Boris Johnson’s Brexit deal faces narrow defeat on Saturday, analysts warn

British Prime Minister Boris Johnson has insisted that he is “very confident” the House of Commons will support his Brexit deal on Saturday, in what is widely expected to be a historic knife-edge vote. The former London mayor secured a draft Brexit deal with the European Union on Thursday, following successive days of late-night talks and almost three years of tense discussions. Saturday’s showdown is likely to be framed as a “new deal or no deal” moment, with the prime minister acutely aware it


British Prime Minister Boris Johnson has insisted that he is “very confident” the House of Commons will support his Brexit deal on Saturday, in what is widely expected to be a historic knife-edge vote.
The former London mayor secured a draft Brexit deal with the European Union on Thursday, following successive days of late-night talks and almost three years of tense discussions.
Saturday’s showdown is likely to be framed as a “new deal or no deal” moment, with the prime minister acutely aware it
Boris Johnson’s Brexit deal faces narrow defeat on Saturday, analysts warn Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-10-18  Authors: sam meredith
Keywords: news, cnbc, companies, minister, boris, analysts, trading, johnsons, johnson, warn, parliament, draft, defeat, support, faces, brexit, narrow, deal, worlds, prime


Boris Johnson's Brexit deal faces narrow defeat on Saturday, analysts warn

British Prime Minister Boris Johnson has insisted that he is “very confident” the House of Commons will support his Brexit deal on Saturday, in what is widely expected to be a historic knife-edge vote.

The former London mayor secured a draft Brexit deal with the European Union on Thursday, following successive days of late-night talks and almost three years of tense discussions.

Johnson must now persuade a majority of U.K. lawmakers to support the draft agreement if he is to take Britain out of the EU on Oct. 31 — something he has promised to deliver “do or die, come what may.”

Saturday’s showdown is likely to be framed as a “new deal or no deal” moment, with the prime minister acutely aware it will be his last chance to get Members of Parliament (MPs) to approve the deal before the Brexit deadline.

However, the parliamentary arithmetic looks daunting for Johnson after he agreed to strike a deal with the world’s largest trading bloc without the backing of the Northern Irish Democratic Unionist Party (DUP).

The DUP, which supports Johnson’s government on a confidence and supply basis, has said it will be unable to support the deal on Saturday.

The extraordinary session will mark the first time Parliament has convened on a Saturday since 1982, amid the Falklands War.

Sterling, which jumped to five-month highs on Thursday, was trading little changed at $1.2891 during Friday morning deals.


Company: cnbc, Activity: cnbc, Date: 2019-10-18  Authors: sam meredith
Keywords: news, cnbc, companies, minister, boris, analysts, trading, johnsons, johnson, warn, parliament, draft, defeat, support, faces, brexit, narrow, deal, worlds, prime


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‘These not-as-bad-as-feared quarters are good news for shareholders,’ Jim Cramer says

CNBC’s Jim Cramer is noting an emerging theme early in this earnings season: Several companies have missed expectations in their quarterly reports, but their stocks rallied anyway. That kind of action can be found in enterprises covering the railroad, manufacturing and health-care industries whose shares rose on “not-as-bad-as-feared” results, he said Thursday. “All of these not-as-bad-as-feared quarters are good news for shareholders who haven’t been shaken out by the all the darned naysayers,”


CNBC’s Jim Cramer is noting an emerging theme early in this earnings season: Several companies have missed expectations in their quarterly reports, but their stocks rallied anyway.
That kind of action can be found in enterprises covering the railroad, manufacturing and health-care industries whose shares rose on “not-as-bad-as-feared” results, he said Thursday.
“All of these not-as-bad-as-feared quarters are good news for shareholders who haven’t been shaken out by the all the darned naysayers,”
‘These not-as-bad-as-feared quarters are good news for shareholders,’ Jim Cramer says Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-10-17  Authors: tyler clifford
Keywords: news, cnbc, companies, company, revenue, shareholders, cramer, quarters, trading, good, notasbadasfeared, weak, business, jim, shares, stock, thats


'These not-as-bad-as-feared quarters are good news for shareholders,' Jim Cramer says

CNBC’s Jim Cramer is noting an emerging theme early in this earnings season: Several companies have missed expectations in their quarterly reports, but their stocks rallied anyway.

