Wall Street Gains as Crude Price Surge, Strong Economic Data Prompt Broad Rally

All three major U.S. stock indexes gathered strength as the session progressed, with economically sensitive cyclicals, smallcaps and transportation stocks leading the charge.

While value stocks initially held the advantage, the risk-on sentiment gained momentum through the afternoon, broadening to include growth stocks.

“Today is the first time in a while when both growth and value stocks are doing pretty well. It’s been either or for much of the last few weeks and today it’s both,” said Chuck Carlson, chief executive of Horizon Investment Services in Hammond, Indiana. “Breadth matters, and that’s something investors like to see.”

A host of economic data showed hints of waning inflation and an ongoing return to economic normalcy, even as supply constraints, complicated by hurricane Ida, hindered factory output.

Import prices posted their first monthly decline since October 2020, in the latest sign that the wave of price spikes has crested, further supporting the Federal Reserve’s position that current inflationary pressures are transitory.

Next week, the Federal Open Markets Committee’s two-day monetary policy meeting will be closely parsed for signals as to when the central bank will begin to taper its asset purchases.

The graphic below shows major indicators against the Fed’s average annual 2% inflation target.

The Dow Jones Industrial Average rose 236.82 points, or 0.68%, to 34,814.39; the S&P 500 gained 37.65 points, or 0.85%, at 4,480.7; and the Nasdaq Composite added 123.77 points, or 0.82%, at 15,161.53.

Among the 11 major sectors in the S&P 500, all but utilities gained ground. Energy was by far the biggest gainer, benefiting from a jump in crude prices driven by a drawdown in U.S. stocks.

U.S.-listed Chinese stocks extended recent losses, as weak retail sales data pointed to a possible economic slowdown in the mainland, while Beijing’s regulatory overhaul of Macau’s casino industry further dampened appetite for Chinese stocks.

This follows a series of regulatory moves by China against major technology firms, which has wiped out billions in market value this year.

“It would be tough to buy any Chinese stocks,” Carlson said. “From an investor standpoint you don’t know what sector is next.”

“I don’t think the situation is going to get better any time soon and it’s probably going to spread,” he added.

U.S.-based casino operators Las Vegas Sands Corp, Wynn Resorts Ltd and MGM Resorts International slid between 1.7% and 6.3%.

Apple Inc snapped a decline over recent sessions following an adverse court ruling on its business practices, and a lukewarm response to its event on Tuesday where it unveiled updates to its iPhone and other gadgets. Its shares gained 0.6%.

Lending platform GreenSky Inc shot up 53.2% after Goldman Sachs Group Inc said it would buy the company in an all-stock deal valued at $2.24 billion.

Advancing issues outnumbered declining ones on the NYSE by a 2.15-to-1 ratio; on Nasdaq, a 1.70-to-1 ratio favored advancers.

The S&P 500 posted seven new 52-week highs and three new lows; the Nasdaq Composite recorded 55 new highs and 106 new lows.

(Reporting by Stephen Culp; additional reporting by Ambar Warrick and Sruthi Shankar in Bengaluru; Editing by Richard Chang)

S&P 500 Snaps Losing Streak With Tax Hikes, Inflation Data on Horizon

The Dow Jones Industrial Average also advanced, but the Nasdaq Composite Index ended lower.

Investors favored value over growth, with stocks set to benefit most from a resurging economy enjoying the biggest percentage gains.

“There are probably not a lot of positive surprises coming this month,” said Liz Young, head of investment strategy at SoFi in New York. “We’re having another period of volatility where I think that rotation could go back to cyclicals and the reopened trade, as the 10-year bond rate slowly grinds higher through the end of the year.”

Market participants are focused on the likely passage of U.S. President Joe Biden’s $3.5 trillion budget package, which is expected to include a proposed corporate tax rate hike to 26.5% from 21%.

Goldman Sachs analysts see the corporate tax rate increasing to 25% and the passage of about half of a proposed increase to tax rates on foreign income, which they estimate would reduce S&P 500 earnings by 5% in 2022.

The Labor Department is due to release its consumer price index data on Tuesday, which could shed further light on the current inflation wave and whether it is as transitory as the Fed insists.

“I don’t see inflation settling back down under 2% where it was pre-pandemic,” Young added. “Even if some of those transitory forces weaken, we will still stay at a higher rate than we were before.”

Other key indicators due this week include retail sales and consumer sentiment, which could illuminate how much the demand boom driven by economic re-engagement has been dampened by the highly contagious COVID-19 Delta variant.

The Dow Jones Industrial Average rose 261.91 points, or 0.76%, to 34,869.63, the S&P 500 gained 10.15 points, or 0.23%, at 4,468.73 and the Nasdaq Composite dropped 9.91 points, or 0.07%, to 15,105.58.

Of the 11 major sectors in the S&P 500, healthcare suffered the largest percentage loss, while energy, buoyed by rising crude prices was the biggest gainer.

Shares of vaccine makers Moderna and Pfizer Inc sank 6.6% and 2.2%, respectively, after experts said COVID booster shots are not widely needed.

Coinbase Global Inc announced plans to raise about $1.5 billion through a debt offering aimed at funding product development and potential acquisitions. The cryptocurrency exchanges shares slid 2.2%.

Salesforce.com Inc dipped 1.2% as rival Freshworks Inc’s regulatory filing indicated that the business engagement and customer engagement software company is aiming for a nearly $9 billion valuation in it U.S. debut.

Advancing issues outnumbered declining ones on the NYSE by a 1.60-to-1 ratio; on Nasdaq, a 1.02-to-1 ratio favored advancers.

The S&P 500 posted 12 new 52-week highs and one new low; the Nasdaq Composite recorded 53 new highs and 71 new lows.

Volume on U.S. exchanges was 10.30 billion shares, compared with the 9.29 billion average over the last 20 trading days.

For a look at all of today’s economic events, check out our economic calendar.

(Reporting by Stephen Culp; Additional reporting by Krystal Hu in New York and Ambar Warrick in Bengaluru; Editing by Richard Chang)

European Shares End Higher on Commodity Recovery After Bruising Week

The pan-European STOXX 600 index closed 0.7% higher after losing nearly 1.5% last week. Oil and mining were the best performing sectors, rising about 2.1% and 1.5% respectively.

Sentiment appeared to have improved after growing uncertainty over when the U.S. Federal Reserve would begin tightening policy, which sparked a broad selloff across global markets last week.

Focus now turns to the Fed’s annual Jackson Hole Economic Policy Symposium beginning later in the week.

“With the Jackson Hole meeting beginning on Thursday, investors may be reluctant to make big new commitments in the next couple of sessions,” Ian Williams, economics & strategy research analyst at Peel Hunt, said.

