What recession? Bank earnings show a resilient US consumer

The entire world is willing a recession into existence — except signs of one haven’t shown in bank earnings yet. Major banks, including Wells Fargo, JPMorgan and Bank of America, reported earnings in recent days, and the results came in strong. Here are the takeaways from this season’s bank earnings: 1/ American households still look…

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The Second Largest Swiss Bank is at a “Critical Moment.” Could This Lead to a Bigger Crisis?

Credit Suisse (NYSE:CS) is Switzerland’s second largest bank (behind UBS). It’s had many problems over the years: 1/ Credit Suisse was exposed to recent major bankruptcies and scandals. The bank lost $1.7B on the bankruptcy of Greensill and another $5.5B in the collapse of Bill Hwang’s hedge fund Archegos in 2021. 2/ A massive leak…

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What earnings from the largest U.S. Bank is telling investors…

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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