Overview

Business conditions eased slightly in April, driven by weaker profitability. Confidence on the other hand, improved, but remains in negative territory and below its long run average. Despite the modest moves in headline confidence and conditions, there were some notable movements in other survey metrics this month, including a sharp decline in capex (falling to its lowest reading since June 2024), a decline in profitability and softer forward orders. The sharp rise in capacity utilisation recorded in March was also reversed; this measure fell to 81.4% and is now back at long-run average levels for the first time since mid-2021. While labour cost growth was steady this month, there was an uptick in purchase cost growth as well as higher final product price growth and retail price growth. Timing wise, the survey was fielded about three weeks after the initial ‘Liberation Day’ tariff announcements, which may explain the modest moves in headline business conditions and confidence. Forward looking indicators in the survey such as capex and forward orders will be in focus to understand the impact of global uncertainty on business decision making in Australia.

Comments from NAB Chief Economist, Sally Auld

Business conditions eased slightly in April. By industry, there were significant declines in mining and transport & utilities which reversed gains seen in March.

“The decline in business conditions was driven by weaker profitability,” said NAB Chief Economist Sally Auld. “This aligned with higher purchase cost growth and weaker trading conditions reported in April.”

Business confidence improved slightly, though remains in negative territory and below its long run average. Confidence by industry was mixed, but remains weakest in retail and wholesale.

“The survey was fielded a few weeks after the initial tariff chaos in early April which may explain the relatively steady conditions and confidence measures,” said Dr Auld.

However, there was more movement in other parts of the survey. Capex fell a notable 6pts to +1 index points in April, now back below the long-term average. Forward orders also eased.

Capacity utilisation fell to 81.4%, reversing the uptick seen in March. This is the first time that capacity utilisation has returned to its long run average since mid-2021.

“We have seen capacity utilisation gradually ease since 2022 as the economy has slowly achieved better balance,” said Dr Auld. “We have also seen a similar dynamic in our quarterly survey, where labour and materials as a significant constraint on output have broadly eased.”

Purchase cost growth picked up from 1.4% in quarterly equivalent terms to 1.7%, while labour cost growth was steady. Final product price growth and retail price growth both picked up this month, rising to 0.8% and 1.4% respectively.

“Overall, both business conditions and confidence remain weak relative to average levels, highlighting the risk that the economy is struggling to maintain the pick up in momentum we saw in the last quarter of 2024. We will continue to monitor how business sentiment develops in coming months in light of heightened global uncertainty and domestic developments.” said Dr Auld.

For more information, please see the NAB Monthly Business Survey (April 2025)

National Australia Bank

Results from NAB’s Monthly Business Survey indicate business conditions and confidence measures remained relatively steady in April 2025.

However, both measures remain weak relative to average levels, highlighting the risk that the economy is struggling to maintain the pick-up in momentum seen in the last quarter of 2024.

NAB’s economists said survey results showed business conditions eased slightly, with significant declines in mining and transport & utilities, reversing gains seen in March.

Chief Economist, Dr Sally Auld, said: “The decline in business conditions was driven by weaker profitability. This aligned with higher purchase cost growth and weaker trading conditions reported in April.”

Business confidence improved slightly during the month but remains negative and below its long run average. Confidence by industry was mixed and remains weakest in retail and wholesale.

Dr Auld said the timing of the survey likely had an impact on the results.

“The survey was fielded a few weeks after the initial tariff chaos in early April which may explain the relatively steady conditions and confidence measures,” she said.

Read the full monthly business report for April here

Summary First-quarter GDP contracts at 0.3% rate

Front-loading of imports ahead of tariffs weighs on GDP

Consumer spending grows at a slow, but still healthy pace

Inflation cools in March before tariffs escalation

Wages maintain moderate growth pace in first quarter

WASHINGTON, April 30 (Reuters) – The U.S. economy contracted for the first time in three years in the first quarter, swamped by a flood of imports as businesses raced to avoid higher costs from tariffs and underscoring the disruptive nature of President Donald Trump’s often chaotic trade policy.

The Commerce Department’s advance gross domestic product (GDP) report on Wednesday, however, grossly exaggerated the economy’s fading prospects. Though consumer spending slowed considerably from the fourth quarter, the pace of growth remained healthy. Businesses also boosted investment in equipment, mostly information processing and transportation.

