.9 billion. Wells Fargo and JPMorgan are very different in terms of their overall businesses, given JPMorgan's international presence and capital markets activities, but they both have a lot of exposure to the U.S. consumer. Both banks showed strong results in their consumer focused businesses, and JPMorgan's CEO Jamie Dimon says the U.S. economy and consumer are in good shape and the current economic expansion could go on "for years."
"There's no law that says it has to stop. We do make lists, and look at all the other things: Geopolitical issues, lower liquidity. There may be a confluence of events that somehow causes a recession, but it may not be in 2019, 2020, 2021." Jamie Dimon - JPM Earnings conference call
Mr. Dimon is very optimistic, and he has good reason to be given JPM's performance over the past five years. It's beating the financials sector, as measured by the XLF ETF, and it's crushing Wells Fargo, which has been mired in scandal and leadership turbulence over the past several years.
 A Very Expensive Drill $33 Billion! That's what Chevron is paying to acquire Anadarko Petroleum, one of the largest oil drilling companies on the planet. The deal makes Chevron the second largest major oil production company in the world behind Exxon-Mobil, and gives it exposure to two critical sources of fossil fuels, shale from the Permian Basin of west Texas and New Mexico, and Liquified Natural Gas (LNG) in the gulf coast of the U.S. and Africa. As oil prices have surged in the past year and the U.S. has become the largest oil producer in the world, Chevron has bought its way to the top of the energy exploration and production food chain.
Why is it worth $33 Billion to Chevron? Take a look at Anadarko's map of its global oil fields where it derives premium pricing from its 2017 annual report. 
You Should Know Shares of Disney hit an all-time high as investors cheered the Mouse's house on the unveiling of Disney+, its new streaming service. James has a lot more on Disney's run in our daily chart, below.
By the way, if you love TV and you love economics, you might wanna check this out: The Westeros Economy: A Financial FAQ for GoT Fans
Top Movers   Charts courtesy of Koyfin Around the World While U.S. and other major global indexes ended the week on a bullish note, Asian stocks - specifically China - were feeling the pressure. The Shanghai Composite index hit more than a year-long high early in the week, but has pulled back sharply from there. The week-long drop came despite significantly better-than-expected Chinese trade figures for March and continued optimism over the prospects of a successful U.S.-China trade deal.  Chart courtesy of TradingView What's the Word? (We are introducing yet another new feature to the newsletter that is near and dear to our hearts at Investopedia. We are known for our financial terms, so we are going to highlight one term every day tied to the news and explain its significance. Let us know what you think.)
Given JPMorgan's blowout quarter, we are highlighting Net Interest Income today.
Net interest income is the difference between the revenue that is generated from a bank's assets and the expenses associated with paying its liabilities. A typical bank's assets consist of all forms of personal and commercial loans, mortgages and securities. The liabilities are the customer deposits. The excess revenue that is generated from the interest earned on assets over the interest paid out on deposits is the net interest income.
Today, JPMorgan said that net interest income, rose 9% to $14.45 billion. Chart of the Day: Disney Stock Soars to All-Time Highs  Walt Disney (DIS) investors were all ears (get it, ears...like Mickey's ears!) on Friday when the entertainment behemoth unveiled pricing and other details surrounding its new Netflix-competitor, Disney+. The company announced that its upcoming video-streaming service would be priced at $6.99 per month, a clearly aggressive move on Netflix's significantly higher pricing model. The Disney+ subscription would be two dollars cheaper than Netflix's most basic, non-HD subscription, and will include an increasingly comprehensive library of video content. Disney is slated to roll out its new service later this year, on November 12, and the company is targeting 60-90 million subscribers by 2024.
As shown on the 10-year DIS chart above, investors were in a mad rush to buy shares of Disney on Friday. The stock shot up 11.5% to slightly above $130/share by the market close, far surpassing its previous 2015 peaks and establishing a new all-time high in the process. Friday's big breakout shatters the long-term consolidation that had been in place since mid-2015, roughly between the $90-level to the downside and the $120-level to the upside.
The big question now is whether this massive surge will last. Disney investors have a lot of time between now and the Disney+ launch to digest and evaluate the prospects of the new service, given Netflix's sheer market dominance. While the future currently looks bright for Disney+, one thing can be reasonably assured - Netflix will not take this threat lying down. If investors start doubting the Netflix-killing potential of Disney+, DIS stock could very well take a tumble.  Today in Financial History On April 12, 1837: Immigrants William Procter, an English candlemaker, and James Gamble, an Irish soapmaker, open shop in Cincinnati. Both men had been heading further west but settled in Cincinnati, unable to face the ordeal of traveling hundreds of miles further westward on rugged roads. (Procter's wife died, and Gamble needed urgent medical care.) The business booms, and soon each man puts up $3,596.47 to launch Procter, Gamble & Co.
Today, the company is valued at $262 billion and is one of the dominant consumer product companies in the world.
Photo and history, courtesy of PG.com
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Friday, April 12, 2019
Banking on it
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