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☆ What’s really going on with bank stocks
▼ + stars: | 2024-02-02 | by ( Elisabeth Buchwald | ) edition.cnn.com time to read: +4 min

Word quickly spread on Wall Street that the regional bank was under pressure, igniting a bout of selling of other bank stocks over fears of contagion. The KBW Regional Banking Index closed down 6% on Wednesday. Unlike many fellow regional banks, it held on to the vast majority of its deposits. He also highlighted that the banks’ losses were tied to faulty office building loans. The selloff that hit other regional bank stocks is “likely overdone given idiosyncratic factors tied to NYCB,” Bank of America analysts said in a note on Thursday.

Persons: Zions, NYCB, Thomas Cangemi, Chris Marinac, Janney Montgomery Scott, CNN he’s, ”, ” NYCB, That’s, It’s, isn’t, ” Marinac, “ Organizations: New, New York CNN, Federal Reserve, New York Community Bancorp, Western Alliance Bancorp, York Community Bancorp, Bank, CNN, ” Bank of America, Aozora Bank, First Republic, Valley Bank Locations: New York, ZION, York

☆ Americans are getting ‘ripped off’ by big banks, Robinhood CEO says
▼ + stars: | 2023-11-15 | by ( Matt Egan | ) edition.cnn.com time to read: +5 min

New York CNN —Robinhood is trying hard to lure customers fed up with traditional banks that pay little to no interest on savings. To attract deposits, the stock trading app made famous by the GameStop craze is offering fatter and fatter interest rates. That’s far higher than traditional banks and among the highest in the industry. We see an opportunity to correct that,”Tenev argued this has long been part of the “playbook” of traditional banks. The Robinhood rate of 5% applies to new and existing customers of Robinhood Gold, a subscription service that costs $5 a month.

Persons: New York CNN — Robinhood, ”, Vlad Tenev, ” Tenev, Robinhood, Roth, “, Tenev, We’re Organizations: New, New York CNN, GameStop, CNN, Federal Reserve, American Bankers Association, Bank, AMC, of America, ” Bank of America Locations: New York

☆ Powell made a big statement this week after bond yields slid. Here’s why
▼ + stars: | 2023-11-12 | by ( Elisabeth Buchwald | ) edition.cnn.com time to read: +5 min

The swift rise in long-term US Treasury yields over the past few months caused headaches for investors by dragging many of their portfolios down. Bond yields, namely the yield on the 10-year Treasury note, dictate the interest rates on credit cards, mortgages and auto loans. Fed Chair Jerome Powell addressed that at this month’s post-meeting press conference, saying he couldn’t pinpoint exactly why yields rose so much in recent weeks. Hours before Powell’s post-meeting remarks, bond yields plunged following the Treasury Department’s quarterly refunding announcement. That’s as opposed to letting bond yields do the Fed’s work for it.

Persons: Jerome Powell, “, Powell, Kathleen O’Neill Paese, Louis Fed, ”, Powell’s, Wall, John Madziyire, Joe Kalish, Ned Davis, Kalish, ” Powell, Celal, That’s Organizations: New, New York CNN, Federal Reserve, Treasury, Fed, Vanguard, Ned, Ned Davis Research, CNN, ” Bank of America, International Monetary Fund, Getty, Bank of America Locations: New York, Washington ,, Anadolu

☆ More Americans are yanking money from their 401(k) plans to pay the bills
▼ + stars: | 2023-11-07 | by ( Matt Egan | ) edition.cnn.com time to read: +3 min

The growing reliance on 401(k) plans as a source of urgent cash is further evidence of consumer financial stress heading into the 2024 election year. Despite high GDP and low unemployment, some Americans are clearly facing a cash crunch and struggling to pay the bills. Bank of America said the number of 401(k) participants taking hardship distributions increased by 27% from the first quarter of this year. Bank of America found 401(k) contribution rates were steady during the third quarter at 6.5%. Just under 3% of those age groups are cutting back on their retirement savings.

Persons: Lisa Margeson, America’s Margeson, “, Gen Organizations: New, New York CNN, Bank of America, Bank of, New York Federal, ” Bank, America’s Locations: New York

☆ Banking industry direct deposit delays: Customers of Bank of America, Chase, and more have reported payment issues
▼ + stars: | 2023-11-06 | by ( Matt Egan | ) edition.cnn.com time to read: +5 min

New York CNN —Some customers still haven’t received their direct deposit paychecks following a “human error” last week deep in the plumbing of America’s banking system. The deposit delays are linked to a problem that emerged on Friday with the Automated Clearing House (ACH) payments system, causing headaches for consumers and employers. An industry source confirmed to CNN on Monday that it’s likely some customers haven’t received their deposits yet. Clearing house says it was a ‘manual error’Asked for comment, multiple banks referred inquiries to The Clearing House, which is owned by the largest commercial banks including Bank of America, JPMorgan Chase, CitiBank and Wells Fargo. The Clearing House did not provide an updated comment on Monday or any timetable for when the problem will be fully resolved.

