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☆ Jim Cramer: This is what I learned from the real first week of earnings season
▼ + stars: | 2023-04-23 | by ( Jim Cramer | ) www.cnbc.com time to read: +10 min

"Simply stated we're in a freight recession." That line, uttered last Monday by Shelley Simpson, president of J.B. Hunt (JBHT), the fourth-largest trucking company in the United States, was the most memorable of the real first week of earnings season. If so, it would know that we're dealing with much more than a freight recession. It's not enough to offset the immense deflationary pressure emanating from the regional banks and the freight recession described by J.B. Hunt. As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade.

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☆ From cooling inflation to a looming recession, here's what CEOs of the 5 largest US banks are predicting for the economy through 2023
▼ + stars: | 2023-04-22 | by ( Morgan Chittum | ) www.businessinsider.com time to read: +4 min

The world's largest banks reported earnings over the past week. Here is what some top bank CEOs are saying about the US economy during their earnings calls this season. JPMorgan CEO Jamie DimonThe Wall Street vet warned investors of looming "storm clouds" ahead. Bank of America CEO Brian MoynihanDuring an earnings call, Moynihan warned of a US recession but said inflation has showed signs of cooling. He allayed fears of a full-blown banking crisis, addressing the turmoil sparked by collapse of specialist banks like SVB last month.

☆ U.S. company comments suggest upbeat demand despite gloomy forecasts
▼ + stars: | 2023-04-21 | by ( Caroline Valetkevitch | ) www.reuters.com time to read: +3 min

The credit card company reported quarterly earnings that missed analysts' expectations, however, as it kept aside a large sum to cover potential defaults. That would mark the second straight quarterly fall for corporate earnings, a so-called "earnings recession" that last occurred when COVID-19 hit corporate results in 2020. Moreover, in aggregate, companies are reporting earnings 7.8% above expectations, compared with a 4.2% average for the prior four quarters. Baker Hughes Co. (BKR.O) said in a presentation this week that the energy outlook remained constructive even with elevated recession risks. Both Delta (DAL.N) and United (UAL.O) gave upbeat near-term outlooks on travel demand, with Delta a week ago saying it expects summer travel demand will result in higher-than-expected profit for the quarter through June despite other risks.

☆ Wall Street aces its real-life stress test
▼ + stars: | 2023-04-20 | by ( John Foley | ) www.reuters.com time to read: +7 min

One flaw in this plan is that the Federal Reserve, which designs the stress test, has tended to assume that when bad times come, interest rates would fall, not rise. Because their clients also fear sudden shifts in interest rates, they call on fixed-income securities desks to help offlay the risk. One clear outcome of higher interest rates is that banks are lending less, and more carefully. Reuters Graphics Reuters GraphicsFollow @johnsfoley on TwitterCONTEXT NEWSLarge U.S. banks reported their first-quarter earnings between April 14 and April 19. Both said that trading revenue had declined from first quarter 2022, but it was substantially higher than the last three months of the year.

[1/2] A Bank of America logo is pictured in the Manhattan borough of New York City, New York, U.S., January 30, 2019. The company "had a strong Q1 as higher interest rates continued to boost its net interest margin despite rising deposit costs," David Fanger, senior vice president at Moody's Investors Service, said. Reuters GraphicsEconomists expect the U.S. economy to slow in the second half of the year as the Federal Reserve raises interest rates to tame inflation. It expects NII to fall 2% in the second quarter compared with the first three months of this year. The company's revenue, net of interest expense, increased 13% to $26.3 billion, beating estimates of $25.13 billion.

