|Bid||21.35 x 800|
|Ask||21.39 x 3100|
|Day's Range||21.22 - 21.45|
|52 Week Range||16.45 - 22.36|
|Beta (3Y Monthly)||0.43|
|PE Ratio (TTM)||0.90|
|Forward Dividend & Yield||0.98 (4.59%)|
|1y Target Est||N/A|
The kick-off of earnings season Tuesday was a tale of both winners and losers on Wall Street as a number of blue-chip companies reported both profit and revenue that beat expectations, while a couple notable banks fell surprisingly short.
(Bloomberg) -- Billionaire money manager Ken Fisher is facing more pressure from clients following offensive remarks he made at an industry conference.Fidelity Investments and the state of Florida pension fund said Tuesday they’re examining their relationship with Fisher Investments. The Philadelphia Board of Pensions said it plans to divest the $54 million in assets held with the firm.“We are very concerned about the highly inappropriate comments by Kenneth Fisher,” a Fidelity spokesman said in a statement. “We do not tolerate these types of comments at our company and Fidelity Strategic Advisers is reviewing this relationship.”Fisher Investments manages about $500 million for Fidelity Strategic Advisers, which oversees managed accounts. Fisher is listed as a subadviser for Fidelity Strategic Advisers Small-Mid Cap Fund.Fisher Investments is also a sub-adviser on a Goldman Sachs Group Inc. equity fund that had about $675 million in assets at the end of April. The firm has not made any decision on changing its relationship with Fisher, according to a spokesman for the bank.The Florida State Board of Administration, which has about $175 million with Fisher, was concerned enough about the executive’s comments to begin an investigation to determine if it will drop the firm, spokesman John Kuczwanski said in an interview.“SBA policies require our employees and service providers to foster positive business and personal practices designed to ensure that everyone is treated with respect and dignity,” Kuczwanski said in a statement Tuesday.A spokesman for the Philadelphia funds said the decision to divest was made to “protect the assets of the fund from the consequences of Mr. Fisher’s inappropriate comments.” The decision was made on Oct. 10.Michigan’s MoveLast week, the State of Michigan Retirement Fund’s pension account ended its relationship with Fisher’s firm, which managed $600 million for the state.At the event last week, Fisher spoke about how he built his company, which manages $112 billion. He compared the process of gaining a client’s trust to “trying to get into a girl’s pants” and talked about genitalia. Fisher has apologized for the comments.Fidelity came under media scrutiny two years ago after it dismissed a prominent stock picker who had been accused of sexual harassment by a junior female employee. Chief Executive Officer Abby Johnson set out to improve the gender mix at her firm by recruiting more women and tapping talent from within.Reuters earlier reported the Fidelity news.(Adds Goldman comment in fifth paragraph)\--With assistance from Sridhar Natarajan.To contact the reporters on this story: Michael McDonald in Boston at firstname.lastname@example.org;Miles Weiss in Washington at email@example.com;Janet Lorin in New York at firstname.lastname@example.orgTo contact the editors responsible for this story: Alan Mirabella at email@example.com, Vincent BielskiFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Stocks rose Tuesday as some of the first major corporate names began delivering third-quarter results. Meanwhile, investors continued to monitor signs that President Donald Trump’s “phase one” trade deal with China would materialize.
(Bloomberg) -- WeWork’s calamitous effort to take itself public has raised red flags for other SoftBank-backed real estate startups -- and led an executive at the brokerage Compass to send its employees an eight-point memo highlighting differences between the two firms.Compass, like WeWork, has relied heavily on funding from SoftBank Group Corp.’s Vision Fund. The brokerage has become a major player in high-end markets like Manhattan and San Francisco, though some real estate experts say it is more like a traditional brokerage than a tech-industry disrupter.Unlike WeWork, Compass has no debt and is valued at a revenue multiple comparable to publicly traded real estate technology companies, according Chief Financial Officer Kristen Ankerbrandt.“Over the past few weeks we have seen comparisons being drawn between Compass and WeWork simply because we share a single investor,” Ankerbrandt wrote to employees last week in an email obtained by Bloomberg. “To be clear, our businesses are quite different -- in terms of our business model, capital structure, customers, culture and investments.”Ankerbrandt also boasted of Compass’s deep roster of investors, including Qatar Investment Authority and Dragoneer Investment Group; a 425-member tech team building tools to differentiate Compass from other brokerages; and a frugal leadership team that “books coach tickets and does not fly on private jets.”In December 2017, the Vision Fund agreed to invest $450 million in Compass, touted at the time as the largest real estate technology investment in U.S. history. The Vision Fund also participated in subsequent raises, including a $370 million round announced in July that valued the brokerage at $6.4 billion. At the time, the company said it would use the money to continue building a software platform to streamline the process of buying and selling homes. Compass, led by former Goldman Sachs Group Inc. banker Robert Reffkin, has used that capital to acquire competing brokerages and build technology intended to help agents stand out from its rivals.Representatives for Compass and the Vision Fund declined to comment.(Updates with plans for money raised in sixth paragraph. A previous version of this story added the dropped word million.)To contact the reporter on this story: Patrick Clark in New York at firstname.lastname@example.orgTo contact the editors responsible for this story: Craig Giammona at email@example.com, Christine MaurusFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
JPMorgan hit a record high after generating $2.68 a share in third-quarter profits, up 15% from the year-earlier period and above the consensus estimate of $2.45.
