|Bid||205.80 x 1100|
|Ask||206.09 x 1100|
|Day's Range||196.81 - 206.32|
|52 Week Range||130.85 - 250.46|
|Beta (5Y Monthly)||1.47|
|PE Ratio (TTM)||11.13|
|Earnings Date||Jul 15, 2020|
|Forward Dividend & Yield||5.00 (2.54%)|
|Ex-Dividend Date||May 29, 2020|
|1y Target Est||234.00|
(Bloomberg) -- New Jersey Governor Phil Murphy and Democratic legislative leaders have agreed on a plan for the state to borrow as much as $9.9 billion to cope with revenue losses from the coronavirus outbreak.The Assembly had approved a bill in June authorizing at least $5 billion in borrowing backed by tax collections, but Senate President Stephen Sweeney had held it up, seeking more legislative input. Under the agreement among Murphy, Sweeney and Assembly Speaker Craig Coughlin, a four-member commission -- two senators and two assembly members -- would have to approve each request to borrow with a majority vote.The Senate intends to act on an amended measure next week. The bill would then return to the Assembly for concurrence before reaching Murphy’s desk. Both houses are controlled by Democrats.Murphy, 62, a first-term Democrat and retired Goldman Sachs Group Inc. senior director, has said that New Jersey faces “Armageddon” without legislative authority to borrow, as well as federal aid. The borrowing in part would rely on general-obligation bonds and the Federal Reserve’s Municipal Liquidity Facility, according to Sweeney and MurphyRepublicans said the plan would lead to tax increases. They threatened a legal challenge, citing the state constitution’s ban on this kind of financing for revenue needs; Murphy has said he is confident in an emergency clause.Federal SupportThe authorized borrowing amount, $9.9 billion, is 98% of the estimated $10.1 billion revenue shortage projected through June 2021. Including coronavirus-related expenses combined, Murphy said, the state could be short $20 billion -- about equal to the state’s total income-tax and corporation business-tax collections in fiscal 2019.“It does not obviate the need for federal cash,” Murphy said of the borrowing plan at a Trenton news conference.Sweeney, New Jersey’s highest-ranking state lawmaker, had said in recent weeks he needed to know which taxes would rise, and by how much, to repay the bonds before posting the bill. But he said his thinking has changed.“Before we talk about higher taxes we are going to have to talk about reforms,” Sweeney said in an interview. Encouraging school districts to regionalize -- as some had been studying for years prior to the novel coronavirus outbreak -- would be one way to bring savings, he said. Wall Street ratings companies also want to see spending cuts, he said.Senator Declan O’Scanlon, a Republican from Little Silver, said the potential borrowing set a new standard for poor fiscal moves.“That’s exactly why borrowing schemes like this must be approved by the public,” O’Scanlon said in a statement. A colleague, Senator Sam Thompson of Old Bridge, said taxpayers would shoulder bond payments for 35 years. Sweeney said he had renewed confidence in a $500 billion state and local government stimulus bill sponsored by U.S. Senator Bob Menendez, a New Jersey Democrat. Republican congressional leaders have balked at the effort, which would give states like New Jersey money to plug budget holes, but Sweeney said that may change now that the virus is spreading rapidly in some Republican-led states.“With more red states in, it’s not just a blue issue -- it’s a United States issue,” Sweeney said.‘Revenue Raisers’In a Bloomberg Television interview on Thursday, Murphy said to expect unspecified “revenues raisers” -- typically, tax increases -- in the budget he presents to the legislature for the nine-month spending year that starts Oct. 1.“We did not get into any discussions on revenues,” Murphy said, referring to the pending Senate borrowing authorization bill. “It’s too early to tell on taxes.”New Jersey’s state credit is rated the second-worst behind Illinois carrying an A3 rating by Moody’s and A- by S&P and Fitch. The state has about $44 billion in bonded obligations, as of June 30, 2019, according to the state’s debt report released in April.Most of New Jersey’s outstanding debt isn’t issued by the state itself, but rather state-run entities including the New Jersey Economic Development and the New Jersey Transportation Trust Fund authorities. Those bonds are backed by state revenues that are subject to appropriation by the legislature.Murphy’s planned borrowing would be backed by the state’s full faith and credit pledge and repaid with general fund revenue, a type of debt that under ordinary circumstances is subject to voter approval. About $1.8 billion, or 4.6%, of New Jersey’s bonds are general obligations, according to its most recent debt report.(Updates with Sweeney comments starting in second paragraph)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Starting a hedge fund with more capital and scoring top first-year returns point to higher chances of survival in the often risky business, Goldman Sachs Group Inc said in research released on Friday. Goldman, which has helped launch and finance thousands of hedge funds, said almost all newcomers survive their first year but that only 62% of all funds remain in business after five years. The "break even point after which less than half of managers ... remain up and running seems to lie somewhere between 6 and 7 years," said Goldman's Hedge Fund Survivorship 2020 report released to clients.