☆ Bank of America customers are spending more and that’s supporting U.S. employment, CEO says
▼ + stars: | 2023-04-18 | by ( Hugh Son | ) www.cnbc.com time to read: +1 min

Bank of America 's customers are spending freely on dining, entertainment and other experiences, which in turn supports U.S. employment, CEO Brian Moynihan told CNBC's Becky Quick. The bank's customers boosted spending by 8% in the first three months of this year compared with the year-earlier period, Moynihan told Quick on Tuesday. "They're spending on things frankly which drive employment, meaning they're spending on experiences at amusement parks and theaters or restaurants or outside concerts," Moynihan said. The current dynamic is part of a virtuous cycle that supports employment, versus an earlier boom in hard goods that mostly supported overseas producers, said the CEO of the second biggest U.S. bank by assets. Earlier Tuesday, Bank of America posted first-quarter results that topped expectations as the bank benefited from higher interest rates.

☆ Bank of America CEO Brian Moynihan says inflation signs are 'tipping down,' but there's still a mild recession headed for the US economy
▼ + stars: | 2023-04-18 | by ( Morgan Chittum | ) www.businessinsider.com time to read: +2 min

Bank of America's CEO predicted the US economy will fall into a "slight recession." Brian Moynihan told investors that he sees signs of inflation "tipping down" during an earnings call. "Everything points to a relatively mild recession given the amount of stimulus that was paid to people and the money they have left over." "Everything points to a relatively mild recession given the amount of stimulus that was paid to people and the money they have left over," Moynihan told investors on Tuesday. "And then the wage growth is slowing and tipping over so the signs of inflation are tipping down and it's still there but that translates into relatively good activity, so we see a slight recession."

☆ Stocks making the biggest moves midday: Southwest Airlines, Goldman Sachs, Bellus Health and more
▼ + stars: | 2023-04-18 | by ( Sarah Min | ) www.cnbc.com time to read: +4 min

PowerSchool Holdings – The educational technology stock added 3.5% after Goldman Sachs upgraded shares to buy from neutral. Bank of America – The bank stock was about flat even after the firm reported first-quarter earnings and revenue that topped expectations. Goldman Sachs – Shares slid 1.3% after Goldman Sachs reported first-quarter revenue of $12.22 billion, lower than the $12.79 billion forecasted by analysts polled by Refinitiv. The company reported adjusted earnings of $2.68 per share and revenue of $24.75 billion. Bellus Health, GSK – Bellus shares roughly doubled after GSK said it would acquire Canada-based biopharmaceutical company Bellus.

☆ Big bank investors owe thanks to Team America
▼ + stars: | 2023-04-14 | by ( John Foley | ) www.reuters.com time to read: +4 min

Wells Fargo has managed to keep even more for itself, passing on just 26%. Finance chief Jeremy Barnum reckons $50 billion of deposits flowed into his bank and stayed put, more than offsetting other outflows. Elsewhere in Dimon’s letter, he describes himself as a “red-blooded, patriotic, free-enterprise and free-market capitalist.” Investors may lap that up, but his bank’s earnings show other forces at work too. Wells Fargo reported $4.7 billion of earnings, 34% higher than the previous first quarter, and took a $1.2 billion quarterly provision for credit losses. Citigroup reported $4.3 billion of earnings, a 7% annual increase, while smaller rival PNC made $1.6 billion, an 18% increase.

☆ Buffett tells why he sold most of his bank stocks — except one
▼ + stars: | 2023-04-12 | by ( Sarah Min | ) www.cnbc.com time to read: +1 min

Warren Buffett sold most of his bank stocks except for one — Bank of America. The Berkshire chairman and CEO held on to shares of Bank of America even after recently offloading other large bank stocks, including U.S. Bancorp, Wells Fargo, Goldman Sachs and JPMorgan. The 92-year-old investor said depositors can rest assured their funds remain safe in the wake of the Silicon Valley Bank and Signature Bank collapse last month. But he criticized the banking system for historically failing to punish its corporate leaders, such as during the 2008 financial crisis. As of December, Berkshire Hathaway had a 12.9% stake in Bank of America worth about $29.7 billion, according to CNBC's Berkshire Hathaway portfolio tracker .

