120.53 -0.03 (-0.02%)
After hours: 5:26PM EDT
|Bid||120.52 x 1300|
|Ask||120.61 x 800|
|Day's Range||119.86 - 121.02|
|52 Week Range||91.11 - 121.59|
|Beta (3Y Monthly)||1.19|
|PE Ratio (TTM)||11.90|
|Earnings Date||Jan. 14, 2020|
|Forward Dividend & Yield||3.60 (3.01%)|
|1y Target Est||121.58|
Oct.18 -- JPMorgan CEO Jamie Dimon says Libra was a "neat idea" that will never happen. Dimon participates in a panel at an IFF conference in Washington.
Let's dive into three tech stocks that we found using our Zacks Stock Screener that growth investors might want to consider buying during Q3 2019 earnings season...
(Bloomberg) -- As WeWork prepares to cut potentially thousands of jobs this month, executives keep heading for the exits. The situation has turned into an exodus, with at least six C-level executives and the vice chairman leaving since last month.Adam Kimmel, WeWork’s chief creative officer, is the latest to submit his resignation, according to two people familiar with the matter who asked not to be identified discussing a personnel matter. Kimmel joined the company in 2017 after a long career as a fashion designer and took on projects such as designing the company’s San Francisco offices. WeWork parent We Co. didn’t immediately have a comment on the departure.WeWork attempted to go public last month, but the process quickly went awry after investors raised concerns about its business model and corporate governance. The chief executive officer stepped down; it pulled the initial public offering; and it’s now scrambling for cash to keep going. The company is weighing two potential bailout plans, including a $5 billion debt package led by JPMorgan Chase & Co. and an investment from SoftBank Group Corp. that could value We Co. at less than $8 billion, a dramatic fall from $47 billion in January.WeWork could cut about 2,000 jobs in the coming weeks, though the decisions haven’t been finalized. Meanwhile, the chaos has been heightened by the parade of executive departures, including CEO Adam Neumann and his wife and Chief Brand and Impact Officer Rebekah Neumann last month, followed by the chief product officer, the top spokesman and the head of marketing.To contact the authors of this story: Ellen Huet in San Francisco at email@example.comGillian Tan in New York at firstname.lastname@example.orgTo contact the editor responsible for this story: Mark Milian at email@example.com, Anne VanderMeyFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Whenever there are unexpected problems in the financial markets, banks are quick to create the illusion of financial regulation as the culprit. In doing so, they divert attention from the real cause, which is all-too-often misbehavior on the part of the banks they represent.
Investor sentiment upbeat on banks' Q3 earnings, with the major players displaying top-line strength on the back of higher fee income and loan growth.
Morgan Stanley reported a higher-than-expected profit on Thursday, bolstered by strength in bond trading and M&A advisory, but executives were careful not to sound too optimistic about the rest of the year. Like other big banks, Morgan Stanley had to navigate falling interest rates, volatile markets and recession signals during the third quarter, and fared relatively well. Its overall profit rose 3%, topping Wall Street expectations by a healthy margin.
(Bloomberg) -- As WeWork scrambles this week to raise cash needed to keep afloat, several top executives aren’t sticking around to see the results.Chief Marketing Officer Robin Daniels is leaving, according to two people familiar with the matter who asked not to be identified discussing internal matters. He’s at least the fifth C-level executive to step down in the last few weeks.After a failed attempt at an initial public offering last month, WeWork’s co-founder and chief executive officer, Adam Neumann, stepped down, as did his wife, Rebekah Neumann, a founder and chief brand officer. A spokeswoman for WeWork declined to comment.The company, which rents office space in buildings around the world, has been floundering since its IPO sunk in September. It pulled the prospectus soon after. The company is likely to run out of money as soon as next month and is currently weighing a debt package led by JPMorgan Chase & Co. and a $5 billion rescue plan from SoftBank Group Corp., the largest shareholder in WeWork.As part of a companywide attempt at belt-tightening, WeWork parent We Co. expects to dismiss potentially thousands of employees this month. Morale is low among staff, who are unsure of their fate or the future of the company, and some have stopped coming in to their offices, according to people familiar with the situation.The turmoil has resulted in an exodus of WeWork management. Last month, former Vice Chairman Michael Gross and Chief Product Officer Chris Hill resigned. Jimmy Asci, the communications chief, stepped down last week.To contact the author of this story: Ellen Huet in San Francisco at firstname.lastname@example.orgTo contact the editor responsible for this story: Mark Milian at email@example.com, Jillian WardFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Signs of hope for a Brexit deal and U.S.-China trade war updates. Some disappointing U.S. manufacturing and retail data. Q3 earnings results from the likes of Netflix. And why Google parent Alphabet is a Zack Ranks 1 (Strong Buy) stock. - Free Lunch
