JPMorgan (NYSE:JPM) reported earnings yesterday that came in worse-than-expected, sending its stock down 3%. What’s the big deal? JPMorgan is the largest U.S. bank and its earnings are often used to gauge the economy’s health. The forecast is looking gloomy, and here’s what their CEO Jamie Dimon is saying: Inflation will go up more than…
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Bank stocks pass their annual checkup
Bank investors feel a little less stressed after last week’s annual check-up. What’s the big deal? Recession fears had bank investors panicking at the start of 2022. Rising interest rates were supposed to benefit banks, but recession risks took over. In a recession, bank losses go up as businesses and consumers default on their loans….
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American Express benefits from a surge in travel demand
Random stranger, you had me at travel. Travel demand is up despite raging war and inflation, but now it faces its next test: a looming recession… US travel spending is strong… for now American Express (NYSE:AXP) — the second-largest credit card (CC) issuer by transaction volume, is benefiting from a surge in travel. Last week,…
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JPMorgan kicks off earnings with a bang
JPMorgan kicked off bank earnings seasons yesterday with a bang — a 42% drop in profits — sending its stock down 3.2%. What’s the big deal? Investment banks had a rough first quarter, with global market conditions hitting nearly all parts of their businesses. Earnings fell $6B as a result of a: 31% drop in…
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Investors shun Wall Street banks for Main Street banks
“Financials are one of the most attractive sectors in the market right now” — per CIO of Raymond James’ private client group (via BBG). The financial sector is the second-best performer of 2022 with a negative return of 0.46% — outperforming the S&P 500 which is down 7%. But don’t be fooled by the negative…
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Investors rush into financial stocks ahead of earnings
It’s Earnings Season — starting with financial stocks. Investor funds are flowing into financial stocks at a record pace ahead of Friday earnings from JPMorgan (NYSE:JPM), Wells Fargo (NYSE:WFC) and Citigroup (NYSE:C). Financials are off to its best start in over a decade. 2022: The year of rising interest rates Loans are one of the…
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Financial stocks are the obvious trade for 2021 — but here’s why it’s not so simple
…Financials. Investment strategists at Morgan Stanley (via FT) are pushing banks stocks — seeing potential in 2022 from two potential catalysts: Rising interest rates. Increasing consumer lending. The logic: As interest rates rise, banks — which rely on high interest rates to drive revenue — should perform better. And the more businesses/consumers borrow from banks,…
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SVB Financial Group, parent co. of Silicon Valley Bank is funding the future of innovation
In tech’s early days, banks were reluctant to offer banking services to startups (i.e. loans/credit lines) — seeing them as big risks given 60-90% of startups fail. But Silicon Valley Bank (SVB), owned by SVB Financial Group, jumped at the opportunity — leading to a $40B business — fueled by the growth of innovation. Silicon…
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Bank stocks are healthy, stable and boring again
In the past 12 months, the financials sector was the second-top performing sector (58% return), behind the energy sector (90% return). But last week, strong earnings reports from the US’ biggest banks signal one thing to investors: Banks are returning to their stable, predictable selves. Back like it never left (Almost) everything is going right…
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Bank stocks in focus with rising yields and interest rate hikes in sight
No one is more excited at the prospect of banks recovering than bank robbers. In 2020, shrinking profits had the banking sector’s stock prices trailing the broader market – but last week’s Fed meeting might give banks the boost they need to catch up. Banks are loanly Banks had a rough 2020 with profit hits…
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