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Oct 20 (Reuters) - Shares of mid-sized U.S. banks fell on Friday after a string of earnings reports heightened investor concerns that the boost to lenders from the Federal Reserve's interest rate hikes was tapering off. Regions Financial (RF.N) dropped to the lowest level since March, when an industry crisis began following an outflow of deposits that engulfed three banks. The lender, shares of which were last down 11% at $14.71, said it expects net interest income (NII) in the fourth quarter to decline about 5% from current levels. Huntington Bancshares' (HBAN.O) stock dipped 1.3%, while Comerica (CMA.N) dropped 6.6%, dragging down the S&P 500 Banks index (.SPXBK) by 2.1%. Huntington Bancshares posted an 8% drop in third-quarter profit as interest income declined.
Persons: Wells, Mike Mayo, Mayo, Terry McEvoy, Huntington Bancshares, NII . Huntington Bancshares, Jaiveer Singh, Shilpi Majumdar Organizations: Regions, Regions Financial, Reuters, Stephens, Comerica, Third Bancorp, Thomson Locations: NII ., Bengaluru
Check out the companies making the biggest moves in premarket trading: SolarEdge Technologies — The solar stock tumbled nearly 29% after the company lowered its third-quarter guidance post market Thursday. Revenue came in at $1.74 billion, versus the $1.77 billion expected from analysts polled by LSEG. Net interest also fell short at $1.29 billion, versus the $1.32 billion expected. Analysts surveyed by LSEG expected 36 cents per share and $1.89 billion of revenue. Analysts polled by LSEG expected a profit of $2.94 per share on revenue of $15.36 billion.
Persons: SolarEdge, Zvi Lando, Sunnova, Swift, LSEG, David Jackson, , Jesse Pound Organizations: Technologies, Deutsche Bank, Enphase Energy, Schlumberger, Revenue, LSEG, StreetAccount, American Express Locations: SolarEdge
Stock futures dipped Thursday evening as traders focused on a recent run higher in the 10-year Treasury yield. S&P 500 futures fell nearly 0.2% and Nasdaq 100 futures dropped about 0.4%. The 30-stock Dow shed 250.91 points, or 0.75%, while the S&P 500 lost 0.85%. The yield on the benchmark 10-year Treasury also surged as high as 4.996%, trading at levels last seen in 2007. The S&P 500 is down 1.2% through Thursday's close, while the Nasdaq is off 1.7%.
Persons: Stocks, Jerome Powell, Powell, Dow Organizations: New York Stock Exchange, Dow Jones, Nasdaq, SolarEdge, Swift Transportation, Dow, Treasury, Comerica, Regions Financial, American Express Locations: New York, Thursday's
Regional banks will be in focus in the week ahead as traders head into the thick of third-quarter earnings season. Regional bank earnings are also expected to be a weak point this season. But a closer look into the sector's sub-industries showed that regional banks are anticipated to have tumbled by 15% last quarter. Traders parsing through regional bank earnings will pay special attention to signs of narrowing net interest margins (NIM). Earnings season underway Many investors anticipate that the third-quarter earnings season will be alright.
Persons: Wells, Kumar, FactSet's John Butters, NIM, They'll, JPMorgan Chase, Jamie Dimon, Goldman Sachs, Morgan Stanley, FactSet's Butters, Nancy Tengler, Lauren Goodwin, we'll, Goodwin, Charles Schwab, Lockheed Martin, Goldman, Zions, Kinder Morgan, Lam, McLennan, Philip Morris, Huntington Bancshares, , Jesse Pound Organizations: Citigroup, JPMorgan Chase, Sri, Kumar, Silicon Valley Bank, Regional Banking, Dow Jones Industrial, JPMorgan, Hamas, Northern Trust, U.S . Bancorp, T Bank, Citizens Financial, Bank of America, Federal Reserve, Companies, Investments, New York Life Investments, Index, Johnson, Bank of New York Mellon, Goldman Sachs Group, Hunt Transport Services, Omnicom, United Airlines Wednesday, Housing, Elevance, Citizens Financial Group, Procter, Gamble, Abbott Laboratories, Discover Financial Services, Las Vegas Sands, PPG Industries, Steel Dynamics, Tesla, Netflix, Lam Research, Philadelphia Fed, Truist, Alaska Air Group, Fifth Third Bancorp, American Airlines Group, Marsh, Philip Morris International, Union, CSX, Comerica, Regions Financial, American Express, Interpublic, Cos Locations: Wells Fargo, Silicon, Ukraine, Israel, J.B, Las Vegas, Philadelphia, Truist Financial, Union Pacific, Freeport, Huntington
Markets could remain under pressure through the end of the year, and high dividend stocks are one option to help investors through the uncertainty, according to Morgan Stanley. Investors are also assessing pressures on the market driven by the surprise attack on Israel by Palestinian militant group Hamas over the weekend. To play another potential breakdown in the market, Morgan Stanley highlighted several dividend stocks that combine yield (how much a company pays out in dividends each year), dividend growth (how much that dividend grows over a period of time) and stability, and that look attractive on a three- to five-year basis. Morgan Stanley projects yields of 9.6% for Energy Transfer in 2024 and 9.9% for MPLX, a master limited partnership created out of Marathon Petroleum that operates crude oil and refined product pipelines. The bank's preference in tobacco is Philip Morris , whose 2024 dividend yield could be 5.5%, according to Morgan Stanley.
