GE and Citi beat estimates

by Marilou Moursund on April 17, 2009

in Credit Crisis,Economic Indicators

GE and Citi reported better than expected earnings this morning.  However, there was a $700 million non-recurring gain in Citi’s numbers, and GE still has problems with CRE and loan loss provisions.  This is part of the bottoming process where the rate of decline is decelerating.  The positive yield curve is really helping the financials to cover some of their embedded losses.

Other positive indications:

  • Jobless claims may have peaked
  • JPM and GS have sold debt without FDIC insurance
  • TED spread down from 463 in October to 97, normal spread is 50
  • Rosetta Stone IPO up 40%
  • Drop in gasoline price helping consumers
  • Ford able to restructure debt last week
  • Pulte and Centex to merge

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