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Nonetheless, both consumer and business spending likely reflected front-loading before the import duties kicked in. As such, the report reinforced Americans’ growing disapproval of Trump’s handling of the economy as he marks 100 days in office.

Trump swept to victory last November on voter angst over the economy, especially inflation. Consumer confidence is near five-year lows and business sentiment has tanked, while airlines have pulled their 2025 financial forecasts, citing uncertainty over spending on nonessential travel because of tariffs, which economists said will raise costs for companies and households.

Economists anticipated the economy would rebound in the second quarter as the drag from imports fades, but probably not enough to avoid a recession or a period of tepid growth and high inflation, commonly referred to as stagflation. Resolving the uncertainty caused by the Trump administration’s ever-shifting tariffs position was crucial, they said.

“If the blowout on trade was the result of firms pre-buying imported inputs to beat the tariffs, the decay in the trade balance will reverse in second quarter,” said Carl Weinberg, chief economist at High Frequency Economics. “That will generate some GDP growth. However, corrosive uncertainty and higher taxes – tariffs are a tax on imports – will drag GDP growth back into the red by the end of this year.” Gross domestic product decreased at a 0.3% annualized rate last quarter, the first decline since the first quarter of 2022, the Commerce Department’s Bureau of Economic Analysis said in its advance estimate of first-quarter GDP.

It was also weighed down by a decline in federal government spending, likely linked to the White House’s aggressive funding cuts, marked by mass firings and shuttering of programs.

The report captured activity before Trump’s “Liberation Day” tariffs announcement, which ushered in sweeping duties on most imports from the United States’ trade partners, including jacking up duties on Chinese goods to 145%, sparking a trade war with Beijing.

Trump and his aides struggled to coalesce around a message about the GDP number. Trump blamed former President Joe Biden for the weak GDP and sought to highlight strong domestic demand, including the rebound in business spending as outlays on equipment surged at a 22.5% rate.

“We had numbers that despite what we were handed, we turned them around,” Trump said at the White House.

Final sales to private domestic purchasers, which exclude trade, inventories and government spending, grew at a solid 3.0% rate. But this measure of domestic demand, which Trump also referred to, also was distorted by tariffs. Domestic demand was strong during the last year of the Biden administration, growing at a brisk 2.9% clip in the October-December quarter.

Senate Democratic Leader Chuck Schumer in a statement accused Trump of running the country into the ground.

“Donald Trump must admit his failure and reverse course, and immediately fire his economic team,” Schumer said.

Economists polled by Reuters had forecast that GDP increased at a 0.3% pace in the January-March period.

The survey was, however, concluded before data on Tuesday showed the goods trade deficit surged to an all-time high in March amid record imports, which prompted most economists to sharply downgrade their GDP estimates. The economy grew at a 2.4% pace in the fourth quarter.

A China Shipping container is seen at the port of Oakland, as trade tensions escalate over U.S. tariffs with China, in Oakland, California, U.S., April 10, 2025. REUTERS/Carlos Barria/File Photo Purchase Licensing Rights , opens new tab

Stocks on Wall Street were trading lower. The dollar rose against a basket of currencies. U.S. Treasury yields fell.

RECORD IMPORT DRAG

Imports jumped at a 41.3% rate, the largest rise since the third quarter of 2020, when the nation was in the throes of the COVID-19 pandemic, which fractured global supply chains. That obliterated a modest rise in exports, resulting in a large trade gap that chopped off a record 4.83 percentage points from GDP.

Shows trade effect on GDP

Imports were driven by both consumer and capital goods. The BEA said it had identified and removed an increase in imports of silver bars as a form of investment in the first quarter.

Transactions in valuables such as nonmonetary gold and silver are not treated as investments and therefore purchases of these metals are not included in consumer spending, private domestic investment or government spending, it said.

An unusually large amount of non-monetary gold accounted for some of the jump in imports in the past months, leading to a wide disparity in first-quarter GDP estimates.

Some of the imports ended up as inventory in warehouses, partially blunting the hit to GDP. Inventory accumulation surged at a $140.1 billion pace after rising moderately in the October-December quarter. Inventories added 2.25 percentage points to GDP after being a drag for two straight quarters.

GDP contributors

The strong inventory build last quarter could be a headwind to GDP this year, especially as the front-running of purchases ends. A slowing labor market and wage growth as well as worries about the economy could also prompt households to hunker down.

