Even though President Trump says the Federal Reserve's interest-rate hikes are "crazy," they're driving profit higher at U.S. banks.
That was among the takeaways from earnings reports this week that also offered insight into how Trump's decision to withdraw from the Iranian nuclear accord is affecting fuel costs for businesses like airlines.
The following is a look at the numbers:
Bank of America: Higher interest rates and the GOP-led tax cut drove a 32 percent increase in profit to $7.2 billion at the Charlotte, N.C.-based lender. Revenue in the consumer banking division, its largest business, rose 6 percent to $285 billion. Bank of America joined Wells Fargo in moving more customers to digital services, which cost less than physical branches. Despite the overall growth, banks are facing potential challenges in the last three months of the year as mortgage lending slows down. Full story here.
Netflix: Higher-than-expected growth in subscribers sent revenue soaring 36 percent to $4 billion at the video-streaming service behind hits like "Stranger Things." Profit rose to 89 cents per share, higher than the 68 cents Wall Street expected. The growth comes as Netflix faces increasing competition from Amazon, Hulu and a newly combined AT&T-Time Warner, though the Department of Justice continues to try to quash that deal. The firm's chief executive told investors that "someday there will have to be competition for wallet share," but noted it "seems very far off." Full story here.
United Airlines: Profit at the Chicago-based carrier climbed 30 percent to $836 million. Premium ticketing sales and strong travel demand helped blunt nearly 90 percent of higher fuel costs, the company told investors. United also saw a 6.1 percent increase in cargo revenue. Boeing earlier this week estimated that cargo shipments could double in the next 20 years as e-commerce demand grows. Full story here.
More companies are scheduled to report earnings next week, including: Hasbro, Caterpillar, Centene, Harley-Davidson, JetBlue Airways, Lockheed Martin, McDonald's, Verizon, AT&T, Boeing, Equifax, Ford Motor Co., Amazon, American Airlines, and Southwest.