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Small businesses are seeing labor growth this year, but hospitals still have staffing shortages. Healthcare worker numbers are steadily growing but remain below pre-pandemic trends, according to a Bank of America report published in April. Outpatient care centers are 9.4% behind on growth, while the hospital labor force has seen small gains at 0.3%. In fact, healthcare workers made up a significant portion of the people leaving their jobs during the Great Resignation. Patients will still see labor shortages in ERs and care facilitiesDespite labor gains, patients could still experience the impacts of the physician shortage.
Persons: , Per, KFF Organizations: Service, Bank of America, The Bank of America Institute, of Labor Statistics, Centers, Medicare, Services, Kaiser Family Foundation, American Hospital Association, of America, Peterson Center, Healthcare, of Health, Bank of
A direct war between Israel and Iran could lead to substantially higher oil prices through 2025, according to Bank of America. This scenario assumes that Iran's crude oil production falls by up to 1.5 million barrels per day due to the war. Crude oil prices have fallen for three consecutive trading sessions in the wake of Iran's weekend missile and drone assault against Israel. The bank has penciled in the first Fed interest rate cut in December, and oil prices would come down by then though remain elevated. "Should supply losses build up regionally, it may also prove difficult to access spare production capacity, so oil prices would likely settle above $150/bbl for several months," the bank's analysts forecast.
Persons: Brent, Israel, Michael Bloom Organizations: Bank of America, Israel, Bank, Federal, bbl, Israeli Locations: Israel, Iran, OPEC, U.S
A Senate committee is asking Bank of America about payments from Leon Black to Jeffrey Epstein. The Senate is investigating tax avoidance strategies used by the mega-rich, The New York Times reports. NEW LOOK Sign up to get the inside scoop on today’s biggest stories in markets, tech, and business — delivered daily. download the app Email address Sign up By clicking “Sign Up”, you accept our Terms of Service and Privacy Policy . AdvertisementA Senate committee investigating $158 million in payments that private equity investor Leon Black made to Jeffrey Epstein has brought Bank of America into the mix.
Persons: Leon Black, Jeffrey Epstein, , Ron Wyden Organizations: Bank of America, New York Times, Black, Service, Senate Finance Committee, Business Locations: Oregon
Bank of America on Tuesday reported first-quarter earnings that topped analysts' estimates for profit and revenue on better-than-expected interest income and investment banking. Revenue slipped 1.6% to $25.98 billion as net interest income declined from a year earlier. That's one of the key questions after JPMorgan Chase , Citigroup and Goldman Sachs all topped estimates with help from trading and investment banking. Bank of America's Chief Financial Officer, Alastair Borthwick, told analysts last month to expect investment banking revenue to rise by 10% to 15% from a year earlier, and for trading results to be roughly flat. Analysts will also be focused on the bank's net interest income, which has been declining in recent quarters as funding costs have climbed along with the rise in interest rates.
Persons: Brian Thomas Moynihan, Goldman Sachs, Alastair Borthwick Organizations: of America, Senate Banking, Housing, Urban Affairs, Capitol, Bank of America, Revenue, JPMorgan Chase, Citigroup, Goldman, Bank of America's Locations: Washington , DC
"What we've seen is deposit pressures escalate more than previously anticipated," said Alexander Yokum, analyst at CFRA Research, who has a neutral view on regional banks. "A lot of these regional banks, they have less deposits, so if they lose deposits, it can really impact their operating results," Yokum said. "So, higher for longer, I think for a lot of regional banks, would be negative." Here's what Wall Street analysts expect from regional banks this season. Other regional banks reporting this week include Fifth Third Bancorp .
Persons: Alexander Yokum, Yokum, Goldman Sachs, Ryan M, Nash, America's Ebrahim H, Poonawala, CFRA's Yokum, Citi's Keith Horowitz, " Horowitz, Huntington Bancshares Huntington Bancshares Organizations: Regional Banking, U.S . Bancorp, New York Community, CFRA Research, JPMorgan Chase, T Bank, PNC, " Bank, America's, U.S . Bancorp U.S . Bancorp, U.S . Bank, Bank of America, Huntington, Comerica KeyCorp, Comerica, Fifth Third Bancorp Locations: U.S, New, Ohio
In this videoShare Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailMorgan Stanley and Bank of America: CFRA's Ken Leon on key takeaways from big bank earningsKen Leon, CFRA director of equity research, joins 'Squawk Box' to discuss his takeaways from Morgan Stanley and Bank of America's earnings.