JPMorgan earnings easily beat Q3 views, while Goldman Sachs earnings missed. Citigroup and Wells Fargo earnings were mixed. JPMorgan stock and Citigroup stock rose into a buy zone.
Goldman Sachs’ third-quarter results weren’t great, but for investors worried about the health of the global financial system, there was plenty to be optimistic about.
Quarterly results from four of the largest U.S. banks on Tuesday showed that American consumers are helping to prop up the economy, even as recession fears have led businesses to pull back on spending and borrowing. JPMorgan Chase & Co posted strength across all but one of its segments, and executives offered optimistic comments about the financial health of individuals. Citigroup beat estimates thanks to its global consumer business.
Goldman Sachs was stung by equity investments in Uber Technologies, WeWork, and other companies during the third quarter, underscoring the risk of the firm’s opaque business of making principal investments.
Lower revenues dragged Goldman Sachs's third-quarter earnings down. The company's earnings missed analysts' estimates and fell 24% YoY.
The performance of the initial public offering market appears to be in the eye of the beholder, as J.P. Morgan Chase & Co. said Tuesday the IPO market was "strong" during the third quarter, while Goldman Sachs Group Inc. said it has seen a "significant decline." J.P. Morgan said equity underwriting income rose 22% from a year ago to $514 million, with Chief Financial Officer Jennifer Piepszak saying on the post-earnings conference call that growth was driven by "strong performance in IPOs and convertibles," as the bank ranked "number one in wallet share for overall and IPOs." Meanwhile, Goldman said equity underwriting revenue fell 11% to $385 million, citing "a significant decline in industry-wide public offerings." J.P. Morgan's stock rallied 1.7% in morning trading, while Goldman shares shed 3.3%. Year to date, shares of J.P. Morgan have rallied 21% and Goldman has hiked up 19%, while the Dow has gained 15%.
The bank's shares slipped nearly 3% as revenue at three of its four major businesses fell, including a 15% drop in investment banking revenue because of lower advisory and underwriting fees. Net revenue at Goldman's investing and lending division slumped 40% as it swallowed a loss of about $80 million on its stake in WeWork owner The We Company, along with hits from other investments.
(Bloomberg) -- Goldman Sachs Group Inc. was stung by slumping investments in some big names in the third quarter, hurting its most profitable business line.The firm took a $267 million hit in the period on public equity investments such as ride-hailing company Uber Technologies Inc., Avantor Inc. and Tradeweb Markets Inc. The bank probably took a writedown on its stake in WeWork after plans for an initial public offering collapsed. The losses fueled the worst performance in more than three years for the bank’s equity wagers in public and private companies.Goldman’s investment bankers also logged a much bigger decline in fees than analysts had predicted, down 15% from last year’s third quarter. They delivered their worst showing in David Solomon’s tenure as chief executive officer amid choppy markets and marquee deals that had to be pulled.That performance was softened by an improved showing from traders amid signs of a revival in Goldman’s biggest unit. Trading revenue rose 6% from a year earlier to $3.29 billion, the New York-based bank said Tuesday in a statement. That beat the $3.17 billion average estimate of analysts in a Bloomberg survey. Earlier in the day, JPMorgan Chase & Co. reported results that beat Wall Street estimates, driven by stronger than expected revenue from its fixed-income traders.See also: JPMorgan jumps after profit, fixed income top estimatesGoldman shares slumped 3.1% to $199.36 at 9:36 a.m. in New York, the worst performer among the four biggest U.S. banks that posted results Tuesday. The shares were still up 19% for the year.Gains from investments with its own money are sometimes Goldman Sachs’s biggest profit driver, and executives have argued they showcase a core skill that should be valued by shareholders. But the slump in prized holdings will add to a perception that the investments are subject to unpredictable swings even as the company works to provide more disclosure.The losses from Uber and other investments in the third quarter come after those positions had delivered big gains in previous periods.Wall Street banks grappled with increased volatility in the third quarter, while executives grew cautious about its benefits to their trading desks. Goldman had snatched market share from weaker rivals in a boost for its operations earlier in the year.Goldman Sachs is in the middle of a significant