(Bloomberg) -- For the first time in four years, interest rates hurt instead of helped the biggest U.S. banks. It wasn’t enough to knock them off pace to top last year’s profit record.Revenue at the six largest firms climbed from a year earlier for the 12th time in the past 13 quarters, helped by better-than-expected gains in trading and a surprise jump in investment banking. JPMorgan Chase & Co., the nation’s biggest bank, notched a new revenue record. That all came in spite of the group’s net interest income posting its first drop since 2015 as the Federal Reserve lowered interest rates twice in the quarter.For all the hand-wringing about low rates, trade wars and a possible economic slowdown, the biggest banks are still riding high. A healthy consumer, lower corporate tax rates and stock markets at all-time highs have the firms on track to break the all-time earnings high of $120 billion in 2018.“The banks had set low expectations in September, and it turned out that the results were pretty strong,” Julien Courbe, financial services advisory leader at PricewaterhouseCoopers. “I think a big question would be whether the rate cuts would actually stimulate loan demand, and we heard from the earnings that it did.”While capital rules introduced to make banks safer after the financial crisis have ended the glory days, when return on equity often topped 20%, all six banks have clawed their way back to double-digits this year for the first time since the crash.Investors are taking note: shares of all the banks except Citigroup Inc. climbed this week, with Morgan Stanley, Bank of America Corp. and JPMorgan all surging more than 3.5%. Here are the week’s main takeaways:TradingBanks upended forecasts by posting strong revenue in their trading businesses this week.Every firm beat analysts’ estimates as volatility in fixed-income markets created opportunities for trading desks. Morgan Stanley was the biggest surprise, with debt trading jumping 21% instead of dropping 5% as analysts had predicted. Fixed-income trading at JPMorgan rose by the most in almost three years.At Bank of America, strong trading results added to good news on the investment-banking front, where revenue shot up almost 26% from a year earlier and beat expectations. Goldman Sachs Group Inc. suffered the opposite fate: It posted strong trading results but investment-banking fees took a bigger hit than expected.ConsumerThe top four retail banks pulled in record revenue for the fifth straight quarter, a sign that the U.S. consumer remains healthy even as some economic indicators have sparked fears of a coming recession.“The U.S. economy is still in solid shape, despite the worries and concerns about trade wars, capital-investment slowdowns or other global macro conditions,” Bank of America Chief Executive Officer Brian Moynihan said on a conference call with analysts. “Across nearly every line of business, we are seeing strong consumer activity.”JPMorgan, Bank of America, Citigroup and Wells Fargo & Co. collectively made $40.6 billion in consumer revenue this quarter. JPMorgan led the group with the most consumer revenue it’s ever had in the third quarter.Still, there were notes of caution. JPMorgan and Wells Fargo increased loan-loss reserves for the second time in the past seven quarters and Citigroup increased its reserves by the most in two years.Wealth ManagementThe push by discount brokerages to eliminate commissions on many types of trades did little to dent confidence at the big banks.Bank of America and Morgan Stanley, which both own U.S. brokerages with almost $3 trillion in assets apiece, said they’re focused on longer-term relationships with wealthier customers -- the ones who are willing to pay up for better service and advice.Almost 90% of Bank of America’s self-directed trading business is already handled without commissions, Moynihan said Wednesday.Morgan Stanley CEO James Gorman said his company is aiming at households worth more than $1 million, and especially those with more than $10 million.\--With assistance from Lananh Nguyen, Michelle F. Davis, Sridhar Natarajan and Jenny Surane.To contact the reporter on this story: Gwen Everett in New York at firstname.lastname@example.orgTo contact the editors responsible for this story: Michael J. Moore at email@example.com, Steve DicksonFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