☆ Premarket stocks: The US economy is unwell. April could be a cruel month
▼ + stars: | 2023-04-06 | by ( Nicole Goodkind | ) edition.cnn.com time to read: +6 min

New York CNN —After months of a remarkably strong US labor market and economy, everything seems to be slowing down. The question is whether Friday’s monthly jobs report, easily the most anticipated piece of data out this week, will confirm the trend. The unflinching resilience of the US labor market is one of the greatest sources of tension in today’s economy. Over the past year, the Fed has raised interest rates from nearly zero to a range of 4.75% to 5% to cool the economy. A slowdown in the official US jobs report Friday could signal an economic sea change.

☆ Meet the new co-heads of Merrill Lynch as Andy Sieg exits to jump-start Citi's wealth business
▼ + stars: | 2023-03-30 | by ( Hayley Cuccinello | Rebecca Ungarino | ) www.businessinsider.com time to read: +4 min

Merrill Lynch head Andy Sieg is leaving to lead rival Citi's wealth management business. Sieg is leaving for rival bank Citi, where he faces a big challenge when he starts in September: improving Citi's wealth business, which has lagged behind competitors like Merrill and Morgan Stanley Wealth Management. New battles await both Sieg at Citi, where he will be head of Citi Global Wealth, and his successors at Merrill. The move was made after the wealth business had missed revenue targets, the Wall Street Journal reported. Citi CEO Jane Fraser described the wealth management unit's performance as "disappointing" on a call to discuss earnings in January.

☆ Bank of America's Andy Sieg is joining Citi as head of global wealth
▼ + stars: | 2023-03-30 | by ( Darla Mercado | Cfp | ) www.cnbc.com time to read: +1 min

Andy Sieg, a veteran of Merrill Lynch, is parting ways with Bank of America to join Citigroup . He will be the new head of Citi Global Wealth, reporting to Jane Fraser, the bank's CEO. Previously, Sieg was president of Merrill Lynch Wealth Management, a post he's held for six years. He was also a member of Bank of America's executive management team. Separately, Bank of America announced that Lindsay Hans and Eric Schimpf have been appointed presidents and co-heads of Merrill Wealth Management.

☆ First Republic seeks new ways to escape unrealized losses
▼ + stars: | 2023-03-22 | by ( ) www.reuters.com time to read: +5 min

March 21 (Reuters) - First Republic Bank's (FRC.N) efforts to secure a capital infusion continued without success on Tuesday, as the troubled regional lender started to plan for the possibility it may need to downsize or get a government backstop. Bloomberg News reported U.S. officials and Wall Street leaders seeking to aid First Republic were exploring the possibility of government backing that would help overcome the issue of the bank's unrealized losses. JPMorgan is advising First Republic on its options to raise capital from investors, a source familiar with the situation previously said. "There are a number of factors lifting the (financial) stocks, including the comments by Yellen. "We believe First Republic remains in crisis," said Jason Benowitz, senior portfolio manager at CI Roosevelt.

NEW YORK, March 22 (Reuters) - JPMorgan (JPM.N) Chief Executive Jamie Dimon is scheduled to meet with Lael Brainard, the director of the White House's National Economic Council, during the executive's planned trip to Washington, according to a person familiar with the situation. The CEOs of major banks gathered in Washington for a two-day scheduled meeting which started on Tuesday, sources familiar with the matter previously said. The quarterly meeting of the Financial Services Forum included Dimon and Bank of America Corp (BAC.N) CEO Brian Moynihan, who head the nation's two largest lenders, the sources said. The banks were aiming to work out details for what needs to be done for First Republic within the coming 24 hours, another source said. Eleven lenders, including the eight members of the Financial Services Forum, threw First Republic a lifeline of a combined $30 billion in deposits last week.