Persons: haven’t, Banks, Chase, ”, Downdetector, Wells, “ Wells, Wells Fargo, Jim Seitz, ” Chase, Greg MacSweeney, MacSweeney, Dennis Kelleher, ” Kelleher Organizations: New, New York CNN, CNN, Consumer Financial, Bureau, Bank of America, US Bank, Twitter, “, ” Bank of America, JPMorgan Chase, CitiBank, House, Federal Reserve, Fed, ACH Network, Better Locations: New York, Wells Fargo, ACH, United States

Meanwhile, Boeing and Spirit, a supplier for the U.S. planemaker and European rival Airbus(AIR.PA), are contending with a lapse involving misdrilled holes on Boeing’s 737 MAX. Boeing is expected to report a loss of $2.23 per diluted share, compared with a loss of $5.49 a year ago. Spirit is projected to report a loss of $1.03 a share, compared to a loss of $1.22 a year earlier, according to LSEG data. The target may no longer be achievable if Boeing can no longer meet its goal of delivering 400 737s this year. Spirit, which reports Nov. 1, has already revealed preliminary results as part of a new price agreement with Boeing.

Persons: Benoit Tessier, Whitney, Rob Stallard, ” RTX, Ron Epstein, Vertical's Stallard, Patrick Shanahan, Pat, Michel Merluzeau, Shanahan, Valerie Insinna, Pratyush Thakur, Ben Klayman, Josie Kao Organizations: Boeing, International Paris Air, Le, REUTERS, Rights, Pratt, U.S, Airbus, Research, LSEG, ” Bank of America, Thomson Locations: Le Bourget, Paris, France, Washington, Bengaluru

Retail sales increased 0.7% in September, driven by nonstore retailers and spending at food and drinking establishments, the Census Bureau reported on Tuesday. Even after stripping out autos, as some analysts do, the increase was 0.6%, way above estimates of a 0.2% gain. As long as those trends remain positive, consumers will feel they have the wherewithal to continue shopping. “Consumer spending has been fairly flat over the last two months,” according to Bank of America Institute’s Consumer Checkpoint October report. However, the wages and salaries of higher-income households are still growing at slower rates than other income cohorts.”Many retailers will be looking to the critical holiday season for a boost in sales.

Persons: ”, Ted Rossman Organizations: Census, Bankrate.com, “, Federal Reserve, Employers, Labor Department, Bank of America, ” Bank of America, Cyber, Signifyd’s Commerce

☆ JCPenney CEO: Working families are struggling to get by as inflation bites
▼ + stars: | 2023-09-05 | by ( Matt Egan | ) edition.cnn.com time to read: +4 min

New York CNN —JCPenney CEO Marc Rosen sees plenty of evidence that working-class families are struggling. “And that customer is facing a tougher economic environment.”The JCPenney CEO pointed to the snowballing effect inflation has had on family budgets, noting that the typical household is spending about $700 more per month than they did two years ago for the same goods and services. He pointed to strong private brand sales for apparel as well as for home goods like cookware and small appliances such as blenders and toasters. The JCPenney CEO wouldn’t directly answer whether the department store plans to return to the public markets through an initial public offering. “We think there are a lot of advantages right now to being a private company,” Rosen said, noting that JCPenney’s owners are reinvesting in the company and are taking a “long-term perspective” on that investment.

Persons: Marc Rosen, Liz Claiborne, Rosen, ” Rosen, delinquencies, “, JCPenney, wouldn’t Organizations: New, New York CNN, CNN, “, JCPenney, New York Federal Reserve, ” Bank of America, Simon Property Group, Brookfield Asset Management Locations: New York

☆ Some of America's poorest communities are landing clean energy projects
▼ + stars: | 2023-08-16 | by ( Matt Egan | ) edition.cnn.com time to read: +5 min

This is just one example of a struggling community that has landed a major investment in clean energy since President Joe Biden signed the Inflation Reduction Act into law exactly one year ago Wednesday. The $750 billion law — the largest climate investment in US history — has helped spark a boom in private investment, especially in clean energy, electric vehicles and batteries. Importantly, many of these clean energy projects are set to be built in communities that really need the help. New plants could bring people into the labor force who have been left behind,” the Treasury analysis finds. The $4.4 billion investment is expected to create 300 new jobs and support countless existing ones.

