JPMorgan Chase & Co
JPMorgan Suing Tesla Over Stock Warrant Incident
JPMorgan Chase Clients Can Invest in Crypto Now—Just Not Directly
Comparison of exchange-traded funds and exchange-traded notes
ETFs (exchange-traded funds) have stock-like characteristics, while ETNs (exchange-traded notes) possess bond-like traits.
JPMorgan CEO Jamie Dimon Is Part of the Billionaires Club
Why JPMorgan Put Political Donations on Hold for 6 Months
Does Jamie Dimon Still Think That Bitcoin Is a Fraud?
Morgan Stanley Investment Management Thrives in 2Q15
Morgan Stanley’s (MS) Investment Management segment reported a 7% increase, bringing total revenues to $751 billion compared to $705 billion in 2Q14.
Ford Credit’s 2Q15 Profits Rise on Higher Volumes
We’ve seen the 2Q15 performance of Ford’s (F) automotive operations. Now, we’ll look at how Ford Credit contributed to Ford’s 2Q15 profits.
Morgan Stanley’s Capital Position Remains Strong
Since the financial crisis of 2009, there has been intense pressure on US banks to raise capital levels to meet minimum requirements.
How Would Rising Charge-Offs Impact Major Banks’ Earnings?
To make the most of growing consumer spending, major banks focused on their consumer banking business. They’re lending out more consumer loans.
Scale: A Boon or Bane for Apple and Warren Buffett?
For Apple, as Buffett noted during last year’s shareholder meeting, there aren’t a lot of acquisition opportunities that fit into its scale.
Here’s What Impacted Snap Shares Last Month
The stock for social media company Snap (SNAP) fell 16.0% last month to close at $17.77. It’s now trading just above its IPO price of $17.
Why BTIG Is Bullish on PayPal
PayPal (PYPL) could have bright prospects despite the competitive threat it faces from Square and Apple in the online payment market, according to equity research firm BTIG.
Must know: Stress tests and the likely timing for rate increases
On March 26, the U.S. Fed released bank stress test results indicating which banks can increase dividend payouts and share buybacks.
After a Lackluster 2Q15, Return on Equity Will Likely Improve
Wall Street analysts expect Goldman Sachs to post return on equity (or ROE) of 11.5% in 3Q15. In 3Q14, ROE for Goldman Sachs was 11.8%.
BlackRock’s Retail Continues to Attract New Clients across Classes
BlackRock’s (BLK) retail business had assets under management (or AUM) of $542 billion as of March 31, 2016.
3-Year Treasury Notes’ Overall Demand Fell on July 7
The US Treasury holds monthly auctions of three-year Treasury notes. The latest auction was held on July 7.
Financials Overview for the Week of June 26–30, 2017
Major banking stocks rose after the Fed approved huge payout plans. Wells Fargo (WFC) rose 2.7% and Citigroup (C) rose 2.8%.
GS Cuts More Jobs than It Did during the 2008 Financial Crisis
Goldman Sachs has been cutting costs in recent quarters. In 2016, 2,600 people may have lost their jobs at GS—the highest number since the financial crisis.
Why low inflation in the US shows that resources are being wasted
The speech took an interesting turn when Kocherlakota questioned his audience on they should care that inflation is too low.
5 Big Banks to Report Their Earnings this Week
This week, five of the top six commercial and investment banks will report their quarterly earnings.
Spectra Energy Partners Rallies Due to a Rise in 3Q15 Distribution
Spectra Energy Partners declared a distribution per unit of $0.62 in a press release published on October 19. This is a 1.3% rise compared to 2Q15.
Lack of Rate Hike in September Leads US Stocks Down
The US Federal Reserve met on September 16 and 17 in one of the most anticipated monetary policy meetings in recent memory.
JPMorgan’s Trading Revenues Fall 7% in 2Q15
JPMorgan’s revenues from fixed income markets declined 10% year-over-year in the second quarter of 2015. The drop excludes the impacts of one-off items.