(Bloomberg Opinion) -- On March 12, 2018, Morgan Stanley’s share price reached $59.38. That was a watershed moment — the highest level since November 2007, before the start of the Great Recession.Since then, the Wall Street bank’s stock has stumbled. Heading into this week, Morgan Stanley shares had fallen 26% since that post-recession high, a steeper decline than any of the other largest U.S. banks. Even just looking at 2019, Morgan Stanley’s 8% total return was meager compared with its peers: Citigroup Inc.’s 37.5%, Goldman Sachs Group Inc.’s 24.3%, JPMorgan Chase & Co.’s 22.7%, Bank of America Corp.’s 19.3% and Wells Fargo & Co.’s 10%.So it follows that Morgan Stanley’s surprisingly strong third-quarter results on Thursday led to a swift reaction among investors. Its shares surged more than 4% in pre-market trading, the sharpest initial increase among its rivals. By exceeding expectations pretty much across the board, the bank essentially proved that while it’s been down as of late, it’s by no means out.A quick recap of the earnings report: Like its rivals that reported earlier, Morgan Stanley’s fixed-income trading easily beat expectations, jumping 21% from a year ago compared with analyst predictions of a 5% decline. Its total sales and trading revenue rose 10%, a sharper increase than all peers but JPMorgan, and in aggregate dollar terms was the biggest beat on Wall Street. Morgan Stanley’s investment bankers also topped estimates. It wasn’t perfect, as wealth-management revenue fell just short of forecasts, but overall it could only be described as much better than what analysts had anticipated.Veering into the subjective for a moment, I was struck by just how confident and exuberant Morgan Stanley CEO James Gorman sounded as he kicked off the bank’s earnings conference call. In his opening statement, he spoke forcefully about how he’s looking forward to “gain share in several of our businesses” and emphatically stated that there’s “tremendous upside here.” And I’m not the only one who noticed. In the words of Bloomberg News’s Max Abelson, who was blogging about the results: “Gorman sounds so confident right now. He’s riffing, giving a lot of color, and seems to just be enjoying himself.”Perhaps that’s to be expected after a quarter like this. And, of course, shares can only rise so much on CEO optimism. But the early feedback is in from analysts, and it’s good. “Overall, we are impressed with the revenue strength and wealth management margin and believe that investors should take considerable comfort from this result,” said John Heagerty at Atlantic Equities LLP. “With lots of investors somewhere between negative to indifferent on Morgan Stanley, we’d expect a bit of a lift,” said Evercore ISI’s Glenn Schorr (who, interestingly, has held an “outperform” recommendation for years). Susan Roth Katzke of Credit Suisse called earnings per share “well ahead of what were materially reduced expectations.”The undertone in those last two comments is clear. The market appears to have been too downbeat on Morgan Stanley and is adjusting accordingly. It’s what happens after this initial move that’s tricky. Morgan Stanley’s shares presumably trailed rivals for a reason — did anything from the third quarter drastically change those views? The answer to that question might very well depend on investors’ confidence in Gorman and his executive team. Mike Mayo of Wells Fargo kicked off the conference call by bluntly stating that the bank’s expenses grew faster than revenue and asking whether there’s confidence that will change. “That’s what we’re paid to do,” Gorman said. “We are maniacally focused on it.” Later, Gorman added that Morgan Stanley has proved to be nimble as the industry changes: “We’ve shown a willingness to adjust our business model over time; the build-out of the wealth management was clearly part of that strategy.”I wrote after the bank’s second-quarter earnings that the shift to wealth management, which now makes up about half its revenue, showed Morgan Stanley was playing the long game when trading revenue can be so hit-or-miss from one period to the next. Whether investors want to stick around for the long run remains to be seen. But, at least for one day, traders are on board with Gorman’s vision.To contact the author of this story: Brian Chappatta at firstname.lastname@example.orgTo contact the editor responsible for this story: Daniel Niemi at email@example.comThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Brian Chappatta is a Bloomberg Opinion columnist covering debt markets. He previously covered bonds for Bloomberg News. He is also a CFA charterholder.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.
Companies who appointed women into CEO and CFO positions are outperforming, a new study by S&P Global Market Intelligence shows.
We used our Zacks Stock Screener to search for companies within the broader technology sector that also pay a dividend that investors might want to buy as Q3 earnings season heats up...
