Round two
Bloomberg
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According to the Trump administration, six merchant vessels complied with instructions from American forces to turn around and re-enter an Iranian port during the first day of its promised blockade, as traders watched for signs of ships testing the restrictions. No vessels made it through the flotilla, the US said, which is made up of more than a dozen warships and 10,000 service personnel. The administration says it is enforcing the measures in the Gulf of Oman and the Arabian Sea, lying in wait for Iranian vessels that try to sail out of the Persian Gulf. That means some ships can cross the Strait of Hormuz but still not break the blockade. As the blockade continues, Iran and the US are said to be looking to arrange a second round of peace talks following a failed first round, with Tehran mulling a pause in shipments through the strait to help ease the path toward an agreement on time and place. The stated objective is to hold more discussions before a ceasefire in the US-Israel war with Iran expires next week. With the possibility of further peace talks, stocks continued their climb on Tuesday, putting the S&P 500 Index within sight of a fresh record. —Jordan Parker Erb What You Need to Know TodayOn Wall Street, it’s earnings season. JPMorgan pulled in $11.6 billion in trading revenue in the first quarter. That’s up 20% from a year earlier, with both equities traders and their counterparts in fixed income, currencies and commodities beating analysts’ expectations. Citigroup saw its highest quarterly revenue in a decade. The fixed-income unit generated $5.2 billion of revenue in the first quarter, a 13% jump from a year earlier. Its equities business hauled in a record $2.1 billion, a 39% increase. Wells Fargo, meanwhile, missed analysts’ estimates for its primary income streams in the first quarter, with net interest income totaling $12.1 billion and noninterest income coming in at $9.35 billion. Goldman Sachs’ bond- and rates-trading revenue dropped. Its equities traders had a record quarter, with revenue of $5.33 billion, while its fixed-income, currency and commodities business posted revenue of $4.01 billion, down 10% from a year earlier. US Representative Tony Gonzales of Texas will leave Congress as the Republican faces threats from members of his own party to force him out over sexual misconduct allegations. Gonzales made the announcement in a social media post Monday night, minutes after Democratic Representative Eric Swalwell declared his intention to resign from Congress amid sexual assault claims which he denied. Gonzales has previously announced he would not run for reelection. He has publicly acknowledged having an affair with a member of his staff who died by suicide last year and faced a House Ethics Committee inquiry over the scandal.  Republican Tony Gonzales of Texas Photographer: Samuel Corum/Bloomberg The US Treasury’s technology team is said to be seeking to gain access to Anthropic’s Mythos artificial intelligence model so it can begin hunting for vulnerabilities. Treasury Chief Information Officer Sam Corcos was aiming to gain access to the model, which Anthropic has been releasing to a limited number of institutions, as soon as this week. Treasury Secretary Scott Bessent and Federal Reserve Chair Jerome Powell summoned Wall Street leaders last week to an urgent meeting on concerns that Mythos will usher in an era of greater cyber risk. Disney is cutting 1,000 jobs, the first mass terminations under new Chief Executive Officer Josh D’Amaro. While the dismissals are companywide, they will fall particularly hard on employees of the marketing department, which is being consolidated under Asad Ayaz, who was appointed chief marketing and brand officer in January. The round of cuts follows more than 8,000 terminations at Disney since 2023. Still, the number is only a fraction of the 231,000 employees Disney had at the end of fiscal 2025. Amazon agreed to acquire satellite operator Globalstar in a roughly $11.6 billion deal that would expand the services of its satellite system. Amazon is offering Globalstar shareholders either $90 in cash per share, or 0.32 shares of Amazon stock with a value capped at $90 a share, according to a Tuesday statement. In 2028, Amazon said it plans to enter the direct-to-device market, a nascent effort to use satellites rather than cell towers to connect with smartphones. Amazon also said Apple’s emergency messaging service will transition to Amazon Leo, the company’s broadband satellite network. Adding Apple as a customer could be a coup for Leo, which has lagged SpaceX’s Starlink.
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