{"id":65889,"date":"2023-01-13T09:02:16","date_gmt":"2023-01-13T14:02:16","guid":{"rendered":"https:\/\/blog.t3live.com\/?p=65889"},"modified":"2023-01-13T09:02:16","modified_gmt":"2023-01-13T14:02:16","slug":"coffee-with-greta-big-banks-kick-start-earnings","status":"publish","type":"post","link":"https:\/\/blog.t3live.com\/2023\/01\/13\/coffee-with-greta-big-banks-kick-start-earnings\/","title":{"rendered":"Coffee With Greta: Big Banks Kick Start Earnings"},"content":{"rendered":"

DJIA Futures: <\/b>-278 (-0.8%)<\/span><\/p>\n

SPX Futures: <\/b>-38 (-0.9%)<\/span><\/p>\n

NASDAQ Futures: <\/b>-126 (-1.1%)<\/span><\/p>\n

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

Futures are lower after the biggest banks in the U.S. reported earnings and warned of an impending recession.\u00a0<\/span><\/p>\n

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

JPMorgan Chase Warns Of Recession<\/span><\/h2>\n

Q4 earnings season kicked off this morning with some of the largest banks in the U.S. reporting.\u00a0<\/span><\/p>\n

JPMorgan Chase <\/b>(JPM) shares are falling 2.8% ahead of the open despite beating expectations.\u00a0<\/span><\/p>\n

Here\u2019s how the bank\u2019s results compared to estimates:\u00a0<\/span><\/p>\n

    \n
  • EPS: $3.57 vs $3.07 expected<\/span><\/li>\n
  • Revenue: $35.57 billion vs $34.3 billion expected<\/span><\/li>\n<\/ul>\n

    Revenue surged 48% year over year as interest rates jumped.<\/span><\/p>\n

    The biggest bank in the U.S. set aside $2.3 billion for credit losses in the quarter, up 49% from Q3 as the bank prepares for a recession.\u00a0<\/span><\/p>\n

    CEO Jamie Dimon said, \u201cWe still do not know the ultimate effect of the headwinds coming from geopolitical tensions including the war in Ukraine, the vulnerable state of energy and food supplies, persistent inflation that is eroding purchasing power and has pushed interest rates higher, and the unprecedented quantitative tightening.\u201d<\/span><\/p>\n

    Bank of America Tops Expectations<\/span><\/h2>\n

    Bank of America <\/b>(BAC) shares are falling 2.7% in premarket trade despite beating Q4 expectations on the top and bottom line.\u00a0<\/span><\/p>\n

    Here\u2019s a look at the bank\u2019s results vs analysts\u2019 expectations:\u00a0<\/span><\/p>\n

      \n
    • EPS: $0.85 vs $0.77 expected<\/span><\/li>\n
    • Revenue: $24.66 billion vs $24.33 billion expected<\/span><\/li>\n<\/ul>\n

      Bank of America\u2019s net interest income jumped 29% year over year to $14.7 billion as rates rose.\u00a0<\/span><\/p>\n

      That was shy of analysts\u2019 expectations of $14.8 billion.\u00a0<\/span><\/p>\n

      The bank set aside $1.1 billion for loan loss reserves.\u00a0<\/span><\/p>\n

      CEO Brian Moynihan said the U.S. economic environment is \u201cincreasingly slowing.\u201d<\/span><\/p>\n

      Wells Fargo Profits Tumble<\/span><\/h2>\n

      Wells Fargo <\/b>(WFC) shares are dropping 4% ahead of the open after reporting a sharp drop in Q4 profits.<\/span><\/p>\n

      Here\u2019s how the bank\u2019s results compared to analysts\u2019 estimates:\u00a0<\/span><\/p>\n

        \n
      • EPS: $0.67 vs $0.60 expected<\/span><\/li>\n
      • Revenue: $19.7 billion vs $19.98 billion expected<\/span><\/li>\n<\/ul>\n