(Bloomberg) -- SoftBank Group Corp. is in discussions to provide WeWork with roughly $5 billion of rescue financing in an effort to salvage one of the Japanese conglomerate’s biggest investments.The funds will come directly from SoftBank, rather than its Vision Fund, according to a person familiar with the matter who asked not to be named because the talks are private. SoftBank, which already owns about one-third of WeWork, would not amass a majority of voting rights, though its stake would increase, the person said. Part of the package may include non-voting preferred stock.News of the financing talks sent WeWork’s bonds to their biggest gain on record Wednesday. The jump of more than 8 cents on the dollar erased a record plunge a day earlier.WeWork, reeling in the past few weeks since parent We Co. scrapped its initial public offering, and in danger of running out of cash as early as next month, has been pursuing a pair of rescue plans to shore up its finances -- one from SoftBank, its largest shareholder, and another from JPMorgan Chase & Co. that would include a $5 billion debt package.New York-based WeWork had been headed toward one of the year’s most hotly anticipated IPOs last month before prospective investors balked at certain financial metrics and flawed governance, turning the company into a cautionary tale of private market exuberance and costing the top executive his job. The fast-growing, money-losing startup had been counting on a stock listing -- and a $6 billion loan contingent on a successful IPO -- to meet its cash needs.Billionaire Masayoshi Son, who controls investment powerhouse SoftBank, was instrumental in ousting WeWork’s controversial co-founder Adam Neumann, but is convinced the once high-flying startup can be turned around, a person familiar with the company’s thinking said recently. SoftBank has already plowed more than $10 billion into WeWork and holds one seat on the company’s seven-member board. It has been in advanced talks to acquire more shares at a significantly lower valuation than the $47 billion WeWork sported in January, two people familiar with those discussions said last week. The Japanese company had agreed to contribute at least another $1.5 billion to WeWork next April, according to the startup’s now-withdrawn prospectus for its IPO.JPMorgan’s package, which has been the company’s preferred option, would be one of the riskiest junk-debt offerings in recent years. The plan has been been met with skepticism from investors, who are concerned about the company’s ability to service the debt.Representatives for WeWork and SoftBank declined to comment on SoftBank’s proposal. Japan’s Nikkei reported details earlier Wednesday.Son is facing a reckoning after repositioning SoftBank from a telecom operator into an investment conglomerate with stakes in scores of startups around the world. The success or failure of WeWork will likely to be read as a statement on the overall standing of SoftBank, the judgment of its executives and its ability to raise cash for future ventures. But Son has made clear, in a recent interview with Nikkei Business magazine, how unhappy he is with how far short his accomplishments have fallen of his goals. SoftBank also put almost $8 billion into Uber Technologies Inc., whose shares have declined about 30% since its IPO earlier this year. Still, Son said he is convinced that WeWork and Uber will be substantially profitable in 10 years.But first, SoftBank is looking at potential damage in the billions of dollars. Analysts at Sanford C. Bernstein & Co. estimate that the Vision Fund, SoftBank’s main investment vehicle, will have to write down $5.93 billion, with another $1.24 billion drop for the part of WeWork owned by SoftBank Group.(Updates with background on SoftBank from sixth paragraph.)\--With assistance from Katherine Doherty and Sarah McBride.To contact the reporter on this story: Gillian Tan in New York at firstname.lastname@example.orgTo contact the editors responsible for this story: Craig Giammona at email@example.com, Michael J. Moore, Molly SchuetzFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
(Bloomberg Opinion) -- Bank of America Corp. likes to brag about its online and mobile banking capabilities. Just as it did at this time last year, the bank on Wednesday trumpeted its “leadership in high-tech” in its third-quarter earnings news release and boasted that it’s “No. 1 in mobile banking, online banking and digital sales functionality,” citing accolades from J.D. Power, Javelin and Dynatrace.It’s true that the company’s number of active digital banking users has climbed 5% over the past year to 30 million and the number of active mobile users has increased by almost 11% to 28.7 million. Logins are up, the share of consumer mortgage applications coming from digital has doubled in the past year, and, at a time when banks are increasingly sensitive about costs, Bank of America has trimmed its number of branches by 1.9% to 4,302.Fairly or unfairly, though, Bank of America is going to be compared with JPMorgan Chase & Co., which reported its third-quarter earnings 24 hours earlier. They are the two largest U.S. commercial banks, after all. And in the digital space, the hard numbers show JPMorgan is outpacing Bank of America.Active digital customers? JPMorgan increased that number by 6.5% year-over-year, ahead of Bank of America’s 5%. Active mobile customers jumped 12.2% compared with 10.8%. JPMorgan even cut back on physical branches at a slightly faster clip. Both banks highlighted the increased use of the Zelle digital payment service, which they own along with other retail institutions like Citigroup Inc. and Wells Fargo & Co. None of this is to say Bank of America’s earnings were disappointing. To the contrary, its resilience on just about all fronts was nothing short of impressive. It scored the biggest jump in investment-banking fees on Wall Street, its advisory fees surpassed that of rivals, and both