Schwab comes through on earnings

And Larry Fink says no recession ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ Charles Schwab came through big time on earnings. It posted a profit of $1.6 billion in the first quarter. Profit was up 14% year over year, and revenue was up 10%. Yet the picture isn't perfect. Deposits continue to fall and second-quarter revenue is expected to drop. Interest expense is also up significantly. How significantly? Try from $136 million to $1.2 billion. The problem is that investors are simply investing differently. The good news for Schwab is that they are not pulling their money out of the company altogether. They are just using it in different ways. Investors are moving cash from bank accounts to higher-yield options. This is called "cash sorting." Investment banks are not necessarily facing recession. In fact, the rules may be changing when it comes to the way the stock market reacts to a potential recession. This only increases the importance of staying liquid, staying mobile, and staying flexible. In this investment climate, nothing can be taken for granted. Keep Moving, Corey Snyder Publisher, Rogue Investing WORD ON THE STREET Market Could Ignore Recession Warnings As Confidence Surges - "Marched Right Through It" - RBC Capital Markets' Lori Calvasina said the stock market may repeat what it did in the immediate postwar period. "If you go all the way back to 1945, that was the recession coming out of World War II, the stock market just marched through it," she said on CNBC. "It's the only recession where it's essentially been ignored." She said that this could be a possibility now, though she isn't sold on it being a certainty. - Fink: No Recession But "Sticky" Inflation - Larry Fink of BlackRock said the massive stimulus created by infrastructure bills will keep the United States out of a recession. "Those three bills are a trillion dollars of stimulus over the next few years," he said. "Think about how many jobs infrastructure creates. Think about the demand for commodities as we build infrastructure." However, he said geopolitical issues are going to drive continuing inflation because of the breakdown of global supply chains. "We have moved away from this whole concept of globalization," said Fink. (CC 3.0 via [Americasroof]( )) - Kevin McCarthy Targets Welfare Reform - Speaker Kevin McCarthy is hoping to achieve welfare reform as a precondition to raising the debit ceiling. "Our proposal will also restore work requirements that ensure able-bodied adults without dependents earn a paycheck and learn new skills that grow our economy and help the supply chain," he said. However, President Biden has refused to meet with him on the issue and Senate Majority Leader Chuck Schumer is pushing for raising the debt ceiling without preconditions. - DeSantis V. Disney Heats Up - Governor Ron DeSantis isn't backing down from his offensive against Disney, blasting Big Mouse's last-minute deals designed to exempt it from Florida's attempt to strip the company of its self-governing territory surrounding Disney World. "They negotiated with themselves to give themselves the ability to maintain their self-governing status," he said. "That's not going to fly." HOT SPOTS: What's Going on in Geopolitics - Swedish Economy Continues Decline - Sweden's government predicted a worsening economic decline, with GDP projected to contract by 1%, not just 0.7%. "We face major challenges, but we will get through them together," said Sweden's Minister for Finance. - Russia Reshuffles Military Leadership – General Colonel Mikhail Teplinsky, head of Russia's airborne troops, has been given a "major role" in managing the military effort, according to British intelligence. The elite Russian troops of the VDV were once a staple of regime propaganda, but their failure in the early stages of the war made their political position weaker. Teplinsky's return to influence suggests the internal Russian battle over the conduct of the war continues, with President Vladimir Putin backing different groups in order to maintain his own preeminent position. - China Sets Blistering Pace On Growth - China's National Bureau of Statistics reported GDP grew by 4.5% in the first quarter, smashing a 4% estimate from economists polled by Reuters. Retail sales were up an astonishing 10.6% in March. (You know, that is if you believe all these statistics.) CUTTING EDGE: What[']( )s Happening In Tech - Musk Will Create "TruthGPT" - Elon Musk has provided some details on the new AI he is creating to challenge OpenAI's ChatGPT. Musk said ChatGPT is "being trained to be politically correct." In contrast, his own AI will be a "maximum truth-seeking AI that tries to understand the nature of the universe." - Apple And Goldman Sachs Will Create High-Yield Deposit Account – Apple Card users will be able to earn 4.15% on savings accounts according to a company announcement yesterday. Apple will offer the new accounts with Goldman Sachs - even though the Apple savings rate is higher than the 3.9% rate Goldman Sachs offers for its own savings accounts. - Taiwan Semiconductor Manufacturing Facing Falling Profits - Taiwan Semiconductor Manufacturing Company is expected to report a profit for the first quarter of just T$192.5 billion, down from T$202.7 billion in the same period last year. The estimate comes from a group of 21 analysts polled by Reuters. Analysts also project a tough second quarter for the company FOR YOUR CONSIDERATION --------------------------------------------------------------- "Cathie Wood of ARK Innovation ETF [ARKK] reportedly purchased 484,000 shares after the decline. Considering ARKK’s performance after the COVID pandemic retail trading boom, some might not see that as a particularly hopeful sign." RBLX was down 12% yesterday... does that mean it is time to buy? Despite dangers, Mr. X thinks so. Here's why. [TIME TO MOVE ON RBLX]( ) Enjoying Dawn Report? Learn something, made some money? SHARE YOUR STORY WITH US OR TELL US HOW TO SERVE YOU BETTER. Let us know at info@rogueinvesting.com You’re receiving this email because you're signed up for alerts from Dawn Report. Make sure to keep them coming by [whitelisting Rogue Investing]( ). 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