        The bank\u2019s profits tumbled 49% year over year compared to EPS of $1.38 in the same quarter a year ago.\u00a0<\/span><\/p>\n

        That was partly driven by a drop in mortgage banking due to fewer originations or new purchase loans.\u00a0<\/span><\/p>\n

        Home lending revenue was down 57% last quarter.\u00a0<\/span><\/p>\n

        Wells Fargo set aside $957 million for credit losses as the economic outlook deteriorates.\u00a0<\/span><\/p>\n

        CEO Charlie Scharf said, \u201cAs we look forward, we are carefully watching the impact of higher rates on our customers and expect to see deposit balances and credit quality continue to return toward pre-pandemic levels.\u201d<\/span><\/p>\n

        Citigroup Tops Q4 Expectations<\/span><\/h2>\n

        Citigroup <\/b>(C) shares are up 0.7% in premarket trade after beating Q4 expectations on the top and bottom line.\u00a0<\/span><\/p>\n

        Here\u2019s how the investment bank\u2019s results compared to analysts\u2019 expectations:\u00a0<\/span><\/p>\n

          \n
        • EPS: $1.16 vs $1.14 expected<\/span><\/li>\n
        • Revenue: $18 billion vs $17.9 billion expected<\/span><\/li>\n<\/ul>\n

          But profits tumbled 21% year over year to $2.5 billion vs $3.2 billion one year ago.\u00a0<\/span><\/p>\n

          As rates jumped, net interest income rose to $13.27 billion vs $12.7 billion expected.<\/span><\/p>\n

          Fixed-income trading revenue topped expectations at $3.16 billion while the $789 million in equities trading revenue was below estimates.\u00a0<\/span><\/p>\n

          Citigroup set aside $1.85 billion in loan loss reserves, higher than expectations for $1.79 billion.<\/span><\/p>\n

          Delta Drops On Weak Guidance<\/span><\/h2>\n

          Delta Airlines <\/b>(DAL) shares are tumbling 5.3% ahead of the open after beating Q4 expectations but issuing weak guidance.\u00a0<\/span><\/p>\n

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

            \n
          • Adjusted EPS: $1.48 vs $1.33 expected<\/span><\/li>\n
          • Revenue: $12.29 billion vs $12.23 billion expected<\/span><\/li>\n<\/ul>\n

            Sales were up 17% compared to Q4 2019.\u00a0<\/span><\/p>\n

            Operating costs jumped 19% from 2019 and included a $2.8 billion fuel bill, up 42% year over year.\u00a0<\/span><\/p>\n

            CEO Ed Bastian said Delta \u201crose to the challenges of 2022, delivering industry-leading operational reliability and financial performance.\u201d<\/span><\/p>\n

            But the airline expects profits to fall in the current quarter.\u00a0<\/span><\/p>\n

            Delta forecast Q1 adjusted EPS of just $0.15 to $0.40 and revenue growth of 14% to 17% over 2019 levels.\u00a0<\/span><\/p>\n

            The company also expects unit costs, excluding fuel, to increase by 3% to 4% from last year.\u00a0<\/span><\/p>\n

            Delta reiterated its full-year outlook for earnings of $5 to $6 per share.<\/span><\/p>\n

            Tesla Falls After Cutting Prices<\/span><\/h2>\n

            Tesla <\/b>(TSLA) shares are down 5.9% in premarket trade after cutting its prices in the U.S. and Europe.\u00a0<\/span><\/p>\n

            The electric automaker lowered the starting price of its Model 3 and Model Y.\u00a0<\/span><\/p>\n

            In the U.S., the Model 3 now starts at about $44,000.\u00a0<\/span><\/p>\n

            That\u2019s down about 6% from the previous price.\u00a0<\/span><\/p>\n

            The performance version of the Model 3 was lowered to $54,000 from $63,000.\u00a0<\/span><\/p>\n