Persons: Morgan Stanley, CFRA's Ken Leon, Ken Leon Organizations: Bank of America, Bank
This month's rout in smallcap stocks has erased the Russell 2000's sparkling first quarter gain, and the benchmark index for smaller shares could face further trouble ahead so long as interest rates are left unchanged. A hotter-than-expected March inflation report on Wednesday pushed investors on Wall Street to extend out expectations for the Federal Reserve's first interest rate cut to September from June, according to the CME Group's FedWatch tool . The Fed's last interest rate increase in the current cycle was in July, 2023. Servicing debt Hall specifies that the risk to smallcaps is tied to the effect of higher interest rates on refinancing needs. "Higher for longer [interest rates have] generally been good for small cap stocks.
Persons: Russell, Smallcaps, They're, Jill Carey Hall, Hall, Steven DeSanctis, DeSanctis Organizations: Wall, Federal, Bank of America, Bank of, Jefferies Locations: U.S
General Motors is buying back a ton of stock; Ford, so far, not so much. Before the buyback disclosure late this year, Ford had been down 10%, which was less than GM's 14% decline. In 2023, Ford spent $5.33 billion on dividends and stock repurchases, with only 6.3% of that total on buybacks. In guidance alongside Q4 numbers, Ford said it expects warranty costs for full-year 2024 to be flat year over year. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust's portfolio.
Persons: Ford, Jim Cramer, General Motors, Adrian Yanoshik, Jim, Morgan Stanley, Adam Jonas, Jonas, BEV, John Lawler, Redburn's Yanoshik, Jim Cramer's, Paul Hennessy, LightRocket Organizations: General Motors, Ford, GM, CNBC, General, United Auto Workers, Capital, Renaissance, Getty
Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via Email'We see several drivers for margins to go higher' for Apple, says Bank of America's Wamsi MohanWamsi Mohan, Bank of America senior IT hardware analyst, joins CNBC's 'The Exchange' on why Wall Street may be underestimating Apple's margin potential, where the company is heading, and more.
Persons: America's Wamsi Mohan Wamsi Mohan Organizations: Apple, America's, Bank of America
Investors are again underestimating Apple's gross profit margins, according to Bank of America. In actuality, the company exceeded those expectations, reporting 44% gross margins last year. Looking ahead, Mohan estimates that vertical integration and product mix could yield more than 100 basis points of upside to Apple's gross margins. He also estimates that Apple's utilization of its own internal modems could add 110 basis points to product gross margins and 160 basis points of iPhone gross margins. "Pricing is an additional level that Apple can employ to further increase gross margins."
Persons: Wamsi Mohan, Mohan, Samik Chatterjee Organizations: Bank of America, Apple, Products, Services, Bank of, JPMorgan, Cap Tech
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
Hedge funds are dumping stocks at the fastest pace in three months as what's often called " the smart money " stepped up bearish wagers against equities amid the recent pullback. The professionals sold global stocks on a net basis for a second straight week last week, driven almost entirely by short sales, according to Goldman Sachs' prime brokerage data. It marked the biggest selling week for hedge funds since mid-January, the data showed. Its hedge fund clients sold stocks for a fifth consecutive week last week, exiting shares across small-, mid- and large-cap companies. The S & P 500 declined nearly 1%, its biggest weekly loss since early January, although the equity benchmark is still only 1.7% below its record high.
Persons: Goldman Sachs, David Bahnsen, Goldman, Jean Boivin, — CNBC's Michael Bloom Organizations: Bank of, Dow, Bahnsen Group, P Retail, Traders, Fed, BlackRock Investment Institute Locations: U.S
Bank of America says a more bullish outlook for gold and copper could benefit a handful of stocks. Bank of America also sees copper climbing 8% in 2024 to $9,321 per metric ton. To play its bullish outlook for copper and gold, the firm also named a slate of stocks that could see a boost. FCX YTD mountain Freeport-McMoRan stock. Bank of America highlighted Freeport-McMoRan's "stable production profile, low unit costs and [an] improving balance sheet" as drivers behind its price target.
