Certainly no one cheered this morning when Bank of America and Goldman Sachs announced big one-time hits from the recently passed tax bill, but as with JP Morgan Chase and Wells Fargo last week, the big deal for investors was what these huge financial institutions had to say about future quarters. And on that Bank of America and Goldman Sachs delivered differing degrees of optimism
In my daily trawling through the market I come upon lots of tidbits of knowledge that I think are important to investors but that don’t justify a full post. I’ve decided to start compiling these notes here each day in a kind of running mini blog that I’m calling Notes You Need. Typical items resemble this post from today: “10:40 a.m.: Softbank Group along with Tencent Holdings, Sequoia Capital and Dragoneer Investment Group are buying existing shares in Uber from current shareholders. In addition Softbank will buy $1.25 billion in new preferred stock. The big advantage to the deal from Uber’s point of view is that the investment pretty much rules out any investment in rival Lyft from Softbank. Locking Lyft out of funding from Softbank came at a price, though, as the sale of existing shares values Uber at $48 billion, a haircut from the valuation of $69 billion in Uber’s last round of financing.”
In my daily trawling through the market I come upon lots of tidbits of knowledge that I think are important to investors but that don’t justify a full post. I’ve decided to start compiling these notes here each day in a kind of running mini blog that I’m calling Notes You Need. I launched this new feature on JubakAM.com on December 1. It runs only on JAM and won’t appear anywhere else. It includes items such as this: ” 10:40 a.m.: An oil spill in the Gulf of Mexico last week is the largest since the 2010 blowout at BP Macondo well sank the Deepwater Horizon rig. The Delta House floating production facility about 40 miles southeast of Venice, Louisiana, released 7,950 to 9,350 barrels of oil on October 13, according to operator LLOG Exploration.
More big bank earnings today–and, fortunately, they were a mixed bag. Which made them markedly better than Friday’s results. Bank of America’s (BAC) ‘s second-quarter earnings per share rose 12% to 46 cents, beating by 3 cents a share. Revenue climbed 7% to $22.8 billion against the Wall Street consensus of $21.915 billion. Shares of Bank of America closed up 0.5% today, July 18.
So here’s how this earnings season is playing out so far in the banking sector. Beat really grim forecasts for earnings and revenue in the first quarter, shares go up–see JPMorgan Chase yesterday.Come close to those grim estimates, and shares go up–see Bank of America today. Beat grim projections, but show trouble in a core business, and shares move down, slightly–see Wells Fargo today.
Despite better than expected second quarter earnings from big Wall Street banks Goldman Sachs (GS) and JPMorgan Chase, U.S. stocks have moved lower today on a Fed report that called valuations for biotechnology and social media “substantially stretched.”
