|Bid||116.23 x 1200|
|Ask||116.34 x 1400|
|Day's Range||115.86 - 117.99|
|52 Week Range||91.11 - 120.40|
|Beta (3Y Monthly)||1.19|
|PE Ratio (TTM)||11.87|
|Earnings Date||Oct 15, 2019|
|Forward Dividend & Yield||3.60 (3.15%)|
|1y Target Est||119.67|
JPMorgan Chase and 3M are among a list of stocks investors should consider buying ahead of the start of earnings season next week and a potential U.S.-China trade deal, Kramer Capital Research's Hilary Kramer tells Reuters' Fred Katayama
WeWork might be getting some much-needed help. The Financial Times is reporting that JPMorgan is putting together a plan to bail out WeWork as soon as next week. This follows the company's failed attempt at an IPO, which left them losing cash at a faster rate than initially expected.
Earnings season for banks begins Oct. 15, when J.P. Morgan Chase, Citigroup and Wells Fargo are scheduled to announce their Q3 results. However one CIO says earnings are not the focus in the market.
(Bloomberg Opinion) -- However frothy valuations currently seem to be, optimists can always argue they’re justified by strong earnings. In the past four years, S&P 500 operating earnings per share have grown by nearly 40%.Those numbers, however, may be as airy as the asset prices they support. The U.S. government’s national income and product accounts -- which cover a broader number of businesses than the S&P, use tax returns and adjust for certain accounting practices -- suggest that corporate profits actually peaked in 2014 and have been stagnant since. The national accounts also show significant downward revisions to corporate profit margins over the previous five years. While one would expect some discrepancies between that data and S&P numbers, which are based on Generally Accepted Accounting Principles (GAAP), the gulf is too wide to be ignored.What’s going on? In many cases, accounting choices appear to be distorting results. In early 2019, General Electric Co. reported GAAP losses of $2.43 per share; under adjusted figures it earned $0.65 per share. Tesla Inc. reported full-year GAAP losses of $5.72 per share but “non-GAAP” losses were only $1.33 per share. Over 95% of S&P 500 companies regularly use at least one non-GAAP measure, up about 50% over the last 20 years.One question is how companies choose to recognize income. In the case of long-term, multi-year contracts, such as construction projects, reported revenue can be based on a formula: a portion of the total contract amount, calculated as costs incurred in the relevant period as a percentage of total forecast costs. Understating estimated final costs allows margins to be increased and greater revenue to be recognized up front. Following the collapse of Carillion PLC, the firm was found to be aggressive in recording income which was sensitive to small changes in assumptions. Given the trend to converting sales of products (such as software) into long-term service contracts, these risks are only going to grow. Companies can understate expenses. Many tech companies use non-GAAP accounting to strip out the cost of employee stock options, for instance, thereby showing higher earnings. WeWork sought to redefine traditional earnings before interest, tax, depreciation and amortization as something called “community-based EBITDA.” The new measure conveniently excluded normal operating expenses such as marketing, general and administrative expenses, development and design costs.Spending may be treated as an asset, to be written off in the future rather than when expended. A recent JPMorgan Chase and Co. research report found software intangible assets (the amount spent but not yet expensed) averaged up to 15% of adjusted costs for a sample of European banks. The idea is to better match expenses to the period over which they are expected to benefit the business. But the practice may overstate current earnings.Related-party transactions can distort a company’s true financial position. Saudi Arabia slashed the tax rate on large oil companies to 50% from 85%, even though the government depends on the profits of Saudi Arabian Oil Co. for 80% of its revenues. Aramco will still pay most of its profits to the state, but as dividends rather than tax. That means reported profits will be higher, potentially increasing the company’s valuation ahead of a highly anticipated initial public offering. Complex structures can mask liabilities. Tesla, for instance, faces potential payments related to its SolarCity business. Before being bought by Tesla in 2016, SolarCity regularly sold future cash flows to outside investors in exchange for upfront cash. Tesla assumed these obligations and has continued the practice. The obligations now reportedly total over $1.3 billion.To reduce unfunded pension liabilities, some companies have borrowed at low available interest rates to inject money into the funds. That’s fine as long as fund returns -- generally assumed to be around 6% to 8% -- are higher than the cost of borrowing. If returns come in lower, however, the companies in question will have to raise their contributions, affecting future earnings.New business models often disregard potential costs. If Lyft Inc. and