Data in Europe suggested that business activity remained strong in August, albeit at a slightly slower growth pace than the two-decade peak seen in July.

With a nearly 18% rise so far this year, the STOXX 600 hit a record high earlier this month, but has stumbled recently on concerns over the Delta variant of COVID-19 stalling economic growth.

Among individual stocks, Britain’s second-largest grocer Sainsbury’s jumped 15.4% and was the best performer on the STOXX 600, following a report that private equity firms were circling the company with a view of possibly launching bids of more than 7 billion pounds ($9.5 billion).

Last week, smaller rival Morrisons backed a 7 billion pounds offer from U.S. private equity group Clayton, Dubilier & Rice.

Germany’s BioNTech surged 7.6% after the U.S. Food and Drug Administration granted full approval to the Pfizer Inc/BioNTech COVID-19 vaccine.

Luxury stocks including LVMH, Kering and Moncler clawed back some of last week’s losses after being sold off on China’s wealth redistribution plans.

Switzerland-based Cembra Money Bank plunged 30.9% to the bottom of the STOXX 600 after it terminated its credit card partnership with Swiss retailer Migros.

French lottery operator La Francaise des Jeux fell 1.7% after Goldman Sachs downgraded the stock to “sell”.

For a look at all of today’s economic events, check out our economic calendar.

(Reporting by Sruthi Shankar and Ambar Warrick in Bengaluru; Editing by Shounak Dasgupta and David Holmes)

Investors Stick to Stocks, But Gear up for Bumpier Ride

Signs of caution abound, even as U.S. stocks hover near record highs. Goldman Sachs economists recently lowered their tracking estimate of U.S. economic growth in the third quarter to 5.5% from 9% due to the impact of the Delta variant, while fund managers surveyed by BofA Global Research said they boosted cash overweights to the highest level since October 2020 while adding to positions in defensive sectors such as healthcare and utilities.

Worries over slowing growth in China and other major economies have hit prices for oil, copper and other raw materials while the U.S. dollar, a key destination for nervous investors, stands at its highest level in nearly nine months against a basket of currencies.

Even retail investors, a group that has supported rallies in everything from tech stocks to crypto over the past year, appear to be cooling their heels. Online brokerage Robinhood, the gateway for many retail investors into so-called meme stocks, said Wednesday its clients are likely to slow their trading in coming months.

Past warnings of a coming pullback have so far failed to play out this year, and cutting exposure to stocks has been a losing strategy during the market’s run from its 2020 lows, reinforcing the idea that there are few assets where investors have been able to notch the type of returns seen in equities. Still, the looming risks have bolstered the view that markets may be more turbulent in the months ahead.

“We have gotten past that euphoria-type of rally where everything, all asset classes and all stocks, continued to rally,” said Megan Horneman, director of portfolio strategy at Verdence Capital Advisors, which oversees about $3 billion in assets. Now “you have to be a bit more selective.”

Among investors’ key worries is the risk that the Fed, faced with stronger-than-expected inflation, begins pulling back on its support for the economy just as growth starts ebbing and the coronavirus’ Delta variant threatens to rollback reopenings across the country.

“We got such tremendous Federal Reserve monetary support for the economy for some time, so the market has trepidation about Fed taper and what that is going to do for growth,” said Rob Haworth, senior investment strategy director at U.S. Bank Wealth Management.

Investors will be watching next week’s central bank symposium in Jackson Hole, Wyoming for clues on when the Fed will begin slowing its $120 billion purchases of U.S. government bonds.

BofA Global Research analysts earlier this week moved up their timeline for the start of the Fed’s taper to November, from a previous forecast of January, believing that minutes from the central bank’s most recent policy meeting, released Wednesday, signaled a greater likelihood of an unwind beginning this year.

Rich valuations are also giving investors pause. The S&P 500′s P/E ratio on a forward 12-month basis stands at 21.1, a more than 34% premium to its 20-year average, according to Refinitiv Datastream.

Despite all these worries, many investors are employing strategies that will allow them to stick with stocks, which have benefited from ultra-low Treasury yields and standout growth in the U.S.

Horneman, of Verdence Capital Advisors, has added alternative investments such as some liquid long-short hedge fund strategies that aim to be less correlated with the prices of stocks and bonds.

Greg Bassuk, chief executive at AXS Investments, said interest has recently grown in liquid alternatives such as private equity and venture capital and strategies like managed futures, which aim to hedge risk while still maintaining exposure to stocks. In the U.S., inflows into such investments stand at their highest levels since 2013, Morningstar said in July.

Mark Haefele, chief investment officer at UBS Global Wealth Management, said in a Friday note that investors should prepare for volatility by diversifying across regions and asset classes, including hedge funds. Haefele said the S&P will finish next year at 5,000, from 4,437.18 today, though he expects a bumpy ride to those levels.

Among the biggest arguments for owning stocks has been the market’s resilience over the past decade, where investors have largely been rewarded for jumping in when equities weaken. For Horneman, that strategy remains in effect.

“We are still on the buy on dip mentality, not sell on strength,” she said.

For a look at all of today’s economic events, check out our economic calendar.

(Reporting by Saqib Iqbal Ahmed; Editing by Ira Iosebashvili and Aurora Ellis)

Goldman Sachs to Raise Pay for Junior Investment Bankers – Business Insider

The bank’s second-year analysts will now make $125,000 in base compensation, while first-year associates will earn $150,000, Business Insider reported https://www.businessinsider.com/goldman-sachs-raises-salaries-investment-bankers-junior-analysts-associates-salary-2021-8?IR=T, citing two people familiar with the situation.

No formal announcement about the pay raise has been made and it was unclear which other levels of employees at the investment banking division have also been given salary increases, the report from the financial and business news website said.

Goldman Sachs declined to comment.

Investment banks have raised pay for first- and second-year associates this summer in an attempt to ease the strain on these workers and compensate them more for their work supporting more senior staff in a year of unprecedented deal making.

Citi Group, Morgan Stanley, UBS Group AG and Deutsche Bank AG have already increased pay for their first-year analysts to around $100,000, a raise of about $15,000.

In February, a group of junior bankers in Goldman’s investment bank told senior management they were working nearly 100 hours a week and sleeping 5 hours a night to keep up with an over-the-top workload and “unrealistic deadlines.” Half of the group, which consisted of 13 first-year employees, said they were likely to quit by summer unless conditions improved.

Goldman’s Chief Executive Officer David Solomon has said the bank was working to hire more associates to help with the workload, and vowed to enforce the “Saturday rule,” which prohibits employees from working between 9 p.m. Friday night and 9 a.m. on Sunday, except in certain circumstances.