How Global Weakness Drags down Wells Fargo’s Profitability in 4Q15
Two key elements gripping the US banking sector and Wells Fargo include the near-zero interest rate and global uncertainty, which have dampened earnings.
Factors That Will Drive Goldman Sachs’ Earnings in 2016
Goldman Sachs derives 16% of its revenues from the investing and lending business. So far, 2016 has been a rough year for the financial sector.
Did Banks’ Earnings Grow in 4Q15?
The Federal Deposit Insurance Corporation’s quarterly report on the health of the US banking industry said that 4Q15 bank earnings rose 11.9% year-over-year.
Morgan Stanley Posts Highest Profit Since 2007 in 1Q15
Morgan Stanley (MS) reported net income of $1.18 billion, or $1.18 per diluted share, the bank’s most profitable first quarter since the 2007 financial crisis.
What Could Lead to Further Upgrades for Cliffs Natural Resources?
The average target price for CLF is $3.4 compared to its current market price of $4.9. The target price still implies a downside potential of 30%.
Why Wells Fargo’s Energy Loan Losses Could Rise in 2Q16
At Wells Fargo’s investor day presentation, chief financial officer John Shrewsberry warned investors of more losses on energy-related loans.
Fund Flows to XLF Have Been Declining
Exchange-traded fund investors added almost $552.6 million on average to the Financial Select Sector SPDR ETF (XLF) in the last quarter. During the week ending September 25, the ETF witnessed outflows of $318.3 million.
BlackRock Increases Dividend on Improved Operating Performance
BlackRock has historically paid out the major portion of its profits in dividends. It increases its dividend per share in-line with its performance.
Is Citigroup’s Restructuring Exercise Benefiting the Company?
Citigroup’s CEO, Michael Corbat, continued his efforts to try to slim down the company’s operations and clean up its balance sheet in the second quarter.
What Goldman Sachs Thinks about Bank of America
Bank of America (BAC) is currently trading at $25.26. Its 52-week high is $25.80 and 52-week low is $12.05.
Can JPMorgan Beat Analysts Estimates in 2Q16?
In the past few quarters, JPMorgan has posted better-than-expected earnings and has topped revenue estimates.
How Wells Fargo Creates Value for Shareholders
Wells Fargo has consistently performed well in stress tests. This performance has let the company increase its dividends annually.
What Impacted Wells Fargo’s First Quarter Earnings?
Wells Fargo’s first quarter earnings surpassed expectations but fell 5% YoY (year-over-year). The net interest income increased by 6% to $11.7 billion.
Bank of America’s Continued Efficiency Maintains Margins
Operating margins In 3Q17, Bank of America’s (BAC) non-interest expenses fell sequentially and YoY (year-over-year), reflecting strong operating efficiency. This fall was partially offset by continued investments in technology. The bank’s expenses fell to $13.1 billion in 3Q17, compared with $13.5 billion in 3Q16 and $13.7 billion in 2Q17. Commercial banks (XLF) are focusing on reducing operating spending, targeting huge investments in technology […]
How will the Federal Reserve go about policy normalization?
Monetary policy normalization refers to two aspects: the federal funds rate and the Federal Reserve’s balance sheet.
Citigroup’s Focus on Efficiency Could Boost Its Profitability
Citigroup’s 2Q15 efficiency ratio was 56% and was 66% in 3Q14. The bank has focused on efficiency through cost controls and exiting low-return segments that led to a lower efficiency ratio.
Why JPMorgan and Wells Fargo Are Trading at High Multiples
In spite of a rather weak performance, Wells Fargo (WFC) commands the highest premium due to its strong franchise, mortgage concentration, and high net interest margins.
Travis Perkins Rebounded, Led EWU by 5.09%
Travis Perkins was at the top of the iShares MSCI United Kingdom ETF on October 23, 2015, as analysts showed positivity toward the construction industry.
Why Wells Fargo leads in loans
The bank has always focused on its bread and butter revenue-earning stream: loans. Over the years, Wells Fargo slowly realized its goal of achieving a strong market share in lending.
