|Day's Range||13.00 - 13.33|
(Bloomberg) -- A rally in the shares of Square Inc. over the past few months has pushed the market valuation of the digital-payment company into the ranks of some of the biggest U.S. banks.Square has a market capitalization of about $55 billion after doubling since May, making it worth more than Truist Financial Corp. and all but four banks in the KBW Bank Index. While it’s still dwarfed by JPMorgan Chase & Co. and Bank of America Corp., Square is less than $20 billion shy of Goldman Sachs Group Inc.’s market valuation, which stands at $74 billion.Square shares have continued to set records in recent weeks as optimism swells over the growth of digital payments, and as the coronavirus pandemic changes consumer and corporate spending behavior.The San Francisco-based company has benefited in particular from positive sentiment about its popular cash app, its handling of pandemic-related government stimulus payments and its ability to garner deposits from traditional banks with fewer digital offerings.Technology stocks have soared this year, while banks have sunk. The tech-heavy Nasdaq 100 Index has gained 21% and the KBW Bank Index has fallen 35%.Square rallied as much as 13% on Monday after an analyst suggested it could eventually win as much as 20% of U.S. direct deposit accounts.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.
Alphabet just became the fourth U.S. company with trillion-dollar status. There’s only one other company with a market value above even $500 billion.
Starting in October, the bank will have to maintain a common equity tier 1 capital ratio of 11.3%, up from its current 10.5% requirement.
JPMorgan Chase & Co <JPM.N> is eliminating terms like "blacklist," "master" and "slave" from its internal technology materials and code as it seeks to address racism within the company, said two sources with knowledge of the move. The terms had appeared in some of the bank's technology policies, standards and control procedures, as well in the programming code that runs some of its processes, one of the sources said. Other companies like Twitter Inc <TWTR.K> and GitHub Inc adopted similar changes, prompted by the renewed spotlight on racism after the death of George Floyd, a Black man who died in police custody in Minneapolis in May.
The latest 13F reporting period has come and gone, and Insider Monkey is again at the forefront when it comes to making use of this gold mine of data. We at Insider Monkey have plowed through 821 13F filings that hedge funds and well-known value investors are required to file by the SEC. The 13F […]
After a better-than-expected jobs report, stocks finished the holiday-shortened trading week on a strong note. Let's look at a few top stock trades for the first full week of July. Top Stock Trades for Tomorrow No. 1: Nio (NIO) Click to EnlargeSource: Chart courtesy of StockCharts.com The $5 to $6 zone was set to be a tough one for Nio (NYSE:NIO), which topped out in this area in the first quarter of 2020. Previously, this zone had been support for the stock, before Nio slumped badly in 2019.In any regard, electric car stocks have serious momentum right now -- led by Tesla (NASDAQ:TSLA), which has amassed a market cap north of $200 billion.InvestorPlace - Stock Market News, Stock Advice & Trading TipsIn any regard, Nio shares keep pressing higher, up more than 30% so far this week. Investors undoubtedly have their eyes fixed on $10. * 7 American Manufacturing Stocks to Buy Before Recovery Let's see how the stock does with the $10 to $10.50 zone, which historically, has been resistance. If it continues as resistance, let's see that a pullback into the $6 to $7 area is met with support. Above $10.50 and the all-time highs up at $13.80 are in play. Top Stock Trades for Tomorrow No. 2: DocuSign (DOCU) Click to EnlargeSource: Chart courtesy of StockCharts.com Man, there's nothing else to say about DocuSign (NASDAQ:DOCU) other than the stock has been a complete beast.The stock never even tested its 200-day moving average during the March selloff. While shares dipped 29.9% from the February high to March low -- outperforming the S&P 500 and Nasdaq during that time -- the rebound has been stunning. Shares are now up more than 200% from that low.However, DocuSign stock nearly tagged $200 on Thursday and may be running out of momentum.I want to see $180 hold as support. If it doesn't, it puts uptrend support (blue line) and the 20-day moving average in play. On a larger dip, see if $150 and/or the 50-day moving average buoy the stock, whichever comes into play first. Top Stock Trades for Tomorrow No. 3: JPMorgan (JPM) Click to EnlargeSource: Chart courtesy of StockCharts.com Despite the rebound in the overall market, the bank stocks have struggled. For its part, JPMorgan (NYSE:JPM) is doing its best not to break down. But that's not exactly bullish.Shares are below all of the stock's key moving averages and are well off the June high near $115. In fact, just from that level, shares are down about 20%.On the plus side, JPM stock has carved out a nice bottom over the past few sessions. If it holds, the stock will create another higher low, giving bulls something to chew on. For them to maintain momentum though, shares need to reclaim the 50-day moving average, and preferably, the $100 to $102.50 area.If it falls below uptrend support, $82.50 is in play. Top Trades for Tomorrow No. 4: Moderna (MRNA) Click to EnlargeSource: Chart courtesy of StockCharts.com Moderna (NASDAQ:MRNA) has been a tricky stock lately, but it has traded very technically.While shares slipped about 6% in Thursday's session and lost the 50-day moving average, support near $55 is holding up. If it continues to hold, see that MRNA stock reclaims the 50-day and 20-day moving averages.Above those levels puts recent range resistance in play, up near $67.50. Pushing above that could put a move up toward $80 on the table.If $55 support breaks, shares could see $45.Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell. As of this writing, Bret Kenwell did not hold a position in any of the aforementioned securities. More From InvestorPlace * Why Everyone Is Investing in 5G All WRONG * America's 1 Stock Picker Reveals His Next 1,000% Winner * Revolutionary Tech Behind 5G Rollout Is Being Pioneered By This 1 Company * Radical New Battery Could Dismantle Oil Markets The post 4 Top Stock Trades for Monday: NIO, DOCU, JPM, MRNA appeared first on InvestorPlace.