NEW YORK, March 22 (Reuters) - JPMorgan (JPM.N) Chief Executive Jamie Dimon met Lael Brainard, the director of the White House National Economic Council on Wednesday, while in Washington this week, according to a person familiar with the situation. Brainard met with a range of business leaders including Dimon, part of a series of meetings she has had over the last month with business, labor, advocacy, and academic leaders, the source said. The CEOs of major banks gathered in Washington for a two-day meeting which started on Tuesday, sources familiar with the matter previously said. The banks were aiming to work out details for what needs to be done for First Republic within the coming 24 hours, another source said. On Tuesday, Reuters reported First Republic is examining how it can downsize and sell parts of its business, including some of its loan book, in a bid to raise cash and cut costs.

☆ First Republic slumps after report of potential government backing in deal
▼ + stars: | 2023-03-21 | by ( ) www.reuters.com time to read: +5 min

March 21 (Reuters) - Shares of First Republic Bank (FRC.N) tumbled 14% in extended trade on Tuesday following a report that a potential deal for the troubled bank could rely on government backing to encourage buyers. Potential government backing in a deal to save First National could involve conditions at the expense of the bank's shareholders, said Dennis Dick, a trader at Triple D Trading in Ontario, Canada. While a sale of the entire bank remains possible, First Republic is currently focused on raising capital, the third source said. First Republic's shares had surged as much as 60% on Tuesday before closing up 30%, but even so First Republic's stock has lost over 80% in value in the past two weeks. JPMorgan is advising First Republic on its options to raise capital from investors, a source familiar with the situation previously said.

☆ First Republic's future to be discussed as major bank CEOs meet, sources say
▼ + stars: | 2023-03-21 | by ( ) www.reuters.com time to read: +2 min

NEW YORK, March 21 (Reuters) - Major bank chief executives are gathering in Washington for a two-day scheduled meeting starting on Tuesday, with the future of First Republic Bank (FRC.N) to be discussed, sources familiar with the matter said. The quarterly meeting of the Financial Services Forum will include JPMorgan Chase & Co.'s (JPM.N) Jamie Dimon and Bank of America Corp's (BAC.N) Brian Moynihan, the sources said. First Republic Bank is among the banks that have been speaking to peers and investment firms about potential deals in the wake of U.S. regulators taking over Silicon Valley Bank (SIVB.O) and Signature Bank (SBNY.O) this month amid a flight of depositors, sources have said. Two sources familiar with the matter previously said that all options are on the table for First Republic, which could include a sale or equity infusion. JPMorgan Chase & Co (JPM.N) is advising First Republic on its options to raise capital from investors, a source familiar with the situation previously said.

☆ The most closely watched recession indicator is telling markets that a downturn won't materialize for another 2 years, Credit Suisse chief stock strategist says
▼ + stars: | 2023-03-09 | by ( Jennifer Sor | ) www.businessinsider.com time to read: +3 min

The most closely watched recession indicator is saying a downturn won't happen for another two years. That's because the Treasury futures market suggests the yield curve inversion will last until 2026, Credit Suisse's Jonathan Golub said. Golub predicted a downturn to strike in August 2025 based on historical data. When short term bond yields surpass longer term yields, it is a notorious indicator of an incoming recession. On the more bearish end, Morgan Stanley's chief stock strategist warned of a 26% stock market crash, as higher interest rates weigh on equities.

ET (1500 GMT), with investors awaiting his comments on the Fed's steps aimed at bringing inflation towards its 2% target. Rising bond yields tend to weigh on equity valuations, particularly those of growth and technology stocks, as higher rates reduce the value of future cash flows. ET, Dow e-minis were up 25 points, or 0.07%, S&P 500 e-minis were up 6.25 points, or 0.15%, and Nasdaq 100 e-minis were up 32.5 points, or 0.26%. Dick's Sporting Goods (DKS.N) rose 6.1% after the retailer forecast annual earnings above Wall Street estimates and more than doubled its quarterly dividend. Reporting by Sruthi Shankar and Bansari Mayur Kamdar in Bengaluru Editing by Vinay DwivediOur Standards: The Thomson Reuters Trust Principles.