Will Dividends Please Wells Fargo’s Investors Worried about Scandals?
In June, the Federal Reserve approved Wells Fargo’s (WFC) capital plans after it found that the bank could keep lending in a severe economic downturn.
What Do Analysts Recommend for JPMorgan Chase and Wells Fargo?
In a Bloomberg survey of 37 analysts, 19 analysts (51%) have assigned a “buy” rating to Wells Fargo (WFC) while 13 (35%) have rated it as “hold.” The stock currently has five “sell” ratings.
Moore Capital lowers its stakes in JPMorgan Chase
JPMorgan’s latest 2Q14 results beat estimates. Meanwhile, net income was down to $6 billion from $6.5 billion in 2Q13. The earnings per share (or EPS) was $1.46, compared to $1.60 in 2Q13.
How Did Bank of America Perform on 2016 Stress Tests?
Bank of America boosted its dividends by 50% to $0.075 after it cleared the Fed’s 2016 stress tests.
Emerging Market Equities Saw Outflow in Week Ending August 14
China’s devaluation of its currency, combined with a steep decline in Russia’s GDP, led investors to withdraw funds from these emerging markets.
Does Citigroup Look Attractive at Its Current Valuations?
Currently, Citigroup trades at a discount of 40% to its book value. It trades cheaper than peers such as JPMorgan Chase, Wells Fargo, and Goldman Sachs.
Institutional Asset Managers Liquidate Exposure to Brazil ETFs
The 13F filings of major institutional asset managers for the second quarter of 2015 offer a gloomy picture for Brazil.
How Rate Hikes and Tax Rate Cuts Could Play Out for Bankers
The Fed is targeting one last rate hike in December 2017 to bring the federal funds rate from 1.25% to 1.50%.
Major Litigations End, but Bank of America Faces New Challenge
In March, the Fed issued a conditional non-objection to Bank of America’s capital plan. It must resubmit its plan and address certain weaknesses.
Must-know: The BPL segments that source from liquid-rich areas
Traditionally, the Merchant Services segment provides wholesale distributor service of refined petroleum products in the U.S. and the Caribbean.
Bank of America’s Efficiency Could Improve to 63% in 2017
Bank of America (BAC) has put in place a strong expense control mechanism that has resulted in lower growth in operating expenses compared to revenues.
JPMorgan Chase Gained 4% after Its 1Q16 Earnings: Was It That Good?
On April 13, JPMorgan Chase reported 1Q16 earnings of $1.35 per share. It beat consensus estimates of $1.28. Its shares rallied 4.2% after the earnings beat.
Did the Fed Really Hint About a Negative Interest Rate?
A negative interest rate policy (or NIRP) may still be a far-fetched idea in the United States, but the Federal Reserve wants banks to prepare for it.
US Banking Sector: Key Trends and Outlook
Changes in technology have reshaped the banking sector. Banks are increasingly collaborating with fintech firms to improve their customer service.
XLF May Cross Its 100-Day Moving Average: Is It Time to Buy?
The Financial Select Sector SPDR ETF (XLF) attracts the most attention among financial ETFs in the US. 87% of the fund is composed of large-cap stocks.
Why Wells Fargo has the highest net interest margin
Maintaining a high net interest margin has always been part of Wells Fargo’s (WFC) strategy. Wells Fargo has consistently been better than the industry’s average net interest margin.
Must-know: Putting the price–to-book value ratio in perspective
We explored the most commonly used valuation metric for financial companies—the price-book value. We also understood the relation between price-book value and return on equity.
Banks That Look Riskier in the Brexit Aftermath
Banks with significant exposure to the United Kingdom and the European Union are the riskiest investments in a post-Brexit environment.
How the Fed funds rates and inflation affect interest rates
As the economy expands creating inflationary pressures, the Fed raises the Fed funds rate to control inflation.
GE Stock Gains on Asset Divestment Announcement
General Electric (GE) gained ~1.8% yesterday after the company demonstrated its intent to improve its liquidity position.