DOW UPDATE The Dow Jones Industrial Average is rallying Friday afternoon with shares of JPMorgan Chase and Goldman Sachs seeing positive gains for the blue-chip average. The Dow (DJIA) was most recently trading 345 points higher (1.
DOW UPDATE Shares of JPMorgan Chase and Goldman Sachs are seeing strong returns Friday afternoon, propelling the Dow Jones Industrial Average rally. Shares of JPMorgan Chase (JPM) and Goldman Sachs (GS) have contributed around a third of the blue-chip gauge's intraday rally, as the Dow (DJIA) was most recently trading 276 points, or 1.
The Dow Jones Industrial Average is trading up Friday afternoon with shares of JPMorgan Chase and Goldman Sachs leading the way for the price-weighted average. The Dow (DJIA) is trading 181 points higher (0.7%), as shares of JPMorgan Chase (JPM) and Goldman Sachs (GS) have contributed about a quarter of the index's intraday rally. JPMorgan Chase's shares are up $3.38 (3.7%) while those of Goldman Sachs have climbed $6.87, or 3.5%, combining for a roughly 70-point bump for the Dow.
DOW UPDATE Shares of Goldman Sachs and JPMorgan Chase are trading higher Friday afternoon, lifting the Dow Jones Industrial Average into positive territory. The Dow (DJIA) is trading 250 points (1.0%) higher, as shares of Goldman Sachs (GS) and JPMorgan Chase (JPM) are contributing about 25% of the blue-chip gauge's intraday rally.
DOW UPDATE Buoyed by strong returns for shares of JPMorgan Chase and Goldman Sachs, the Dow Jones Industrial Average is trading up Friday morning. The Dow (DJIA) was most recently trading 182 points higher (0.
Marqeta Inc, a United States-based card issuing company backed by Goldman Sachs Group Inc (NYSE: GS), is preparing to go public.What Happened Marqeta is in the process of hiring investment banks for an initial public offering.The IPO may be held this year or in 2021, according to Reuters' anonymous sources.The card-issuer has been bolstered by the ongoing pandemic and has witnessed a spike in usage by online shoppers and users of food delivery services. Founded in 2010, the company now operates in the United States, Canada, Europe, and Asia-Pacific.Marqeta's services are used by companies to issue credit and debit cards to their workers. By the end of 2019, it had issued more than 140 million cards.Why It Matters Marqeta's valuation rose to $4.3 billion in May after it raised $150 million in fresh capital from an undisclosed investor. The Oakland, California-based company counts Square Inc (NYSE: SQ), Uber Technologies Inc (NYSE: UBER), Affirm, Instacart, and DoorDash among its clients.Last year, Marqeta raised $260 million in equity financing lead by Coatue, a technology sector hedge fund, and Vitruvian Partners, an international investment firm, along with others.Banks have told the card issuer that it could go public at a much higher valuation, according to Reuters.Marqeta's listing comes at a time when companies are seeking to take advantage of the recent upswing in markets in the wake of the COVID-19 pandemic.In June, the payment processor, Shift4 Payments, Inc's (NYSE: FOUR) IPO was priced at $23 per share. On Wednesday, that company's shares set a new yearly high of $47.95. Price Action On Thursday, Goldman Sachs shares closed 2.86% lower at $196.83.See more from Benzinga * IPO Market Hiccup As Albertsons Offering Fails To Meet Expectations In Both Price And Scale * Face Mask Sales Push Etsy Stock To Record Highs * American Airlines Plans To Raise .5B In Funding To Fly Through The Pandemic(C) 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Stocks rallied out of negative territory Friday after Gilead announced that remdesivir helped reduce COVID-19 mortality risk in a clinical trial.