(Reporting by Elizabeth Dilts Marshall, and Derek Francis in Bengaluru; Editing by Jacqueline Wong)

Oil Prices Sink Again, as Investors Look Out for More Supply

Brent crude settled at $73.47 a barrel, dropping $1.29, or 1.7%. U.S. West Texas Intermediate (WTI) crude settled at $71.65 a barrel, down $1.48, or 2.2%.

The slide continued Wednesday’s losses, after Reuters reported that Saudi Arabia and the United Arab Emirates had reached an accord that should pave the way for a deal to supply more crude to a tight oil market.

A deal has yet to be solidified, and the UAE energy ministry said deliberations are continuing.

“That’s still the big elephant in the room – we had a deal, we didn’t have a deal – and that’s raising concerns,” said Phil Flynn of Price Futures Group.

Talks among the Organization of the Petroleum Exporting Countries, Russia and their allies, a group known as OPEC+, broke down this month after the UAE objected to extending the group’s supply pact beyond April 2022, saying the deal did not account for the UAE’s increased output capacity.

In the United States, a large drawdown in crude stockpiles did little to boost prices as investors focused on rising fuel inventories in a week that included the Fourth of July holiday, when driving usually surges.

“All that sense of gasoline optimism evaporated in just one week,” said Bob Yawger, director of energy futures at Mizuho. “If you don’t need the gasoline, you don’t need the crude oil to make the gasoline, and that’s the only math that matters at the end of the day.”

Several banks, including Goldman Sachs, Citi and UBS expect supplies to remain tight in the coming months even if OPEC+ finalizes an agreement to raise output.

OPEC, in its monthly report, said it still foresees a strong recovery in world oil demand for the rest of 2021, and predicted oil use in 2022 would reach levels similar to before the COVID-19 pandemic.

For a look at all of today’s economic events, check out our economic calendar.

(Additional reporting by Bozorgmehr Sharafedin in London, Florence Tan in Singapore; Editing by Marguerita Choy, Will Dunham and Edmund Blair)

End of Trading Boom Casts Cloud Over Wall Street Bank Earnings

The COVID-19 pandemic transformed banks’ trading desks, which had struggled with lethargic revenue growth in the years since the 2007-09 financial crisis as tougher regulations and technological advancements crimped margins.

From being the laggard in most investment banks, traders took center stage last year, generating bumper revenue and profits as clients scrambled to reposition their portfolios in highly volatile markets.

A massive injection of cash into capital markets by the Federal Reserve led to unprecedented liquidity and trading activity as investors sought opportunities to cash in.

But with activity returning to more-normal levels, discussion is returning to how trading businesses will evolve and the strategies adopted by banks most reliant upon them.

“At some point the Fed is going to stop and when it does you’re going to go back to the core issue of how to make money in this business,” said Dick Bove, a longtime bank analyst with Odeon Capital Group. “There has to be a restructuring of trading businesses because I don’t think in their current form they offer attractive growth going forward.”

The biggest U.S. banks reported a slump in revenue from fixed income, currencies and commodities (FICC) trading in the second quarter, facing tough comparisons in the same period last year, when the COVID-19 pandemic first hit, sending markets into a frenzy.

Equities trading held up better, with three of the five U.S. investment banks seeing higher revenue.

Despite that, executives remain unsure about what the “new normal” will be for trading activity and when the market will settle at that level.

“We are all trying to figure that out,” Morgan Stanley Chief Financial Officer Sharon Yeshaya said in an interview.

Although overall trading revenue dropped by around a third from this time last year, it remains well above pre-pandemic levels for the largest Wall Street banks.

“We’re not going back to 2019 levels anytime soon,” said Goldman Sachs Chief Executive Officer David Solomon in an interview with CNBC.

Executives at Goldman Sachs and Morgan Stanley point to a larger overall market and an increase in their market share as European rivals retreat and they to more trading on behalf of corporate clients.

“The (FICC) wallet feels bigger than it was pre-pandemic,” said Morgan Stanley’s Yeshaya. “We are capturing a bigger share than we had before.”

However, some analysts are skeptical.

“I would be cautious to say the size of that market has increased,” said Mark Doctoroff, MUFG’s global co-head of financial institutions group.

Goldman Sachs and Morgan Stanley – the banks that are most reliant on capital markets – will face challenges as market activity returns to more normal levels, analysts say.

Those banks have benefited more than others as the trading and investment banking boom of the past year drove their earnings growth and gave a sharp boost to their share prices.

Morgan Stanley shares now trade at more than three times their value at the start of the pandemic. Goldman Sachs’ shares are worth nearly three times what they were when COVID-19 hit.

For a look at all of today’s economic events, check out our economic calendar.

(Reporting by Matt Scuffham; Editing by Dan Grebler)

 

S&P 500 and Nasdaq End Down After Hitting Record Highs

The S&P 500 and Nasdaq reached fresh record highs but quickly fell into negative territory after an auction of 30-year Treasuries showed less demand than some investors expected and pushed yields higher.

Data indicated U.S. consumer prices rose by the most in 13 years last month, while so-called core consumer prices surged 4.5% year over year, the largest rise since November 1991.

Economists viewed the price surge, driven by travel-rated services and used automobiles, as mostly temporary, aligning with Federal Reserve Chair Jerome Powell’s long-standing views.

“Any time you get an uptick in interest rates the stock market is going to get nervous, especially on a day like today,” said Joe Saluzzi, co-manager of trading at Themis Trading in Chatham, New Jersey.

The S&P 500 growth index dipped 0.05%, while the value index fell 0.70%.

“With growth outperforming value, the takeaway is clearly that inflation from a market perspective is not a real threat in the long term,” said Keith Buchanan, a portfolio manager at GLOBALT Investments in Atlanta, Georgia.

Ten of the 11 major S&P 500 sector indexes ended lower, with real estate, consumer discretionary and financials each down more than 1%.

JPMorgan Chase & Co stock fell 1.5% after the company reported blockbuster quarterly profit growth but warned that the sunny outlook would not make for blockbuster revenues in the short term due to low interest rates.

Goldman Sachs Group Inc dipped 1.2% after its quarterly earnings exceeded forecasts.

Citigroup, Wells Fargo & Co and Bank of America were due to report their quarterly results early on Wednesday.

PepsiCo Inc gained 2.3% after raising its full-year earnings forecast, betting on accelerating demand as COVID-19 restrictions continue to ease.

June-quarter earnings per share for S&P 500 companies are expected to rise 66%, according to Refinitiv data, with investors questioning how long Wall Street’s rally would last after a 16% rise in the benchmark index so far this year.