Uber Technologies Inc. drivers are reclassified as employees as proposed in California, then hidden employment costs would need to be recognized, perhaps retrospectively. Newly listed fitness company Peloton Interactive Inc. faces a $300 million lawsuit from music publishers who claim the company used their songs in workouts without paying licensing fees.Finally, stated asset values can be misleading. Goodwill, the difference between acquisition price and the fair value of actual assets acquired, now averages above 50% of acquisition price. Goodwill values are notoriously uncertain. In 2018, GE unexpectedly wrote off $23.2 billion of goodwill arising from its acquisition of Alstom SA.The problem is compounded by private markets, where funding rounds can establish questionable valuations. Recent investments into WeWork valued the company at over $40 billion, more than three times the projected pricing of its abandoned IPO. A recent proposal to get Saudi businesses to make anchor investments in Aramco ahead of its IPO could also inflate its valuation.“Fake” financials, as some would call them, undermine markets. With a correction looking increasingly likely, investors need to start working with regulators and standard setters now to close accounting loopholes, while scrutinizing underlying data more closely. Otherwise, the more creatively companies are allowed to manage their financial position for short-term gain, the bigger the bill is going to be.(Corrects definition of goodwill in twelfth paragraph.)To contact the author of this story: Satyajit Das at firstname.lastname@example.orgTo contact the editor responsible for this story: Nisid Hajari at email@example.comThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Satyajit Das is a former banker and the author, most recently, of "A Banquet of Consequences."For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.
The coming week’s docket of economic reports and earnings releases comes just following the Trump administration’s announcement of a partial trade deal with China late last week.
Citigroup, JPMorgan Chase and Wells Fargo reporting third-quarter results on Tuesday, giving investors important data points on the state of the economy.
(Bloomberg) -- Facebook Inc.’s effort to create a cryptocurrency was dealt a blow on Friday after several key partners, including Mastercard Inc., Visa Inc., EBay Inc., Stripe Inc. and Mercado Pago, abandoned the project. The defections followed fierce criticism from global regulators and lawmakers, and have prompted some industry-watchers to question whether the Libra program can survive.The news comes days before the Libra Association, the group that will oversee the digital currency, prepares to convene its members and ask them to sign a charter agreement. The meeting is slated to take place on Monday in Geneva. A Libra Association spokeswoman said on Friday that the gathering will proceed as planned, and that it would announce the first list of official partners once a formal charter is signed.In a statement, the spokeswoman said the group was "focused on moving forward and continuing to build a strong association" as it worked to create "a safe, transparent, and consumer-friendly implementation of a global payment system that breaks down financial barriers for billions of people."When Facebook launched plans for Libra in June, a critical part of its pitch was that major players in the payments and tech industry were supporting it. The cryptocurrency would be run out of Geneva by the organizations that comprised the Libra Association, not solely by Facebook. But now that that alliance appears to be eroding, the project’s future is uncertain."I don’t think Facebook can do this by itself," said Michael Pachter, an analyst for Wedbush Securities told Bloomberg TV. "Short of a big bank stepping in like JPMorgan, I don’t think this could ever happen."In a tweet on Friday, David Marcus, the Facebook executive spearheading the effort, said that the exit of six partners would not derail the effort. "I would caution against reading the fate of Libra into this update," he wrote. "Change of this magnitude is hard. You know you’re on to something when this much pressure builds up."Whether or not Libra implodes, the exits highlight the extreme challenges that lie ahead for the project, which if successful could have a sweeping impact on the global financial system. "It may very well fail completely," said Lisa Ellis, an analyst at MoffettNathanson. Even if it survives, progress will take much longer and "it’s likely to fall into some level of obscurity," she added.Facebook has faced fierce backlash since the company announced plans for Libra. Politicians and regulators around the world have called on Facebook to halt its progress, and some have suggested Libra could be used for illegal money laundering or trafficking schemes.Despite the scrutiny from public officials and the exodus of partners, Facebook remains committed to Libra, according to a person familiar with the matter who asked not to be identified because they were not authorized to speak publicly. Some people inside the company think the defections are