As big banks gear up for earnings season, many investors are anticipating the worst quarter for the banks since the financial crisis. Yahoo Finance’s Brian Cheung joins The Final Round panel to break down the details.
Barron’s ran a screen of 42 of the largest U.S. banks, borrowing from the playbook larger banks use when buying smaller players as a starting point for evaluating opportunities.
DOW UPDATE The Dow Jones Industrial Average is declining Thursday morning with shares of Walgreens Boots and Boeing facing the biggest declines for the index. Shares of Walgreens Boots (WBA) and Boeing (BA) are contributing to the blue-chip gauge's intraday decline, as the Dow (DJIA) was most recently trading 117 points (0.
An initial public offering from Alibaba's Ant Group by year-end would give equity capital markets in Hong Kong a timely boost after a new security law cast in doubt the city's future as a global financial centre, analysts said on Thursday. With new deals worth $4.17 billion in the first half, Hong Kong's exchange accounted for 7.6% of the global IPO market, though down from a share of 11%, and deals worth $7.91 billion, in the same period last year, Refinitiv data showed. The fall in value ranked Hong Kong as the fourth most active exchange after the Nasdaq, mainland China's new Star Market and the Shanghai stock market.
Rocket Companies, the parent company of mortgage lending giant Quicken Loans, has filed for its initial public offering. The company plans to trade on the New York Stock Exchange under the ticker “RKT.” Proceeds from the IPO will be used to purchase businesses and Class D stock from Rocket Cos.’ existing holding company, Rock Holdings Inc., which is owned by the company’s founder and chairman Dan Gilbert.
(Bloomberg Opinion) -- Rishi Sunak, Britain’s chancellor of the exchequer, delivered another steroidal burst of government spending on Wednesday. As the man writing fat checks at a time of disruption and uncertainty, Sunak has become so popular that it’s now obligatory to include the words “potential future prime minister” whenever his name is mentioned. He enjoys a 92% approval rating among Conservative Party members, which is more what you’d expect in Belarus than in Britain’s rough-and-tumble political world.He has a pedigree to rival any other front-rank Tory. His platinum-plated CV includes stops at Oxford University, Stanford and Goldman Sachs. The son of immigrants, he’s married to the daughter of a billionaire. A policy wonk in sharply tailored suits, he also has an encyclopaedic knowledge of Star Wars trivia and is considered a nice guy. He’s exhibited both the right temperament for the moment (unflappable, focused, collegial) and a flair for the fiscal splurge that is unconstrained by his previous hawkish orthodoxies.“We entered this crisis unencumbered by dogma and we will continue in this spirit,” he said on Wednesday.Yet winning acclaim for chucking cash at anyone who asks for it is the easy part. At some point, possibly around the time of the autumn budget, people will want to know how he means to pay for his largess. Boris Johnson’s Conservatives can sound almost identical to Keir Starmer’s Labour Party in their determination to protect working people’s interests, but will that remain the case if Sunak wants to hike taxes at some point? His slew of spending pledges is a bet that the government can put a floor under the economic damage done by the coronavirus, without creating structural deficits that burden future generations or fostering a dependency culture that Conservatives deplore. Sunak is trying to soothe Tory fears by presenting his blowout as a series of time-limited targeted interventions.Naturally enough, his immediate priority is jobs. Britain’s furlough scheme, which props up 9 million jobs, is due to do be wound down from August, when employers will have to shoulder more of the burden. That’s expected to result in a great shedding of jobs, particularly in sectors such as hospitality and travel.Wednesday’s “summer economic update” included as much as 30 billion pounds ($38 billion) of new spending, on top of the previous 160 billion pounds of direct support for the Covid-hit economy and 123 billion pounds of subsidized state loans and deferred taxes. It was directed especially at younger people, who are disproportionately affected by the shutdowns: The beleaguered hospitality industry, which accounts for about 10% of total employment, gets special support. Value-added tax for the sector was cut to 5% from 20% and Brits have even been given government-funded discounts to dine out Monday through Wednesday. There was also a nod to the problem of getting furloughed staff back to work: Across the economy, employers who bring these workers back onto the payroll will receive a 1,000-pound bonus. While Sunak says Britain has implemented one of the most generous pandemic responses in the world, its fiscal interventions were equivalent to about 4.8% of GDP before Wednesday’s announcement, according to the Bruegel think tank, putting it behind Germany and the U.S. and on a par with France.Still, a different stripe of Tory government might have accepted the inevitability of widescale unemployment, as President Donald Trump has in the U.S., and used fiscal policy to provide welfare relief. Sunak insists that his policies