All eyes now turn to Fed Chair Jerome Powell’s congressional testimony on Wednesday and Thursday for his comments about rising price pressures and monetary support going forward.

The Dow Jones Industrial Average fell 0.31% to end at 34,888.79 points, while the S&P 500 lost 0.35% to 4,369.21.

The Nasdaq Composite dropped 0.38% to 14,677.65.

Conagra Brands Inc dropped 5.4% after the packaged foods company warned that higher raw material and ingredient costs would take a bigger bite out of its profit this year than previously estimated.

Boeing Co fell 4.2% after the Federal Aviation Administration said late on Monday some undelivered 787 Dreamliners have a new manufacturing quality issue.

Declining issues outnumbered advancing ones on the NYSE by a 2.85-to-1 ratio; on Nasdaq, a 3.06-to-1 ratio favored decliners.

The S&P 500 posted 39 new 52-week highs and no new lows; the Nasdaq Composite recorded 61 new highs and 73 new lows.

Volume on U.S. exchanges was 9.5 billion shares, compared with the 10.5 billion average for the full session over the last 20 trading days.

For a look at all of today’s economic events, check out our economic calendar.

(Additional reporting by Devik Jain and Shreyashi Sanyal in Bengaluru; Editing by Cynthia Osterman)

Big CPI Data, Bank Earnings Beat Expectations, Mixed Sectors

Bank earnings were strong this morning; with JP Morgan Chase (JPM) and Goldman Sachs (GS) having big beats versus analyst expectations. These strong earnings results are being overshadowed mid-session with yet another giant print in CPI data.

Giant CPI Data Print

This morning, the market consensus was for a CPI print of 0.5%, but yet again, we got a huge number at 0.9%. This level is the highest since 2008 and has seemed to put a cloud over today’s trade in New York. The S&P 500 is essentially flat so far today, after dipping 20 handles on the 8:30 AM data release and recuperating all of the CPI news release losses by 10:00 AM. It is one of those kinds of trading sessions so far, but we still have several hours to go today. Tech continues to be strong today, with many individual names lighting up green on the screen. Is the tech trade getting somewhat crowded at these levels?

Figure 1 – E-Mini S&P 500 Futures (September Contract) July 12, 2021 – July 136, 2021, 5 Minute Candles Source stooq.com

Cash traders wouldn’t even know the movement took place.

As today progresses, it feels like the market is digesting the monster CPI print and where capital will be allocated going forward. Interest rates initially fell hard off the data release; but have since been climbing back intraday, as the $SPX has been gaining a little bit of some steam.

There is no question that the S&P 500 is in full resilience mode here. Shaking off the large CPI prints without hesitancy and resuming the upside tells us a story. What the end result of that story is going to be is still up for interpretation. As more time passes and more digestion occurs, the picture will become clearer.

At times like this, I like to allow the data to be digested before making new decisions. This reflection period allows time to manage perspective and outlook on existing opinions/positions.

Figure 2 – TLT iShares 20+ Year Bond ETF June 1, 2021 – July 13, 2021, Daily Candles Source stockcharts.com

It is starting to look more and more that we have experienced a key reversal day in TLT and interest rates. The candle formation July 7th – 9th resembles an “Evening Star” formation, and the uppermost candle on July 8th looks like it marks a short-term top.

An evening star formation is a bearish reversal pattern that continues an uptrend with a long green (up)body day followed by a gapped up small body day, then a down close with the close below the midpoint of the first day.

If you are looking to beef up your candlestick knowledge, I highly suggest checking out ChartSchool on Stockcharts. It has been a valuable resource for 20 years and continues to be an excellent reference and knowledge resource.

Right now, let’s see how the remainder of the session plays out given the big bank earnings results so far; and the large CPI data print.

I still like the idea of staying long the banks and short bonds (higher interest rates) at this time.

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For a look at all of today’s economic events, check out our economic calendar.

Rafael Zorabedian
Stock Trading Strategist

Sunshine Profits: Effective Investment through Diligence & Care

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Saudi Aramco Drops Morgan Stanley on Gas Pipelines Deal – Sources

JPMorgan had also advised Aramco on the sale of the oil pipeline business, which was sold to a consortium led by Washington-DC based EIG Global Energy Partners for $12.4 billion.

Aramco has also invited banks to advise on the financing of the deal, sources told Reuters, the second major midstream deal after the sale of the oil pipelines.

The gas pipeline deal will also have an element of staple financing arranged by Aramco for the buyer, similar to the oil pipeline transaction that was backed by $10.5 billion in bank loans, they said.

JPMorgan was also among the lead arrangers for the loan that backed the oil pipeline deal, they said.

Morgan Stanley, which was among the top advisers for Aramco’s $29.4 billion initial public offering in 2019, had also missed out on the oil pipeline advisory role.

It was not immediately clear why Morgan Stanley was dropped on the gas pipeline deal, sources said.

Aramco, Morgan Stanley, JPMorgan and Goldman Sachs declined to comment.

In recent years, Saudi Arabia has become one of the Middle East’s biggest markets for bankers keen to grab a slice of business from new listings, as well as merger and acquisition activities.

Goldman also advised Aramco on its IPO and advised the sovereign fund, the Public Investment Fund, on the sale of its majority stake in Saudi Basic Industries Corp to Aramco, a deal that completed last year.

The gas pipeline stake sale will have a similar structure to the oil pipeline deal, sources have told Reuters earlier.

Aramco has used a lease and lease-back agreement to sell a 49% stake of newly formed Aramco Oil Pipelines Co to the buyer and rights to 25 years of tariff payments for oil carried on its pipelines.

For a look at all of today’s economic events, check out our economic calendar.

(Additional reporting by Hadeel Al Sayegh; Editing by David Gregorio)

 

Earnings to Watch Next Week: Most Big U.S. Banks, PepsiCo, Delta Air Lines and UnitedHealth in Focus

Earnings Calendar For The Week Of July 12

Monday (July 12)

Ticker Company EPS Forecast
FRHC Freedom $0.72

 

Tuesday (July 13)

IN THE SPOTLIGHT: JPMORGAN, PEPSICO, GOLDMAN SACHS

JPMorgan: The New York City-based multinational investment bank and financial services holding company is expected to report its second-quarter earnings of $3.16 per share, which represents year-over-year growth of over 128% from $1.38 per share seen in the same quarter a year ago.

In the last four consecutive quarters, on average, the company has delivered earnings surprise all four times, with of over 32%.

