ASX 200 to fall as US banking crisis reignites, S&P 500 tumbles, oil slumps 5%

ASX 200 futures are trading 41 points lower, down -0.58% as of 8:30 am AEDT.

Major US benchmarks fell but off worst levels, several US regional bank shares drop between 10-30% as JPMorgan seeks to close a deal with First Republic, oil tumbles 5% to a five-week low, Uber shares rally on a shallower loss and a positive outlook on cash flows, and the Fed is widely expected to hike rates by another 25 bps on Thursday.

Let's dive in.

S&P 500 SESSION CHART

Another high-volume earnings day. A few high profile names including AMD, Ford and Starbucks reported after hours. We'll go through those results tomorrow.

Over 60% of the S&P 500 have now reported. Results remain better-than-expected, with 80% of results beating consensus estimates and earnings pulling ahead by nearly 7.5%.

Uber (+11.6%): Shallower loss and revenue beat, revenue grew 29% year-on-year to US$8.8bn, headcount seen to flat to down in the upcoming quarters.

• "We significantly accelerated Q1 trip growth to 24% from 19% last quarter, with Mobility trip growth of 32%, as a result of improved earner & consumer engagement … We delivered record profitability & FCF in Q1 and we are poised to expand profitability again in Q2.” – CEO Dara Khosrowshahi
• “Over the next few quarters, we will evaluate returning excess capital to shareholders as our cash flows ramp, and with any potential further monetization of our equity stakes over the long term."

Marriott (+5.0%): Double beat, net sales rose 34% year-on-year, full-year guidance upgraded and ahead of analyst expectations.

• "While global economic picture is uncertain, demand remains strong, and we are not seeing signs of a slowdown. With the faster-than-expected recovery in international markets and continued solid booking trends globally."

Chegg (-48.4%): The education company warned ChatGPT is threatening growth of homework-help services and provided a light view on the next quarter.

• "... since March, we saw a significant spike in student interest in ChatGPT. We now believe it's having an impact on our new customer growth rate. Fortunately, we continue to see very strong retention rates..." – CEO Dan Rosensweig
• "Yes, you can use ChatGPT to get some answers, which is what the customer that didn't come to us are doing, but to actually learn it, you need to use Chegg.” 

BANKING CRISIS

• FDIC recommends raising deposit insurance coverage (FT)
• Bank failures put pressure on Fed's inflation battle (FT)
• Banks still tapping Fed's FHLB and emergency lending facilities as scramble for liquidity is not over (Bloomberg)

ECONOMY

• US labor market softens, job openings drop, layoffs accelerate to two year high (Reuters)
• RBA surprises with a 25 bp rate hike, flags 'some' further tightening (Bloomberg)
• Eurozone CPI slows but headline higher (Bloomberg)
• Eurozone factory downturn worsens in April, falling for first time since Jan (Reuters)
• South Korean inflation slows as expected, backs case for rate cuts (Bloomberg)