69.39 +0.04 (0.06%)
After hours: 7:59PM EDT
|Bid||0.00 x 1800|
|Ask||0.00 x 800|
|Day's Range||68.80 - 69.87|
|52 Week Range||64.38 - 80.70|
|PE Ratio (TTM)||N/A|
|Earnings Date||Oct 12, 2018|
|Forward Dividend & Yield||1.28 (1.92%)|
|1y Target Est||83.44|
Info tech shares could be in for a rough day after disappointing results from Netflix, Inc. (NASDAQ: NFLX). The NFLX sneeze appears to have given all the “FAANG” stocks a cold, as high-flying shares gave back ground in pre-market trading and the tech-heavy Nasdaq (COMP) dropped 1 percent. Over in the financial sector, Goldman Sachs Group Inc. (NYSE: GS) became the latest bank to handily beat Wall Street analysts’ estimates.
Why are the banks hated so much? I think, after reviewing JP Morgan , Citigroup , PNC Financial and Wells Fargo , I come back with the following impressions: The yield curve is hurting them on all fronts.
Slowly but surely, depositors are starting to shift money from basic U.S. bank accounts to products that pay more than a sliver of a percent in interest. While reporting second-quarter results in recent days, executives at the largest U.S. banks noted an acceleration in deposit outflows from wealthy individuals and companies, which are more sensitive to interest rate hikes. "Lazy money is moving," Bill Demchak, chief executive officer of PNC Financial Services Group Inc, said on a call with analysts on Friday.
The Financial Select Sector SPDR ETF (XLF) is rising today, helped by Bank of America's (BAC) second-quarter earnings, which comes on the heels of JPMorgan Chase's (JPM) report on Friday. BofA's earnings boost is a far cry from the reaction to bank earnings on Friday. Both Citigroup (C) and Wells Fargo (WFC) were lower on Friday following earnings, and even JPMorgan warned that competitive pressures were ramping up, as it followed them lower.
Bank of America (NYSE:BAC) shares haven’t exactly been roaring this year. BAC stock’s still down 12% from its March peak despite Monday’s gain, with traders largely believing that rising interest rates (for borrowers) and a slowing economy would overwhelm the benefits of higher interest rates (which makes banks more profitable) and lower tax rates. Although not impressive across the board, there was more than enough to celebrate about last quarter’s results from BofA.
Credit Suisse has hired Citigroup's Mathieu Salas to head its coverage of financial technology clients, according to an internal memo, the contents of which were confirmed by a spokeswoman for the European bank. The hiring of Salas, who will re-join Credit Suisse later in 2018 after starting his career at the bank, is aimed at strengthening and expanding the firm's coverage of the financial technology space, according to the memo. Salas was previously global head of financial technology at Citi, where he worked on a number of high-profile transactions, including Blackstone Group's $20 billion acquisition of a majority stake in Thomson Reuters' Financial and Risk unit, which is expected to close later this year, and CME Group's pending $5.5 billion purchase of NEX Group Plc .
The impact of high property values and rising mortgage rates that shut some buyers out of the spring real estate market is starting to show up in the quarterly results of some of the nation's banks. Wells Fargo & Company ( WFC), JPMorgan Chase & Co. ( JPM), Citigroup Inc. ( C) and The PNC Financial Services Group, Inc. ( PNC) all reported second quarter results showing signs of weakness in mortgage originations. According to National Mortgage News, the national bank reported income of $770 million in its mortgage banking unit, which is down from $934 million in the first quarter and below the $1.1 billion the unit had in last year's second quarter.
Big banks continue to be a profitable group despite being immensely disliked on Wall Street, CNBC's Jim Cramer says.
JPMorgan Chase (JPM) reported an 18% higher profit than analysts’ expectations in the second quarter to $8.32 billion. According to Barclays analysts, the bank exceeded analysts’ estimates for the 14th straight quarter. The bank’s trading revenues rose 13% to $5.4 billion, while the loan growth rose 4% to $948.4 billion. The bank’s yield on interest-earning assets was at 2.46%.
Citi has launched Citi® Payment Insights, a new service providing institutional clients with real-time payments visibility, and ability to action payments on-demand via its electronic banking platform, CitiDirect BE®. Citi® Payment Insights empowers clients with a complete view of the transaction lifecycle within Citi’s entire global network, and across the correspondent banking eco-system by integrating the transparency provided by SWIFT’s gpi initiative. “This new service highlights our dedication to provide a frictionless experience to our clients in a rapidly changing business environment”, said Naveed Sultan, Citi’s Global Head of Treasury and Trade Solutions.
Yahoo Finance's Alexis Christoforous and Jared Blikre break down the latest market action after Goldman Sachs reported net income and revenue that beat Wall Street expectations. 4.04%