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The banking giant is expected to report earnings of $4.15 per share and $41.84 billion in revenue, according to LSEG. Many analysts also anticipate an upward revision to net interest income guidance, with the firm already forecasting $90 billion for the full year. Graseck views JPMorgan as one of the best-positioned stocks for upward net interest income revisions, also highlighting its significant excess capital relative to others within the firm's coverage. What else to watch If not during earnings, this upward guidance adjustment to net interest income could occur at JPMorgan's investor day in May, she said. Another key figure some analysts are watching is earnings from First Republic, which the company took over in May 2023 .
Persons: JPM, Piper Sandler's Scott Siefers, Morgan Stanley's Betsy Graseck, Graseck, Goldman Sachs, Richard Ramsden, America's Ebrahim Poonawala, Erika Najarian, NII, Wells, Mike Mayo, Ramsden Organizations: JPMorgan, Wall Street, Management, Bank, America's, First Locations: buybacks, First Republic, Republic
The Federal Reserve's interest rate hikes starting in March 2022 led to a sharp runup in yields on Treasurys. Rates on a range of otherwise plain vanilla investments also rose sharply, with money market funds offering yields exceeding 5%, and some banks boosting their CD yields to lure deposits. See below for a table of longer-term CD yields and where you can get them. There's also a tradeoff: You can collect this higher yield, but you'll have to be comfortable with reduced access to your money. By locking in an 18-month or 24-month CD, savers can benefit from today's higher yields well after the Fed begins dialing back rates.
Persons: Banks, Sallie Mae, Morgan Stanley's Betsy Graseck, There's Organizations: Ally
These two banks just hiked their 1-year CD yield to 5.3%
  + stars: | 2023-11-03 | by ( Darla Mercado | Cfp | ) www.cnbc.com   time to read: +2 min
Marcus by Goldman Sachs and Synchrony Financial each raised the annual percentage yield on their 1-year certificates of deposit to 5.3% this past week, according to an analysis from Wells Fargo. Even if the central bank were to step back from its monetary policy stance, banks could still see pressure from higher deposit costs as they compete with money market funds and lower cost CDs reprice at higher rates. Investors hiding in cash-like instruments, including money market funds and savings accounts, face reinvestment risk if interest rates decline. Savers who want the safety of a steady rate for two years also saw yields go up for CDs at select banks this past week. Marcus by Goldman Sachs hiked its APY to 4.85% for its 2-year CD, and Discover Financial boosted its rate to 4.4%.
Persons: Marcus, Goldman Sachs, Richer, Morgan Stanley's Betsy Graseck, Michael Bloom Organizations: Federal, Synchrony, Bread, Fed, Discover Financial Locations: Wells Fargo
Since the central bank kicked off its policy-tightening campaign in March 2022 — boosting interest rates 11 times — income investors have benefited from higher yields on Treasurys, money market funds and certificates of deposit. "From here, even if rates go higher you are locking in some really good income." If you're willing to sacrifice a little bit of liquidity, select banks will pay even higher yields. Drivers of those increases include higher-for-longer interest rates, and competition from Treasurys and money market funds, Graseck added. Money market funds Rates on money market funds have also jumped substantially since the rate-hiking campaign started.
Persons: Greg McBride, reinvest, US2Y, Treasurys, Sameer Samana, Sallie Mae, Morgan Stanley's Betsy Graseck, Graseck, — CNBC's Michael Bloom, Nick Wells Organizations: Federal Reserve, Fed, Treasury, Wells, Wells Fargo Investment Institute, Savings, Synchrony, Bread Financial, Investment Company Locations: maturities, Wells Fargo
First Republic's demise was the third regional bank failure since early March, when Silicon Valley Bank and Signature Bank folded within days of each other. There is cautious optimism on Wall Street that First Republic will be the last failure of this period. However, reports from other regional banks weren't nearly as dire, with many reporting that deposits had stabilized and were growing again. However, the failure of First Republic could cause some more turbulence, at least in the short-term, for both deposits and bank stocks. "We don't believe that regional banks are completely out of the woods," Wolfe Research chief investment strategist Chris Senyek said in a note to clients on Monday.
Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailHigher expenses are expected to weigh heavy on bank earnings, says Morgan Stanley's Betsy GraseckBetsy Graseck, global head of banks and diversified finance research at Morgan Stanley, joins 'Squawk Box' to discuss forecasts for bank earnings numbers, the benefits of higher rates on net interest income, and changes to expense outlooks in 2023.
Watch CNBC's full interview with Morgan Stanley's Betsy Graseck
  + stars: | 2022-10-12 | by ( ) www.cnbc.com   time to read: 1 min
Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailWatch CNBC's full interview with Morgan Stanley's Betsy GraseckBetsy Graseck, joins 'Closing Bell' to discuss market pressure in fees, expenses, and credit quality, consumer finance pricing in credit risk, and top picks for bank stocks.
Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailBank earnings will be a rocky ride, says Morgan Stanley's Betsy GraseckBetsy Graseck, joins 'Closing Bell' to discuss market pressure in fees, expenses, and credit quality, consumer finance pricing in credit risk, and top picks for bank stocks.
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