strategic shift as it retools businesses. The push includes a nascent consumer-banking effort, cash-management tools and new initiatives to win more business from existing clients. The firm also rolled out credit cards as part of a partnership with Apple Inc.Investors and analysts still await a more-detailed strategic update from Solomon, who took the top job more than a year ago. He has vowed to tighten up the partnership ranks and installed new leaders across divisions, even as he works for a resolution to the 1MDB banking scandal.Read more: Goldman’s 1MDB case in Malaysia to be moved to higher courtFees from helping companies sell shares dropped 20% from the second quarter to $385 million. Embattled office-sharing firm WeWork and Ari Emanuel’s Endeavor Group abandoned plans for an IPO amid tepid investor interest. The debt-capital markets business brought in $586 million, a decline from the previous quarter.The firm did highlight an increase in its investment-banking backlog and will also benefit when Saudi Aramco brings its mammoth share sale to market. It’s advising on a potentially massive share sale for the oil giant, with the fee pool for advisers likely to total as much as $450 million.The growth of Goldman’s Marcus business, which offers consumer loans and savings accounts, has forced the bank to pay attention to falling rates. The firm cut the amount of interest it pays depositors with online savings accounts at least three times since June. But Goldman’s lending to private wealth clients as well as through Marcus resulted in $891 million of net interest income, a record for a quarter.Other HighlightsEquities revenue rose 5% while fixed-income climbed 8%Earnings per share tumbled 24% to $4.79, missing the average estimate of $4.86Revenue dropped 6% to $8.32 billionProvision for credit losses jumped 67% to $291 million(Updates with share decline in fifth paragraph.)\--With assistance from Dan Reichl.To contact the reporter on this story: Sridhar Natarajan in New York at firstname.lastname@example.orgTo contact the editors responsible for this story: Michael J. Moore at email@example.com, Peter Eichenbaum, Steve DicksonFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
JPMorgan Chase & Co. (NYSE: JPM ) shares were trading higher Tuesday after the bank posted third-quarter EPS of $2.68, beating the $2.45 Street estimate, and sales of $29.3 billion, which topped the analyst ...
Third-quarter earnings began to roll in, while dovish commentary by Federal Reserve Bank of St. Louis President James Bullard and speculation that a Brexit deal may be at hand helped boost the mood.
Goldman Sachs reported a profit of $4.79 a share, missing forecasts for $4.81 according to FactSet, on revenue of $8.32 billion, narrowly beating estimates of $8.31.
(Bloomberg) -- The Bank of Japan is on course for an historic turning point that would see its bond holdings shrink next year for the first time in a decade, according to a Bloomberg News analysis.The shift is all the more notable given that the European Central Bank and Federal Reserve are set to once again increase their balance sheets. It’s a remarkable prospect for a central bank that has refused to drop guidance for boosting government debt holdings by 80 trillion yen ($740 billion) annually, even as it steadily tapers purchases since pivoting to yield-curve control in 2016.The long-term implications for the world’s second-largest sovereign bond market will be far reaching if -- as the analysis suggests -- the BOJ’s debt holdings start to shrink from next August. According to Bloomberg calculations, that is when the central bank’s purchases will fall short of redemptions, theoretically reducing downward pressure on yields.The ECB is moving in the other direction, resuming asset purchases to revive inflation, while the Fed is planning to expand its balance sheet for reserve management purposes.The BOJ’s bond purchases are part of its efforts to stimulate the economy by controlling short- and long-term interest rates through its yield curve control policy, which includes a 0% target for 10-year yields on Japanese government debt. What’s sped up the tapering is a global bond rally that has seen Japanese rates go more negative, spurring Governor Haruhiko Kuroda to scale back purchases to steepen the yield curve.