are driven by values, not economics.Sunakism — if indeed this is a pitch for future power — claims to have at its core the sanctity and nobility of work. “I will never accept unemployment as an unavoidable outcome,” he told Parliament on Wednesday. At the same time, the chancellor doesn’t want to “leave people trapped in a job that can only exist because of a government subsidy.” His policies are predicated on the idea that government can protect some jobs and stimulate the creation of others, while supporting those who fall through the cracks. But these are largely blunt instruments. For example, many people are avoiding restaurants for safety reasons, and others may find it hard to get a table. A VAT cut doesn't solve either problem.At each turn, Sunak has been careful to underscore the extraordinary nature of the circumstances. Like the furlough scheme, all of the other new measures are meant to be temporary and have an immediate effect. But few people who get a steroid injection stop after just one. When so many people are dependent on the state for their livelihoods, there is powerful pressure to maintain the flows of cash.Given the blow to the economy, some of the forecasts on joblessness post-Covid are dire, and Johnson has promised to look after those former Labour voters who delivered him victory in December’s general election. It won’t be easy to turn off the taps.The Sunak approach raises three important questions. First, will his carefully targeted measures limit the Covid damage and revive the British economy? Second, how will they be paid for? And third, what are the long-term consequences for Britain’s political landscape and the shape of its economy?For now, only the first question matters. Sunak has put off the financing conundrum until the autumn budget. It’s hard to see how some tax increases can be avoided, although this is a government that has committed itself to reducing the tax burden where it thinks that might stimulate the economy.As for the third question, a new doctrine of conservatism appears to be emerging that accepts the state as a prime actor during a crisis but tries to avoid the perils of chronic French-style interventionism. Sunak has called on the British people to have the “patience to lie with the uncertainty of the moment” so they could find “a new balance between safety and normality.” That balance may be more elusive than he thinks.This column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Therese Raphael is a columnist for Bloomberg Opinion. She was editorial page editor of the Wall Street Journal Europe.For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Yahoo Finance’s Brian Cheung joins Zack Guzman break down new analysis from the Wall Street journal that shows how big banks may get billions in fees from PPP loans.
Goldman (GS) possesses the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.
In the current market session, Goldman Sachs Group Inc. (NYSE: GS) is trading at $201.36, after a 1.02% increase. However, over the past month, the stock decreased by 5.70%, and in the past year, by 4.73%. Shareholders might be interested in knowing whether the stock is undervalued, even if the company is performing up to par in the current session.The stock is currently above from its 52 week low by 53.89%. Assuming that all other factors are held constant, this could present itself as an opportunity for investors trying to diversify their portfolio with Capital Markets stocks, and capitalize on the lower share price observed over the year.The P/E ratio is used by long-term shareholders to assess the company's market performance against aggregate market data, historical earnings, and the industry at large. A lower P/E indicates that shareholders do not expect the stock to perform better in the future, and that the company is probably undervalued. It shows that shareholders are less than willing to pay a high share price, because they do not expect the company to exhibit growth, in terms of future earnings.Depending on the particular phase of a business cycle, some industries will perform better than others.Compared to the aggregate P/E ratio of the 38.8 in the Capital Markets industry, Goldman Sachs Group Inc. has a lower P/E ratio of 10.82. Shareholders might be inclined to think that they might perform worse than its industry peers. It's also possible that the stock is undervalued.P/E ratio is not always a great indicator of the company's performance. Depending on the earnings makeup of a company, investors may not be able to attain key insights from trailing earnings.See more from Benzinga * Benzinga's Top Upgrades, Downgrades For July 8, 2020 * 8 Financial Services Stocks Moving In Friday's Pre-Market Session * Benzinga's Top Upgrades, Downgrades For June 4, 2020(C) 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Malaysia is determined to achieve a settlement with Goldman Sachs over its involvement with the 1MDB state investment fund despite having to deal with the economic fallout of coronavirus. Mahathir Mohamad, the former prime minister, told the FT last year that Malaysia had already rejected an offer from Goldman of “less than $2bn”. Goldman in 2012 and 2013 arranged three bonds for 1MDB worth $6.5bn, much of which was ultimately stolen, and received $600m in fees — a sum Malaysia has said was excessive.