trading revenue and net interest income beat estimates. That all showed up in its share price, which soared more than 2% in an hour after the earnings release. And that was on top of a surge Tuesday on news that Warren Buffett’s Berkshire Hathaway Inc. is seeking permission from the Federal Reserve to potentially increase its stake in the bank to more than 10%.Bank of America ought to use this widespread success and its strong market position among consumer banks to continue to invest in its digital and mobile capabilities to keep pace with JPMorgan and stay ahead of other peers. It’s hardly a stereotype to say that younger adults, millennials and Generation Z are consistently on their mobile phones and demand convenience from the companies they use. It’s what they know — filling out a deposit slip at a bank branch is most likely as foreign to some as sending a fax.CEO Brian Moynihan seems to understand this. In a statement about the earnings, he said: “In a moderately growing economy, we focused on driving those things that are controllable. We made continued strong investments in our capabilities to serve customers, more relationship management teammates, more and refurbished branches and offices, and more digital capabilities.”When every bank is facing questions about the Fed cutting interest rates and the global economy potentially slowing down, focusing on aspects of the core consumer business makes a lot of sense. As Chief Financial Officer Paul Donofrio noted on the earnings call, investing in a strong digital platform doesn’t just provide “ease of use, but also efficiency.” For example, he noted, 13% of traffic at its financial centers now comes from scheduled appointments, which allows the company to better staff those locations. Corporate treasurers are also looking for the same kind of convenience, Donofrio added. In JPMorgan’s second-quarter earnings call, CEO Jamie Dimon quipped that “fintech, of course, is always going to try to eat your lunch, and I think that’s good, that’s called American capitalism, and we have to stay on our toes to compete.” The same goes for competition among the biggest U.S. banks. Even in 2019, digital and mobile banking is still in a formative period.Bank of America is in an enviable position along with JPMorgan. They both have taken big leaps forward in mobile and digital services and have the size to heavily invest now to ensure efficiency and security later. That’s the path Bank of America needs to take if it wants to continue to advertise its “No. 1” ranking in earnings reports to come.To contact the author of this story: Brian Chappatta at firstname.lastname@example.orgTo contact the editor responsible for this story: Daniel Niemi at email@example.comThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Brian Chappatta is a Bloomberg Opinion columnist covering debt markets. He previously covered bonds for Bloomberg News. He is also a CFA charterholder.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.
Wall Street closed Tuesday's trading session at more than three-week high, thanks to better-than expected third quarter 2019 earnings of mostly major American banks.
(Bloomberg) -- JPMorgan Asset Management’s Iain Stealey thinks his fellow bond traders aren’t being aggressive enough about the Federal Reserve’s future policy path.The fund manager expects that slowing global growth and deep-seated U.S.-China trade tensions will force the Fed to lower rates twice more in 2019. That’s more than futures traders, who are pricing in roughly 29 basis points of easing by the end of the year. Stealey is wagering that a more aggressive Fed will drive the yield curve steeper.While the U.S. and China have agreed on the outlines of a partial trade agreement, Stealey isn’t expecting a “wholesale deal” that removes existing tariffs. Those levies will continue to drag on the global economy and force the Fed to commit to a “proper cycle” of rate cuts, he said. Those same concerns were behind the International Monetary Fund on Tuesday making the fifth-straight downgrade to its 2019 global growth forecast, which now calls for 3% expansion this year.“The tariffs are starting to bite, and not just in manufacturing, but in the broader economy,” said Stealey, co-manager of the JPMorgan Global Bond Opportunities Fund. “We still see the global economy slowing, and in that environment, we think the Fed’s going to react to it.”Betting on a steeper curve was one of 2019’s most popular trades, with the likes of Pacific Investment Management Co. and Vanguard Group Inc. calling for the curve to reverse course after some segments reached the flattest in more than a decade.For months, that looked like a losing position. But the spread between three-month and 10-year Treasury yields is currently trading near 7 basis points after turning positive for the first time since July last week.The curve’s recent steepening will accelerate should weakness in survey-based data bleed into the U.S. labor market, Stealey said. While U.S. manufacturing and services gauges unexpectedly dropped to multiyear lows in September, the unemployment rate declined to a half-century low last month.Wednesday’s U.S. retail sales report may add to the gloomy outlook. It showed an unexpected 0.3% monthly contraction for September, suggesting consumers are starting to wobble as the main support for economic growth.“Utimately, it’s hard for the curve to properly steepen” until the Fed commits to a prolonged rate-cutting cycle, Stealey said. “We’re at the point now where we’re going to see over the next few weeks if the data is going to significantly deteriorate and forces the Fed’s hand.”(Updates prices and adds U.S. retail sales)To contact the reporter on this story: Katherine Greifeld in New York at firstname.lastname@example.orgTo contact the editors responsible for this story: Benjamin Purvis at email@example.com, Nick Baker, Mark TannenbaumFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.