That kind of action can be found in enterprises covering the railroad, manufacturing and health-care industries whose shares rose on “not-as-bad-as-feared” results, he said Thursday.

“All of these not-as-bad-as-feared quarters are good news for shareholders who haven’t been shaken out by the all the darned naysayers,” the “Mad Money” host said. “More importantly, they’re a reminder that execution matters.”

Union Pacific reported what, even by its own admission, was a disappointing quarter with weak cargo sales in large part due to economic weakness in autos, lumber and agricultural exports to China, Cramer said. The stock originally fell in premarket trading Thursday but ultimately gained 0.2% during the session after the shareholder call. Volumes were weak, but the company still made a lot of money thanks to expense control and layoffs, he said.

“It’s a testament to the fact that this is a changed enterprise,” Cramer said. “So even though Union Pacific’s operating revenue was down 7%, guess what, their operating income only declined by 2%. … That’s how you get a not-as-bad-as-feared quarter. I mean that’s how a railroad stock can rally off of a revenue shortfall.”

Consumer products-maker Honeywell also managed to gain nearly 2.4% on the trading day, despite missing Wall Street’s revenue expectations, Cramer said. Investors were concerned how Boeing’s 737 Max issues would weigh on Honeywell’s aerospace arm, but the business had 10% organic sales growth, he said.

Johnson & Johnson, which is facing legal challenges related to the opioid crisis and talc, is another example. Though investors worried how litigation would impact business, the pharmaceutical company delivered top- and bottom-line beats in its earnings report Tuesday. JNJ shares have risen more than 4% since Monday’s close.

“Instead the company proclaimed it was ready for any and all verdicts, which, by the way, have recently [been] going into their own right direction,” Cramer said. “That, and some fabulous blockbuster drugs and some solid device numbers explain how JNJ could have a NABF.”

IBM, on the other hand, was not saved by the “not-as-bad-as-feared” sentiment. Red Hat, which the company acquired earlier this year, was not enough to offset the decline in Big Blue’s noncloud legacy business, he said.


Company: cnbc, Activity: cnbc, Date: 2019-10-17  Authors: tyler clifford
Keywords: news, cnbc, companies, company, revenue, shareholders, cramer, quarters, trading, good, notasbadasfeared, weak, business, jim, shares, stock, thats


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Morgan Stanley earnings Q3 2019

James Gorman, chief executive officer of Morgan Stanley, fixes his jacket during a Bloomberg Television interview on the sidelines of the Morgan Stanley China Summit in Beijing, China, on Thursday, June 1, 2017. Morgan Stanley posted third-quarter profit and revenue that exceeded analysts’ expectations on better-than-expected results in trading and advisory businesses. Chief Executive Officer James Gorman has helped to diversify Morgan Stanley away from trading and advisory businesses with his e


James Gorman, chief executive officer of Morgan Stanley, fixes his jacket during a Bloomberg Television interview on the sidelines of the Morgan Stanley China Summit in Beijing, China, on Thursday, June 1, 2017.
Morgan Stanley posted third-quarter profit and revenue that exceeded analysts’ expectations on better-than-expected results in trading and advisory businesses.
Chief Executive Officer James Gorman has helped to diversify Morgan Stanley away from trading and advisory businesses with his e
Morgan Stanley earnings Q3 2019 Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-10-17  Authors: hugh son
Keywords: news, cnbc, companies, trading, 111, street, 2019, stanley, earnings, profit, share, morgan, billion, wall, bank


Morgan Stanley earnings Q3 2019

James Gorman, chief executive officer of Morgan Stanley, fixes his jacket during a Bloomberg Television interview on the sidelines of the Morgan Stanley China Summit in Beijing, China, on Thursday, June 1, 2017.

Morgan Stanley posted third-quarter profit and revenue that exceeded analysts’ expectations on better-than-expected results in trading and advisory businesses.

The bank said Thursday that profit rose 2.3% to $2.17 billion in the quarter, or $1.17 per share, compared to the $1.11 estimate of analysts surveyed by Refinitiv.

