|Day's Range||9.28 - 9.67|
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.
(Bloomberg) -- Shares of JPMorgan Chase & Co. were little changed, Citigroup Inc. slipped and Wells Fargo & Co. sank as analysts assessed the banks’ better-than-expected second-quarter capital markets results and cautious views as the coronavirus pandemic rippled through the global economy.Chief executives at all three lenders warned that outlooks had deteriorated since last quarter, while Wells Fargo slashed its dividend more than analysts anticipated.JPMorgan spoke of a protracted downturn and said government stimulus was making it harder to gauge the economic damage from the pandemic, with Chief Executive Officer Jamie Dimon saying, “this is not a normal recession.” Dimon also predicted trading results would eventually revert to historic norms.JPMorgan erased most of a 2.4% gain Tuesday in New York after fixed-income, currencies and commodities sales (FICC) and trading revenue of $7.34 billion topped an average estimate of $5.74 billion. Record markets revenue, up 79%, and investment banking fees, up 54%, “more than offset interest-rate headwinds and reduced consumer activity,” Dimon said in the bank’s statement. He also expressed confidence in the bank’s current dividend.Citigroup fell as much as 3%. The bank’s FICC sales and trading revenue of $5.6 billion exceeded the average projection of $4.59 billion, echoing JPMorgan’s earlier beat, though not by as much. Cost of credit of $7.9 billion reflected an allowance for credit loss builds due to a “deterioration in Citi’s macroeconomic outlook since the end of the first quarter,” along with corporate loan downgrades, the bank said in a statement. The added reserves also included a “qualitative management adjustment” for more “stress and/or a somewhat slower economic recovery.”Wells Fargo tumbled as much as 8.2%, to the lowest since May 15, after reporting its first quarterly loss since 2008 and cutting its dividend by more than analysts had expected, to 10 cents a share. Wells’ second-quarter net loss of $2.4 billion included an $8.4 billion increase in its credit loss reserve, driven by “current and forecasted economic conditions.”“We are extremely disappointed in both our second-quarter results and our intent to reduce our dividend,” CEO Charlie Scharf said in the bank’s statement. “Our view of the length and severity of the economic downturn has deteriorated considerably from the assumptions used last quarter.”The KBW Bank Index, which shed as much as 2.7% Tuesday, has now tumbled 36% so far this year amid pandemic-fueled economic woes and low interest rates, underperforming the S&P 500, which has fallen 2%.Here’s a sample of the latest analyst commentary:Bloomberg Intelligence, Alison WilliamsResults were “as expected but magnified, with JPMorgan and Citi’s strong trading helping to fuel bigger loss provisions, which provides a cushion for the second half,” Williams said. “Wells Fargo’s substantially larger build did not share the same offset,” she added.Wells Fargo’s dividend cut to the “low end of bearish expectations should remove uncertainty around potential future reductions, while potentially helping to improve its case as a conservative risk manager, as it aims to remove Fed constraints.”Vital Knowledge, Adam CrisafulliJPMorgan’s “blow-out investment banking performance,” with FICC revenue up 120% from the prior year, was offset by a “huge provision number and ongoing reserve builds,” Crisafulli wrote.The tone on JPMorgan’s conference call was “neutral-to-positive for the stock in that reserve builds might have peaked,” he said. At the same time, a remark about flattening consumer sales growth across the country was a “negative macro indication.”Wolfe Research, Steven Chubak“JPMorgan took advantage of their strong trading gains by plowing a significant portion back into credit reserves, positioning the firm well for future quarters, while also building substantial capital,” Chubak wrote. While the trading momentum may not be sustainable, investors will probably “react favorably” to the strong beat and reaffirmation of net interest income and expense guidance.UBS, Saul MartinezCitigroup’s earnings-per-share was roughly in line with UBS’s estimate, as “loan loss provisions were materially higher than expected on elevated reserve builds, but sales and trading income beat our forecasts,” Martinez wrote. The result’s “most noteworthy” areas were: $5.6 billion of loan loss reserves; sales and trading and investment banking that boosted revenue; controlled expenses and a 12% year-over-year decline in Asia and Latam consumer banking revenue.“Overall, operating trends seem mixed to us, with considerable revenue pressure in consumer businesses, but expense discipline and strong results in markets oriented businesses.”Credit Suisse, Susan Roth KatzkeWells Fargo‘s earnings-per-share miss came from lower-than-expected revenue and higher-than-anticipated expenses and provision, Katzke wrote. “The question is how close this quarter gets to a bottom in earnings; it’s hard to surmise in an uncertain macro environment.”KBW, Sanjay SakhraniCredit card volume trends at JPMorgan, Wells Fargo and Citigroup were consistent with expectations, with “some greenshoots if one looked at intra-quarter trends,” Sakhrani wrote.“While T&E and restaurant volumes remain extremely weak, there has been notable improvement,” with volumes down about 50% exiting June versus a drop of 80% to 90% in early April, he said. Sakhrani will watch US Bancorp results Wednesday for “greater color” around corporate volumes, which may offer insight into what to expect from American Express.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.
Covid cases in California -- where all indoor activity was shut down Monday -- may be close to peaking, which boosted risk sentiment and triggered a recovery in tech stocks. Energy was a big driver of gains, ahead of an OPEC+ meeting and EIA crude oil inventories. Earnings out Wednesday include UnitedHealth (NYSE:UNH) and Goldman Sachs (NYSE:GS).
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.