A separate report from the Labor Department’s Bureau of Labor Statistics showed wages and salaries climbed 0.8% in the first quarter after rising 1.0% in the October-December quarter.

Inflation heated up last quarter, but cooled in March. The Personal Consumption Expenditures price index excluding the volatile food and energy components was unchanged in March after surging 0.5% in February.

Economists said the reports would encourage the Federal Reserve to keep interest rates unchanged next week.

“Weak GDP … was still a stagflation warning shot over the bow of the economy,” said Ellen Zentner, chief economic strategist at Morgan Stanley Wealth Management. “This type of data won’t soothe the markets, and it won’t make the Fed’s job any easier.”

Consumer spending, which accounts for more than two-thirds of the economy, grew at a 1.8% rate after a robust 4.0% pace in the fourth quarter. It was supported by outlays on both services and goods, mostly healthcare, housing and nondurable goods.

Most of the growth was in March, with spending surging 0.7% as households pulled forward purchases of motor vehicles. Economists expected the pre-emptive buying persisted in April.

“At the moment, most stores are still selling inventory that would have entered the country before Liberation Day and thus may not reflect the price hikes that will be coming soon,” said Stephen Stanley, chief economist at Santander U.S. Capital Markets.

Reporting by Lucia Mutikani; Editing by Paul Simao, Chizu Nomiyama and Andrea Ricci

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Overview

SME business conditions and confidence improved in Q1 2025. Each of the business conditions sub-components (trading, profitability and employment) rose, though profitability and employment conditions remain in negative territory. This was a stronger survey reading than for larger firms captured in the NAB Quarterly Business Survey, which saw conditions ease slightly over the quarter. However, conditions and confidence remain weaker than the quarterly survey in level terms, though the gap for conditions has closed slightly. Like in the quarterly survey, the share of SME firms reporting labour as a significant constraint on output eased. Labour costs growth also softened in the quarter, though purchase costs growth was marginally higher. Note that this survey was conducted before tariff announcements in early April.

Survey Details

SME business conditions improved by 3pts to -1 index points. Improvement was strongest for the smallest SMEs (up 5pts to +1 index points), followed by mid-tier SMEs (up 4pts to -3 index points). SME conditions overall remain weaker than the quarterly survey in level terms and in negative territory.

improved by 3pts to -1 index points. Improvement was strongest for the smallest SMEs (up 5pts to +1 index points), followed by mid-tier SMEs (up 4pts to -3 index points). SME conditions overall remain weaker than the quarterly survey in level terms and in negative territory. By industry, SME conditions improved in all industries except business services and finance. Business services saw a material decline for the second quarter in a row (down 10pts in Q1), while finance conditions were down 3pts. Despite the decline, conditions are strongest in finance and transport and remain weakest in manufacturing.

SME conditions improved in all industries except business services and finance. Business services saw a material decline for the second quarter in a row (down 10pts in Q1), while finance conditions were down 3pts. Despite the decline, conditions are strongest in finance and transport and remain weakest in manufacturing. SME business confidence improved by 4pts to -8 index points but remains well below average (+2 index points). The improvement was driven by large increases in property and construction. However, SME confidence remains negative across all industries except property and transport (though transport is only just positive at +1 index point).

improved by 4pts to -8 index points but remains well below average (+2 index points). The improvement was driven by large increases in property and construction. However, SME confidence remains negative across all industries except property and transport (though transport is only just positive at +1 index point). Across the states, SME conditions improved in every state, led by WA (up 6pts) and Qld (up 5pts). In level terms, SME conditions remain weakest in NSW and Vic (both at -5 index points). SME confidence rose in all states, but all states remain in negative territory, with Victoria lagging notably behind other states at -15 index points.

SME conditions improved in every state, led by WA (up 6pts) and Qld (up 5pts). In level terms, SME conditions remain weakest in NSW and Vic (both at -5 index points). SME confidence rose in all states, but all states remain in negative territory, with Victoria lagging notably behind other states at -15 index points. Conditions weakened this quarter in larger firms (as measured in the NAB Quarterly Business Survey), in contrast to the improvement in SME business conditions. However, in level terms, conditions and confidence remain relatively weaker in SME firms.