Persons: Morgan Stanley, Mike Wilson, Wilson, Philip Morris, they're, Hess, Morgan Stanley's, — CNBC's Michael Bloom Organizations: Hamas, Energy, Marathon Petroleum, Procter & Gamble, Colgate, Palmolive, Financial, Verizon Locations: Israel, Palestinian
Morgan Stanley names its top dividend-paying stock picks
  + stars: | 2023-09-28 | by ( Darla Mercado | Cfp | ) www.cnbc.com   time to read: +2 min
When picking dividend-paying stocks to stabilize your portfolio in tumultuous times, don't just go for higher yields — look for the growers, according to Morgan Stanley. Dividend-paying stocks have outperformed nondividend payers across all large-cap sectors going back to 2000, except for consumer discretionary, Morgan Stanley said. Energy Transfer , a company that operates in the natural gas pipeline industry, is rated overweight by Morgan Stanley analyst Robert Kad. Morgan Stanley also likes Mondelez International , the company behind Sour Patch Kids candy and Oreo cookies. Morgan Stanley anticipates banks will be able to grow their dividends about 5% in 2024.
Persons: Morgan Stanley, Morgan Stanley's, Robert Kad, Pamela Kaufman, Betsy Graseck, — CNBC's Michael Bloom Organizations: Mondelez, Financial, Regions Locations: outperformance, Birmingham , Alabama
What does Moody’s downgrade mean for markets?
  + stars: | 2023-08-09 | by ( Krystal Hur | ) edition.cnn.com   time to read: +5 min
CNN —Moody’s on Monday evening downgraded 10 US banks and put the credit ratings of six others on review, an indication that the agency could also eventually downgrade those institutions. Some investors say that while the Moody’s downgrade isn’t groundbreaking, it’s a reminder that the economy, and markets, still have challenges ahead. Moody’s downgraded Commerce Bank, BOK Financial, M&T Bank, Old National Bank, Prosperity Bank, Amarillo National Bank, Webster Financial, Fulton Financial, Pinnacle Financial and Associated Bank. Wall Street firms fined $549 million for using WhatsApp and other channelsWells Fargo is among a number of Wall Street firms that admitted Tuesday to using WhatsApp, Signal and other messaging platforms for “off-channel” communications in violation of federal recordkeeping requirements. The Securities and Exchange Commission said the Wall Street firms acknowledged wrongdoing and have agreed to pay penalties totaling $289 million, reports my colleague Matt Egan.