Chief Executive Officer James Gorman has helped to diversify Morgan Stanley away from trading and advisory businesses with his emphasis on wealth management, but the bank still has sizable Wall Street operations.

Morgan Stanley shares have climbed 8.1% this year before Thursday, compared to the 17% gain of the KBW Bank Index.

Morgan Stanley is the last of the big six banks to report earnings. Lenders with large retail operations generally outperformed in the quarter, led by J.P. Morgan Chase and Bank of America. Goldman Sachs missed on profit as investment banking revenue fell, and the firm took writedowns on Uber and WeWork stakes.

Here’s what Wall Street expected:

Earnings: $1.11 a share, 5% lower than a year earlier, according to Refinitiv.

Revenue: $9.6 billion, 2.8% lower than a year earlier

Wealth management: $4.39 billion, according to FactSet

Trading: Equities $2.1 billion, Fixed Income $1.11 billion

This story is developing. Please check back for updates.


Company: cnbc, Activity: cnbc, Date: 2019-10-17  Authors: hugh son
Keywords: news, cnbc, companies, trading, 111, street, 2019, stanley, earnings, profit, share, morgan, billion, wall, bank


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Goldman is slashing employee pay as it ramps up new tech ventures like the Apple Card

That figure is calculated by dividing the bank’s compensation pool by the number of its workers. The drop in employee pay will continue as Goldman undergoes a fundamental shift: For most of its 150 years, its business model was essentially to pay top dollar for the best talent available. In its markets division, the bank recently committed $100 million to overhaul its stock trading technology to serve sophisticated quants who rely on trading systems over human operators. To be fair, talented tra


That figure is calculated by dividing the bank’s compensation pool by the number of its workers.
The drop in employee pay will continue as Goldman undergoes a fundamental shift: For most of its 150 years, its business model was essentially to pay top dollar for the best talent available.
In its markets division, the bank recently committed $100 million to overhaul its stock trading technology to serve sophisticated quants who rely on trading systems over human operators.
To be fair, talented tra
Goldman is slashing employee pay as it ramps up new tech ventures like the Apple Card Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-10-17  Authors: hugh son
Keywords: news, cnbc, companies, ramps, tech, apple, trading, pay, banks, technology, platform, card, compensation, goldman, firms, ventures, slashing, employee, traders, bank


Goldman is slashing employee pay as it ramps up new tech ventures like the Apple Card

Goldman Sachs is on track to pay its employees the lowest of any year in at least the past decade, and executives warned that the trend will continue as software consumes more of the firm’s businesses.

The bank set aside 35% of its revenue for staff compensation and benefits so far this year, the lowest that ratio has been since at least 2009, according to an analysis of New York-based Goldman’s data.

Put another way, the average Goldman employee earned $246,216 for the first nine months of 2019, less than half the $527,192 he or she earned at the same point in 2009. That figure is calculated by dividing the bank’s compensation pool by the number of its workers.

It’s just the latest sign of the times on Wall Street and Goldman in particular. Trading became far less lucrative for banks after financial crisis-era rules discouraged hedge-fund like bets and central banks drained volatility from markets. At the same time, human traders have been disrupted by electronic firms like Virtu and XTX, places that employ a few dozen coders to trade billions in stocks and currencies every day.

“We are in the midst of the biggest marriage of tech and finance in history,” said Mike Mayo, a veteran bank analyst at Wells Fargo. “It means more bots relative to bankers, more machines, more automation, more scale. The next decade will see the implementation of technology to a greater extent and in ways that have never been done before.”

The drop in employee pay will continue as Goldman undergoes a fundamental shift: For most of its 150 years, its business model was essentially to pay top dollar for the best talent available.

Now, as CEO David Solomon faces pressure to reinvent the bank and unearth new sources of revenue, Goldman has been working feverishly to create automated solutions in existing and nascent businesses. That means clients will increasingly interact with software instead of expensive humans.

“As we grow more platform-driven businesses, we expect compensation to decline as a proportion of total operating expenses,” CFO Stephen Scherr told analysts on Tuesday. “Platform businesses should carry higher marginal margins at scale and be less reliant on compensation.”