Before the coronavirus pandemic swept the globe, the Amtrak Guest Rewards World Mastercard was a great deal for David White. White, who lives in Baltimore and works for a software firm, used to ride the train frequently — and with the credit card, he was able to rack up points that he could convert into free tickets. Adding to White’s frustration: The card comes with a $79 annual fee, and there aren’t many competitive options to redeem the rewards points for non-travel-related uses, he said.
Dun & Bradstreet, the business analytics firm that went private a year ago, is selling 65.75 million shares at $19 to $21 each, according to a June 26 filing.
The Zacks Analyst Blog Highlights: Visa, JPMorgan Chase, Bank of America, Chevron and Eli Lilly
The upheaval caused by the coronavirus may mean the end of the 60/40 portfolio, investing icon Burton Malkiel tells MarketWatch, but some other truths will likely endure. Investors are probably better off in passive portfolios, not chasing active managers - or even worse, day trading out of boredom.
JPMorgan has hired three UBS bankers to launch a wealth management team covering Russian clients out of Zurich, the U.S. bank said in an internal memo on Wednesday. "Russia remains an emerging market with exciting prospects for us to gain market share and continue to expand our presence," Karim Rekik, JPMorgan's market manager for Russia and Israel, said in the internal memo seen by Reuters and confirmed by the bank.
UBS, long the dominant bank in Australian equities markets, has closed this half-year outside the top three for the first time in 15 years, even as a rush of coronavirus-related share sales have generated bumper investment banking fees. Its slide to fourth place in the equity capital markets (ECM) league table has been attributed by rivals to the departure of a number of senior bankers from the Australian operations, which have opened the way for rivals to target mandates traditionally dominated by UBS. Such is the Swiss bank's dominance in Australia, it has only finished the year off the ECM top spot once in the past 15 years.
Former CFPB head Richard Cordray says Monday's Supreme Court ruling would mean quick removal of the agency's Trump-appointed director if the Democrats win the White House.
DOW UPDATE Shares of Intel and Goldman Sachs are posting positive gains Tuesday morning, propelling the Dow Jones Industrial Average into positive territory. Shares of Intel (INTC) and Goldman Sachs (GS) are contributing to the index's intraday rally, as the Dow (DJIA) is trading 8 points, or 0.
While JPMorgan (JPM) is likely to be able to maintain the current dividend payout in the near term, further worsening of the economic environment might compel it to cut the same.
Global M&A activity tumbled to its lowest level in more than a decade in the second quarter, according to data provider Refinitiv, as companies gave up on expansion plans to focus on protecting their balance sheets and employees in the wake of the coronavirus outbreak. Chief executives were reluctant to explore transformative deals without more certainty about the financial outlook of their companies, deal advisers said.