(as measured in the NAB Quarterly Business Survey), in contrast to the improvement in SME business conditions. However, in level terms, conditions and confidence remain relatively weaker in SME firms. Leading indicators were mixed. Capacity utilisation was steady at 80.3%, which is close to the long-run average. Capex and forward orders both improved over the quarter.

were mixed. Capacity utilisation was steady at 80.3%, which is close to the long-run average. Capex and forward orders both improved over the quarter. Cost pressures eased across labour costs and overheads. Purchase cost growth ticked up slightly (1.4% from 1.3%).

eased across labour costs and overheads. Purchase cost growth ticked up slightly (1.4% from 1.3%). Final prices were steady at 0.6% while the sales margin index improved from -20 to -17 index points.

For more information, please see the NAB Quarterly SME Business Survey (Q1 2025)

These Were the Big S&P 500 Movers on Friday Advancers Shares of power management chipmaker Monolithic Power Systems (MPWR) added 10% on Friday, posting the highest increase of any S&P 500 stock. Before its bounce at the end of the volatile week, Monolithic stock had surged 23% Wednesday after President Trump announced a widespread 90-day tariff suspension, but given back a big portion of those gains on Thursday.

(MPWR) added 10% on Friday, posting the highest increase of any S&P 500 stock. Before its bounce at the end of the volatile week, Monolithic stock had surged 23% Wednesday after President Trump announced a widespread 90-day tariff suspension, but given back a big portion of those gains on Thursday. The price of gold surged to a record high as the uncertainties surrounding global trade helped lift demand for the precious metal, which is often considered a “safe haven” investment. Shares of Newmont (NEM), the world’s largest gold producer, jumped 7.9%.

(NEM), the world’s largest gold producer, jumped 7.9%. Goldman Sachs analysts upgraded shares of military shipbuilder Huntington Ingalls (HII) to “buy” from “sell” and lifted their price target. The double upgrade for the stock came in the wake of an executive order signed by President Trump that could that could boost investments in domestic shipyards, with analysts suggesting that upcoming defense budgets could prioritize the construction of U.S.-made Navy vessels. Huntington Ingalls shares steamed 7.4% higher on Friday. Decliners Texas Instruments (TXN), which manufactures chips in the U.S., posted the S&P 500’s weakest daily performance as shares sank 5.7%. The downturn came after China said chips made by U.S. firms with outsourced manufacturing operations would not be subject to tariffs on U.S. goods. Shares of AI chip leader Nvidia (NVDA), which outsources manufacturing to TSMC (TSM) in Taiwan, gained 3.1% Friday, and TSMC added about 4%.

(TXN), which manufactures chips in the U.S., posted the S&P 500’s weakest daily performance as shares sank 5.7%. The downturn came after China said chips made by U.S. firms with outsourced manufacturing operations would not be subject to tariffs on U.S. goods. Shares of AI chip leader Nvidia (NVDA), which outsources manufacturing to TSMC (TSM) in Taiwan, gained 3.1% Friday, and TSMC added about 4%. Shares of Aptiv (APTV), which provides hardware and software solutions for the automotive industry, fell 3%. RBC Capital cut its price target on Aptiv stock, citing uncertainty around the tariff impacts for automakers. Although Aptiv could benefit in its upcoming earnings report from pre-buying ahead of tariff implementation, analysts believe carmakers and suppliers could scale back or rescind guidance as they adjust to longer-term impacts.

(APTV), which provides hardware and software solutions for the automotive industry, fell 3%. RBC Capital cut its price target on Aptiv stock, citing uncertainty around the tariff impacts for automakers. Although Aptiv could benefit in its upcoming earnings report from pre-buying ahead of tariff implementation, analysts believe carmakers and suppliers could scale back or rescind guidance as they adjust to longer-term impacts. Old Dominion Freight Line (ODFL) shares lost 2.9% after Jefferies lowered its price target on the transport company’s stock. Analysts pointed to macroeconomic concerns weighing on the industrial outlook and said they expect Old Dominion’s less-than-truckload (LTL) freight volumes to remain below seasonal levels for the next few months. -Michael Bromberg

Apple Surges Amid Optimism About Possible Tariff Exemption Apple (AAPL) shares surged Friday amid growing optimism the iPhone maker could win an exemption from the Trump administration’s tariffs. Mizuho analyst Jordan Klein reportedly told clients in a client note Friday that “90% of investors seem to believe Apple will get a tariff exemption,” pointing to the exemption Apple received in 2018 during President Trump’s first term.1 CFRA Research analyst Angelo Zino said he now puts the odds of an Apple-specific exemption at 50%, up from 20%. Apple shares jumped 4% to close at $198.15, posting gains for a week that included steep losses in three sessions and the stock’s best day since 1998. Still, it has yet to fully recover from the hit taken since President Trump’s tariff announcement on April 2, on worries about escalating trade tensions with China, where Apple manufactures an estimated 90% of its products.