Persons: CNN — Moody’s, JPMorgan Chase, Wells, Goldman Sachs, BNY, Cullen, Frost, ” Moody’s, , Kara Murphy, Fitch, Christopher Marinac, Janney Montgomery Scott, Price, Matt Egan, Houlihan Lokey, Alicia Wallace Organizations: CNN Business, Bell, CNN, Bank, Dow Jones, Nasdaq, JPMorgan, Banking, BNY Mellon, Northern Trust, Frost Bankers, Truist Financial, US Bank, Moody’s, Commerce Bank, BOK, T Bank, National Bank, Prosperity Bank, Amarillo National Bank, Webster Financial, Fulton Financial, Pinnacle Financial, Associated Bank, PNC Financial Services, Financial, Citizens Financial, Fifth Third Bank, Huntington Bank, Regions Financial, Cadence Bank, FNB Corp, Simmons, Ally Financial, Bank OZK, Valley Bank, Signature Bank, Federal Reserve, Kestra Investment Management, Consumer, Wall Street, Securities, Exchange Commission, SEC, BNP, SG Americas, BMO Capital Markets, Mizuho Securities, SMBC Nikko Securities, Federal Reserve Bank of New Locations: Wells Fargo, Amarillo, Marinac, Wells, SMBC Nikko Securities America, WhatsApp, Federal Reserve Bank of New York, York
(Reuters) -Comerica and Huntington Bancshares on Friday sharply cut their interest income growth forecasts for 2023, the latest U.S. banks to sound the alarm over faltering loan demand and spike in deposit costs. NII - the difference between what banks make on loans and pay out on deposits - rose for nearly all banks reporting earnings for the April-June quarter, with Comerica and Huntington also topping profit estimates. Mid-sized lender Regions Financial, which also reported results on Friday, said its deposit costs had risen in the second quarter. Comerica slashed its 2023 NII growth forecast to a range of 1% to 2% from 6% to 7% estimated earlier, and its shares fell 3.8%. Its shares slipped 1.3% in late-morning tradeRegions Financial kept its 2023 NII forecast unchanged but its stock declined 3.4%.
Persons: Huntington Bancshares, Mike Segar, Huntington, , Christopher Marinac, Janney Montgomery Scott, James Herzog Organizations: Reuters, Comerica, Huntington, Wall, New York Stock Exchange, REUTERS, Federal, Financial, ” Comerica Locations: Manhattan, New York City , New York, U.S
Morning Bid: Dollar flexes into Fed week, calm returns
  + stars: | 2023-07-21 | by ( ) www.reuters.com   time to read: +4 min
Another unexpectedly tight weekly reading from the U.S. labour market sowed some lingering doubts that we're on the cusp of 'peak Fed' just yet. The tech wobble saw the Nasdaq (.IXIC) recoil 2% in its biggest drop since March. A quieter earnings schedule is topped by American Express - but nearly all the other banks have been impressive over the past week. Pessimists think the Fed is not done tightening yet and any further rate hikes after next week will just hasten a downturn in 2024. That has sobered up the Treasury market a touch after a couple of weeks of disinflation relief.
Persons: Mike Dolan, jockeying, we're, Dow Jones industrials, Johnson, Pessimists, Huntington Bancshares, Janet Yellen, Angus MacSwan Organizations: Big Tech, Tesla, Netflix, Nasdaq, American Express, Treasury, Bank of Japan, Comerica, Regions, Roper Technologies, Reuters Graphics Reuters, Reuters, Thomson Locations: U.S, Huntington, Schlumberger, Canada, Hanoi
A lot was riding on these important measures of inflation after the scorching-hot ADP jobs report last week. Here are 3 things you need to know for the week ahead: 1. Industrial production and capacity utilization, also out Tuesday, shines a light on manufacturing, which attributes about 12% to U.S. GDP. Six months is generally considered to represent a balance between supply and demand in the housing market. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust's portfolio.
Persons: Stocks, Morgan Stanley, Johnson, Jeff Miller, Lockheed Martin, Charles Schwab, JB Hunt, Goldman, Baker Hughes, Ally, Kinder Morgan, Zions, Philip Morris, Abbott, ABT, Jim Cramer's, Jim Cramer, Jim, Scott Olson Organizations: Nasdaq, Dow Jones Industrial, Housing, CPI, Halliburton, HAL, Johnson, of America Corp, Lockheed, Lockheed Martin Corp, Novartis International AG, PNC Financial Services Group, Inc, PNC, Charles Schwab Corp, Bank of New York Mellon Corporation, BK, Synchrony, Interactive, Goldman Sachs Group, U.S . Bancorp, ASML, Citizens Financial, T Bank Corp, Northern Trust Corporation, Horizon National Corp, Business Machines Corp, IBM, United Airlines, Netflix, Steel Dynamics, Alcoa, Discover Financial Services, Crown, International Corp, Equifax Inc, Las Vegas Sands Corp, Liberty Energy Inc, Philip Morris International Inc, Taiwan Semiconductor Manufacturing Company, American Airlines Group Inc, Travelers Companies, SAP, Nokia Corp, Truist Financial Corporation, Company, McLennan Companies, Infosys Technologies Ltd, Newmont Mining Corp, Fifth Third Bancorp, Pool Corporation, Alfa Laval, Webster Financial Corp, Blackstone, Financial Corp, PPG Industries, CSX Corp, CSX, Berkley Corp, Swift Transportation Holdings Inc, American Express Co, AutoNation Inc, Interpublic, of Companies, Autoliv Inc, Huntington Bancshares, Financial Corporation, Roper Technologies, Comerica, Jim Cramer's Charitable, CNBC, Getty Locations: U.S, Las, ZION, Horton, Freeport, Marsh, ALFVY, W.R, Lemont , Illinois
Susan Curry is a former analyst and a portfolio manager covering financial firms for Manulife. Bank stocks have been crushed as investors saw several US financial firms fail. Curry says that most banks are in solid financial condition and their stocks look attractive. A 30-year Wall Street veteran, Curry is a former analyst who runs the firm's Capital Appreciation team, is the lead portfolio manager of its Financial Industries strategy, and a portfolio manager of the Bank Opportunities strategy. The leading regional bank positions in the Bank Opportunities Fund that Curry co-manages were M&T Bank, Regions Financial, Citizens Financial, US Bancorp, and KeyCorp.