Persons: Joe Biden, —, Wally Adeyemo, ‘, it’s, ” Daniel Yergin Organizations: New, New York CNN, Adams Fork Energy, CNX Resources, Treasury Department, CNN, Honda, LG Energy, Treasury, Bank of America, ” Bank of America, P, P Global Locations: New York, Mingo County , West Virginia, Mingo County, Fayette County , Ohio, Columbus, Marysville , Ohio

☆ Biden's climate law has led to 86,000 new jobs and $132 billion in investments, new report says
▼ + stars: | 2023-08-14 | by ( Nathaniel Meyersohn | ) edition.cnn.com time to read: +3 min

More than 270 new clean energy projects have been announced since the passage of the Inflation Reduction Act (IRA), with private investments totaling $132 billion, according to the report. These investments are expected to be accompanied by more than 86,000 jobs, including 50,000 jobs related to electric vehicles. The Inflation Reduction Act “is not only working to strengthen supply chains but also to boost domestic manufacturing and create new jobs,” Bank of America said in the report. The nearly $370 billion clean energy and climate package, which passed on a party-line vote, was the largest climate investment in US history. The law is driving the most clean energy job growth in Georgia, South Carolina, Nevada and Tennessee.

Persons: it’s, Joe Biden, Biden, ” Organizations: New, New York CNN, of America, ” Bank of America, White, Bank of America, Washington Post Locations: New York, EVs, Georgia , South Carolina , Nevada, Tennessee, Wisconsin

☆ US inflation means families are spending $709 more per month than two years ago
▼ + stars: | 2023-08-11 | by ( Matt Egan | ) edition.cnn.com time to read: +2 min

New York CNN —US inflation has had a snowballing effect on family budgets. The typical American household spent $709 more in July than they did two years ago to buy the same goods and services, according to Moody’s Analytics. That figure underscores the cumulative impact high inflation has had on consumer finances — even as price growth has cooled considerably in recent months. Most of that increase in spending is driven by housing costs, which have surged, Zandi told CNN in an email on Friday. Inflation-adjusted earnings are stuck in 2019Even though prices have soared, real earnings, which adjust for inflation, are stuck at late 2019 levels.

Persons: Mark Zandi, Zandi, ” Zandi Organizations: New, New York CNN, Moody’s, Twitter, CNN, Federal, ” Bank of America Locations: New York

☆ Not everyone is convinced the US will avoid a recession
▼ + stars: | 2023-08-07 | by ( Krystal Hur | ) edition.cnn.com time to read: +8 min

New York CNN —The case for no US recession is building, but some on Wall Street are cautioning against getting overconfident. That has raised hopes among investors that the United States could avoid a recession despite the Federal Reserve’s aggressive pace of interest rate hikes. Still, some investors are maintaining that the US economy could tip into a recession later this year. The index of leading economic indicators is just kind of at an extreme rating. One of the reasons for the rise in equity valuations in recent weeks was the pricing out of recession or economic weakness.

Persons: Michael Gapen, Michael Feroli, ”, Bell, David Donabedian, we’ve, There’s, Catherine Thorbecke, Danielle Romain, Romain, Read, Uno Mattel, Uno Quatro, Ellie Stevens, “ We’re, Ray Adler Organizations: CNN Business, Bell, New York CNN, Bank of America, ” Bank of America, JPMorgan Chase’s, CIBC Private Wealth, Fitch, Google, Trust, Mattel, Uno Locations: New York, United States, New York City

☆ What to expect from the jobs report: Steady, but cooler growth
▼ + stars: | 2023-08-04 | by ( Alicia Wallace | ) edition.cnn.com time to read: +8 min

But markets and economists are expecting another solid jobs report Friday morning. And while economic data isn’t typically the sexiest of topics, the government’s jobs report has in recent months delivered plenty of excitement and its fair share of surprises. Last July, for example, the US economy added 568,000 jobs — more than double the 250,000 that economists had expected. Come Friday, the government’s jobs report for this July might not end up being quite so shocking. In fact, it could be relatively humdrum: A slight cooling in job growth, and unemployment holding steady.