Persons: Lawson Winder, Winder Organizations: of America, Bank of America, Federal Reserve, Bank of, Mines, Eagle Mines Locations: U.S, Freeport, McMoRan
Alphabet 's cloud event Tuesday could provide a much needed sentiment lift to investors fretting about the search giant's artificial intelligence potential, according to some Wall Street analysts. "With unique AI assets, including proprietary infrastructure and an advanced LLM model, we believe Google cloud has an opportunity to differentiate its cloud offering, improving market share and street sentiment," wrote Bank of America's Justin Post. This week's event, however, could mark a turnaround in the right direction and help lift sentiment toward the company's AI developments. Morgan Stanley's Brian Nowak also highlighted the event as one of five potential catalysts for the stock through the beginning of June. The firm is on the lookout for more examples of how the cloud is benefitting from the AI transformation, he said.
Persons: of America's Justin Post, Post, Morgan Stanley's Brian Nowak, Nowak Organizations: of America's, Nvidia, Microsoft, Wall, Rivals, Google Locations: U.S, Monday's, durably
Weight-loss drugs like Ozempic, Wegovy, and Mounjaro are all the rage, and investors are noticing. Since launching in November, the Tema Obesity and Cardiometabolic ETF (HRTS) is up 24%, crushing the S&P 500's 14.8% returns over the same period. Pot and his colleagues at Tema are bullish on the weight-loss drug stocks due to the wave of demand they see coming. Novo Nordisk estimates that only 2% of obesity cases are being treated by weight-loss drugs, Pot said. 4 weight-loss drug stocks to watchPot listed two larger stocks and two smaller ones in the space.
Persons: Maurits Pot, Janus Henderson, Pot, Goldman Sachs, Geoff Meacham, Charles Barkley, Elon Musk, Whoopi Goldberg, Eli Lilly, Lilly Organizations: VanEck Pharmaceutical, Business, World Health Organization, Novo Nordisk, Bank of America, Bank, Nordisk, FDA, Amazon, Therapeutics, Zealand Pharma Locations: Tema, GLP, Danish, it's
As the market begins a new quarter, Bank of America refreshed its list of top picks for the coming months. Here are some of the firm's top picks for the second quarter: Big Tech underperformer Alphabet is one of Bank of America's top 10 picks for the new quarter. The stock added just 8% in the first quarter of 2024 as a series of AI-related blunders bruised investor sentiment. SPOT YTD mountain Spotify shares in 2024 One of the financial stocks featured in Bank of America's top picks list was Citigroup . "A positive inflection in volumes should support low valuation and potentially drive rotation from other consumer staples sub-sectors (Beverages/Household Personal Care) as investors chase underperforming food names," wrote analyst Bryan Spillane.
Persons: Justin Post, Jessica Reif Ehrlich, Ebrahim Poonawala, Kraft Heinz, Bryan Spillane Organizations: Bank of America, Nasdaq, Bank of America's, Microsoft, Google, 2Q, Spotify, Citigroup, Assistance Locations: Thursday's
Here are JPMorgan's top stock picks heading into April
  + stars: | 2024-04-01 | by ( Lisa Kailai Han | ) www.cnbc.com   time to read: +2 min
JPMorgan added two new names to its list of top stocks as April begins — Bank of America and CarMax . However, his price target of $35 implies that shares could fall 8% from their Thursday close. On the other hand, analyst Rajat Gupta views CarMax as a short idea, with his $60 price target suggesting approximately 31% downside from where the stock closed on Thursday. Here are some of the top picks that made JPMorgan's list: Growth stock Danaher is one returning name to the list. Analyst Tami Zakaria's $385 price target corresponds to a further 5% rally from the stock's Thursday close.
Persons: Vivek Juneja, Juneja, Rajat Gupta, CarMax, Rachel Vatnsdal's, Tami Zakaria's, — CNBC's Michael Bloom Organizations: JPMorgan, — Bank of America, Bank of America, of America, " Bank of America, Caterpillar
Meanwhile, Micron got a price target increase from Bank of America, which sees the chipmaker surging more than 20%. 7:08 a.m.: Jefferies raises forecast on Target Jefferies thinks improving consumer discretionary trends should boost Target shares. The firm increased its price target on the stock to $205 from $195, implying shares gaining 16% from where they closed on Thursday. He upgraded shares to overweight from equal weight and increased his price target by $13 to $59. The bank also revised its bull case price target to $110 from $90, implying upside of nearly 130%.