"We upgrade ALLY to Neutral (from Underperform) and raise our PO to $28 from $24, implying ~8% upside potential." Goldman Sachs reiterates Apple as buy Goldman said in its Apple earnings preview note that "solid iPhone demand to offset Mac weakness." Wells Fargo names Disney a top pick in media Wells said in a note on Monday that Disney is the "best opportunity in media." JPMorgan reiterates Ford & General Motors as overweight JPMorgan said in an earnings preview note that it's standing by both automakers heading into earnings tomorrow for GM and next week for Ford . Mizuho initiates Tencent Music Entertainment as buy Mizuho said in its initiation of the China music company that the stock has upside potential. "
In this photo illustration a Procter and Gamble logo seen displayed on a smartphone with stock market percentages in the background. Procter & Gamble also boosted its forecast for organic sales growth for fiscal 2023 to 6% from its earlier forecast of 4% to 5%. PPG Industries – Shares rose 0.8% in the premarket after PPG Industries posted better-than-expected second-quarter guidance. ContextLogic – ContextLogic shares advanced 16% in premarket trading after the online e-commerce platform announced a $50 million share repurchase program. The firm reported adjusted earnings of 63 cents per share on revenue of $7.74 billion.
CSX reported earnings of 48 cents per share for the latest quarter, compared to a Refinitiv estimate of 43 cents per share. Pool - Shares of the pool company popped more than 3% after Stephens upgraded the stock to overweight from equal weight. Procter & Gamble – The stock rallied nearly 4% after Procter & Gamble posted earnings and revenue for its fiscal third quarter that beat analysts' expectations. The healthcare services company posted earnings per share of $4.85 and $15.59 billion in revenue. The company reported that its quarter-end deposits fell 2.5% but remained stable in March.
Morning Bid: Purchasing managers of the world, diverge
  + stars: | 2023-04-21 | by ( ) www.reuters.com   time to read: +2 min
Softening second-tier data in the U.S. on Thursday put a bid under bonds for the first time in a few weeks, while bitcoin was clobbered. Purchasing manager's index data are the next set of economic figures due as market focus flings back on growth. British (GBPMMF=ECI) and euro zone (EUPMMF=ECI) manufacturing surveys are seen stuck in contraction territory. European and British services PMIs are seen steady and staying in expansion mode. British retail sales are expected to fall, adding up to a somewhat confounding picture.
"Home sales are trying to recover and are highly sensitive to changes in mortgage rates," NAR economist Lawrence Yun said. He added that home prices are still climbing in regions where jobs are being added and housing is relatively affordable. cutting rates) in the next 12 months, which will again sway the housing sector. With that outlook in mind, the economist said "home sales will steadily rebound despite several months of fluctuations." Even in a tight market, this home expert still sees potential to save money on interest rates.
Morning Bid: April boomlet mocks recession script
  + stars: | 2023-04-21 | by ( ) www.reuters.com   time to read: +4 min
A look at the day ahead in U.S. and global markets from Mike DolanThe signal is still lost in an awful lot of noise. With next week's Big Tech earnings reports hoving into view, the overall U.S. corporate healthcheck remains pretty mixed. Perhaps unsurprisingly, the overall global stock market direction remains equivocal. Although Asia bourses had initially followed Wall St's Thursday swoon, European indexes and S&P500 futures were little changed on Friday. They do not reflect the views of Reuters News, which, under the Trust Principles, is committed to integrity, independence, and freedom from bias.