-Kara Greenberg

Major Indexes Snap Two-Week Losing Streaks Stocks endured a bumpy ride this week but managed to post solid gains for the week and snap two-week losing streaks. The Dow Jones Industrial Average rose 5% this week, while the S&P 500 tacked on 5.7% and the Nasdaq Composite added 7.3%. It was just the second time in the past eight weeks that the S&P 500 and Nasdaq have posted weekly gains. The major indexes are still down about 5% since “Liberation Day” on April 2. TradingView The major indexes are still below where they closed on April 2, just before President Trump announced wide-ranging so-called “reciprocal” tariffs that sparked fears of a recession and sent markets reeling. Trump announced a pause on many of those tariffs this week, which spurred stocks to one of their best days ever on Wednesday.

DJIA, S&P 500, Nasdaq Composite YTD Chart. TradingView So far in 2025, the Dow is down 5.5%, while the S&P 500 has given up 8.8% and the Nasdaq is off 13.4%.

Amex Gets Upgrade, Seen as Resilient in a Recession Analysts from Bank of America on Friday upgraded American Express (AXP) stock to a “buy” rating, saying the credit card provider should be resilient through a potential downturn or recession. They upgraded the stock, but cut their price target to $274 from $325 to reflect lowered revenue and earnings forecasts as they expect consumer spending to slow. Bank of America is now one of six “buy” ratings among the 13 analysts tracked by Visible Alpha, along with five “hold” and two “sell” ratings, while its price target is now below the $308.67 consensus. The stock gained 1.7% on Friday to close at just above $251. “The macro environment is uncertain and GDP growth is likely slowing,” the analysts wrote. “This is a headwind for revenue growth. But we think Amex’s high-quality customer base should drive more durable earnings while keeping credit losses in-check.” TradingView American Express shares have lost about 15% since the start of the year, which the analysts said “offers long-term oriented investors an opportunity to buy a high-quality company at a reasonable valuation.” The analysts noted that in prior downturns like the COVID pandemic and the first Trump administration’s trade war, American Express stock “outperformed not only other card issuers but also the S&P 500.” The card issuer is set to report first-quarter earnings on Thursday, and Bank of America analysts said the company’s outlook for the rest of 2025 will likely be more important than whether its first-quarter results beat or miss estimates. American Express reported results in line with estimates last quarter as executives said spending was strong through the holiday season. -Aaron McDade

Treasurys Haven’t Had a Week Like This Since 2008 Treasury yields soared on Friday, extending a weeklong run-up that has defied expectations and threatened the Treasury market’s status as a safe haven in times of stock market turmoil. The yield on the 10-year Treasury, which influences interest rates on all kinds of consumer loans, rose as high as 4.59% on Friday before retreating slightly. The yield recently stood at 4.47%, up from around 4.44% at yesterday’s close. TradingView Treasury yields soared this week even as tariffs went into effect on Wednesday, battering the stock market and raising fears of an economic slowdown. The 10-year yield has skyrocketed more than 50 basis points—or half a percentage point—in the last five days, its largest weekly increase since 2008. The bond sell-off—bond yields and prices are inversely related, meaning yields rise when prices fall—has defied standard market logic. Bond prices usually increase when stocks fall as investors pivot to the relative safety of U.S. Treasurys. Bond prices also tend to increase as the risk of recession grows more acute; investors, expecting the Federal Reserve to cut interest rates in response to a slowdown, purchase Treasurys to lock in today’s comparatively high rates. Experts have pointed to a few possible culprits for the bond market’s recent volatility. Some point to the potential for Trump’s tariffs to nudge inflation higher, which could force the Fed to keep interest rates elevated. Others have speculated that Trump’s antagonistic trade and foreign policy has reduced global demand for Treasurys, the world’s most widely held sovereign debt. China is one of the largest holders of U.S. debt, and some experts warn it could wreak havoc on the Treasury market by dumping bonds. -Colin Laidley