In fact, the firm spent $450 million so far this year on efforts to draw in new customers, including its launch of the Apple Card, the expansion of its Marcus retail brand and the creation of a payments platform for corporate clients.

In its markets division, the bank recently committed $100 million to overhaul its stock trading technology to serve sophisticated quants who rely on trading systems over human operators. And Goldman’s direct-to-client platform Marquee has recently seen “strong growth” to 50,000 monthly active users, Scherr said this week.

As the bank faces pressure on its overall returns and skepticism over its transformation, the money has to come from somewhere. Taking down employee compensation is one such lever, according to bank analyst Charlie Peabody.

To be fair, talented traders and bankers at top-tier firms like Goldman can still command multi-million dollar bonuses. Part of the downward shift of pay at Goldman represents the move to hire younger, cheaper workers, more engineers and support staff for new consumer ventures. Goldman had 37,800 workers as of September 30, compared with 31,700 ten years ago.

And the bank’s compensation accrual is merely its best estimate of what it will need to pay its people for their work in 2019; that figure can be adjusted up or down, depending on the final three months of the year.

But the trend is clear. Marty Chavez, a former Goldman technology chief who pushed to automate trading desks, told Bloomberg last month that for future traders, understanding how to code will be as important as “writing an English sentence.”


Company: cnbc, Activity: cnbc, Date: 2019-10-17  Authors: hugh son
Keywords: news, cnbc, companies, ramps, tech, apple, trading, pay, banks, technology, platform, card, compensation, goldman, firms, ventures, slashing, employee, traders, bank


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Take profits now if you’re long on the British pound: Citi

Take profits now if you’re long on the British pound: Citi3 Hours AgoShyam Devani of Citi says investors should wait for more clarity on Brexit before trading the British pound. For now, he is “absolutely neutral” on sterling, he says.


Take profits now if you’re long on the British pound: Citi3 Hours AgoShyam Devani of Citi says investors should wait for more clarity on Brexit before trading the British pound.
For now, he is “absolutely neutral” on sterling, he says.
Take profits now if you’re long on the British pound: Citi Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-10-17
Keywords: news, cnbc, companies, pound, citi, wait, trading, investors, sterling, british, youre, neutral, long, profits


Take profits now if you're long on the British pound: Citi

Take profits now if you’re long on the British pound: Citi

3 Hours Ago

Shyam Devani of Citi says investors should wait for more clarity on Brexit before trading the British pound. For now, he is “absolutely neutral” on sterling, he says.


Company: cnbc, Activity: cnbc, Date: 2019-10-17
Keywords: news, cnbc, companies, pound, citi, wait, trading, investors, sterling, british, youre, neutral, long, profits


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Here’s how Boris Johnson’s Brexit deal differs from Theresa May’s

BRUSSELS — The European Union and the United Kingdom announced a new deal that will allow the latter to leave the political and trading union, provided that the U.K. Parliament approves it. This is the second Withdrawal Agreement that both sides have put together, after the first was rejected three times by U.K. lawmakers. CNBC takes a look at what has changed in the deal.


BRUSSELS — The European Union and the United Kingdom announced a new deal that will allow the latter to leave the political and trading union, provided that the U.K. Parliament approves it.
This is the second Withdrawal Agreement that both sides have put together, after the first was rejected three times by U.K. lawmakers.
CNBC takes a look at what has changed in the deal.
Here’s how Boris Johnson’s Brexit deal differs from Theresa May’s Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-10-17  Authors: silvia amaro
Keywords: news, cnbc, companies, withdrawal, heres, second, theresa, brexit, union, sides, johnsons, takes, mays, boris, deal, united, times, differs, trading


Here's how Boris Johnson's Brexit deal differs from Theresa May's

BRUSSELS — The European Union and the United Kingdom announced a new deal that will allow the latter to leave the political and trading union, provided that the U.K. Parliament approves it.

This is the second Withdrawal Agreement that both sides have put together, after the first was rejected three times by U.K. lawmakers.

CNBC takes a look at what has changed in the deal.


