|Bid||42.73 x 3200|
|Ask||43.15 x 900|
|Day's Range||42.15 - 42.82|
|52 Week Range||36.74 - 53.83|
|Beta (3Y Monthly)||1.15|
|PE Ratio (TTM)||9.18|
|Earnings Date||Jul 16, 2019 - Jul 22, 2019|
|Forward Dividend & Yield||1.20 (2.49%)|
|1y Target Est||54.23|
Financial institutions are getting caught in the downdraft created by the ongoing U.S.-China trade tensions. If trading activity slows, banks have fewer business deals to work on, hurting revenues. Bank of America (NYSE:BAC), which fell 4% last week, is set to erase the post-earnings rally that continued after its earnings report posted in April. At a recent price of $28.40, should investors consider BAC stock?Source: Shutterstock Bank of America reported first-quarter earnings of 70 cents, up 13% from last year but adding to its 27% CAGR since Q1 2015. Its operating leverage fell to 4%, while its share count dropped 7% to 9.8 billion.Expect management to continue its shareholder-friendly moves over the long-term. If investors view trade tensions as noise, then the stock's recent dip of around 5.4% in the last month created another entry point for investors.InvestorPlace - Stock Market News, Stock Advice & Trading Tips Operating LeverageBank of America, like other banks, is investing heavily on its own business to gain operating leverage. It will increase spending in technology/digitization by 10% this year. Its physical delivery network expanded as it added 31 financial centers in new and existing markets in the last 12 months. These investments are already having a positive impact on the business. It now has 37 million active digital banking users, compared to 32 million in Q1 2016. Total payments topped $705 billion, with non-digital growing 3% year-over-year and digital up 8%. With each digital transaction displacing the traditional ones, Bank of America is saving on operating costs. * 10 Names That Are Screaming Stocks to Buy The growth in mobile channel usage and digital deposit transactions all point to the bank becoming an online bank giant. And while the growth in loans and leases may slow due to macro issues, Bank of America is building a leaner operation to grow profits. First-Quarter By the NumbersBank of America's client balances grew 4% while the average deposit size increased 5%. GWIM now has assets under management of $1.1 trillion. The company bought back $6.3 billion in shares and paid out $1.5 billion in dividends. The stock's dividend yields 2.12%. This is below Citigroup's (NYSE:C) 2.77% and Wells Fargo & Company's (NYSE:WFC) 3.94%. Overall, it returned 112% of net income to common shareholders.BAC stock is more attractive than Wells Fargo because the latter still has the account fraud scandal controversy to deal with. Rate Hikes on PauseThe Fed's pause on rate hikes is another negative headwind that investors should consider despite the strong quarterly report from Bank of America. Without rates rising, the growth in income from interest rate spreads will slow. Still, Bank of America's net interest income grew 5% year-over-year by $0.6 billion. It benefited from past rate hikes and loan and deposit growth. This was partially offset by loan spread compression.Steady Non-performing loans, consumer and commercial net charge-offs in the first quarter could worsen if the U.S. economy worsens. For now, trade war tensions are unlikely to hurt the economy, but investors consider an escalation in tariff levels as a potential risk for BAC stock. ValuationOnly nine analysts cover Bank of America stock and have an average price target of $35.33 (according to Tipranks). Conversely, investors could use a price-to-earnings multiple valuation model to determine the fair value of BAC stock. This involves comparing its value with Citi, Wells Fargo, JP Morgan (NYSE:JPM) and Morgan Stanley (NYSE:MS). With this model, the fair value of ~$30, giving an upside of 6%.Investors could instead choose WFC stock, whose P/E of 10X is similar to that of BAC stock. Citi's P/E is 9.5 times and its dividend yield is higher. Yet investors chose to sell the stock, too, by 4.2% in the week and 7.5% lower in the month. That is more than the drop in BAC stock. Your TakeawayTrade tensions will dominate the headlines and move BAC stock in either direction. But Bank of America demonstrated its transformation to digital banking is paying off regardless of the trade war stories.As of this writing, Chris Lau did not hold a position in any of the aforementioned securities. More From InvestorPlace * 4 Top American Penny Pot Stocks (Buy Before June 21) * 6 Stocks to Buy for This Decade's Massive Megatrend * The 7 Best Stocks to Buy From the IPO ETF * 7 Athletic Apparel Stocks With Marathon Pace Compare Brokers The post Why U.S.-China Trade Tensions Pulled Bank of America Stock Lower appeared first on InvestorPlace.
Morgan Stanley (MS) today announced that The Family Center team has won the eleventh annual U.S. Strategy Challenge, the Firm’s flagship pro bono program, which brings together rising talent to help nonprofit organizations solve strategic, mission critical challenges. Over the past ten weeks, Morgan Stanley employees provided in-depth consulting services to nine local nonprofits, addressing key strategic challenges such as expansion and scaling strategy as well as critical opportunities to enhance efficiency and effectiveness through business and program models.
Morgan Stanley said on Tuesday that more than 95 percent of shares voted to approve its executive compensation packages and that all of its directors were elected at the bank's annual shareholder meeting in Purchase, New York. More than 89 percent of shareholders voted no on a proposal that the bank report annually on its lobbying efforts, according to preliminary tallies.
Goldman Sachs Group Inc., Nomura Holdings Inc. and JPMorgan Chase and Co. are among those that have rewritten their forecasts as U.S. President Donald Trump threatens to impose a 25% tariffs on around $300 billion of additional Chinese imports. Analysts at Nomura have made that hike in duties -- which would mean practically all of China’s exports to the U.S. are hit by tariff hikes -- their baseline forecast.
