{"id":64432,"date":"2022-10-14T08:58:52","date_gmt":"2022-10-14T12:58:52","guid":{"rendered":"https:\/\/blog.t3live.com\/?p=64432"},"modified":"2022-10-14T08:58:52","modified_gmt":"2022-10-14T12:58:52","slug":"coffee-with-greta-traders-digest-big-bank-earnings","status":"publish","type":"post","link":"https:\/\/blog.t3live.com\/2022\/10\/14\/coffee-with-greta-traders-digest-big-bank-earnings\/","title":{"rendered":"Coffee With Greta: Traders Digest Big Bank Earnings"},"content":{"rendered":"

DJIA Futures: <\/b>+64 (+0.2%)<\/span><\/p>\n

SPX Futures: <\/b>+6 (+0.2%)<\/span><\/p>\n

NASDAQ Futures: <\/b>+11 (+0.1%)<\/span><\/p>\n

Good morning friends!<\/span><\/p>\n

Futures are higher as traders digest Q3 earnings from 4 of the largest banks in the U.S.<\/span><\/p>\n

Let\u2019s get right to it!<\/span><\/p>\n

Interest Income Boosts JPMorgan Chase Q3 Profits<\/span><\/h2>\n

JPMorgan Chase <\/b>(JPM) shares are up 1.2% ahead of the open after topping Q3 expectations on the top and bottom line.<\/span><\/p>\n

Here\u2019s how the bank\u2019s results compared to analysts\u2019 expectations:<\/span><\/p>\n

    \n
  • EPS: $3.12 vs $2.88 expected<\/span><\/li>\n
  • Revenue: $33.49 billion vs $32.1 billion expected<\/span><\/li>\n<\/ul>\n

    Profit fell 17% year over year as the bank boosted its loan reserves by $808 million.\u00a0<\/span><\/p>\n

    Revenue jumped 10% compared to a year ago as Chase benefited from higher interest rates.\u00a0<\/span><\/p>\n

    Net interest income surged 34% to $17.6 billion, topping analysts\u2019 expectations by more than $600 million.<\/span><\/p>\n

    Wells Fargo Beats Q3 Expectations<\/span><\/h2>\n

    Wells Fargo <\/b>(WFC) shares are up 1.8% in premarket trade after beating Q3 expectations.\u00a0<\/span><\/p>\n

    Here\u2019s how the bank\u2019s results compared to analysts\u2019 estimates:<\/span><\/p>\n

      \n
    • Adjusted EPS: $1.30 vs $1.09 expected<\/span><\/li>\n
    • Revenue: $19.51 billion vs $18.78 billion expected<\/span><\/li>\n<\/ul>\n

      Wells Fargo built up its credit loss reserves by $784 million last quarter, which dented profits.\u00a0<\/span><\/p>\n

      Net income fell more than 30% from Q3 2021.<\/span><\/p>\n

      Wells Fargo\u2019s mortgage business has been impacted by higher rates but the bank has also benefited from higher rates in retail and commercial banking.\u00a0<\/span><\/p>\n

      Net interest income jumped 36% due to higher interest rates and higher loan balance.\u00a0<\/span><\/p>\n

      Morgan Stanley\u2019s Q3 Profit Plunges<\/span><\/h2>\n

      Morgan Stanley <\/b>(MS) shares are down 2.8% ahead of the open after missing Q3 expectations on the top and bottom line.\u00a0<\/span><\/p>\n

      Here\u2019s how the bank\u2019s results compared to analysts\u2019 expectations:<\/span><\/p>\n

        \n
      • EPS: $1.47 vs $1.49 estimate<\/span><\/li>\n
      • Revenue: $12.99 billion vs $13.3 billion estimate<\/span><\/li>\n<\/ul>\n

        Profit tumbled 29% year over year with revenue down 12%.\u00a0<\/span><\/p>\n

        Morgan Stanley\u2019s investment banking revenue tumbled 55% to $1.28 billion, in line with estimates.<\/span><\/p>\n

        But investment management revenue dropped 20% to $1.17 billion, below estimates.<\/span><\/p>\n