Persons: Morgan Stanley, Target Jefferies, Corey Tarlowe, Jefferies, Tarlowe, TGT's, — Hakyung Kim, Wells, Roger Read, Read, Hakyung Kim, Brandon Oglenski, Hunt, Robinson, Werner, Oglenski, Anthony Cassamassino, Vivek Arya, Arya, , Morgan, DAL, Fred Imbert Organizations: CNBC, Delta Air Lines, Micron, Bank of America, Jefferies, Target, Devon Energy, Diamondback Energy, EOG Resources, Barclays, J.B, C.H, Werner Enterprises, Bank of America's, Microsoft, Meta, Next, 2Q, Spotify, Citigroup, Marvell, Devices, TAM, Abercrombie, Fitch's Locations: Wells Fargo, Devon, Delaware, Q2'24, Thursday's, DAL
But with the market at an all-time high, now is probably a good time to hedge against potential downside, experts say. That's especially the case because there's an elevated degree of risk facing stocks, and the cost of some insurance measures is historically cheap. Related storiesThe S&P 500 also looks overextended on a technical basis, according to many measures. AdvertisementRosenberg Research"The definition of a stretched market is one when the S&P 500 gaps 14% or more above the 200-day trendline. Beyond extreme, in fact — back to 1928, the S&P 500 has only drifted this far above the moving average 7% of the time," Rosenberg said.
Persons: Jim Smigiel, they've, Louis Fed, Phillip Colmar, Colmar, David Rosenberg, Rosenberg, Steve Sosnick, we're, Smigiel, Sosnick Organizations: Service, Nvidia, Microsoft, Bank of America's, Survey, Bank of America, SEI, Fed, Louis Fed Inflation, MRB Partners, Rebels, Rosenberg Research, Interactive Brokers Locations: Ukraine, Russia, Israel, Palestine, Suez
According to Bank of America, valuation levels explain 80% of the market's return over a 10-year period. Bank of AmericaThere are many ways to measure valuation levels in the overall market. Hussman says it's the most accurate indicator of future market returns that he's found. AdvertisementThe Conference BoardThird, the number of US states with a rising unemployment rate is spiking, meaning that the overall unemployment rate should see further upside. BullAndBearProfits.comThe US unemployment rate is already on a slight uptrend, having climbed from 3.4% in April 2023 to 3.9% as of February.
Persons: , Jon Wolfenbarger, Merrill Lynch, John Hussman's, he's, Warren Buffett, Wolfenbarger, Stocks, Woflenbarger, Cam Harvey, Claudia Sahm, Louis Fed, Jeremy Grantham, John Hussman, David Rosenberg, Goldman Sachs, David Kostin, America's Savita Subramanian, Ian Shepherdson, Shepherdson Organizations: Service, Bank of America, Business, JPMorgan, National Federation of Independent Business, Board, Treasury, Bank, America's
BA YTD mountain Boeing stock has slumped more than 26% from the start of the year after the Alaska Airlines 737 Max controversy. Stifel The firm has a buy rating on Boeing stock with a $270 per share price target, or 41% upside from Monday's close. TD Cowen TD Cowen has a buy rating on Boeing stock with a $230 per share price target, or 20% above Monday's close. JPMorgan maintains an overweight rating on Boeing with a $230 per share price target, or about 20% above Monday's close. JPMorgan maintains an overweight rating on Boeing stock with a $230 per share price target, or about 20% moving forward.