Global consumer lender Home Credit Group has appointed Citigroup, HSBC Holdings and Morgan Stanley to lead its upcoming Hong Kong initial public offering (IPO) of at least $1 billion, three people with direct knowledge of the matter said. One person said Home Credit plans to file with the Hong Kong stock exchange as early as next month and list in September or October. Home Credit, Citi, HSBC and Morgan Stanley declined to comment.
, saying the ride-hailing company had come to market during a “very difficult week” and its long-term share price performance would be more important than its early trading. Morgan Stanley, one of the two biggest advisers in Silicon Valley, was the lead bank on the deal. “I think you do your best to find price transparency by matching supply and demand after thousands of hours of talking to investors, but that came to the market during a very difficult week, and difficult weeks deliver unpredictable outcomes,” Mr Gorman told reporters on the sidelines of Morgan Stanley’s annual shareholder meeting in Purchase, New York.
FT premium subscribers can click here to receive Due Diligence every day by email. Few on Wall Street or in Silicon Valley believe the battle between Morgan Stanley and Goldman Sachs will shake out the same way in one category. The next three banks — Bank of America, Allen & Co and Citigroup — earned less than a third of their bounty, according to data provider Refinitiv.
Goldman Sachs and Morgan Stanley have distinct ways of doing business, with one focusing on high rewards and the other on caution.
Paint and coatings stocks have retreated toward support amid trade tariffs and margin pressure. Brush up on three trading ideas to play a rebound.
Sterling fell to fresh multi-month lows on Wednesday as Theresa May’s final gamble to force her Brexit deal through parliament met a wall of opposition. The pound fell 0.5 per cent on the day to trade around $1.2650, its lowest level since early January. The currency had briefly rallied on Tuesday as the prime minister offered MPs a “new deal” including the possibility of a second referendum if they back the withdrawal bill at the fourth time of asking.
Morgan Stanley (MS) is cutting jobs at its equities business in London after reporting a decline in equity trading revenues in first-quarter 2019.
"Maintain sell/high risk as the risk/reward still appears negatively skewed despite the recent capital raise and stock pullback," Citi's Itay Michaeli says. Morgan Stanley caused a stir on Tuesday when star auto analyst Adam Jonas put out a "bear case" scenario that envisioned Tesla TSLA 's shares plummeting to just $10. Citi's Itay Michaeli sees increasing probability the shares plummet more than 80% to $36.
Morgan Stanley, Goldman Sachs and JPMorgan Chase have a vice-like grip on advising top technology companies. After Uber and Lyft’s weak initial public offerings, rival banks are hoping for some market disruption. “The quality of deal execution is being called into question more, by both corporates and VCs [venture capital firms],” said David Hermer, head of equity capital markets at Credit Suisse, noting that a “small number of banks have a disproportionate share of leadership roles in technology IPO”.
Wall Street Journal tech and auto reporter Tim Higgins said Tesla is in its "awkward teenage years," no longer a startup, but not yet a profitable company. While Morgan Stanley said Tesla stock could drop to as low as $10 a share, Higgins said Tesla still has value in its technological advantage over competitors.
It has also been amended to reflect that shares of Arabian Centres are due to start trading on Wednesday. It will be the biggest initial public offering since the $6bn listing of lender National Commercial Bank in late 2014.
Morgan Stanley NYSE:MSView full report here! Summary * Perception of the company's creditworthiness is neutral * ETFs holding this stock have seen outflows over the last one-month * Bearish sentiment is low Bearish sentimentShort interest | PositiveShort interest is extremely low for MS with fewer than 1% of shares on loan. This could indicate that investors who seek to profit from falling equity prices are not currently targeting MS. Money flowETF/Index ownership | NegativeETF activity is negative. Over the last one-month, outflows of investor capital in ETFs holding MS totaled $12.24 billion. Additionally, the rate of outflows appears to be accelerating. Economic sentimentPMI by IHS Markit | NeutralAccording to the latest IHS Markit Purchasing Managers' Index (PMI) data, output in the Financials sector is rising. The rate of growth is strong relative to the trend shown over the past year, but is easing. Credit worthinessCredit default swap | NeutralThe current level displays a neutral indicator. MS credit default swap spreads are within the middle of their range for the last three years.Please send all inquiries related to the report to firstname.lastname@example.org.Charts and report PDFs will only be available for 30 days after publishing.This document has been produced for information purposes only and is not to be relied upon or as construed as investment advice. To the fullest extent permitted by law, IHS Markit disclaims any responsibility or liability, whether in contract, tort (including, without limitation, negligence), equity or otherwise, for any loss or damage arising from any reliance on or the use of this material in any way. Please view the full legal disclaimer and methodology information on pages 2-3 of the full report.
Investing.com - Tesla (NASDAQ:TSLA) stock was fighting to avoid a fifth down day midday Tuesday as it pared losses following a withering sell-side research call.
The S&P; 500 rose 17 points or 0.6% by 9:44 AM ET (13:44 GMT), while the Dow gained 128 points or 0.5% and tech-heavy Nasdaq composite was up 66 points or 0.9%.
At least five people have been affected in equity trading and sales trading in London, including Simon Mardel, Matthew Bubba, Tom Cooper, Robert Bloomer and Neil Taub, said the people, who asked not to be identified because the matter is confidential. Morgan Stanley’s first quarter fixed-income, currency and commodity sales and trading revenue beat estimates, while equities trailed, echoing results from peers Goldman Sachs Group Inc., Bank of America Corp. and Citigroup Inc. The bank is this year’s top lead underwriter of technology initial public offerings, and was involved in bringing Uber Technologies Inc. to market.