Persons: Minneapolis CNN — Fitch, ”, Daniel Zhao, Refinitiv, Chris Rupkey, That’s, Michael Gapen, Janet Yellen, Glassdoor’s Zhao, ” Zhao, there’s, ” Andy Challenger, Challenger, ” Gus Faucher, they’re, Becky Frankiewicz, “ Organizations: Minneapolis CNN, Glassdoor, Bank of America, ” Bank of America, Business, Conference Board, Fitch, Challenger, “ Companies, Labor Department, “, PNC Financial Services Group, CNN, Labor Statistics, BLS, “ Employers, ManpowerGroup Locations: Minneapolis, United States

☆ What to expect from the July jobs report: Steady, but cooler growth
▼ + stars: | 2023-08-03 | by ( Alicia Wallace | ) edition.cnn.com time to read: +7 min

Minneapolis CNN —Despite Tuesday’s credit rating downgrade amid concerns about the challenges facing the United States, markets and economists are expecting another solid jobs report on Friday. And while economic data isn’t typically the sexiest of topics, the monthly jobs report has in recent months delivered plenty of excitement and its fair share of surprises. Come Friday, the government’s jobs report for this July might not end up being quite so shocking. In fact, it could be relatively humdrum: A slight cooling in job growth, and unemployment holding steady. The broader economic scorecard for the United States makes the downgrade all the more “bizarre” and puzzling, noted top economists, including Treasury Secretary Janet Yellen.

Persons: ”, Daniel Zhao, Refinitiv, Chris Rupkey, That’s, Michael Gapen, Janet Yellen, Glassdoor’s Zhao, ” Zhao, there’s, ” Andy Challenger, Challenger, Gus Faucher, they’re, Becky Frankiewicz, “ Organizations: Minneapolis CNN, Glassdoor, Bank of America, ” Bank of America, Fitch, Challenger, “ Companies, PNC Financial Services Group, CNN, Labor Statistics, BLS, “ Employers, ManpowerGroup Locations: Minneapolis, United States

That special fee, which the FDIC proposed in May, would be assessed based on their uninsured deposits at the end of 2022. The regulator said some banks were "not reporting estimated uninsured deposits in accordance with the instructions." A July 6 report by S&P Global noted 55 banks restated their fourth-quarter uninsured deposits in FDIC reports, more than twice the norm. Specifically, the FDIC reminded banks they must report uninsured deposits backed by pledged assets as well as uninsured deposits held at their own subsidiaries. “Earlier this year, we identified certain internal or intra-bank accounts that shouldn’t have been reported,” Bank of America spokesman Bill Halldin said.

Persons: Zions, Paul Burdiss, Bill Halldin, Bank spokespeople, Niket, Pete Schroeder, Tatiana Bauzer, Shweta Agarwal, Megan Davies Organizations: U.S, Federal Deposit Insurance Corporation, Valley Bank, FDIC, P Global, Bank of America, ” Bank of America, P, Huntington National Bank, Bank, Bank Policy Institute, Thomson Locations: Bengaluru, Washington

☆ Dow surges over 700 points as investors cheer jobs report and debt ceiling deal
▼ + stars: | 2023-06-02 | by ( Krystal Hur | ) edition.cnn.com time to read: +2 min

New York CNN —The Dow surged over 700 points mid-afternoon Friday as investors applauded Congress’s passage of the debt ceiling deal and celebrated a cheerful jobs report. The blue-chip index soared 734 points, or 2.2%, putting it on track for the best daily gain since November 2022. A mixed May jobs report also helped boost stocks. “The May jobs report is a particularly difficult one for the Fed to parse,” Bank of America economists wrote in a Friday note. “We think the May jobs report is just soft enough to justify a hold.”

Persons: —, ”, Keith Lerner Organizations: New, New York CNN, Dow, Nasdaq, Senate, Advisory Services . Futures, ” Bank of America Locations: New York, United States

☆ Initial jobless claims increase for fourth consecutive week
▼ + stars: | 2023-05-18 | by ( Alicia Wallace | ) edition.cnn.com time to read: +3 min

Minneapolis CNN —The number of first-time claims for weekly jobless benefits fell last week to 242,000, down 22,000 from 264,000 the week before, according to data published Thursday by the Department of Labor. Continuing claims, which are filed by people who have received jobless benefits for more than one week, dipped to 1.799 million for the week ended May 6 from a revised 1.807 million the week prior. The outsized influence of Massachusetts’ claims was an anomaly, BofA economists wrote, noting that the state’s total employment accounts for under 3% of overall US employment, and its initial jobless claims are typically under 3% of all weekly US claims. When excluding and recalculating filings in Massachusetts, initial claims have instead moved “sideways,” pointing to limited layoffs, economists Stephen Juneau and Michael Gapen wrote. Weekly jobless claims remain below historical averages: In the decade before the pandemic, weekly claims averaged 311,000.