(Bloomberg) -- The value of mergers and acquisitions fell 50% in the first half from the year-earlier period to the lowest level since the depths of the euro-zone debt crisis, as the coronavirus pandemic brought global dealmaking to an abrupt halt.Every region was hit by the economic impact of Covid-19, which gripped markets in March and sparked countrywide lockdowns. This situation has made face-to-face meetings, a lifeblood of M&A, all but impossible. Little more than $1 trillion of deals have been announced this year, making for the slowest first half since 2012, according to data compiled by Bloomberg.The sharpest fall has been in the Americas, where the value of deals is down 69% in the first half. While every major industry has been hurt, the financial sector fared better than most. It was boosted by insurance brokerage Aon Plc’s $30 billion offer for Willis Towers Watson Plc and Morgan Stanley’s proposed $13 billion acquisition of E*Trade Financial Corp. The top three advisers on deals targeting the Americas so far in 2020 were Morgan Stanley, Goldman Sachs Group Inc. and JPMorgan Chase & Co., the Bloomberg-compiled data show.Deals involving targets in Europe, the Middle East and Africa are down 32%. Large transactions that helped prevent a more dramatic drop include the $19 billion leveraged buyout of Thyssenkrupp AG’s elevator unit by Advent International and Cinven. There was also a recent flurry of activity in the Middle East, including Abu Dhabi’s sale of a $10.1 billion stake in its gas pipeline network that ranks as the biggest infrastructure transaction of the year. Goldman Sachs, JPMorgan and Rothschild & Co. were the busiest advisers on EMEA deals.Asia Pacific has held up better, with overall volumes falling just 7% and most sectors seeing smaller declines than in other parts of the world. The technology, media and telecommunications industry reported a 13% increase, helped by Indian billionaire Mukesh Ambani’s digital arm attracting $15 billion of investments from the likes of Facebook Inc. and KKR & Co. Another landmark transaction was Tesco Plc’s sale of Asian businesses to Thai billionaire Dhanin Chearavanont for more than $10 billion. The most active banks on deals in the region were Morgan Stanley, HSBC Holdings Plc and JPMorgan.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.
(Bloomberg Opinion) -- China is attempting to create its own JPMorgan Chase & Co. The ambitions could prove hard to satisfy.Regulatory authorities may allow some of the largest commercial lenders into the brokerage industry to perform services that include investment banking, underwriting initial public offerings, retail brokering, and proprietary trading, local media outlet Caixin reported. With capital markets flailing and direct financing struggling to take hold as debt rises across the economy, what better way than to bring in its trillion-dollar whales to boost the financial sector?There is logic to this. Size matters, and the volumes could lead to success. China’s banks have more than $40 trillion in assets; the securities industry’s amount to around 3% of that. The largest lender, Industrial & Commercial Bank of China Ltd., had 32.1 trillion yuan ($4.5 trillion) in assets and 650 million retail customers as of March, according to Goldman Sachs Group Inc. The biggest broker, CITIC Securities Co., had 922 billion yuan and 8.7 million retail clients. Banks have thousands of branches with deeper distribution channels.But banks are the load-bearing pillars of China’s financial system. Regulators have asked lenders to show leniency with hard-up borrowers and to forego profits in the name of national service, in both tough and normal times. Granting brokerage licenses could help them create another channel of (small) profits.Banks stepping in where brokers have failed could help the broader capital markets. In theory, commercial lenders know how to deal with different types of risk, like with the ups and downs in the value of a security and market movements. They’re already big participants in bond markets and have access. Bringing banks into mainstream brokering could help reduce the intensity of risk associated with the trillions of dollars of credit being created in China every month. It may also help solve a persistent problem: the inefficient allocation of credit that has led to mispriced assets.All of this is contingent upon the banks pulling their weight. Going by past experiments, they haven’t brought the heft that Beijing had hoped. Consider China’s life insurance industry. It took bank-backed players in this sector a decade to build a foothold. Their market share grew to 9.2% last year from 2.5% in 2010. The brokerage arms of Chinese banks in Hong Kong have fared little better. Bank of China International Securities, set up in 2002 by Bank of China Ltd., remains a mid-size broker by assets and revenue, Goldman Sachs says. Top executives come from the bank; related-party transactions with the parent account for just about 14% for underwriting business and around 39% for income from asset management fees.Catapulting ICBC to the same stature as JPMorgan — a full service bank with a 200-year history — may take a while. The American financial giant has hired big, and opportunistically built out businesses. It bought and merged with firms like Banc One Corp. and Bear Stearns Cos. and is in consumer banking, prime brokerage and cash clearing. The services it offers run the gamut of credit cards, retail branches, investment banking, and asset management. Shareholders have mostly rewarded the efforts.For China’s biggest lenders, conflicting and competing priorities will make this challenging. They’re already being required to take on more balance sheet risk, lend to weak companies and roll over loans while maintaining capital buffers, keeping depositors happy and essentially martyring themselves. Now, they’ll be adding brokering at a time when traditional revenue sources are shrinking in that business. And it won’t happen overnight, or even in the next two years. As for brokers? Their stock prices dropped on the news that banks would be wading into their territory.Beijing’s efforts to shore up its capital markets may look OK on paper, but they’re increasingly muddled and interests aren’t aligned. As China attempts to make its financial sector more institutional and less fragmented while it’s also letting in foreign banks and brokers, allowing the big homegrown institutions to do more, with additional leeway, doesn’t necessarily make for a stronger system. As I’ve written, experiments like these can have unexpected results.Over time, it won’t be surprising to see China’s large brokers and banks start looking very similar; for instance, big securities firms becoming bank holding-type companies, as one investor suggested. That may be a laudable goal for Beijing, but is it realistic? And does it take into account the problems on the financing side, such as misallocation and transmission? Ultimately, none of this really gets at one big problem: unproductive credit.All the while, regulators are inviting in the likes of the actual JPMorgan Chase and Nomura Holdings Inc. and giving them bigger roles. China won’t be ready. This column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Anjani Trivedi is a Bloomberg Opinion columnist covering industrial companies in Asia. She previously worked for the Wall Street Journal. 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.