        Citigroup Beats Q3 Estimates<\/span><\/h2>\n

        Citigroup <\/b>(C) shares are up 0.8% in premarket trade after beating Q3 expectations even as profits plunged year over year.\u00a0<\/span><\/p>\n

        Here\u2019s how the bank\u2019s results compared to analysts\u2019 expectations:<\/span><\/p>\n

          \n
        • EPS: $1.63 vs $1.42 expected<\/span><\/li>\n
        • Revenue: $18.51 billion vs $18.25 billion expected<\/span><\/li>\n<\/ul>\n

          Revenue rose 6% year over year while net income plunged 25% as the bank built up its loan loss reserves.<\/span><\/p>\n

          Citigroup increased those reserves by $370 million during the quarter.\u00a0<\/span><\/p>\n

          September Retail Sales Fall Flat<\/span><\/h2>\n

          Retail sales fell flat in September as high inflation puts pressure on consumers.\u00a0<\/span><\/p>\n

          The Commerce Department reported retail sales were unchanged last month vs expectations for 0.3% growth.\u00a0<\/span><\/p>\n

          That was down from the upwardly revised 0.4% growth in August.<\/span><\/p>\n

          Retail sales were up 8.2% year over year, a five-month low.\u00a0<\/span><\/p>\n

          Sales at motor vehicles and parts dealers fell 0.4% while gasoline sales dropped 1.4%.<\/span><\/p>\n

          Restaurants and bars saw a 0.5% increase in sales and grocery store sales rose 0.4%.<\/span><\/p>\n

          Retail sales excluding autos rose 0.1% vs economists\u2019 expectations for 0%.<\/span><\/p>\n

          Kroger to Buy Albertsons<\/span><\/h2>\n

          Kroger <\/b>(KR) shares are falling 2.7% ahead of the open after announcing it will buy <\/span>Albertsons <\/b>(ACI).<\/span><\/p>\n

          ACI shares are also down 3.7% in premarket trade.\u00a0<\/span><\/p>\n

          Kroger will buy Albertsons for $34.10 per share, in a deal valued at $24.6 billion.\u00a0<\/span><\/p>\n

          The combination of the two grocers would put the company in a close second to <\/span>Walmart <\/b>(WMT) as the largest U.S. grocer by market share.\u00a0<\/span><\/p>\n

          Both companies\u2019 boards have unanimously approved the agreement which now needs regulatory approval.<\/span><\/p>\n

          Oil Prices Fall On Recession Worries<\/span><\/h2>\n

          Oil prices are slipping today as recession fears take over.\u00a0<\/span><\/p>\n

          West Texas Intermediate crude futures are down 2% to just over $87 bbl while Brent crude futures are down 1.8% to just under $93 bbl.\u00a0<\/span><\/p>\n

          Both contracts are on track for weekly losses following two straight weeks of gains.\u00a0<\/span><\/p>\n

          In Case You Missed It<\/span><\/h2>\n
            \n
          • Netflix <\/b>(NFLX) shares jumped 5.3% after the streaming giant announced it will price its new ad-supported tier at $6.99\/month. That $1 less than Disney+ and Hulu with commercials. The company said commercials will be 15 or 30 seconds long and play before and during content. There will be an average of four to five minutes of commercials per program.\u00a0<\/span><\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"