Market Participants Make a Beeline for 2-Year Floating Rate Notes
The US Department of the Treasury introduced two-year FRNs (floating rate notes) in January 2014. An FRN is a debt security. Its interest payment varies.
Cone Midstream: Worst Midstream MLP Performer on August 28
Cone Midstream Partners (CNNX) was the worst performer among midstream MLPs at the end of trading on Friday, August 28. It fell 0.61%.
Transmontaigne Partners: Best Midstream MLP Performer on September 29
Transmontaigne Partners (TLP) was the best performer among midstream MLPs at the end of trading on Tuesday, September 29. It rose 2.09%.
Facebook Has Proven to be a Game-Changer for the NASDAQ
Facebook has proven to be a game-changer by introducing the world to the concept of social networking, something quite unheard of in the Y2K era.
Dimensional Fund Advisors’ Major Holdings in Q3
Dimensional Fund Advisors’ top buys are Apple (AAPL), AT&T (T), Microsoft (MSFT), L3Harris Technologies (LHX), and Verizon Communications (VZ).
An investor’s guide to financial intermediation and key risks
Financial intermediation can result in concentration of risks that increase the fragility of the financial system. These risks are referred to as systemic risks.
Must-know: Is Wells Fargo making boring attractive for investors?
Wells Fargo’s (WFC) broad operation level strategy over the long run can be described by two words—slow and steady. It doesn’t take many risks. It’s stable and boring.
Why Overall Demand Tanked for 2-Year Floating-Rate Notes
Overall, $13 billion worth of floating-rate notes were auctioned, the same as in February’s auction.
Oasis Petroleum: What Are Wall Street’s Forecasts?
Consensus ratings for Oasis Petroleum Approximately 61% of analysts have rated Oasis Petroleum (OAS) a “buy” and ~36% have rated it as a “hold.” The average broker target price of $16.93 for OAS implies a return of ~17% over the next 12 months. Oasis Petroleum’s (OAS) high target price stands at $22, and its low […]
Why MLPs’ Sluggishness Continued Last Week
MLPs’ sluggishness continued last week despite strong crude oil. The Alerian MLP Index (^AMZ), which tracks the performance of 50 energy MLPs, fell 1.2% last week.
BlackRock Misses 1Q16 Estimates on Declining Global Equities
BlackRock (BLK) reported its 1Q16 earnings on April 14, 2016. The company missed Wall Street analysts’ adjusted EPS estimates of $4.29, posting EPS of $4.25.
How MLP-Focused Funds Performed in May 2017
Among MLP funds, exchange-traded notes fell the most while the exchange-traded funds declined the least.
Why Davidson Kempner eliminates position in JPMorgan Chase
Davidson Kempner exited a position in JPMorgan Chase & Co. (JPM) that accounted for 1.29% of the fund’s 1Q14 portfolio. This position was initiated in 1Q14. JPMorgan Chase is a leading global financial services firm. It has $2.5 trillion assets. It has operations worldwide.
Must-know: An overview of the 52-week Treasury bills auction
The U.S. Treasury auctioned $102 billion worth of Treasury bills (or T-bills) last week. The 52-week, or one-year, auction was held on September 16. The auction size was set at $25 billion—unchanged from August’s auction. The auction demand was slightly lower, with the bid-to-cover ratio falling to 4.06x—compared to 4.10x in August. The ratio averaged ~4.41x in 2014.
Wall Street Targets for Pioneer Natural Resources
Approximately 61% of analysts rate Pioneer Natural Resources as a “buy,” ~30% rate the company a “hold,” and 9% of the analysts recommend a “sell.”
How Did US Treasury Auctions Fare Last Week?
The US Department of the Treasury’s 26-week Treasury bill, or T-bill, auction, totaled $26 billion last week.
Must-know: Davidson Kempner disposes position in Apple
Apple saw its shares soar in April after it expanded its share repurchase program to $90 billion from the $60 billion level announced last year.