JPMorgan Chase & Co. (NYSE: JPM) ("JPMorgan Chase" or the "Firm") announced today that it has completed the 2020 Comprehensive Capital Analysis and Review ("CCAR") stress test process. Information can be found on the Firm’s Investor Relations website at www.jpmorganchase.com/press-releases.
FEATURE The second round of the Paycheck Protection Program, which aims to provide loans to small businesses struggling in the Covid-19 recession, is about to end. The SBA will accept PPP loans from participating lenders until a minute before midnight on Tuesday, according to spokesman Matt Coleman.
Mike Ryan, UBS Wealth Management Americas Chief Investment Officer, Yahoo Finance’s Brian Sozzi and Jared Blikre to discuss the latest market action.
Among the ‘big six’ U.S. banks, it appears Wells Fargo is the most at risk for a third-quarter dividend cut.
(Bloomberg Opinion) -- New York’s Metropolitan Transportation Authority has a lot of problems, but bankruptcy isn’t one of them.That’s not because the MTA couldn’t use the debt relief. Far from it: The agency has more than $40 billion of municipal bonds outstanding, borrowed $1.1 billion in early May to pay down maturing notes, issued an additional $525 million two weeks later for infrastructure needs, secured a $950 million credit agreement with JPMorgan Chase & Co. and Bank of China, and won approval to tap the Federal Reserve’s emergency liquidity facility. Debt is as much a part of the lifeblood of the nation’s largest public transit system as the subway tunnels themselves. Rather, the MTA is legally barred from filing for bankruptcy. This doesn’t get discussed much — perhaps to avoid evoking New York City’s own brush with insolvency in the 1970s. For instance, neither Moody’s Investors Service nor S&P Global Ratings mentioned the word “bankruptcy” in reports this year explaining why they downgraded the agency’s debt. Fitch Ratings, which gives the MTA a higher grade than its two competitors, also cut the MTA’s rating after the Covid-19 pandemic roiled the New York metropolitan area. But it specifically cites the lack of bankruptcy risk as a key strength. Here’s the provision in full, from a recent MTA bond sale:No Bankruptcy. State law specifically prohibits MTA, its Transit System affiliates, its Commuter System subsidiaries or MTA Bus from filing a bankruptcy petition under Chapter 9 of the U.S. Federal Bankruptcy Code. As long as any Transportation Revenue Bonds are outstanding, the State has covenanted not to change the law to permit MTA or its affiliates or subsidiaries to file such a petition. Chapter 9 does not provide authority for creditors to file involuntary bankruptcy proceedings against MTA or other Related Entities.“We’re very clear that their legal structure and their inability to file for bankruptcy protection is an important criteria,” Michael Rinaldi, Fitch’s lead analyst on the MTA, told me in a phone interview. “Absent that protection, it would have an adverse ramification for how we view the MTA’s financial leverage, which is quite substantial.”Or as I’d put it: If the MTA could file for bankruptcy, the move couldn’t be ruled out.To be clear, the MTA is hardly out of options, even though it faces a potential $10.3 billion deficit through 2021. As I wrote in April, the agency’s leaders know public transit is vital to moving people around the New York City area, which accounts for almost 10% of the nation’s gross domestic product, and have successfully used that as leverage to secure federal funds. However, it’s burning through that money fast: It has about $1 billion remaining of the $3.8 billion that Congress approved to help cover the sharp drop in ridership and the cost of extra cleaning and disinfecting. MTA officials say they need $3.9 billion more.There’s every reason to expect it’ll get those funds — Congress isn’t about to repeat Gerald Ford’s “drop dead” moment by denying federal aid. But digging deeper into the MTA’s operating framework, it’s clear that the coronavirus pandemic has set the agency back in such a way that it’ll have no choice but to rely on federal help and more debt for the foreseeable future. That’s probably enough to scrape by, but it raises doubts about whether the MTA will ever have enough cash to truly revitalize the system’s aging infrastructure.The MTA borrows under something known as the “Transportation Resolution,” which allows it to issue additional bonds without meeting any specific debt-service-coverage level as long as the securities are used to fund approved capital projects and the MTA certifies to meeting a “rate covenant” for the year the bonds are sold.This is the rate covenant:MTA must fix the transit and commuter fares and other charges and fees to be sufficient, together with other money legally available or expected to be available, including