Company: cnbc, Activity: cnbc, Date: 2019-10-17  Authors: silvia amaro
Keywords: news, cnbc, companies, withdrawal, heres, second, theresa, brexit, union, sides, johnsons, takes, mays, boris, deal, united, times, differs, trading


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The latest in the brokerage wars: Charles Schwab will allow people to buy fractions of stocks

Charles Schwab is yet again lowering the barrier to enter the world of trading stocks. It’s a push to attract a younger demographic, Schwab told the WSJ. However, Schwab, which holds about $3.72 trillion in client assets, is the first major online broker to offer fractional trading. Schwab didn’t detail when the launch of the service would occur or if the fractional trades would have fees. Schwab told CNBC earlier this month that broker’s latest move to zero commissions was a longtime goal to de


Charles Schwab is yet again lowering the barrier to enter the world of trading stocks.
It’s a push to attract a younger demographic, Schwab told the WSJ.
However, Schwab, which holds about $3.72 trillion in client assets, is the first major online broker to offer fractional trading.
Schwab didn’t detail when the launch of the service would occur or if the fractional trades would have fees.
Schwab told CNBC earlier this month that broker’s latest move to zero commissions was a longtime goal to de
The latest in the brokerage wars: Charles Schwab will allow people to buy fractions of stocks Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-10-17  Authors: maggie fitzgerald
Keywords: news, cnbc, companies, trading, stocks, latest, stock, commission, buy, wars, allow, fractions, trade, brokerage, younger, charles, schwab, fractional, told, trades


The latest in the brokerage wars: Charles Schwab will allow people to buy fractions of stocks

Charles Schwab is yet again lowering the barrier to enter the world of trading stocks. The online broker will soon let its clients trade fractions of stocks, the founder and chairman told the Wall Street Journal in an interview.

In the coming months, Schwab clients that want to own Apple’s stock, won’t need the entire $234.49 it takes to own an entire share of the highly valued technology giant. It’s a push to attract a younger demographic, Schwab told the WSJ.

“Schwab has been quite focused on younger customers for some time, but we’re sure it’s also been watching the success some of the other free trading platforms have experienced and moving in line on fractional share trading makes sense,” Devin Ryan, managing director at JMP Securities, told CNBC in an email.

Schwab is not the first company to take a stab at offering partial stock trades. Smaller companies like Stockpile, which was founded in 2010, have provided this type of service for 99 cents per trade. However, Schwab, which holds about $3.72 trillion in client assets, is the first major online broker to offer fractional trading. Other companies that offer partial trade are M1 Finance, Betterment and Stash.

Schwab didn’t detail when the launch of the service would occur or if the fractional trades would have fees.

Earlier this month, Schwab dropped all commission fees for U.S. stocks, ETFs and options trades. Brokerage rivals E-Trade and TD Ameritrade subsequently followed, dropping their commission fees as well. Interactive Brokers also slashed its fees.

“The move is complementary with the commission cut as it removes any remaining friction around single stock trading,” said Ryan.

Schwab told CNBC earlier this month that broker’s latest move to zero commissions was a longtime goal to deliver to investors.

Shares of Schwab rose nearly 1% on Thursday.

Charles Schwab could not immediately be reached for comment.

—Read the full Wall Street Journal story here.


Company: cnbc, Activity: cnbc, Date: 2019-10-17  Authors: maggie fitzgerald
Keywords: news, cnbc, companies, trading, stocks, latest, stock, commission, buy, wars, allow, fractions, trade, brokerage, younger, charles, schwab, fractional, told, trades


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Cannabis legislation progresses, yet US companies and US cannabis investors are moving in reverse

Buoyed by wide-scale public support, legislation to legalize and properly regulate cannabis in the U.S. on the state and federal level continues to gain steam. And what are the risks to U.S. companies and workers who are trying to build out this high growth, CPG (consumer packaged goods) sector? Republican Majority Leader Mitch McConnell’s endorsement of the legislation and continued support is a further testament to Washington’s growing embrace of the cannabis industry. So it comes as a surpris


