April 7, 2024 | Daily JAM, Morning Briefing, Short Term |
This week I expect the market to put its obsession with the Federal Reserve, inflation, and interest rates on hold, and switch to watching earnings reports for the first quarter of 2024. The first batch of earnings–the Big Banks JPMorgan Chase (JPM), Citigroup (C), and Wells Fargo (WFC)–hits the wires on Friday, April 12–with Netflix (NFLX) to begin tech/momentum earnings reports on Tuesday, April 18. I think it would be an overstatement to say that the quarter’s earnings reports are make or break for this rally–the economic news is just too strong and interest rate cuts loom out there somewhere even if no one can say just when. But this quarter will provide an important data point in the “Stocks have climbed too far, too fast” vs. “This rally can run higher on a strong economy” debate. And the first set of high-profile earnings looks likely to throw some cold water on the most fevered market optimists.
July 9, 2023 | Daily JAM, Morning Briefing |
Look for big news on inflation and earnings this week. But I think the news is baked into stock prices so I don’t expect much of a move on the news.
April 14, 2023 | Daily JAM, Morning Briefing, Short Term |
It is good, maybe great news this morning from three of the country’s biggest banks. JPMorgan Chase posted a surprise 2% increase in deposits and first-quarter net income surged 49%. Wells Fargo (WFC) saw net interest income rocket by 45%. Citigroup (C) reported a 23% gain in net interest income and a 4% increase in fixed-income trading. As of 2:30 p.m. New York time JPMorgan Chase shares were up 7.33%. Wells Fargo had tacked on a small 0.05% gain. And Citigroup was up 4.88%. And all the major stock indexes were significantly in the red.
March 14, 2023 | Daily JAM, Mid Term |
Yesterday, March 14, Moody’s Investors Service placed First Republic Bank (FRC) and five other US lenders on review for downgrade because of worries over uninsured deposit funding and unrealized losses in their asset portfolios. (the other banks include Western Alliance Bancorp (WAL), Intrust Financial, UMB Financial (UMBF)., Zions Bancorp (ZION), and Comerica (CMA).) But these smaller banks aren’t the companies in the sector sitting on the biggest bond portfolios with unrealized losses.
July 16, 2022 | C, Daily JAM, Dividend Income |
Shares of Citigroup climbed by 13.23% on Friday, July 15, after the company reported earnings of $2.19 a share. Revenue came in at $19.6 billion. Wall Street had projected earnings of $1.689 a share and revenue of $18.4 billion. So it’s not surprising that the stock rose strongly after the report. Or that the gains dragged other bank stocks higher too. For example, Bank of America (BAC), which reports on Monday, July 18, gained 7.04%. Wells Fargo (WFC) climbed 6.17%. To which I say, Thank you, and I’m selling.
April 11, 2022 | C, Daily JAM, Dividend Income, JPM, Jubak Picks, KBWB, Perfect Five-ETFs, USB, WFC |
Just want to make sure that no one missed the sell recommendations in yesterday’s Saturday Night Quarterback post. Big banks will kick off another earnings season beginning with JPMorgan Chase (JPM) on Wednesday, April 13. Citigroup (C) and Wells Fargo (WFC) follow on April 14. Bank of America (BAC) reports on April 18. Bank earnings forecasts present a complicated picture for the quarter–which is only appropriate since that’s true of Standard & Poor’s 500 earnings forecasts as a whole.
April 9, 2022 | C, Daily JAM, Dividend Income, Jubak Picks, KBWB, Perfect Five-ETFs, Short Term, USB, WFC, You Might Have Missed |
Big banks will kick off another earnings season beginning with JPMorgan Chase (JPM) on Wednesday, April 13. Citigroup (C) and Wells Fargo (WFC) follow on April 14. Bank of America (BAC) reports on April 18. Bank earnings forecasts present a complicated picture for the quarter–which is only appropriate since that’s true of Standard & Poor’s 500 earnings forecasts as a whole.
January 14, 2022 | Daily JAM, Jubak Picks, WFC |
This morning big money center banks JPMorgan Chase (JPM) and Citigroup (C) delivered disappointing reports on fourth quarter revenue and earnings. Shares of JPMorgan Chase finished the day down 6.15%. Citigroup shares closed lower by 1.25%. But Wells Fargo (WFC) crushed earnings estimates for its fourth quarter. The stock gained 3.68% by the close.
January 8, 2022 | Daily JAM |
Big banks will start to report December quarter earnings. this week. And investors looking for reassurance from big earnings gains aren’t going to be reassured by the initial reports. JPMorgan Chase (JPM) kicks off the earnings parade before the open on Friday, January 14
October 11, 2021 | Daily JAM, Morning Briefing |
Big bank earnings begin on Wednesday and Thursday. Unfortunately, won’t tell us anything useful about the margin pressures from rising global supply chain shipping costs or higher prices for raw materials. Those are the factors that could produce a quarter’s worth of warnings and unpleasant surprises once third quarter earnings season starts on October 13. But to learn about the effect of those margin pressures on earnings we’re going to have to wait for reports from the consumer and industrial companies that are on the front lines of these trends.
June 29, 2021 | C, Daily JAM, KBWB, Morning Briefing, USB |
That didn’t take long. On Thursday the Federal Reserve reported that all 23 big banks tested in its annual stress test, passed. Which means that the last remaining restrictions on dividend increases and share buybacks are now history. Yesterday big banks started to announce dividend increases
April 16, 2021 | BAC, C, Daily JAM, Dividend Income, JPM, Jubak Picks, WFC |
Blow-out first quarter earnings results from the big banks didn’t produce huge gains this week–and that’s actually reassuring to me because it says a significant number of investors are still paying attention to fundamentals