JPM has less excess capital as a % of the market cap relative to other names in the group, which drives a lower benefit from buybacks. We are valuing the group on normalized 2023 EPS. We expect a V-shaped recovery will drive higher reserve release and share buybacks over the next 2 years, with “normalized” post-recession earnings beginning in 2023,” noted Betsy Graseck, equity analyst at Morgan Stanley.

“We see more upside elsewhere in the group, particularly in consumer finance stocks which have been under more pressure. This drives our Underweight rating.”

PEPSICO: The Harrison, New York-based global food and beverage leader is expected to report its second-quarter earnings of $1.53 per share, which represents year-over-year growth of over 15% from $1.32 per share seen in the same quarter a year ago.

The U.S. multinational food, snack, and beverage corporation would post revenue of $17.91 billion. In the last four consecutive quarters, on average, the company which holds approximately a 32% share of the U.S. soft drink industry has delivered an earnings surprise of over 6%.

GOLDMAN SACHS: The New York-based leading global investment bank is expected to report its second-quarter earnings of $9.52 per share, which represents year-over-year growth of over 52% from $6.26 per share seen in the same quarter a year ago.

It is worth noting that in the last two years, the world’s leading investment manager has surpassed market consensus expectations for profit and revenue most of the time. The better-than-expected number would help the stock hit new all-time highs.

“Our 2Q EPS est. increases to $10.05 from $9.53 on positive markets and higher equity investment revs. The equity investment line will likely again be a meaningful rev. swing factor (we model $1.4B vs. $3.1B in 1Q21). Post-DFAST, GS indicated that the dividend will increase to $2.00/qtr. from $1.25/qtr., but did not provide specifics on buybacks. We model 2Q share repurchase of $1.5B (vs. $2.2B cons.) and $2.5B/qtr. (vs.$2.3B/qtr. cons.) for the remainder of this year,” noted Daniel T. Fannon, equity analyst at Jefferies.

TAKE A LOOK AT OUR EARNINGS CALENDAR FOR THE FULL RELEASES FOR THE JULY 13

Ticker Company EPS Forecast
FAST Fastenal $0.41
CAG Conagra Foods $0.52
JPM JPMorgan Chase $3.16
PEP PepsiCo $1.53
GS Goldman Sachs $9.96
FRC First Republic Bank $1.73
HCSG Healthcare Services $0.30
AMX America Movil Sab De Cv Amx $0.32

 

Wednesday (July 14)

IN THE SPOTLIGHT: WELLS FARGO, BANK OF AMERICA, CITIGROUP, DELTA AIR LINES, BLACKROCK

WELLS FARGO: The fourth-largest U.S. lender is expected to report a profit in the second quarter after last year posting its first loss since the global financial crisis of 20028.

Wells Fargo, Bank of America, Citigroup, JPMorgan will tother report profits of $24 billion in the second quarter, up significantly from $6 billion seen last year.

There is no relief for Delta Air Lines, which is expected to post a loss of $1.36 per share on $6.19 billion in revenue.

BLACKROCK: The world’s largest asset manager is expected to report its second-quarter earnings of $9.28 per share, which represents year-on-year growth of over 18% from $7.85 per share seen in the same quarter a year ago.

The New York-based multinational investment management corporation’s revenue would grow over 25% of $4.56 billion. In the last four consecutive quarters, on average, the investment manager has delivered an earnings surprise of over 11%.

The better-than-expected number would help the stock hit new all-time highs. The company will report its earnings result on Wednesday. BlackRock’s shares rose over 24% so far this year. The stock ended 2.83% higher at $901.31 on Friday.

TAKE A LOOK AT OUR EARNINGS CALENDAR FOR THE FULL RELEASES FOR THE JULY 14

Ticker Company EPS Forecast
WFC Wells Fargo $0.95
BAC Bank Of America $0.77
PNC PNC $3.09
C Citigroup $1.99
DAL Delta Air Lines -$1.36
BLK BlackRock $9.28
INFY Infosys $0.17

 

Thursday (July 15)

Ticker Company EPS Forecast
WIT Wipro $0.07
WNS Wns Holdings $0.68
BK Bank Of New York Mellon $1.00
MS Morgan Stanley $1.66
CTAS Cintas $2.31
UNH UnitedHealth $4.43
USB US Bancorp $1.12
TFC Truist Financial Corp $0.98
HOMB Home Bancshares $0.46
AA Alcoa $1.28
VLRS Controladorauelaavcncv $0.80
PGR Progressive $1.07
TSM Taiwan Semiconductor Mfg $0.93
PBCT People’s United Financial $0.34
WAL Western Alliance Bancorporation $1.96

 

Friday (July 16)

Ticker Company EPS Forecast
ERIC Ericsson $0.13
ALV Autoliv $1.40
FHN First Horizon National $0.40
ATLCY Atlas Copco ADR $0.45
STT State Street $1.77
KSU Kansas City Southern $2.18
SCHW Charles Schwab $0.76

 

Goldman Sachs Could Scale to Fresh Record High on Upbeat Q2 Earnings; Target Price $414

The New York-based leading global investment bank Goldman Sachs is expected to report its second-quarter earnings of $9.52 per share, which represents year-over-year growth of over 52% from $6.26 per share seen in the same quarter a year ago.

It is worth noting that in the last two years, the world’s leading investment manager has surpassed market consensus expectations for profit and revenue most of the time.

The better-than-expected number would help the stock hit new all-time highs. The company will report its earnings result on Tuesday, July 13.

According to Zacks, The Goldman Sachs Group will report full-year earnings of $44.81 per share for the current financial year, with EPS estimates ranging from $40.95 to $49.50. For the next financial year, analysts expect that the business will report earnings of $35.81 per share, with EPS estimates ranging from $33.21 to $39.00.

Analyst Comments

“Our 2Q EPS est. increases to $10.05 from $9.53 on positive markets and higher equity investment revs. The equity investment line will likely again be a meaningful rev. swing factor (we model $1.4B vs. $3.1B in 1Q21). Post-DFAST, GS indicated that the dividend will increase to $2.00/qtr. from $1.25/qtr., but did not provide specifics on buybacks. We model 2Q share repurchase of $1.5B (vs. $2.2B cons.) and $2.5B/qtr. (vs.$2.3B/qtr. cons.) for the remainder of this year,” noted Daniel T. Fannon, equity analyst at Jefferies.

Goldman Sachs Stock Price Forecast

Sixteen analysts who offered stock ratings for Goldman Sachs in the last three months forecast the average price in 12 months of $414.50 with a high forecast of $500.00 and a low forecast of $330.00.

The average price target represents 14.44% from the last price of $362.20. From those 16 analysts, 13 rated “Buy”, three rated “Hold” while none rated “Sell”, according to Tipranks.