☆ Dollar rises ahead of Powell speech; China data knocks commodities
▼ + stars: | 2023-03-07 | by ( Amanda Cooper | ) www.reuters.com time to read: +5 min

Beyond China, investor focus remains on the U.S. interest rate outlook and what Powell may say. If a similar message is conveyed by Chair Powell, we could see U.S. Treasury yields rising again and the dollar reversing back to an uptrend," they said. The MSCI All-World index of global shares (.MIWD00000PUS) edged down by 0.1%, but held near Monday's two-week highs. That pushed the Australian dollar to a more than two-month low of $0.6664, marking a loss of 1% on the day. The dollar pared earlier losses against the yen to trade up 0.2% at 136.19, near last week's 2023 high at 137.10.

ET (1500 GMT), with investors awaiting his comments on the Fed's steps aimed at bringing inflation towards its 2% target. Rising bond yields tend to weigh on equity valuations, particularly those of growth and technology stocks, as higher rates reduce the value of future cash flows. Traders see Fed fund rates peaking at 5.46% by September, from the current 4.67%. ET, Dow e-minis were up 12 points, or 0.04%, S&P 500 e-minis were up 5.5 points, or 0.14%, and Nasdaq 100 e-minis were up 29.25 points, or 0.24%. Reporting by Sruthi Shankar and Bansari Mayur Kamdar in Bengaluru Editing by Vinay DwivediOur Standards: The Thomson Reuters Trust Principles.

☆ Dollar inches up ahead of Powell speech; China data knocks oil
▼ + stars: | 2023-03-07 | by ( Amanda Cooper | ) www.reuters.com time to read: +5 min

Crude shipments into China fell in January and February, stirring concern about demand in the world's largest importer, which weighed on the oil price. Beyond China, investor focus remains on the U.S. interest rate outlook and what Powell may say. The dollar edged up against a basket of major currencies, thanks to gains against the Aussie dollar and the euro, which fell 0.2% to $1.0661. The dollar lost 0.2% against the yen to trade at 135.69, below last week's 2023 high at 137.10. Chinese trade data on Tuesday showed a pickup in crude oil imports - a sign of a likely improvement in energy demand.

☆ Asian stocks slip on weak China trade data, focus shifts to Powell
▼ + stars: | 2023-03-07 | by ( Scott Murdoch | Thomson Reuters | Scott Murdoch Has Been A Journalist For More Than Two Decades Working For Thomson Reuters | ) www.reuters.com time to read: +4 min

Data on Tuesday showed China's exports and imports both fell sharply in January-February, reflecting a slowdown in the global economy and weak domestic demand. MSCI's broadest index of Asia-Pacific shares outside Japan (.MIAPJ0000PUS) fell 0.3%, although the index is up 2.9% so far this month. Beyond China, investor focus remains on the U.S. interest rate outlook and what Powell may say. The two-year yield , which rises with traders' expectations of higher Fed fund rates, touched 4.88% compared with a U.S. close of 4.894%. In early European trade, the pan-region Euro Stoxx 50 futures were up 0.12%, German DAX futures rose 0.11% at and FTSE futures were 0.23% higher.

MSCI's broadest index of Asia-Pacific shares outside Japan (.MIAPJ0000PUS) was flat after U.S. stocks ended the previous session with mild gains. The two-year yield , which rises with traders' expectations of higher Fed fund rates, touched 4.8945% compared with a U.S. close of 4.894%. Australian shares (.AXJO) were 0.1% lower after being down 0.3% earlier in the session, while Japan's Nikkei stock index (.N225) rose 0.5%. "In the next couple of days the congressional testimony will be critical for markets. Investors have repriced what they think the Fed will do with interest rates in March and into the second quarter," said Tai Hui, JPMorgan Asset Management's chief Asian market strategist.

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