Traders work on the floor of the New York Stock Exchange (NYSE) in New York City, U.S., March 29, 2023. U.S. stock futures were little changed on Thursday night. S&P 500 futures were unchanged, while Nasdaq 100 futures rose 0.07%. The S&P 500 dropped 0.6%, and the tech-heavy Nasdaq Composite lost 0.8%. Earnings season continues Friday, with Procter & Gamble, Regions Financial, SLB, Freeport-McMoRan and HCA Healthcare set to report earnings before the bell.
Netflix posted a quarterly revenue of $8.16 billion, slightly below the $8.18 billion expectation per Refinitiv. Zion rose 4.3% ahead of its earnings report after the bell. Tesla — The electric vehicle maker pulled back 1 % ahead of its scheduled quarterly earnings after Wednesday's closing bell. CDW issued quarterly revenue guidance of $5.1 billion, which came out below the $5.58 billion consensus estimate from analysts surveyed by FactSet. Citizens Financial reported earnings per share of $1, falling short of analysts' expectations of $1.13, according to Refinitiv data.
The opening days of the first-quarter earnings season have spurred a sigh of relief among investors, especially when it comes to the regional banks whose future seemed seriously in doubt just a month ago. A quick glance at the early reports from the biggest regional banks show only modest deposit declines in the first quarter. One deposit drop that caught some analysts off-guard among the larger regional banks was a nearly $20 billion decline at US Bancorp , but the bank still has more than $500 billion in deposits. Longer term outlook However, the stabilized funding may not be enough for the regional bank stocks to catch up to their larger competitors, which are viewed as safer and have more diversified businesses. A potential recession could cause credit losses at regional banks in the coming months, and commercial real estate exposure is particularly concerning for investors.
UBS upgrades Exxon to buy from neutral UBS said in its upgrade of the oil and gas giant that it likes the company's balance sheet. Bank of America reiterates Meta as buy Bank of America says it likes "self-help stocks in an uncertain macro." Bank of America reiterates Nvidia as buy Bank of America raised its price target on the AI beneficiary to $340 per share from $310. Bank of America downgrades CDW to neutral from buy Bank of America downgraded the technology products company after its disappointing earnings report on Tuesday. Wolfe reiterates Amazon as outperform Wolfe says it's standing by its outperform rating on the stock heading into earnings next week. "
Organizations: ~$
Next week's market action could be dictated by how well the latest quarterly reports from corporate America are received. Expectations about the immediate earnings outlook have been down for so long, the actual numbers themselves could look like up to investors. Earnings for all financials in the S & P 500 are actually expected to expand in the first quarter by 4.3%. ET: NAHB Housing Market Index (April) Earnings: Charles Schwab, M & T Bank, State Street, J.B. Hunt Transport Tuesday 8:30 a.m. ET: Philadelphia Fed President Patrick Harker speaks on the economic outlook Earnings: AT & T, American Express, D.R.
Here are Monday's biggest calls on Wall Street: Bernstein reiterates Tesla as underperform Bernstein said more price cuts are coming for Tesla. Morgan Stanley reiterates Walmart as overweight Morgan Stanley said its latest survey shows Walmart+ membership is at a record. UBS reiterates McDonald's as buy UBS said the fast food giant is extremely well positioned. UBS upgrades Regions Financial to buy from neutral UBS said in its upgrade of the regional bank that it likes the company's balance sheet. Northcoast upgrades McDonald's to buy from neutral Northcoast said it sees improved profitability for McDonald's .
UBS thinks the recent banking crisis has left U.S. Bancorp with limited upside. UBS noted that "structural uncertainties" remain for the company which are more of a headwind as opposed to the macro issues stemming from the regional banking crisis. USB RF YTD mountain UBS downgraded U.S. Bankcorp on Monday, citing "structural uncertainties" afflicting the company after a broader banking liquidity crisis last month. (Before the liquidity crisis.) Shares of U.S Bancorp have pulled back 18% year to date, stemming largely from a broader liquidity crisis spurred from the collapse of Silicon Valley Bank and Signature Bank last month .
JPMorgan refreshed its list of top stock picks heading into April, including a bank stock that's had a rocky start to the year. To kick off the month of April, JPMorgan added two new names to its focus list: VICI Properties and Regions Financial. The other new name on the list, Regions Financial , has declined 15% in 2023. GM shares are up 6.2% in 2023. JPMorgan removed two names from its list: Intellia Therapeutics and Jones Lang LaSalle .
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