“The tapering is a reminder of the need for the BOJ to focus on its main policy framework, which is yield-curve control and downplay the emphasis on an asset purchase target,” said Aninda Mitra, senior sovereign analyst at BNY Mellon Investment Management in Singapore. “There’s a need, going forward, to completely discard any pretense whatsoever that asset purchases will continue at a specific amount per annum to accomplish the inflation objective.”The prospect of a fall in debt holdings may prompt the BOJ to rethink its tapering, review pledges or even overhaul its policy framework. It isn’t clear if the BOJ sees the same likelihood of the holdings declining. The central bank meets later this month amid speculation it may ramp up stimulus to boost growth.Gross bond purchases by the BOJ may total 49.4 trillion yen in 2020 if it keeps tapering at the aggressive pace seen in the first nine months of this year, according to Bloomberg calculations. At least 55.9 trillion yen worth of debt it holds will be redeemed over the same period.Bloomberg News forecast changes in the central bank’s bond holdings by subtracting expected redemption of debt from the estimated monthly purchases. This assumes that tapering will continue at the same pace as the first nine months of this year, which has averaged 123.6 billion yen a month. Based on the calculations, the BOJ’s debt holdings will start to drop next August compared with a year ago.Allowing that to happen may boost a moribund debt market. In a 2018 paper, BOJ’s researchers found that 90% of the decline in the nation’s bond yields came due to the “stock effect” of its large holdings. The central bank owns almost half of the nation’s outstanding government debt.The aggressive tapering does leave the central bank with a contradiction on its guideline of expanding debt holdings. It could also cast further doubt on the BOJ’s commitment to keep stimulating the economy until it achieves 2% inflation.“It will be confusing” if they don’t address the buying guideline, said Hideo Kumano, a former BOJ official who is now a chief economist at Dai-Ichi Life Research Institute. “It will be hard to say if the BOJ is tightening or easing. The BOJ must review policy overall. Otherwise, they will end up doing patchwork to reduce side effects again and again.”Without more clarity, yen bulls may take the change in debt holdings as a sign that the BOJ is normalizing its monetary policy. Goldman Sachs Group Inc. said Monday that buying Japan’s currency against the dollar remains one of its highest conviction currency views.“What this signifies is the BOJ quietly walking away from the quantity part of quantitative easing,” said Ayako Sera, a market strategist at Sumitomo Mitsui Trust Bank Ltd. in Tokyo. “Should the BOJ’s bond holdings start to decline on a trend basis, the yen could shoot up beyond 100 per dollar.”A stronger yen would hurt the BOJ’s attempts to inflate the economy.Kuroda has said the central bank is committed to easing until the nation overshoots a 2% inflation target. The central bank’s other tools include buying exchange-traded funds and a policy rate of minus 0.1%.Japan’s Latest Desperate Experiment in Monetary PolicyRecently, Kuroda has expressed concern about the flattening of the yield curve, a global phenomenon as investors price in a worldwide economic slowdown. The BOJ signaled deep purchase cuts for October, and said it may even skip buying debt maturing in 25 years or more.Yet, it’s unclear if the BOJ’s recent efforts had any lasting impact on the yields of long-term debt. Yields on 30-year debt gained 4 basis points on Oct. 1 to 0.41%, the day after the central bank announced its monthly plan.It was about 0.40% on Tuesday.This suggests that the BOJ faces limits amid a global bond rally. Anytime the central bank pulls back, life insurers and pension funds jump in to buy debt and bring down yields.“Long-dated yields won’t probably rise unless the BOJ sells bonds,” said Sumitomo Mitsui’s Sera.What Bloomberg’s Economist Says“The Bank of Japan’s shrinking balance sheet is shocking and could contradict its inflation overshooting commitment. A significant amount of JGB redemptions means the BOJ may need to step up the pace of buying to prevent its balance sheet from shrinking.”\--Yuki Masujima, economistClick here to read more.(Updates to add additional context.)To contact the reporters on this story: Masaki Kondo in Singapore at firstname.lastname@example.org;Toru Fujioka in Tokyo at email@example.comTo contact the editors responsible for this story: Tan Hwee Ann at firstname.lastname@example.org, ;Paul Jackson at email@example.com, Benjamin PurvisFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
JPMorgan beat earnings and revenue expectations. In other news, Citigroup, Goldman Sachs and Wells Fargo posted mixed results. Yahoo Finance’s Zack Guzman and Heidi Chung discuss with JMP Securities Managing Director and Equity Research Analyst Devin Ryan on YFi PM.
Big banks kicked off earnings season Tuesday. JPMorgan and Citibank both beat expectations on the top and bottom lines, while Goldman Sachs and Wells Fargo missed estimates. Alex.Fyi CEO Ramsey Smith and Albion Financial Group Partner Jason Ware, joined Yahoo Finance's On The Move to discuss.