(Bloomberg Opinion) -- The Berkeley Center for Law and Business held its annual “fraud fest” a few weeks ago — virtually, of course — and there was a new item on the agenda. Along with the usual panels about whistle-blowers and short sellers, the organizers added a panel titled “Fraud and Covid-19.” “The pandemic is the perfect storm for fraud,” one of the panelists said, and who can doubt it? The federal government hastily pushed hundreds of billions of dollars out the door in the largest bailout in U.S. history with only the most vague requirements for recipients; bankers working from home doled out those billions to small businesses; regulators loosened rules to help institutions get through the crisis. As my colleagues Timothy L. O’Brien and Nir Kaissar noted recently, “the White House has made it easier for government insiders to obtain bailout loans from the Small Business Administration, creating a raft of conflicts of interest.”That certainly sounds like a recipe for financial fraud. “A crisis is like the fog of war,” said Thomas Curry, the former comptroller of the currency during President Barack Obama’s administration. “Banks redirect resources to critical areas and neglect other risks that bite you down the road.”Before becoming comptroller, Curry was on the board of the Federal Deposit Insurance Corporation. It was from that perch that he watched the financial crisis unfold — and became one of the financial regulators frantically trying to keep the U.S. financial system from melting down. The government ultimately gave the big banks billions in bailout loans and other forms of support, such as buying their toxic securities. But once the crisis was averted, Congress, regulators, and the press all began to dig into scandals that were previously unnoticed: the abuse of subprime mortgages by the big financial players; the craven behavior of the credit-rating companies; the willingness to mislead investors who bought those toxic securities, and so on. According to the boutique investment bank Keefe, Bruyette & Woods, banks were fined a staggering $243 billion for their misdeeds during the financial crisis. (Bank of America leads the pack with $76.1 billion in fines.)Those fines inflicted some pain, but they weren’t the most consequential result of the financial misdeeds that were exposed. The larger issue was the enormous resentment and anger they generated in a broad swath of the country. People on both sides of the political divide were furious that the big banks were being saved despite bad behavior that helped create the financial crisis. Meanwhile, millions of bank customers lost their homes to foreclosure. The financial crisis and its aftermath helped bring about the Tea Party and Occupy Wall Street movements and helped pave the way for Donald Trump’s presidency.So here we are again, in the middle of another crisis, only this one is being overseen by an administration that doesn’t seem to care much about corruption or fraud. Early on, Trump removed Glenn Fine, the acting Pentagon inspector general, from taking charge of a group that was supposed to monitor the pandemic relief effort, replacing him with someone more to his liking. Nobody is monitoring the White House’s involvement in procuring N-95 masks and other scarce personal protective equipment. And only on Monday did the Treasury Department finally release the names of companies that received PPP funds. Guess what? One recipient was the law firm of Kasowitz Benson Torres, where one of the name partners, Marc Kasowitz, has represented Trump for years. The firm received between $5 million and $10 million, according to the New York Times.As for the banks, the SBA has put them in a terrible spot, giving them the responsibility of hastily vetting the hundreds of thousands of businesses seeking PPP funds. Even with the best of intentions, it is inevitable that scam artists found ways to bilk the banks out of PPP loans. Indeed, prosecutors have already arrested a handful of executives for doing so.The larger issue is that, just like in 2008, regulators aren’t focused on preventing misconduct. Instead, their focus is on making sure banks have the ability to lend — even if it means loosening rules that were designed to make banks safer. In late March, for instance, the Federal Reserve relaxed several lending rules, including one that measured counterparty credit risk. And in early April it loosened capital requirements. “The Fed has been trying to say to the banking community that in this crisis environment we don’t want the constraints we normally put on you. We don’t want to hamper your ability to lend to clients,” said Gary Cohn, the former Goldman Sachs executive who served as Trump’s first chief economic adviser.What’s more, Cohn said, banking is not a business that is meant to be conducted from home. “Banks need people to be working together in a cooperative fashion and watching and listening to each other,” he told me. “That is what the Fed would call a first line of defense: Overhearing conversations, looking at presentations, or looking at the way you talk to a client. Or calling a compliance officer – ‘Can you guys look at this?’ When people are sitting in their bedrooms,” he added, “there is no one there to look over their shoulder.” Bankers operating on their own is a recipe for trouble.When the pandemic finally ends, there are going to congressional investigations, newspaper exposes and special commissions all taking a look back at what happened to the trillions of dollars the federal government spent to keep the economy from collapsing. Indeed, if the Democrats sweep the White House and Congress, the reckoning could well begin even before the virus has been conquered. (Can you just imagine Elizabeth Warren as chair of the Senate Banking Committee?)For starters, they’ll want to know whether bankers siphoned off money to their friends, whether they threw people who should have been granted mortgage forbearance out of their homes and whether money meant for small businesses wound up helping any of the president’s businesses. Banks will be especially vulnerable because they were the villains during the last crisis. If significant bank misconduct is uncovered during a Covid-19 post-mortem, said Stephen Scott, the founder of Starling Trust Sciences, a risk-management company, “there will be pitchforks.” The country is much more polarized than it was in 2008, and much angrier, too. If it turns out that the billions of dollars intended to help out-of-work Americans was diverted by fraud, it will make the aftermath of the financial crisis look like a picnic.This column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Joe Nocera is a Bloomberg Opinion columnist covering business. He has written business columns for Esquire, GQ and the New York Times, and is the former editorial director of Fortune. His latest project is the Bloomberg-Wondery podcast "The Shrink Next Door."For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
DOW UPDATE Behind negative returns for shares of Boeing and American Express, the Dow Jones Industrial Average is in selloff mode Tuesday afternoon. Shares of Boeing (BA) and American Express (AXP) have contributed to the index's intraday decline, as the Dow (DJIA) was most recently trading 279 points, or 1.
Bank investors have surely felt like they are trudging through a disaster zone this year. The sector sold off aggressively as investors tried to assess the damage from the first- and second-order effects of the coronavirus. “The upcoming 2Q20 results will be confusing, sloppy, and shocking for some banks, in our view, but our outlook is cautiously optimistic as we expect the economy to continue to gain momentum into the end of the year,” Gerard Cassidy, analyst at RBC Capital Markets, said in a note Tuesday.
The S&P 500 eased on Tuesday, a day after the benchmark index logged its longest streak of gains this year as investors weighed the risk of a sharp jump in new coronavirus cases nationwide hindering a rebound in economic activity. The Nasdaq, on the other hand, claimed another record high, boosted by shares of technology heavyweights Microsoft Corp and Apple Inc. The Dow Industrials dropped 0.8%, weighed down by cyclical stocks including Goldman Sachs and Boeing Co. Large parts of the country reported tens of thousands of new coronavirus infections.
DOW UPDATE The Dow Jones Industrial Average is trading down Tuesday afternoon with shares of American Express and Boeing facing the biggest losses for the index. The Dow (DJIA) was most recently trading 207 points, or 0.
The S&P 500 was little changed on Tuesday a day after the benchmark index logged its longest streak of gains this year, as investors weighed expectations of an economic recovery against risks from a sharp jump in new coronavirus cases nationwide. The tech-heavy Nasdaq, on the other hand, claimed another record level, boosted by shares of Microsoft Corp and Apple Inc while the Dow Industrials dropped 0.7% weighed down by Goldman Sachs and Boeing Co. Bank stocks, whose performance is linked to the outlook for the economy, dropped 2.5%.