Morgan Stanley gave the stock price forecast of $165 with a high of $194 under a bull scenario and $104 under the worst-case scenario. The firm gave an “Overweight” rating on the beverage company’s stock.

“As market volatility subsides in the back half of the year and into 2022, we expect total revenues decline 13% y/y in 2022. We are valuing the group on normalized 2023 EPS. We see even more upside elsewhere in the group, particularly in consumer finance stocks which have been under more pressure. This drives our Underweight rating,” noted Betsy Graseck, equity analyst at Morgan Stanley.

“Over time, we expect GS can drive some multiple expansion as management executes on its multi-year strategic shift towards higher recurring revenues.”

Several other analysts have also updated their stock outlook. BMO lowered the target price to $415 from $436. Evercore ISI raised the target price to $410 from $370. Oppenheimer lifted the target price to $493 from $484. UBS upped the target price to $370 from $340.

Check out FX Empire’s earnings calendar

Today’s Market Wrap Up and a Glimpse Into Thursday

Another day, another new all-time high for the S&P 500. The broader market index just set its fifth-straight record after finishing the day fractionally higher to just under 4,300. The Nasdaq failed to keep up and ended the day slightly lower, while the Dow Jones Industrial Average tacked on 210 points, with Boeing, Goldman Sachs and Walmart leading the gains.

Now that the month of June is in the rear-view mirror, it’s clear investors have managed to push stocks to impressive gains despite signs of inflation and lofty valuations. The S&P 500 and Dow are up roughly 14% and close to 13%, respectively, year-to-date.

The economy is humming along, with consumers exhibiting signs of resilience. For the back half of the year, however, investors will be weighing whether the economy can stand on its own two feet without the help of a dovish Fed. This will begin with Friday’s all-important employment report.

Stocks on the Move

When you hear that an electric vehicle stock is rallying, you would not be alone to guess Tesla. Today, however, that title went to NIO, a Shanghai-based EV maker. The stock gained nearly 6% on the day amid optimistic investors ahead of the company’s Q2 results coupled with China’s recovering economy. Wall Street analysts are also reportedly turning more bullish on the stock.

Sticking with the auto stock theme, shares of Ford fell 1% today. The company revealed it would suspend operations at some of its North American facilities due to a shortage of chips. The shutdown will cost the automaker upwards of USD 2 billion and slash its production significantly in the interim.

China’s ride-share company Didi made its debut on the U.S. stock market today. The ADR shares came out of the gate strong, rallying by a double-digit percentage, but the enthusiasm didn’t last. Didi finished the day with a gain of 1%.

Look Ahead

The ISM Manufacturing index for June comes out after surpassing estimates and climbing to 61.2 in May. Wells Fargo predicts the reading will stay “elevated” for June amid a strong orders pipeline.

On the earnings front, retailer Walgreens and spice maker McCormick are on deck. McCormick has benefited from rising demand as consumers spent more time cooking during the shift to staying at home during the health crisis.

Today’s Market Wrap Up and a Glimpse Into Tuesday

Stocks came out of the gate strong, with the S&P 500 and Nasdaq both setting new record highs, buoyed by Facebook. The social media giant gained more than 4% on the day and is up in extended hours thanks to a court ruling that went Mark Zuckerberg’s way in an antitrust case filed by the FTC.

Today marked the third consecutive all-time high for the S&P 500.  The Dow Jones Industrial Average didn’t join the party and closed the day slightly in the red. Dow member Boeing pressured the index due to a regulatory setback for its 777X aircraft.

Outside of the stock market, cryptocurrencies were in focus after ARK Invest filed with the U.S. SEC for a bitcoin ETF. The bitcoin price has been leading the markets higher all day even before the ETF development. Cathie Wood, who is at the helm of ARK Invest, is also a Tesla bull.

Stocks to Watch

The top three most actively traded companies today were meme stocks.

  • Context Logic topped the list. The stock, which trades under the symbol WISH, gained 2.5% on the day with 175 million shares changing hands vs. the average volume of 46 million.
  • Virgin Galactic, which was last week’s winner, gave back some ground today, falling nearly 2% after its value ballooned by nearly 40% on Friday. The company received regulatory approval for commercial flights to space.
  • AMC Entertainment tacked on 7.5% after enjoying its best weekend for ticket sales since before the pandemic as moviegoers returned to the theaters.

Financials in Focus

  • Morgan Stanley is up 3.4% in after-hours trading after revealing that it would increase its quarterly dividend twofold to USD 0.70 per share as soon as Q3, pending board approval. The investment bank is going for it and also announced a USD 12 billion share buyback program on the heels of the recent stress test.
  • JPMorgan lifted its dividend to USD 1 per share, an 11% increase in the payout.
  • Bank of America is increasing its distribution by 17% to USD 0.21 per share.
  • Goldman Sachs announced a 60% increase to its quarterly dividend to USD 2 per share, up from USD 1.25.

Look Ahead

The markets are also bracing for June’s employment report, which is expected on Friday. In the interim, Richmond Fed President Thomas Barkin will be making comments on Tuesday. The earnings calendar is light.

Goldman Sachs Expands Transaction Bank to Britain

The bank is to offer companies in Britain cash management services such as payment processing and payroll as it continues to grow in the country having launched its retail brand Marcus there in 2018.

Goldman Sachs said its transaction banking business in the United States has attracted more than 250 clients since June last year, taking in more than $35 billion in deposits and processing trillions of dollars through its systems

“The growth of this business has exceeded our estimates and we are very excited to bring transaction banking to the UK to expand our client reach and streamline banking for multinational corporations with a presence in the US and the UK,” said Hari Moorthy, Goldman’s transaction banking global head.

Goldman is trying to compete with rivals such as Citigroup and JPMorgan which offer a wider set of services to corporate clients. The bank is hoping its digital cash management platform will attract clients currently using older systems at competing banks.

Britain is proving a popular place for U.S. banks to expand, with JPMorgan gearing up to launch a digital bank in the country. Last week it bought British roboadvisor Nutmeg which will form the basis of its retail digital wealth management offering internationally.

(Reporting by Rachel Armstrong; Editing by Simon Cameron-Moore)

Is Bitcoin An Investable Asset Class? Goldman Sachs Analysts Are Divided Over This

Bitcoin has gained massive adoption over the past year, with traditional banks and institutional investors entering the market in droves. However, there is still an ongoing debate about Bitcoin’s position as an asset class. This has caused a difference in opinion amongst Goldman Sachs analysts.

Goldman Sachs analysts can’t decide on Bitcoin’s position

Goldman Sachs has been changing its views regarding Bitcoin for a while now. Some of the bank analysts don’t see it as an investable asset class, while the others do. This latest development comes despite the bank expanding its presence in the cryptocurrency market.