Persons: shakeup, Max, David Calhoun, Calhoun isn't, Larry Kellner, Stan Deal, Stephanie Pope, Pope, Calhoun, Bert Subin, Max —, Bank of America Bank of America's Ronald Epstein, TD Cowen TD Cowen, TD Cowen, Cai von Rumohr, Dave Calhoun, Morgan Stanley Morgan Stanley's Kristine Liwag, David Calhoun's, Wolfe, Wolfe Research Wolfe, Myles Walton, Seth Seifman, Seth M, Seifman Organizations: Alaska Airlines, Boeing, Bank of America Bank of America's, Wolfe Research, JPMorgan, FAA, Federal Aviation Administration Locations: Calhoun, Alaska
Most banks, including UBS and Morgan Stanley, refer clients to third-party consultants to broker deals with auction houses. The bank secured a minimum sale price guarantee and negotiated how the house would market the painting. Courtesy of Bank of AmericaThe bank typically approaches two to three auction houses, such as Christie's, Sotheby's, and Philips. You've got to look at it in the holistic context of the sales strategy and also the financial terms," Watson explained. Advertisement"We try to get them to sharpen their pencil while we still have leverage with the other houses," Watson said.
Persons: Bank of America's Drew Watson, Watson, Morgan Stanley, Henri Rousseau, Whitney, Les, Drew Watson, Price, You've, Merrill Lynch, Birkin Organizations: Service, Bank of America's, UBS, Bank of America, Bank of, of America, Christie's, Philips Locations: Bank
Goldman Sachs Goldman Sachs' Toshiya Hari joined a handful of analysts turning more bullish on the chipmaker following the keynote event, boosting the firm's price target to $1,000 from $875. Wells Fargo Wells Fargo analyst Aaron Rakers said Nvidia didn't shock investors with any unexpected updates, but he still raised his price target to $970 from $840. Sur retained his overweight rating and $850 price target. The analyst retained his $1,100 price target and buy rating, citing the company's ongoing leadership within the AI value chain. The analyst retained his outperform rating and $1,000 price target, calling the company's ongoing expansion beyond chips "unmatched."
Persons: Jensen, Blackwell, Hopper, Huang, Morgan Stanley, Joseph Moore, Goldman Sachs Goldman Sachs, Toshiya Hari, Hari, bode, Aaron Rakers, NVDA, Morgan Stanley Morgan Stanley's Joseph Moore, Moore, Harlan Sur, Sur, Bank of America's Vivek Arya, Bernstein, Bernstein's Stacy Rasgon, Taylor Swift Organizations: Nvidia, Wall, Blackwell, Micron Technology, JPMorgan, NVIDIA, Bank of America, Bank of America's, SAP Center Locations: 2H24, Wells Fargo Wells Fargo, San Jose
GE stock has been on a tear, outperforming the market over the past year, as investors bet that the company's break-up will unlock still more value. Since the health-care spinoff, GE shares have risen above $170 from the $60s. He expects anyone buying GE Vernova shares in April will get "a 50% move over the next fourteen months." GE's aerospace business benefits from a dominant market position where it leads in both widebody and narrowbody jet engines. Still, GE Vernova was a weak spot for the company since 2015, according to analysts.
Persons: haven't, FactSet, Gordon Haskett, Don Bilson, GE's, Andrew Obin, Obin, I've, Tony Bancroft, Scott Deuschle, Deuschle, Bancroft, Larry Culp, Culp, GE Vernova, Michael Bloom Organizations: GE Vernova, New York Stock Exchange, GE, GE Healthcare Technologies, General Electric, GE Healthcare, Bank of America, GE Aerospace, Gabelli, Aerospace & Defense ETF, Deutsche Bank, Bank, America's
Several major Wall Street shops have already beefed up their price targets on the chipmaker heading into the event, with HSBC and Truist joining the flood on Monday. NVDA 1Y mountain Nvidia share performance over the last year According to FactSet, the current consensus price target on Nvidia implies about 4% upside, with 90% of analysts holding a buy or overweight rating. Stein boosted the firm's price target to $1,177 from $911 a share, reflecting 34% upside from Friday's close. "We are encouraged by Nvidia's AI product roadmap which focuses on moving beyond GPUs and towards owning the entire value chain." Wall Street turns more bullish HSBC and Truist may be the latest Wall Street shops to up estimates heading into the GTC Conference, but they are far from the first.
Persons: FactSet, William Stein, Stein, HSBC's Frank Lee, Blackwell, America's Vivek Arya, Cantor Fitzgerald's C.J, Muse, — CNBC's Michael Bloom Organizations: Nvidia, Bank of America, Wall Street, HSBC, Truist, GTC, Bank, America's, NVIDIA
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