partly driven by established payments providers worrying about a new entrant encroaching on their turf, the person said.In the months since its announcement, Facebook has frequently found itself in the spotlight over the cryptocurrency. Marcus went to Washington in July to testify before Congress about Facebook’s plans. Later this month, Chief Executive Officer Mark Zuckerberg is scheduled to appear before the House Financial Services Committee to answer even more questions about Libra.Earlier this week, two U.S. senators cautioned Visa, Mastercard and Stripe to reconsider their involvement in the project. Senators Sherrod Brown of Ohio and Brian Schatz of Hawaii said that Libra poses a risk to not only the financial system, but the payments companies’ broader business. "We urge you to carefully consider how your companies will manage these risks before proceeding," they said a letter to the companies.Mastercard said in a statement that it will "remain focused on our strategy and our own significant efforts to enable financial inclusion around the world," adding, "We believe there are potential benefits in such initiatives and will continue to monitor the Libra effort." Visa said the company would also continue to evaluate whether to join in Libra in the future, and that the company’s "ultimate decision will be determined by a number of factors, including the Association’s ability to fully satisfy all requisite regulatory expectations."In a statement on Friday, EBay expressed its support for the project, but said it would focus on rolling out its own payments products. “We highly respect the vision of the Libra Association; however, eBay has made the decision to not move forward as a founding member,” an EBay spokesman wrote in the emailed statement. “At this time, we are focused on rolling out eBay’s managed payments experience for our customers."Payments giant Stripe, one of the most high-profile startups to sign onto the project, signaled it remained open to working on it in the future. “Stripe is supportive of projects that aim to make online commerce more accessible for people around the world. Libra has this potential,” said a company spokesperson. “We will follow its progress closely and remain open to working with the Libra Association at a later stage.”The Libra Association is composed of about two dozen organizations, including Facebook. A Lyft Inc. spokeswoman confirmed on Friday that the ride-hailing company remains a member. Other companies that have not signaled plans to leave include Uber Technologies Inc., Spotify Technology S.A., Coinbase Inc. and telecom providers Iliad SA and Vodafone Group Plc. PayPal Holdings Inc. dropped out last week. (Updates with David Marcus comment in 6th paragraph.)\--With assistance from Candy Cheng, Lizette Chapman, Spencer Soper and Lydia Beyoud.To contact the reporters on this story: Kurt Wagner in San Francisco at firstname.lastname@example.org;Julie Verhage in New York at email@example.com;Jenny Surane in New York at firstname.lastname@example.orgTo contact the editors responsible for this story: Jillian Ward at email@example.com, Anne VanderMey, Robin AjelloFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
With Wall Street banks to kick off the upcoming earnings season, financial sector exchange traded fund investors shouldn’t keep their hopes too high as many expect weak results following the round of interest ...
Earnings season kicks off next week with the big banks reporting first. Analysts say the key for earnings at the large financial institutions will be expense control.
New York banking giant has 10 western Pennsylvania branches in the works according to regulatory filings, pulling very close to Bank of America's numbers.
The stock market may be on a trade-talk induced high, but market analysts say a sustainable rally can’t be supported without fundamental strength in earnings.
NEW YORK/LONDON (Reuters) - Britain's financial services regulator is examining allegations of precious metals market manipulation by JPMorgan Chase & Co traders following criminal charges by U.S. authorities, according to two people familiar with the matter. The UK Financial Conduct Authority (FCA) is one of the various authorities that JPMorgan has previously said were investigating its metals trading, according to one of the people, who declined to be named due to the sensitivity of the matter.
With most blue-chip companies earnings scheduled over the coming weeks and sentiments being mixed, investors should closely monitor the movement of the Dow ETF and grab an opportunity that arises from a surge in any of the 30 stocks.
Decent consumer loan growth and rise in mortgage refinancing are expected to support JPMorgan's (JPM) Q3 results amid lower interest rates.
The National Oil Tankers Company of Iran, which owns the Sabity or Sabiti tanker, said two separate missiles hit the vessel at 5am and 5.20am local time, damaging two main reservoirs on board and causing an oil leak into the Red Sea. State media said the tanker was 60 miles off Jeddah. Brent crude, the international oil benchmark, climbed 2.1 per cent to $60.36 a barrel as traders responded to the event.
