Buying Wells Fargo in Jubak Picks ahead of earnings

Buying Wells Fargo in Jubak Picks ahead of earnings

Wells Fargo (WFC) is scheduled to report fourth quarter 2021 earnings on Friday, January 14. The bank is expected to be one of the few big money center banks to show a significant increase in earnings for the lat quarter of 2021 from the fourth quarter of 2020 (when numbers were elevated by a big recovery from the Pandemic bottom.) The Wall Street consensus projects fourth quarter earnings of $1.09 a share, up from 64 cents a share in the fourth quarter of 2020. (I’d note that the bank has delivered a positive earnings surprise above analyst projections in the last 4 quarters.) This is a good time to buy bank stocks.

Saturday Night Quarterback says, For the week ahead expect…

Saturday Night Quarterback says, For the week ahead expect…

Expect the the debate to go on. Are we seeing a top for this extraordinary rally? Are stocks headed to their first correction since dinosaurs walked the earth? (Actually stocks had their last 10% correction in February 2020 but almost nobody remembers because it didn’t last very long and soon stocks were on their way to infinity and beyond.) And will this correction be led by technology stocks, the stars of the last rally? Or is the huge and very quick drop in technology stocks and the smaller but still significant fall in a wider index such as the Standard and Poor’s 500 merely a rotation from one sector into another? For the record, as of the close on Friday, December 3, the S&P 500 was down 3.47% from its November 24 high. The NASDAQ Composite, with its heavier weighting in technology, was down 6.05% from its November 11 high.

JPMorgan Chase earnings beat on M&A, tax benefit, reserve releases–but consumer and commercial loans fall

JPMorgan Chase earnings beat on M&A, tax benefit, reserve releases–but consumer and commercial loans fall

This morning JPMorgan Chase (JPM) reported that earnings for the third quarter beat analyst estimates. Earnings came in at $3.74 a share–if you include one-time items such as a tax benefit and a big release from loan loss reserves. Without those items, earnings for the quarter were $3.03 a share. Wall Street had expected earnings of $3.00 a share. The quarter showed that big U.S. banks still aren’t seeing growth in loan demand. For the quarter consumer loans fell 2% and commercial loans dropped 5%.

JPMorgan Chase earnings beat on M&A, tax benefit, reserve releases–but consumer and commercial loans fall

Bank earnings from JPMorgan Chase better than expected–after loan loss release–but raise doubts on recovery

Before the market open today, July 13, JPMorgan Chase (JPM) reported earnings of $3.78 a share on revenue of $30.5 billion. But as expected trading revenue fell with fixed-income trading revenue down 44% year over year. Community banking revenue climbed just 3%; investment banking revenue rose just 1%; and commercial banking revenue grew just 3%. Average loans in the consumer banking unit fell 3%; across the company average loans were flat. A release of $3 billion from reserves against loan losses saved the quarter and produced a huge surprise above the $3.05 a share expected by Wall Street analysts.

OPEC+ is in crisis again–but since no one knows quite what the result is likely to be, we’ve had big swings in sentiment and prices in the oil market (and in banks, other commodities, and the inflation/deflation play) today

OPEC+ is in crisis again–but since no one knows quite what the result is likely to be, we’ve had big swings in sentiment and prices in the oil market (and in banks, other commodities, and the inflation/deflation play) today

The Organization of Petroleum Exporting Countries and its affiliated oil producers (OPEC+) abandoned their Monday meeting after days of tense talks failed to result in an agreement on a tentative deal to increase production, and even over how to measure production. The disagreement between Saudi Arabia snd the United Arab Emirates was so heated that OPEC+ couldn’t even agree on a date for its next meeting. When these two countries last clashed in December 2020, the UAE talked of leaving OPEC. Oil prices initially jumped to its highest level in more than six years on news that OPEC+ had failed to agree to increase production. But prices then fell as traders speculated that the failure to reach an agreement on production increases would result in unplanned increases in production.