Wall Street investment bank Goldman Sachs published a report titled “Digital Assets: Beauty Is Not in the Eye of the Beholder.” In the report, the bank analysts said the leading cryptocurrency is not a long-term store of value or an investable asset class. The views from this report contradict Goldman Sachs’ May 21 report titled “Crypto: A New Asset Class?” In this report, Matthew McDermot, global head of digital assets at Goldman Sachs, classified Bitcoin as an investable asset class after its performance over the years.

The investment bank has changed its decisions on Bitcoin numerous times over the past few years. Last year, the Bitcoin published a presentation detailing reasons why it thinks Bitcoin is not an investable asset class.

In this latest report, the Goldman Sachs analysts said they wanted to play it safe regarding Bitcoin. They didn’t want to attach any positive or negative sentiment to the cryptocurrency. The report said, “We have refrained from repeating the positive and negative hype that surrounds this ecosystem because we do not want clients to be seesawed, even swayed by a cacophony of assertions, many of them unsubstantiated.”

Bitcoin’s price has historically gone up

Despite the argument regarding Bitcoin and its status as an asset class, its price has gone up since it was first launched in 2009. The surge in Bitcoin’s value comes despite intermittent bear markets such as the one experienced in 2018 and 2019.

BTC/USD chart. Source: FXEMPIRE

At the time of this report, Bitcoin’s (BTC) price is down by 3.6% over the past 24 hours, and it is trading below the $40k mark again. Bitcoin has struggled to surpass the $40k mark in recent weeks, and it is still nearly 40% down from its all-time high price of $65,000.

Banks Can Now Hold Bitcoin And Other Cryptos. But There Is A Catch

Banks will be able to hold Bitcoin or other cryptocurrencies. However, the banks would be required to comply with tough capital requirements before they can do so.

Banks will face tough capital requirements to hold Bitcoin

The Basel Committee on Banking Supervision revealed yesterday that traditional banks would be allowed to hold Bitcoin or other cryptocurrencies. However, they will have to comply with stringent capital requirements due to the risk nature of cryptocurrencies.

In a statement yesterday, the committee stated that the banking sector is facing increasing risks from cryptocurrencies due to the potential of money laundering, reputational challenges and the massive price volatilities of the assets. The committee complained that these vices could lead to defaults, hence, the need to institute those regulations.

The committee recommended that a 1,250% risk weight be attached to a bank’s exposure to Bitcoin or other cryptocurrency assets. As such, banks would be required to hold a dollar in capital for each dollar worth of BTC they hold. The committee also suggested the same standard for other volatile digital assets. The capital is required to fully absorb a full write-off of their exposure to cryptocurrencies without exposing depositors and the bank investors to a loss.

Stablecoins are not covered in the capital requirement

The committee exempted stablecoins because the digital currencies are tied to real-world currencies like the US Dollar or Euros. Per the report, the proposal is now open to public comment before it is implemented. The committee comprised of the European Central Bank, the US Federal Reserve and other leading central banks added that the policies would undergo several changes as the cryptocurrency market continues to evolve.

The crypto market has gained adoption from various traditional banks and financial institutions over the past year. Currently, some leading banks such as Goldman Sachs and Morgan Stanley have all begun offering crypto-related services to their clients.

BTC/USD chart. Source: FXEMPIRE

Bitcoin’s price continues to underperform, and it is trading at $37k per coin at the time of this report. Despite the numerous adoption and regulatory news coming into the space, Bitcoin’s price has failed to embark on a rally to surpass the $40k mark.

Jpmorgan Appoints Goldman, Wells Fargo Execs to Lead Growth Equity Arm

The group, called J.P. Morgan Private Capital, recruited Christopher Dawe from Goldman Sachs Group Inc to lead its technology and consumer growth equity business, and Osei Van Horne from Wells Fargo & Co to lead its investments across industries, particularly those with an ESG focus.

The group’s head is Brian Carlin, who used to be the head of J.P. Morgan’s wealth management solutions. Rick Smith, who previously headed private investments at JPMorgan Chase, a separate division of the bank, will serve as chairman of the group. Meg McClellan will lead private debt.

The group will report to Anton Pil, the global head of alternatives.

(Reporting by Sohini Podder in Bengaluru, additional reporting by Elizabeth Dilts Marshall in New York; Editing by Amy Caren Daniel)

Why Shares Of Goldman Sachs Are Up By 5% Today?

Goldman Sachs Video 14.04.21.

Goldman Sachs Stock Moves Higher After Strong Quarterly Report

Shares of Goldman Sachs gained strong upside momentum after the company released its quarterly report. The company reported revenue of $17.7 billion and GAAP earnings of $18.60 per share, easily beating analyst estimates on both earnings and revenue. Goldman Sachs declared a quarterly dividend of $1.25 per share, in line with the previous dividend.

The company noted that its investment banking segment generated record quarterly net revenues of $3.77 billion, and the firm retained its first position in worlwide announced and completed mergers and acquisitions. Other business segments also performed well.

The unprecendented support provided by the world central banks boosted capital markets and deal activity which was bullish for Goldman Sachs. Reports from other financial companies that were published today were also strong so it’s an industry-wide trend.

What’s Next For Goldman Sachs?

Shares of Goldman Sachs reached all-time high levels back in March 2021 at $356.85. At this point, it looks that the stock has good chances to get to the test of this level.

Analysts expect that Goldman Sachs will report earnings of $33.06 per share in 2021 and $33.71 per share in 2022, so the stock is trading at just 10 forward P/E which is cheap in today’s market environment. It should be noted that earnings estimates have been steadily moving higher in recent months, and analysts will likely increase them after the strong quarterly report.

The recent pullback in Treasury yields has put some pressure on financial stocks, but the solid quarterly performance should help Goldman Sachs gain more upside momentum. In addition, the risk of higher inflation (and higher yields) is real, which is bullish for the financial sector. Meanwhile, shares of Goldman Sachs look ready to test the recent highs as the company’s quarterly performance was strong while its valuation remains attractive.

For a look at all of today’s economic events, check out our economic calendar.

Earnings to Watch Next Week: JPMorgan, Goldman, PepsiCo, BofA, Citigroup and Delta Airlines in Focus

Earnings Calendar For The Week Of April 12

Monday (April 12)

Ticker Company EPS Forecast
HDS HD Supply Holdings $0.39

Tuesday (April 13)

Ticker Company EPS Forecast
FAST Fastenal $0.37
HCSG Healthcare Services $0.28

Wednesday (April 14)

IN THE SPOTLIGHT: JPMORGAN CHASE, GOLDMAN SACHS

JPMORGAN CHASE: The leading global financial services firm with assets over $2 trillion is expected to report its first-quarter earnings of $2.06 per share, which represents year-over-year growth of over 290% from $0.78 per share seen in the same quarter a year ago. In the last four consecutive quarters, on average, the company has delivered an earnings surprise of over 6%.