            The long-range version of the Model Y is now listed for about $53,000, down 20% from $66,000.\u00a0<\/span><\/p>\n

            The performance version of the Y was lowered to $57,000 from $70,000.\u00a0<\/span><\/p>\n

            Although Tesla did not comment on the changes many are speculating the move was aimed at qualifying for U.S. tax credits.\u00a0<\/span><\/p>\n

            Electric vehicles priced below $55,000 qualify for the $7,500 purchase tax credit passed in the Inflation Reduction Act.\u00a0<\/span><\/p>\n

            The lower prices are also expected to stimulate demand in the U.S.\u00a0<\/span><\/p>\n

            Tesla also cut its Model 3 and Y prices in Europe by as much as 17%.\u00a0<\/span><\/p>\n

            In Case You Missed It<\/span><\/h2>\n
              \n
            • Lucid Group <\/b>(LCID) shares jumped 4.8% Thursday after the electric automaker reported stronger 2022 production numbers than expected. Lucid said it produced 7,180 vehicles last year. That was higher than its previous outlook for production of between 6,000 and 7,000 vehicles for the full year. The company produced 3,943 vehicles in Q4, up 53% from Q3.<\/span><\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"

              DJIA Futures: -278 (-0.8%) SPX Futures: -38 (-0.9%) NASDAQ Futures: -126 (-1.1%) Good morning friends! Futures are lower after the biggest banks in the U.S. reported earnings and warned of an impending recession.\u00a0 Let\u2019s get right to it! JPMorgan Chase Warns Of Recession Q4 earnings season kicked off this morning with some of the largest banks in the U.S. reporting.\u00a0 JPMorgan Chase (JPM) shares are falling 2.8% ahead of the open despite beating expectations.\u00a0 Here\u2019s how the bank\u2019s results compared to estimates:\u00a0 EPS: $3.57 vs $3.07 expected Revenue: $35.57 billion vs $34.3 billion expected Revenue surged 48% year over year as interest rates jumped. The biggest bank in the U.S. set aside $2.3 billion for credit losses in the quarter, up 49% from Q3 as the bank prepares for a recession.\u00a0 CEO Jamie Dimon said, \u201cWe still do not know the ultimate effect of the headwinds coming from geopolitical tensions including the war in Ukraine, the vulnerable state of energy and food supplies, persistent inflation that is eroding purchasing power and has pushed interest rates higher, and the unprecedented quantitative tightening.\u201d Bank of America Tops Expectations Bank of America (BAC) shares are falling 2.7% in premarket trade despite beating Q4 expectations on the top and bottom line.\u00a0 Here\u2019s a look at the bank\u2019s results vs analysts\u2019 expectations:\u00a0 EPS: $0.85 vs $0.77 expected Revenue: $24.66 billion vs $24.33 billion expected Bank of America\u2019s net interest income jumped 29% year over year to $14.7 billion as rates rose.\u00a0 That was shy of analysts\u2019 expectations of $14.8 billion.\u00a0 The bank set aside $1.1 billion for loan loss reserves.\u00a0 CEO Brian Moynihan said the U.S. economic environment is \u201cincreasingly slowing.\u201d Wells Fargo Profits Tumble Wells Fargo (WFC) shares are dropping 4% ahead of the open after reporting a sharp drop in Q4 profits. Here\u2019s how the bank\u2019s results compared to analysts\u2019 estimates:\u00a0 EPS: $0.67 vs $0.60 expected Revenue: $19.7 billion vs $19.98 billion expected The bank\u2019s profits tumbled 49% year over year compared to EPS of $1.38 in the same quarter a year ago.\u00a0 That was partly driven by a drop in mortgage banking due to fewer originations or new purchase loans.\u00a0 Home lending revenue was down 57% last quarter.\u00a0 Wells Fargo set aside $957 million for credit losses as the economic outlook deteriorates.\u00a0 CEO Charlie Scharf said, \u201cAs we look forward, we are carefully watching the impact of higher rates on our customers and expect to see deposit balances and credit quality continue to return toward pre-pandemic levels.