Buoyed by wide-scale public support, legislation to legalize and properly regulate cannabis in the U.S. on the state and federal level continues to gain steam.
And what are the risks to U.S. companies and workers who are trying to build out this high growth, CPG (consumer packaged goods) sector?
Republican Majority Leader Mitch McConnell’s endorsement of the legislation and continued support is a further testament to Washington’s growing embrace of the cannabis industry.
So it comes as a surpris
Cannabis legislation progresses, yet US companies and US cannabis investors are moving in reverse Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-10-17  Authors: tim seymour, brady cobb
Keywords: news, cnbc, companies, street, trading, securities, cannabis, moving, investors, support, reverse, banking, americans, legislation, retail, companies, progresses


Cannabis legislation progresses, yet US companies and US cannabis investors are moving in reverse

Buoyed by wide-scale public support, legislation to legalize and properly regulate cannabis in the U.S. on the state and federal level continues to gain steam. So why are commercial and investment banks moving in the opposite direction? And what are the risks to U.S. companies and workers who are trying to build out this high growth, CPG (consumer packaged goods) sector? As a result, the U.S. retail investor has become collateral damage.

The passage of the 2018 Farm Bill, which legalized the cultivation and sale of hemp and hemp derived CBD, signaled federal acceptance and expansion of the cannabis marketplace in the United States. Republican Majority Leader Mitch McConnell’s endorsement of the legislation and continued support is a further testament to Washington’s growing embrace of the cannabis industry. And recently, the House of Representatives passed its version of the SAFE Banking Act, which would give cannabis companies access to the U.S. banking system including retail banking, credit card processing and access to institutional lending (as opposed to dilutive convertible debt financings).

So it comes as a surprise that an influential U.S. commercial bank would take a step to thwart the efforts of Americans to invest in legal cannabis companies with U.S. operations.

Bank of New York Mellon Corp., one of the largest custody and clearing banks in the world, announced earlier this month it would stop accepting positions(custody) or trading with U.S. marijuana-related businesses, a decision which would restrict trading of popular cannabis companies that are listed on Canadian exchanges, but have U.S. operations. Canadian-listed firms without U.S. operations would still be able to be traded.

BNY Mellon’s head-scratching decision has moved in the opposite direction of the thrust of U.S. public opinion. A Gallup poll conducted in 2018 found that 2 out of every 3 Americans support legalizing marijuana, while key 2020 swing states including Nevada and Michigan have adapted to voters’ concerns by legalizing recreational cannabis use.

The only way to provide lasting relief for U.S. investors in cannabis is with legislation from Washington.

Currently, if you’re a U.S. company that employs Americans and provides legal cannabis products to Americans, you have to publicly list your shares on the Canadian Securities Exchange, without the benefit of U.S. Securities and Exchange Commission oversight.

Currently, if you are a U.S. retail investor you must do cross-border trades in order to invest in cannabis stocks with all of the capital and fees flowing right out of Wall Street to Bay Street in Toronto. But more importantly, the protection of US exchanges and securities laws are also missing.


Company: cnbc, Activity: cnbc, Date: 2019-10-17  Authors: tim seymour, brady cobb
Keywords: news, cnbc, companies, street, trading, securities, cannabis, moving, investors, support, reverse, banking, americans, legislation, retail, companies, progresses


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Credit Suisse raises Amazon price target before earnings, sees 35% rally ahead

Shares of Amazon may be trading in correction territory after falling 13% from July’s high, but Credit Suisse sees a 35% rally ahead for the stock.


Shares of Amazon may be trading in correction territory after falling 13% from July’s high, but Credit Suisse sees a 35% rally ahead for the stock.
Credit Suisse raises Amazon price target before earnings, sees 35% rally ahead Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-10-16  Authors: pippa stevens
Keywords: news, cnbc, companies, territory, trading, stock, shares, raises, earnings, credit, target, rally, sees, julys, falling, price, ahead, suisse, amazon, high


Credit Suisse raises Amazon price target before earnings, sees 35% rally ahead

Shares of Amazon may be trading in correction territory after falling 13% from July’s high, but Credit Suisse sees a 35% rally ahead for the stock.