The New York City-based investment bank would post revenue growth of about 6% to around $29.8 billion.

“We expect JPMorgan to likely beat the consensus estimates for revenues and earnings. The bank has outperformed the consensus estimates in each of the last three quarters, primarily driven by a jump in the Corporate & Investment Banking segment led by higher sales & trading and investment banking revenues. However, the above growth was partially offset by some weakness in the Consumer & Community Banking segment due to the lower interest rates environment. We expect the sales & trading and investment banking revenues to drive the first-quarter FY2021 results as well,” noted analysts at TREFIS.

“Further, recovery in bond yields over the recent months is likely to benefit core-banking revenues. Additionally, JPM released $2.9 billion from its loan-loss-reserve in the fourth quarter, suggesting some improvement in the perceived loan default risk. We expect the same momentum to continue in the first quarter. Our forecast indicates that JPMorgan’s valuation is around $143 per share, which is 7% lower than the current market price of around $154.”

GOLDMAN SACHS: The leading global investment bank is expected to report its first-quarter earnings of $10.10 per share, which represents year-over-year growth of about 225% from $3.11 per share seen in the same quarter a year ago. In the last four consecutive quarters, on average, the company has delivered an earnings surprise of nearly 50%.

The New York City-based bank would post revenue growth of over 31% to around $11.5 billion.

“We expect Goldman Sachs to outperform the consensus estimates for revenues and earnings. The bank has reported better than expected results in each of the last three quarters, mainly due to its strength in sales & trading and the investment banking space,” noted equity analysts at TREFIS.

“Despite the economic slowdown and the COVID-19 crisis, the company reported strong revenue growth in 2020 driven by a 43% y-o-y jump in global markets division (sales & trading) and a 24% rise in the investment banking unit. We expect the same trend to drive the first-quarter FY2021 results as well. Our forecast indicates that Goldman Sachs’ valuation is around $366 per share, which is 12% more than the current market price of around $327.

TAKE A LOOK AT OUR EARNINGS CALENDAR FOR THE FULL RELEASES FOR THE APRIL 14

Ticker Company EPS Forecast
TSCO Tesco £8.15
INFY Infosys $0.16
JPM JPMorgan Chase $3.06
GS Goldman Sachs $10.12
BBBY Bed Bath & Beyond Inc. $0.31
FRC First Republic Bank $1.54
SJR Shaw Communications USA $0.26
WFC Wells Fargo $0.69
ACI AltaGas Canada $0.51

 Thursday (April 15)

IN THE SPOTLIGHT: PEPSICO, BANK OF AMERICA, CITIGROUP, BLACKROCK, DELTA AIR LINES

PEPSICO: The company which holds approximately a 32% share of the U.S. soft drink industry is expected to report its first-quarter earnings of $1.12 per share, which represents year-over-year growth of about 4% from $1.07 per share seen in the same quarter a year ago. In the last four consecutive quarters, on average, the company has delivered an earnings surprise of nearly 6%.

The U.S. multinational food, snack, and beverage corporation would post revenue growth of over 5% to about $14.6 billion.

“Based on the 2020 performance and evolving business conditions, the company provided guidance for 2021. It expects organic revenue growth in the mid-single digits, with core constant currency EPS growth in high-single digits. It expects a core effective tax rate of 21%. Additionally, the company expects currency tailwinds to aid its revenues and core EPS by 1 percentage point in 2021, based on the current rates,” noted analysts at ZACKS Research.

“Further, it remains committed to rewarding its shareholders through dividends and share buybacks. It anticipates total cash returns to shareholders of $5.9 million, including $5.8 million of cash dividends and $100 million of share repurchases. The company recently completed its share-repurchase authorization and expects no more share repurchases through the rest of 2021.”

BANK OF AMERICA: The Charlotte, North Carolina-based investment bank is expected to report its first-quarter earnings of $0.66 per share, which represents year-over-year growth of over 60% from $0.40 per share seen in the same quarter a year ago. In the last four consecutive quarters, on average, the company has delivered an earnings surprise of over 9%.

However, the United States’ second-largest bank would see a revenue decline of more than 4% to around $21.7 billion.

CITIGROUP: The New York City-based investment bank is expected to report its first-quarter earnings of $2.52 per share, which represents year-over-year growth of 140% from $1.05 per share seen in the same quarter a year ago. But Citigroup’s revenue would decline about 12% to around $18.3 billion.

BLACKROCK: The world’s largest asset manager with $8.67 trillion in assets under management is expected to report its first-quarter earnings of $7.87 per share, which represents year-over-year growth of over 19% from $6.60 per share seen in the same quarter a year ago. The New York City-based bank would post revenue growth of about 16% to around $4.3 billion.

DELTA AIR LINES: The Airline company which provides scheduled air transportation for passengers and cargo throughout the United States and across the world is expected to report a loss for the fifth consecutive time of $2.84 in the first quarter of 2021 as the airlines continue to be negatively impacted by the ongoing COVID-19 pandemic and travel restrictions. That would represent a year-over-year decline of over 450% from -$0.51 per share seen in the same quarter a year ago.

The Atlanta-based airline’s revenue would decline more than 50% to around $3.9 billion.

TAKE A LOOK AT OUR EARNINGS CALENDAR FOR THE FULL RELEASES FOR THE APRIL 15

Ticker Company EPS Forecast
CBSH Commerce Bancshares $0.94
PEP PepsiCo $1.12
WIT Wipro $0.07
BAC Bank Of America $0.66
C Citigroup $2.52
UNH UnitedHealth $4.38
HOMB Home Bancshares $0.43
USB US Bancorp $0.95
SCHW Charles Schwab $0.79
TFC Truist Financial Corp $0.93
BLK BlackRock $7.87
JBHT J B Hunt Transport Services $1.22
AA Alcoa $0.41
PPG PPG Industries $1.57
WAL Western Alliance Bancorporation $1.47
TSM Taiwan Semiconductor Mfg $0.93
DAL Delta Air Lines -$2.84
WAFD Washington Federal $0.48

Friday (April 16)

Ticker Company EPS Forecast
CFG Citizens Financial $0.96
BK Bank Of New York Mellon $0.87
PNC PNC $2.70
ALLY Ally Financial $1.13
STT State Street $1.35
MS Morgan Stanley $1.72
KSU Kansas City Southern $1.97