☆ Wall Street says bad news is no longer good news. Here’s why
▼ + stars: | 2023-04-09 | by ( Krystal Hur | ) edition.cnn.com time to read: +6 min

New York CNN —There’s been a seismic shift in investor perspective: Bad news is no longer good news. Markets teetered after a slew of economic reports signaled that the red-hot labor market is finally cooling (more on that later), flashing warning signals across Wall Street. Now that Wall Street is in “bad news is bad news and good news is good news” mode, it will be looking for signs that the economy remains resilient. President Joe Biden said in a statement Friday that the March data is “a good jobs report for hard-working Americans.”The March jobs report revealed that US employers added a lower-than-expected 236,000 jobs last month. The jobs report was also the first one in 12 months that came in below expectations.

☆ Bank of America CEO: We're preparing for possible debt default
▼ + stars: | 2023-02-06 | by ( Paul R. La Monica | ) edition.cnn.com time to read: +3 min

The CEO of Bank of America (BAC), America’s second-largest bank, told CNN he hopes lawmakers resolve their issues, because the market and economy love stability. “We have to be prepared for that, not only in this country but in other countries around the world,” Bank of America CEO Brian Moynihan told Poppy Harlow on “CNN This Morning” Monday. Yellen subsequently said there could be a “global financial crisis” if there is no debt limit agreement. Extremely low,” Moynihan told Harlow. He told Harlow that given China’s importance in the global supply chain, it’s in everyone’s interests to not have any economic tensions escalate.

☆ Bank earnings become a post-Covid parlor game
▼ + stars: | 2023-01-23 | by ( John Foley | ) www.reuters.com time to read: +6 min

Chief among the mysteries is how much interest banks will harvest in 2023 and beyond. Even then, the link between benchmark interest rates and the rate banks actually charge is getting harder to forecast. Bank of America boss Brian Moynihan said that depositors who used to have roughly $3,500 with the bank now have almost four times more. Goldman just laid off 6% of its workforce, but it remains bigger than it was in 2019; Bank of America says it’s still hiring. To that end, the fog is arguably less troublesome for Goldman and Morgan Stanley than it is for JPMorgan, Bank of America and Citigroup (C.N).

On the heels of Tuesday's lower-than-expected inflation reading, the Federal Reserve is expected to tap the brakes Wednesday on its aggressive rate-raising plan designed to cool price growth in the U.S. economy. In addition to the slower price growth, layoff announcements are mounting. Notably, demand for bonds has increased, reflecting growing interest in more stable returns that are often correlated with slower economic growth. Out with inflation worries, in with recession fearsKey stock market gauges, meanwhile, continue to decline on concerns about flagging corporate earnings. If it was still worried about inflation, then interest rates, energy and banks would all be higher.

☆ Premarket stocks: Betting on a market bounce? You may be waiting a while
▼ + stars: | 2022-12-12 | by ( Nicole Goodkind | ) edition.cnn.com time to read: +7 min

New York CNN —‘Tis the season for Wall Street strategists to pack their clients’ inboxes with market predictions for 2023. Market analysts aren’t alone. “US equity returns will be driven by earnings against a backdrop characterized by elevated market volatility,” write JPMorgan analysts. The effort was initially touted as a “Big Bang 2.0” — a nod to the rapid deregulation of UK financial markets under former Prime Minister Margaret Thatcher in 1986. The changes are a bid to maintain London’s role as a global financial hub after Brexit, which, alongside political turmoil, has boosted uncertainty for companies thinking about where to invest.

☆ Walmart enters the metaverse with Roblox experiences
▼ + stars: | 2022-09-26 | by ( Ramishah Maruf | ) edition.cnn.com time to read: +2 min

New York CNN —Walmart (WMT) has entered the metaverse. The retail giant announced Monday it is launching two immersive online experiences with Roblox, a metaverse mega-platform extremely popular with young kids. Its virtual dressing room offers products such as afp4, Halsey’s makeup brand, and YouTubers Brooklyn and Bailey’s skincare line with Walmart. Roblox began trading last March, immediately valuing the company at $45 billion when it debuted on Wall Street. Despite the buzz around the metaverse, Roblox shares have dropped almost 64% year-to-date.

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