Top News in Finance for April 27, 2023

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Stay ahead of the curve with our rapid-fire roundup of today’s most impactful financial news, tailored to keep you informed and ready to seize opportunities.”

• Meta surprises Wall Street with higher than expected revenue growth.
• Disney sues Florida Governor Ron DeSantis after the company’s criticism of a state bill.
• Kevin McCarthy’s debt ceiling bill narrowly passes the House.
• First Republic Bank shares fall as investors lose confidence in the bank’s ability to recover.
• Tech stocks struggle amid concerns of a banking crisis, with American Airlines, Merck, Amazon, and Intel set to post results.

Meta Surprises Wall Street with Higher Than Expected Revenue Growth

Meta (formerly Facebook) impressed investors with its earnings report on Wednesday, with revenue unexpectedly rising for the first time in three quarters. The company’s stock surged more than 10% in extended trading, adding to the already impressive 74% growth the company has experienced in 2023. Despite the loss of $3.99 billion in the metaverse business during the quarter, investors largely ignored the news thanks to the company’s impressive financial performance.

Disney Sues Florida Governor Ron DeSantis After Criticism of a State Bill

Disney and Florida Governor Ron DeSantis are engaged in a bitter feud, which escalated on Wednesday when Disney sued DeSantis and his allies. The lawsuit alleges political retribution after the company criticized a state bill. DeSantis is reportedly preparing to run for president, but he’s also facing a challenge from Donald Trump for the GOP nomination.

Kevin McCarthy’s Debt Ceiling Bill Narrowly Passes the House

House Speaker Kevin McCarthy’s debt ceiling bill passed the House with a slim margin of 217-215, but it’s unlikely to go anywhere in the Democratic-controlled Senate. The bill calls for broad spending cuts in return for raising the debt limit for about a year. The White House has refused to compromise over raising the debt limit, saying that House Republicans must take default off the table and address the debt limit without demands and conditions.

First Republic Bank Shares Fall as Investors Lose Confidence in the Bank’s Ability to Recover

First Republic Bank is in trouble, with shares down more than 90% so far this year. The bank’s advisors are trying to convince a group of big banks to bail it out, but government officials aren’t willing to help with rescue efforts at the moment. Investors are waiting to see what will happen with the bank’s shares in the coming days.

Tech Stocks Struggle Amid Concerns of a Banking Crisis

Tech stocks have stumbled a bit these past few days. Even as tech giants have done well with their earnings reports, worries about a potential banking crisis have weighed on the minds of investors. American Airlines, Merck, Amazon, and Intel are among the companies set to post results, and investors are also waiting for the U.S. GDP print for Q1. With concerns over the banking industry looming, it remains to be seen how these earnings reports will impact the market moving forward.