(Bloomberg) -- The first thing you notice is clearly the darkness.I was showering late Wednesday, shampoo in my eyes and American Horror Story playing on my phone so loud that my husband couldn’t hear my shouts for a light. I had just become one of the millions of people to have lost power in the biggest orchestrated blackout in California history, and here I was excited about the ocean breeze-scented candle I had bought a day earlier -- because flashlights were sold out, and it was that or orange ginger.Other thoughts that ran through my mind: “It’s a good thing I didn’t start a load of laundry,” and, “I’m going to miss the dishwasher.” Curious, the trivial, first-world problems you think of when you’re facing an unprecedented shutoff amid the threat of deadly wildfires and the prospect of going powerless for as long as a week.Governor Attacks PG&E for Blackout Caused by ‘Greed and Neglect’Our home in the Oakland hills was originally among the 250,000 properties in San Francisco’s bedroom communities that were supposed to lose power at noon local time on Wednesday -- joining the half a million that had gone dark just after midnight. Then the winds blew in our favor and bankrupt utility PG&E Corp. changed its mind, delaying our cutoff to 8 p.m. I texted a friend at 10:30 p.m. to say our lights were still on, thinking maybe we were in the clear -- and then it hit. After stumbling out of the shower, reality set in.The second thing you notice is the Internet. I’m in charge of Bloomberg’s coverage of the outages, and had told my team that once the power went out I’d conserve juice on my laptop and work by phone. No dice. I should’ve known. We live in the Bay Area, the home of tech giants including Twitter, Facebook and -- dare I say it? -- Bloomberg. Of course powerless people would rush to their phones, overwhelming LTE networks and crippling mobile data access to us all.That was painful. There’s some irony in the team leader of power at Bloomberg News losing power.On Thursday morning, I managed to squeeze a few emails out of Verizon’s hobbled network from home before signing off to tend to our 1-year-old daughter and make the trek into San Francisco. I walked into the nursery to find Sophie’s hands and feet were freezing. So much for our natural gas-fueled heating system. A frantic Google search tells me that, while these systems indeed depend on gas, they’re designed to automatically shut off during power outages.I passed pharmacies, banks, a coffee shop and several office buildings on my way to the bus stop in Oakland. All dark. A Lucky supermarket was among the few with lights on. A trailer-sized, backup generator parked in its lot.At a clearly powerless sushi restaurant, a man was unloading a box of fresh tuna to deliver. “What are they going to do with that?” I asked him. “They don’t even have power.” He shrugged, “They ordered it.”A worker at the local doughnut shop greeted patrons with: “No coffee, just donuts.” With the credit card machines down, I paid for my glazed twist with a $5 bill. It’s a cash economy in the Bay Area now.At the bus stop, a woman held hands with her elementary school-aged son. His school was among the dozens shut because of the blackouts. “What are you going to do?” I asked. “What can I do?” she said. “I’m bringing him to work.” Her son then turned to me and said he gets to play video games all day. Lucky kid.The drive into San Francisco was like re-entering the real world. Working traffic lights. Heating and cooling. Open and bustling coffee shops. Lucky them, too.I took advantage of our office outlets to recharge my phone, watch, laptop and a back-up battery. At the end of the day, I scooped it all up for the bus ride back into the darkness. A friend texted to say her power was back in Cupertino, home of Apple. A colleague emailed to say hers was restored in the Berkeley Hills. Not mine.I crossed back into the no-Internet zone, and my phone went silent. The bus driver turned to a woman lamenting the loss of hot water and said, “PG&E needs to be dissolved.”I lit a candle at home and waited. We made plans to relocate a freezer-full of breast milk for Sophie to a friend’s place. I’m sure every nursing mother can feel me when I say my husband would’ve had to pry that milk stash from my cold dead hands before I parted ways with it.Before we could load the cooler, we noticed lights flashing outside our front window. A PG&E truck had pulled up, and a worker was hovering in front of a pole, seemingly poking at the power lines above us. My husband, Sophie and I came out to watch. “Hey, is our power coming back on tonight?” I shouted to him. “I’ll be down in a minute,” he shouted back.Then a light at the top of the pole flickered on. I heard my husband clapping, turned around and realized our home had lit up, too. And with that, we became one of the lucky ones. At the blackout’s height, as many as 800,000 customers had lost power. About 228,000 had been restored as of late Thursday.To contact the reporter on this story: Lynn Doan in San Francisco at firstname.lastname@example.orgTo contact the editors responsible for this story: Lynn Doan at email@example.com, Kara WetzelFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Brussels will this weekend hold last-ditch Brexit negotiations with Boris Johnson’s team aimed at preventing the UK from crashing out of the EU after a breakthrough in talks between the two sides sparked ...
Investing.com -- Deals are in the air everywhere: there's the scent of at least a temporary and partial de-escalation between the U.S. and China, "promising signals" of a deal to ensure a smooth Brexit (according to the EU) and banks are set to put a price on the deal of the decade: Saudi Aramco's initial public offering. The bad news? An Iranian oil tanker has reportedly been attacked in the Red Sea, sending oil prices sharply higher. Here's what you need to know in financial markets on Friday, 11th October.