Must-know: Davidson Kempner sells stake in Omnicom
Davidson Kempner exited a position in Omnicom (OMC) that accounted for 1.93% of the fund’s 1Q14 portfolio. The position was initiated in 1Q14. Omnicom is a leading global advertising, marketing, and corporate communications company. It offers its services to over 5,000 clients in more than 100 countries.
Does the Komatsu Deal Change How Analysts Rate Joy Global?
Of 19 analysts surveyed by Bloomberg, five gave Joy Global a “buy” rating, while 11 gave a “hold” rating, three gave “sell” ratings.
The Word on the Street: What Analysts Are Recommending for Joy Global Now
Of the 17 analysts surveyed by Bloomberg, only five issued “buy” recommendations for Joy Global, while 11 issued “holds,” and one issued a “sell.”
MLPs Rallied despite Crude Oil’s Weakness Last Week
MLPs rallied despite crude oil’s weakness last week. The Alerian MLP Index (^AMZ) rose 2.7% during the week and ended at 269.1.
Financial ETF XLF Traded below Its Moving Averages on December 11
This series analyzes investors’ sentiments toward the financial sector in the major global regions: the United States, Europe, China, Japan, and the Emerging Market economies.
How MLP-Focused ETNs Performed in 1Q17
MLP-focused funds underperformed the SPDR S&P 500 ETF (SPY) in the recent quarter.
JPMorgan Chase Could Beat the Fourth-Quarter Estimates
JPMorgan Chase (JPM) is scheduled to announce its fourth-quarter financial results on January 15.
Morgan Stanley and Goldman have bigger bond exposure than Bank of America and Citi
Bond underwriting exposure could be risky for investment banking departments, as interest rates begin to rise and refinancing slows.
Wall Street analysts’ ratings of MarkWest Energy Partners
64.7% of the analysts have rated the company as “hold”, while the remaining 35.3% have rated it as “buy”.
The State of Treasury Yield Spreads in 2015
Yield spreads between different maturity Treasury securities, when compared to historical trends, can indicate how the market views economic conditions.
Must-read: Key takeaways for investors in the banking sector
The longer term outlook for Eurozone banks does look more positive than a year ago given reasons including the substantial deleveraging, capital raising by local banks and the European Central Bank (or ECB)’s recently announced ABS purchase program.
Must-know: Davidson Kempner exits position in Perrigo
Perrigo acquired Irish biotech company Elan last year for $8.6 billion.
AMFQX: Structural Analysis of an Alternative Mutual Fund
Some of the AMFQX fund’s top holdings include floating-rate notes of Apple, JPMorgan Chase, Turquoise Hill Resources, and Hewlett-Packard Enterprise.
Why you should invest in some of the 1,500 ETFs in the US
In this series, we’ll introduce you to the concept of exchange-traded funds (or ETFs). You’ll find out about the types of ETFs and how they can help your portfolio.
Analyzing BB&T Corporation’s 6 Operating Segments
BB&T Corporation’s (BBT) operations are divided into six business segments. Community Banking contributes 46% to the total revenue.
IBM Follows Alliance Route to Enhance Its Pace in Blockchain Tech
Strategic imperatives ruled International Business Machines’ (IBM) 3Q16 results. Recently, we also discussed IBM’s new interest in blockchain technology.
Wells Fargo remains number one in low-cost deposits
Wells Fargo continues to remain a sector leader in raising low-cost deposits. It grew its noninterest deposits by nearly 7.0% compared to 4Q14.
Why Wells Fargo’s future goals will help it grow more
Management sets the vision for an organization. Wells Fargo’s vision is large, but it’s already halfway there. Wells Fargo is the largest bank in the U.S.—by market capitalization.
MLPs Recovered Slightly in the Week Ending August 25
MLPs recovered slightly in the week ending August 25—possibly due to an overcorrection in the first three weeks of the month.
Will the Financial Sector Continue Its Rally Next Month?
The financial sector has had a strong performance so far in September 2017. The Financial Select Sector SPDR Fund (XLF), which tracks the performance of the financial sector, rose nearly 4.4% on a month-to-date basis.