from government subsidies — to pay the debt service on all the Transportation Revenue Bonds; to pay any Parity Debt; to pay any Subordinated Indebtedness and amounts due on any Subordinated Contract Obligations; and to pay, when due, all operating and maintenance expenses and other obligations of its transit and commuter affiliates and subsidiaries. Take note of the “including government subsidies” clause. As the MTA eventually explains, it’s the entire game:The Transit, Commuter and MTA Bus Systems have depended, and are expected to continue to depend, upon government subsidies to meet capital and operating needs. Thus, although MTA is legally obligated by the Transportation Resolution’s rate covenant to raise fares sufficiently to cover all capital and operating costs, there can be no assurance that there is any level at which Transit, Commuter and MTA Bus Systems fares alone would produce revenues sufficient to comply with the rate covenant.That puts all the cards on the table. Notably, this language is based on the MTA’s adopted budget from February, before any Covid-19 impacts were even considered. In April, ridership compared with a year earlier fell 92% on MTA subways, 94% on the Metro-North Railroad and 97% on the Long Island Rail Road.Clearly, either the federal, state or city government (or all three) will have to pay up. The MTA alone has no chance of raising enough money itself to satisfy the rate covenant. If it doesn’t get aid, it can’t issue more bonds and would most likely have to slash operating expenses. And if the MTA can’t borrow, there’s no money to finance infrastructure projects. This is the domino effect that has halted the agency’s $51.5 billion five-year capital program.“This is a four-alarm fire,” Pat Foye, the MTA’s chief executive officer, said last week. “We are facing the most acute financial crisis in the history of the MTA.”Bloomberg News’s Michelle Kaske reported that the MTA was set to spend $13.5 billion this year for infrastructure upgrades, but the agency has awarded only $2.3 billion. Without federal aid, it may need to freeze wages, fire workers and divert more money from the capital budget. Foye said he would ask the U.S. government for more cash in 2021.To some extent, “every mass transit system needs to be subsidized,” says Howard Cure, head of municipal research at Evercore Wealth Management. For the MTA in particular, “it’s almost a thought of too big to fail. The New York metropolitan area cannot function without a strong transportation system. They need access to the capital markets — you cannot let the system deteriorate.”Yet the MTA will be hard pressed to squeeze more money out of the city, which itself is considering 22,000 layoffs and furloughs to cut $1 billion of expenses. At the state level, some studies suggest tax revenue could tumble by 40%, the most in the nation. In theory, both the state and city can require the MTA to redeem its bonds as long as they provide sufficient funds.(1) If that didn’t happen during good economic times, though, it’s not happening now. If push came to shove, Cure says, the state could move to backstop the MTA’s borrowing with its own credit rating, just one step below triple-A. That would presumably lower borrowing costs and provide some budgetary flexibility.All that is to say, the MTA will have to subsist on federal payments throughout the coronavirus crisis, with perhaps some short-term financing from the Fed sprinkled in. Without question, the U.S. government should do more to help support state and local governments, including public transit agencies, through this economic downturn. Congress will likely provide at least some aid in its next relief package, and the MTA will probably get what it wants again. Still, it’s tough to project the MTA’s financial situation over the next several years and come up with a scenario in which the agency does any better than muddle through. More than likely, it will continue to lean heavily on government assistance while maxing out its debt. Maybe that’s a better alternative than bankruptcy and the stigma that comes with it, or maybe not. Regardless, New Yorkers can only hope there’s some money for much-needed infrastructure improvements without huge fare hikes.(1) See Article IV: Redemption at Demand of the State or the City. Except as otherwise provided pursuant to a Supplemental Resolution, either the State or the City may, upon furnishing sufficient funds therefor, require the Issuer to redeem all or any portion of the Obligations as provided in the Issuer Act.This column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Brian Chappatta is a Bloomberg Opinion columnist covering debt markets. He previously covered bonds for Bloomberg News. He is also a CFA charterholder.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.