|Day's Range||1.9500 - 2.3900|
Goldman Sachs earnings unexpectedly rose as trading revenue hit the highest level in years, after rival Wall Street bank stocks reported surges too.
Goldman Sachs (GS) reported stronger-than-expected second-quarter earnings results on Wednesday, as surging revenues despite the pandemic buttressed the bottom line and its stock price.
JPMorgan economists now expect a contraction of 3% in 2021. Until Tuesday, JPMorgan itself saw GDP growth of 0.3% by the end of 2021 from the pre-pandemic rate of 2.3% at the end of 2019.
The experienced CEO offered a lot of good insight on the bank's future earnings and the economy as a whole during the company's second-quarter earnings call.
The Street Quant Rating Rates Rigel Pharmaceuticals a Sell with a rating score of D. Shares of Rigel Pharmaceuticals jumped on Tuesday after the drugmaker said it started a U.K. trial of a drug designed to combat COVID-19 pneumonia. The Street Quant Rating Rates Vaxart a Sell with a rating score of D.
JPM earnings call for the period ending June 30, 2020.
JPM earnings call for the period ending June 30, 2020.
Wall Street surged on Tuesday, with the Dow Jones Industrial Average ending more than 2% higher as investors bought energy and materials stocks and looked beyond a recent rise in coronavirus cases. In extended trade, Moderna Inc surged 18% after the biotech company's experimental vaccine for COVID-19 showed it was safe and provoked immune responses in an ongoing early-stage study. Extended trade in S&P 500 emini futures suggested investors expect Wall Street to rise on Wednesday, with the futures climbing 0.8%.
Three of the largest U.S. banks reported Tuesday that their loan loss provisions had grown by almost $23 billion to over $81 billion, illustrating the pessimism over the economic path ahead.
Banks kicked off the earnings season with mixed results
Dow comes on strong, closing 2.1% higher after an afternoon surge, as bank earnings are assessed. Tech wavered and finished the day up.
JPMorgan earnings beat views, while Citigroup reported mixed results and Wells Fargo missed badly and slashed its dividend.
Wall Street ended higher on Tuesday, led by a surge in the Dow Jones Industrial Average, as investors bought energy and materials stocks and looked beyond a recent surge in coronavirus cases. Limiting gains in the Nasdaq and S&P 500, Amazon lost ground, extending a rotation that began Monday out of many big-name technology and momentum stocks that have led much of the U.S. stock market's rebound since March.
(Bloomberg Opinion) -- The U.S. stock market has had a remarkable run since its coronavirus-induced swoon in March, with technology stocks from Big Tech to upstarts leading the comeback and soaring off their lows. A hot stock market tends to stoke demand for IPOs as well, and that’s exactly what has happened — especially in the area of cloud software and internet services. The latest manifestation of this phenomenon came on Tuesday, when cloud-banking software provider nCino Inc. surged more than 170% in its trading debut. The enthusiasm for this digital niche does make sense on a fundamental level. The pandemic has accelerated the spending shift to cloud-related technologies that enable the work-from-home and digital services we all need to live in a Covid-19 world. So, it’s natural that investors would latch on to the story and bid up many companies related to the space, including new issues. NCino isn’t alone: Cloud-based business-intelligence company ZoomInfo Technologies Inc. soared 62% in its first day of trading in June, while earlier this month, insurance digital-services startup Lemonade Inc. had a triple-digit percentage gain in its debut. All three are posting stellar growth rates and rely on cloud-based infrastructure to deliver their offerings.But a frothier environment is also a recipe for some on Wall Street to take advantage of the heightened investor interest. One potential IPO — Rackspace Technology Inc. — stands out as being particularly suspect. The cloud-computing service provider, owned by private equity firm Apollo Global Management, filed to go public last Friday. After looking at the offering documents, it appears Apollo and its name-brand underwriters such as Goldman Sachs Group Inc., Citigroup Inc. and JPMorgan Chase & Co. are trying to ride the recent wave of cloud enthusiasm with a subpar candidate. For those of us who remember, Rackspace was a second-tier data center and web-hosting company that had trouble competing with Amazon Web Services back when the investment firm took it private in 2016. It doesn’t look like much has changed since then.Simply, Rackspace’s anemic financial results punch a hole in its “cloud” narrative. The company doesn’t deserve to be put in the same breath as the recent big winners in the space. Whereas leading cloud companies have generated stunning sales increases over the past year, Rackspace posted no growth in 2019, according to the filing. And while its revenue did rise marginally about 8% in its March quarter, it is still nowhere in the vicinity of the sector’s best-of-breed. Never mind the fact it lost $48 million in those three months.To illustrate the disparity, cloud monitoring software provider Datadog Inc.’s sales surged by 87% in its latest reported quarter, while user authentication company Okta, Inc. generated revenue growth of 46%. Even Amazon Web Services, at its gargantuan size, saw sales increase by 33% in its March quarter to $10.2 billion, generating $3.1 billion in operating profit for the period. Companies need to show surging demand for their product and services to justify a cloud calling card. These companies do; Rackspace, not so much.On the flip side, one can argue the recent IPOs are widely overvalued. For example, nCino, ZoomInfo and Lemonade are trading at nose-bleed valuations of more than 50 times last year’s sales. But their track records and strong growth prospects can offer at least a shot at a better prospective future.At a time when the surging market has some invoking the word “bubble” and questioning the sustainability of the rally, investors need to look carefully at what bankers and Wall Street firms may be trying to off-load while the arrows are still pointing upward. They should look through the hype, sift through the numbers and analyze each company’s prospects on a case-by-case basis. Not all of the so-called cloud stocks are headed for the sky.This column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Tae Kim is a Bloomberg Opinion columnist covering technology. He previously covered technology for Barron's, following an earlier career as an equity analyst.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.
Wall Street rose on Tuesday, led by energy and materials, as investors looked beyond a recent surge in coronavirus cases and rotated out Amazon and other recent strong performers. The S&P 500 energy, materials industrial , health and consumer staples indexes all jumped more than 1%. Limiting gains in the Nasdaq and S&P 500, Amazon fell 1.1%, extending a rotation that began Monday out of many big-name technology and momentum stocks that have led much of the U.S. stock market's rebound since March.
JP Morgan, Citigroup and Wells Fargo warn loans may turn sour as the pandemic hits businesses.
It’s amazing how quickly earnings season comes around and we’re in the thick of it again today with big banks reporting. What's an option play on these?
JPMorgan reported better-than-expected results, and an analyst sees big gains for Walmart as it takes on Amazon Prime.
Jim Cramer discusses stock market news, including buying Citigroup stock, JPMorgan earnings, and more financial support for airline stocks.
The Dow Jones Industrial Average rose on today's stock market, reclaiming it's all-important 200-day line. Meanwhile, the Nasdaq composite extended losses.
The S&P 500 and Dow indexes edged higher in volatile trading on Tuesday as investors digested a mixed bag of quarterly earnings reports from U.S. lenders but technology stocks fell on worries over new business restrictions in California. Citigroup Inc was also down 2.5% as it reported a steep fall in quarterly profit. The S&P 500 banks index slumped 1.6% as the three banks set aside a combined $28 billion to cover potential losses on loans to borrowers hurt by the coronavirus pandemic.
Big swings in stock and bond markets since March have helped big Wall Street banks weather the coronavirus downturn better than they otherwise might have, but their trading-revenue gains are unlikely to last. On Tuesday, JPMorgan Chase & Co <JPM.N> and Citigroup Inc <C.N> reported upticks of 77% and 48% in quarterly markets revenue, respectively - far better than what many analysts had predicted. It was the second consecutive period of major trading increases, as investors reacted to a changing portrait of how severe the pandemic might be, as well as government stimulus programs to prop up economies and markets.
StartOut and Socos Labs are proud to launch the StartOut Pride Economic Impact Index™ (SPEII) to quantify the economic value of under-utilized LGBTQ+ entrepreneurs in near real-time, an industry first. Funded by JPMorgan Chase as part of its $150 million Small Business Forward philanthropic initiative to invest in underserved entrepreneurs, this project is further supported by Ogilvy, Google, Crunchbase, Reaching Out, and the Movement Advancement Project.