Why Gross Thinks Global Investors Will Rush toward US Treasuries
As the Fed moves toward a gradual, continued rate hike process, it’s important for investors to keep an eye on the other central banks.
In the past five months, we’ve been watching the various economic indicators in the US reflect these improvements.
Gross believes that credit creation and the cost of credit should be monitored more properly.
What Analysts’ Ratings Suggest about Schwab’s Performance in 2017
As of March 2017, 17 out of the 20 analysts covering the stock, or 85%, have rated it as a “buy” or a “strong buy,” and three analysts have rated it as a “hold.”
Charles Schwab has seen consistent improvement in operating margins, backed by higher interest revenue, higher asset management revenue, new assets, and a rise in the broader market.
Charles Schwab’s (SCHW) stock has risen 8.8% in the past three months and 56.4% in the past year, backed by an expected strong performance in 2017.
KeyCorp’s Valuation Is Close to Industry Average
KeyCorp’s valuation looks slightly overvalued compared to KBE. However, it’s undervalued compared to KRE, the regional banking ETF.
KeyCorp is a large regional bank with about $94 billion in assets. It competes with JP Morgan (JPM) and Bank of America (BAC) in various service segments.
KeyCorp (KEY) is represented in key ETFs focused on the banking sector. The SPDR S&P Bank ETF (KBE) has KeyCorp comprising ~1.7% of its portfolio.
Growth or Recession: What Lies ahead for Trump?
The S&P 500 and Dow Jones rose more than 1% on November 9 and have recorded average growth of 3.1% and 4.6% since November 8.
In 3Q16, JPMorgan Chase had a loan portfolio worth $888 billion. Bank of America (BAC) had a loan portfolio of $900 billion.
The US dollar is weaker on December 8 as the market awaits the ECB’s interest rate decision. It expects the ECB to extend the quantitative easing program.
Why Visa Is Trading at a Premium
Visa (V) stock has risen 9.7% over the past six months and 25.7% over the past year.
32 of the 36 analysts covering Visa (V) rated it a “buy” or “strong buy” in March 2017.
Visa (V) took a long-term debt of $16.5 billion for the acquisition of Visa Europe in 2016.
Why PNC Financial Has Been Pricing at a Premium
PNC Financial (PNC) successfully diversified its banking operations by extending offerings in asset management, consumer services, and investment banking.
In 1Q15, PNC Financial bought back 4.4 million common shares worth $0.4 billion. The purchase was part of its four-quarter repurchase program.
PNC Financial’s non-interest income declined by 10% compared to the previous quarter—mainly due to higher fourth quarter gains on asset dispositions.
CME Returned $1.6 Billion in 2015: What About Dividends?
CME Group (CME) has returned more than $5.6 billion to shareholders in the form of dividends since the variable dividend policy in 2012. In 2015, CME declared dividends of $1.6 billion.
CME Group (CME) recorded average daily volumes of 18.2 million in January 2016. This compares to average daily volumes of 13.2 million in 4Q15.
CME Group’s (CME) operations outside the United States are expanding at a good pace. Volumes are impressive as CME leverages investments in global headcount, partnerships, and product development.
Bank of America Outperformed Wells Fargo in 2016
Since the beginning of 2016, the financial sector has been whipsawed by worries of a global recession and a low interest rate environment.
In a Reuters survey of 38 analysts, eight analysts assigned a “strong buy” rating to Bank of America (BAC), and 16 rated it as a “buy.”
In June 2016, the Federal Reserve approved Wells Fargo’s (WFC) capital plans after it determined that the bank could continue its lending program during a severe economic slump.
What Do Analysts’ Ratings Suggest for AIG?
AIG’s analyst ratings have remained stable to positive over the past few months on improved earnings in 3Q16 and expectations for 4Q16.
In 4Q16, American International Group (AIG) spent $206.0 million on restructuring initiatives that target inefficiencies and expense reduction.
AIG saw a sequential as well as year-over-year fall in operating income for 4Q16 on weaker performance in its commercial segment.
Financials Sector Led the Market Slump on March 21
After showing weakness for two consecutive days, the financials sector fell on March 21. On Tuesday, the S&P 500 Financials sector index fell 2.9%.
After starting the day on a weaker note, the S&P 500 fell on Tuesday to the lowest levels since February 14. On March 21, it fell 1.2%.
The healthcare sector fell on Thursday amid the sell-off in healthcare-related stocks. The S&P 500 healthcare sector fell 0.9% on March 16.
What Do Analysts Recommend for Goldman Sachs?
In 2016, Goldman Sachs stock rose 35% and outperformed the financial sector.
The US dollar hovered at high price levels in the early hours on December 12. At 5:00 AM EST, the US Dollar Index was trading at 101.44.
The US Dollar Index fell in the early hours on November 28. The stronger economic data improved the chances of an interest rate hike in December.