Company: cnbc, Activity: cnbc, Date: 2019-10-16  Authors: pippa stevens
Keywords: news, cnbc, companies, territory, trading, stock, shares, raises, earnings, credit, target, rally, sees, julys, falling, price, ahead, suisse, amazon, high


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JP Morgan Chase shares surge after posting record revenue above Wall Street expectations

J.P. Morgan Chase posted profit and revenue that exceeded analysts’ expectations on the strength of consumer banking operations that helped the bank mitigate the impact of lower interest rates. Revenue also rose 8% to $30.1 billion, exceeding the $28.5 billion estimate, and the bank cited growth in home loans, auto and credit cards. The bank exceeded Dimon’s guidance on the strength of its bond trading desks: The bank posted $3.56 billion in fixed income trading revenue, exceeding estimates by m


J.P. Morgan Chase posted profit and revenue that exceeded analysts’ expectations on the strength of consumer banking operations that helped the bank mitigate the impact of lower interest rates. Revenue also rose 8% to $30.1 billion, exceeding the $28.5 billion estimate, and the bank cited growth in home loans, auto and credit cards. The bank exceeded Dimon’s guidance on the strength of its bond trading desks: The bank posted $3.56 billion in fixed income trading revenue, exceeding estimates by m
JP Morgan Chase shares surge after posting record revenue above Wall Street expectations Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-10-15  Authors: hugh son
Keywords: news, cnbc, companies, expectations, billion, earlier, record, posting, street, wall, bank, morgan, surge, revenue, increase, exceeding, trading, posted, shares


JP Morgan Chase shares surge after posting record revenue above Wall Street expectations

J.P. Morgan Chase posted profit and revenue that exceeded analysts’ expectations on the strength of consumer banking operations that helped the bank mitigate the impact of lower interest rates.

The bank said third-quarter profit rose 8% to $9.1 billion, or $2.68 a share, exceeding the $2.45 estimate of analysts surveyed by Refinitiv. Revenue also rose 8% to $30.1 billion, exceeding the $28.5 billion estimate, and the bank cited growth in home loans, auto and credit cards. The stock rose 1.7 percent in early trading.

“The consumer remains healthy with growth in wages and spending, combined with strong balance sheets and low unemployment levels,” CEO Jamie Dimon said in the earnings release. “This is being offset by weakening business sentiment and capital expenditures mostly driven by increasingly complex geopolitical risks, including tensions in global trade.”

Banks have this year on worries the Federal Reserve’s shift to easing rates will squeeze the industry’s profit margins. The Fed cut rates twice in the third quarter to avert a slowdown, and banks including J.P. Morgan and Wells Fargo warned last month that net interest income would be lower than earlier guidance.

Still, the bank posted $14.4 billion in the third quarter, exceeding the estimate of Morgan Stanley’s Betsy Graseck by almost $300 million, as J.P. Morgan grew its balance sheet, the firm said.

Despite fears of an encroaching slowdown, the consumer has supported the U.S. economy, borrowing more and largely repaying debts on time. Analysts will scrutinize the bank’s charge-offs for any signs of weakness in consumer and corporate borrowing.

Another area that will be closely watched is J.P. Morgan’s trading desks. While CEO Jamie Dimon said last month that third-quarter trading revenue is expected to climb 10% from a year earlier, that figure is still 10% lower than the bank’s results in the second quarter, when it posted $5.2 billion.

The bank exceeded Dimon’s guidance on the strength of its bond trading desks: The bank posted $3.56 billion in fixed income trading revenue, exceeding estimates by more than $300 million. Equities trading posted $1.52 billion in revenue, just under the $1.58 estimate.

Here’s what Wall Street expected:

Earnings: $2.45 per share, a 4.7% increase from a year earlier, according to Refinitiv.

$2.45 per share, a 4.7% increase from a year earlier, according to Refinitiv. Revenue: $28.5 billion, a 2.4% increase from a year earlier.

$28.5 billion, a 2.4% increase from a year earlier. Net Interest Margin: 2.41%.

2.41%. Trading Revenue: Equities $1.58 billion, Fixed Income $3.19 billion, according to FactSet.

This is breaking news. Please check back for updates.


Company: cnbc, Activity: cnbc, Date: 2019-10-15  Authors: hugh son
Keywords: news, cnbc, companies, expectations, billion, earlier, record, posting, street, wall, bank, morgan, surge, revenue, increase, exceeding, trading, posted, shares


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