            DJIA Futures: +64 (+0.2%) SPX Futures: +6 (+0.2%) NASDAQ Futures: +11 (+0.1%) Good morning friends! Futures are higher as traders digest Q3 earnings from 4 of the largest banks in the U.S. Let\u2019s get right to it! Interest Income Boosts JPMorgan Chase Q3 Profits JPMorgan Chase (JPM) shares are up 1.2% ahead of the open after topping Q3 expectations on the top and bottom line. Here\u2019s how the bank\u2019s results compared to analysts\u2019 expectations: EPS: $3.12 vs $2.88 expected Revenue: $33.49 billion vs $32.1 billion expected Profit fell 17% year over year as the bank boosted its loan reserves by $808 million.\u00a0 Revenue jumped 10% compared to a year ago as Chase benefited from higher interest rates.\u00a0 Net interest income surged 34% to $17.6 billion, topping analysts\u2019 expectations by more than $600 million. Wells Fargo Beats Q3 Expectations Wells Fargo (WFC) shares are up 1.8% in premarket trade after beating Q3 expectations.\u00a0 Here\u2019s how the bank\u2019s results compared to analysts\u2019 estimates: Adjusted EPS: $1.30 vs $1.09 expected Revenue: $19.51 billion vs $18.78 billion expected Wells Fargo built up its credit loss reserves by $784 million last quarter, which dented profits.\u00a0 Net income fell more than 30% from Q3 2021. Wells Fargo\u2019s mortgage business has been impacted by higher rates but the bank has also benefited from higher rates in retail and commercial banking.\u00a0 Net interest income jumped 36% due to higher interest rates and higher loan balance.\u00a0 Morgan Stanley\u2019s Q3 Profit Plunges Morgan Stanley (MS) shares are down 2.8% ahead of the open after missing Q3 expectations on the top and bottom line.\u00a0 Here\u2019s how the bank\u2019s results compared to analysts\u2019 expectations: EPS: $1.47 vs $1.49 estimate Revenue: $12.99 billion vs $13.3 billion estimate Profit tumbled 29% year over year with revenue down 12%.\u00a0 Morgan Stanley\u2019s investment banking revenue tumbled 55% to $1.28 billion, in line with estimates. But investment management revenue dropped 20% to $1.17 billion, below estimates. Citigroup Beats Q3 Estimates Citigroup (C) shares are up 0.8% in premarket trade after beating Q3 expectations even as profits plunged year over year.\u00a0 Here\u2019s how the bank\u2019s results compared to analysts\u2019 expectations: EPS: $1.63 vs $1.42 expected Revenue: $18.51 billion vs $18.25 billion expected Revenue rose 6% year over year while net income plunged 25% as the bank built up its loan loss reserves. Citigroup increased those reserves by $370 million during the quarter.\u00a0 September Retail Sales Fall Flat Retail sales fell flat in September as high inflation puts pressure on consumers.\u00a0 The Commerce Department reported retail sales were unchanged last month vs expectations for 0.3% growth.\u00a0 That was down from the upwardly revised 0.4% growth in August. Retail sales were up 8.2% year over year, a five-month low.\u00a0 Sales at motor vehicles and parts dealers fell 0.4% while gasoline sales dropped 1.4%. Restaurants and bars saw a 0.5% increase in sales and grocery store sales rose 0.4%. Retail sales excluding autos rose 0.1% vs economists\u2019 expectations for 0%. Kroger to Buy Albertsons Kroger (KR) shares are falling 2.7% ahead of the open after announcing it will buy Albertsons (ACI). ACI shares are also down 3.7% in premarket trade.\u00a0 Kroger will buy Albertsons for $34.10 per share, in a deal valued at $24.6 billion.\u00a0 The combination of the two grocers would put the company in a close second to Walmart (WMT) as the largest U.S. grocer by market share.\u00a0 Both companies\u2019 boards have unanimously approved the agreement which now needs regulatory approval. Oil Prices Fall On Recession Worries Oil prices are slipping today as recession fears take over.\u00a0 West Texas Intermediate crude futures are down 2% to just over $87 bbl while Brent crude futures are down 1.8% to just under $93 bbl.\u00a0 Both contracts are on track for weekly losses following two straight weeks of gains.\u00a0 In Case You Missed It Netflix (NFLX) shares jumped 5.3% after the streaming giant announced it will price its new ad-supported tier at $6.99\/month. That $1 less than Disney+ and Hulu with commercials. The company said commercials will be 15 or 30 seconds long and play before and during content. There will be an average of four to five minutes of commercials per program.\u00a0<\/p>\n","protected":false},"author":41,"featured_media":64436,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[739],"tags":[],"class_list":["post-64432","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-coffee-with-greta"],"_links":{"self":[{"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/posts\/64432","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/users\/41"}],"replies":[{"embeddable":true,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/comments?post=64432"}],"version-history":[{"count":2,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/posts\/64432\/revisions"}],"predecessor-version":[{"id":64439,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/posts\/64432\/revisions\/64439"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/media\/64436"}],"wp:attachment":[{"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/media?parent=64432"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/categories?post=64432"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/tags?post=64432"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}