\u201d Citigroup Tops Q4 Expectations Citigroup (C) shares are up 0.7% in premarket trade after beating Q4 expectations on the top and bottom line.\u00a0 Here\u2019s how the investment bank\u2019s results compared to analysts\u2019 expectations:\u00a0 EPS: $1.16 vs $1.14 expected Revenue: $18 billion vs $17.9 billion expected But profits tumbled 21% year over year to $2.5 billion vs $3.2 billion one year ago.\u00a0 As rates jumped, net interest income rose to $13.27 billion vs $12.7 billion expected. Fixed-income trading revenue topped expectations at $3.16 billion while the $789 million in equities trading revenue was below estimates.\u00a0 Citigroup set aside $1.85 billion in loan loss reserves, higher than expectations for $1.79 billion. Delta Drops On Weak Guidance Delta Airlines (DAL) shares are tumbling 5.3% ahead of the open after beating Q4 expectations but issuing weak guidance.\u00a0 Here\u2019s how the airline\u2019s results compared to analysts\u2019 expectations: Adjusted EPS: $1.48 vs $1.33 expected Revenue: $12.29 billion vs $12.23 billion expected Sales were up 17% compared to Q4 2019.\u00a0 Operating costs jumped 19% from 2019 and included a $2.8 billion fuel bill, up 42% year over year.\u00a0 CEO Ed Bastian said Delta \u201crose to the challenges of 2022, delivering industry-leading operational reliability and financial performance.\u201d But the airline expects profits to fall in the current quarter.\u00a0 Delta forecast Q1 adjusted EPS of just $0.15 to $0.40 and revenue growth of 14% to 17% over 2019 levels.\u00a0 The company also expects unit costs, excluding fuel, to increase by 3% to 4% from last year.\u00a0 Delta reiterated its full-year outlook for earnings of $5 to $6 per share. Tesla Falls After Cutting Prices Tesla (TSLA) shares are down 5.9% in premarket trade after cutting its prices in the U.S. and Europe.\u00a0 The electric automaker lowered the starting price of its Model 3 and Model Y.\u00a0 In the U.S., the Model 3 now starts at about $44,000.\u00a0 That\u2019s down about 6% from the previous price.\u00a0 The performance version of the Model 3 was lowered to $54,000 from $63,000.\u00a0 The long-range version of the Model Y is now listed for about $53,000, down 20% from $66,000.\u00a0 The performance version of the Y was lowered to $57,000 from $70,000.\u00a0 Although Tesla did not comment on the changes many are speculating the move was aimed at qualifying for U.S. tax credits.\u00a0 Electric vehicles priced below $55,000 qualify for the $7,500 purchase tax credit passed in the Inflation Reduction Act.\u00a0 The lower prices are also expected to stimulate demand in the U.S.\u00a0 Tesla also cut its Model 3 and Y prices in Europe by as much as 17%.\u00a0 In Case You Missed It Lucid Group (LCID) shares jumped 4.8% Thursday after the electric automaker reported stronger 2022 production numbers than expected. Lucid said it produced 7,180 vehicles last year. That was higher than its previous outlook for production of between 6,000 and 7,000 vehicles for the full year. The company produced 3,943 vehicles in Q4, up 53% from Q3.<\/p>\n","protected":false},"author":41,"featured_media":65907,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[739],"tags":[],"class_list":["post-65889","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\/65889","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=65889"}],"version-history":[{"count":2,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/posts\/65889\/revisions"}],"predecessor-version":[{"id":65909,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/posts\/65889\/revisions\/65909"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/media\/65907"}],"wp:attachment":[{"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/media?parent=65889"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/categories?post=65889"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/tags?post=65889"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}