Bank CEOs Weigh in On Impact of Tariffs Executives from across the banking industry spoke on Friday about the uncertainty surrounding the Trump administration’s tariffs, the stock market, and the possibility of a recession. JPMorgan Chase (JPM) CEO Jamie Dimon said he expects more companies to suspend their full-year guidance amid the uncertainty, something Delta Air Lines (DAL) and CarMax (KMX) did this week. “You’re going to hear 1,000 companies report, and they’re going to tell you what their guidance is. My guess [is] a lot will remove it,” Dimon said. “They’re going to tell you what they think it might do to their customers, their base, their earnings, their costs, their tariffs. It’s different for every company, but I assume you see that.” JP Morgan Chase CEO Jamie Dimon speaks during 2025 National Retirement Summit in Washington, DC, on March 12. Al Drago / Bloomberg / Getty Images BlackRock (BLK) CEO Larry Fink said in Friday’s earnings call that last week’s tariff announcement “went beyond anything I could have imagined in my 49 years in finance,” according to a transcript from AlphaSense. Fink also said that despite uncertainty around tariffs dominating the headlines, other “macro forces” like artificial intelligence, rising demand for energy and infrastructure, and the potential for de-regulation under the Trump administration are “just as strong today” as they were earlier this year. “We support the administration’s willingness to look at barriers to fair trade for the United States, though there are certainly risks associated with such significant actions,” Wells Fargo (WFC) CEO Charlie Scharf said in Friday’s earnings release. Scharf added that the bank expects “continued volatility and uncertainty and are prepared for a slower economic environment in 2025, but the actual outcome will be dependent on the results and timing of the policy changes.” Bank of New York Mellon (BK) CEO Robin Vince noted that the firm is “prepared for a wide range of macroeconomic and market scenarios as the outlook for the operating environment is becoming more uncertain.” -Aaron McDade

BlackRock CEO Sees ‘Uncertainty and Anxiety’ from Clients BlackRock (BLK) reported better-than-expected first-quarter adjusted profit as the investment giant reported another assets under management (AUM) record. The company reported adjusted earnings per share (EPS) of $11.30, well above the $10.13 analysts had expected, while revenue fell just short of Visible Alpha estimates at $5.28 billion. At the end of the first quarter, BlackRock had a record $11.58 trillion in AUM, up 11% year-over-year. “Uncertainty and anxiety about the future of markets and the economy are dominating client conversations,” BlackRock CEO Larry Fink said. “We’ve seen periods like this before when there were large, structural shifts in policy and markets—like the financial crisis, COVID, and surging inflation in 2022. We always stayed connected with clients, and some of BlackRock’s biggest leaps in growth followed.” Fink said Monday that the Trump administration’s tariffs could stoke inflation, adding that most CEOs he has spoken with believe the U.S. is “probably in a recession right now.” BlackRock shares were up about 1% in recent trading. They entered the day down 16% since the start of the year. -Aaron McDade

JPMorgan CEO Dimon Warns of ‘Considerable Turbulence’ JPMorgan Chase (JPM) on Friday reported better-than-expected fiscal first-quarter results as big banks kicked off the new earnings season. The banking giant reported earnings per share (EPS) of $5.07 on revenue of $45.31 billion, each up from $4.44 and $41.93 billion, respectively, a year ago. Analysts had expected $4.64 and $43.55 billion, according to estimates compiled by Visible Alpha. Shares of JPMorgan were up more than 3% in recent trading. They entered the day down roughly 5% year-to-date but up about 16% in the last 12 months.

“The economy is facing considerable turbulence (including geopolitics), with the potential positives of tax reform and deregulation and the potential negatives of tariffs and ‘trade wars,’ ongoing sticky inflation, high fiscal deficits and still rather high asset prices and volatility,” JPMorgan CEO Jamie Dimon said. “As always, we hope for the best but prepare the Firm for a wide range of scenarios.” Dimon wrote in his annual letter to shareholders this week that he expected the Trump administration’s tariffs “will slow down growth.” Analysts had said leading up to earnings season that that while tariffs may not directly affect the banks themselves, they likely will take a toll on their customers. Wells Fargo (WFC) and Morgan Stanley (MS) also reported Friday, while Bank of America (BAC), Citigroup (C) and others are set to report next week. -Aaron McDade