[ad_1]
<div _ngcontent-c14 = "" innerhtml = "
iStock
iStock
The earnings season kicked off early Friday as two large US banks shared the first quarter results and the market reacted favorably. The great successes of JPMorgan Chase and Wells Fargo really help to give a positive tone to overall profits.
JPMorgan Chase earned $ 2.65 a share in the first quarter, well above the $ 2.35 estimate from third parties. The turnover, which many badysts had forecast, is expected to grow 5% to $ 29.9 billion, as the company appears to benefit from rising interest rates and the strength of banking services. individuals. Equities rose more than 2.5% in pre-market transactions.
JPMorgan ChaseThe company's president and chief executive, Jamie Dimon, who has a lot of influence around Wall Street, released a sunny report on the US economy in a statement, stating: "Despite geopolitical uncertainty global, the US economy continues to grow, employment and wages are rising, inflation is moderate, financial markets are healthy and consumer and business confidence remains strong. "
Sometimes we live too much in the moment. Let's not forget that the Fed raised rates in December and & nbsp;JPMorgan Chase benefited the first weeks of the quarter. This could help explain why things do not look so bad from the point of view of net interests that some might imagine.
One element that emerged from the results report – and could help paint a rebaduring picture of the economy – was: JPMorgan ChaseThe credit card sector, where sales volume increased by 10% and merchant processing services, by 13%. This could go against consumer health concerns after less impressive retail sales reports so far this year. The company said "consumer spending remains robust".
On a less positive note, & nbsp;JPMorgan Chase experienced a decline in equity and fixed income transactions in Q1 This was not surprising considering the relative lack of market volatility in early 2019. However, trading revenues were not as low as some badysts expected, which could raise expectations, especially for Morgan Stanley but also for Goldman. Sachs.
Wells Fargo was the other big bank that announced Friday morning, and its results also exceeded the consensus of third parties. Earnings per share of $ 1.20 exceeded the average estimate of $ 1.10, while revenues of $ 21.6 billion exceeded average estimates of $ 20.99 billion. Stocks climbed about 2% just after the company released earnings.
In his press release, & nbsp;Wells Fargo cited "strong credit performance and high levels of liquidity," although revenues fell year-over-year. Mortgage banking banking revenues increased sharply compared to the fourth quarter. It would be interesting to hear business leaders comment on the housing market if they talk about it in their appeal. & Nbsp;Wells Fargo has a huge presence in the mortgage business.
Chevron also announced mergers and acquisitions in the energy sector on Friday, announcing its intention to buy Anadarko Petroleum for $ 33 billion in cash and stock. The M & A activity has recently seen a slight increase, which seems to be a very big activity.
Look what is said
The season of results began under unusual circumstances. Usually, from the first days of the results, people wonder what kind of numbers they will have heard in the previous quarter. However, this time, most market players and badysts already seem to expect from & nbsp; relatively weak performance in the first quarter, and everything is about what will follow. You do not normally see this.
In other words, the advice and language used by leaders could have a bigger impact than the numbers say. & Nbsp; Judgment begins today with calls for bank results and continues next week, when four other major key banks reported. Bank of America, Citigroup, Goldman Sachs and Morgan Stanley are expected to release their numbers by Wednesday.
As the results season approaches, the market seems to have anticipated an improvement in the situation later this year, but the leaders themselves have every interest in hearing this.
It can be said that few leaders have such a powerful mouthpiece as Jamie Dimon of JP Morgan Chase, who chairs his company's earnings conference this morning. Dimon has the potential to move the market with his statements, and what he says could be more important than in many other areas, because many people want to know his opinion on the evolution of the economy.
It is also a bit surprising that so far this year, we have not really heard the CEOs talk about the tariff situation. This is something that they should perhaps start looking at and that is worth listening to, especially by financial companies, but also by the CEOs of industrial companies, materials and information technology, whose the activities could be affected by commercial battles with China.
Another thing to consider is CEOS's possible perspective on Europe's soft economy and its implications for US companies. If you look at the statement of the European Central Bank (ECB) at its meeting this week, it sounded rather ugly. The minutes of the Fed, meanwhile, had a much more moderate tone of the type "wait and see".
You can not meet low expectations? Let's wait Ramifications
While the focus can be on direction and statements from leaders, also think of keeping something else in mind: even though expectations are relatively low in most sectors, companies that can not reach these weak expectations may be harder than usual. Companies that meet the lukewarm expectations will probably not be very rewarded. Companies that meet or exceed expectations and combine this with a positive forecast for the remainder of 2019 are the ones that could benefit the most.
For the record, the FactSet tipped the earnings of the S & P 500 down 4.2% in the first quarter, the first quarterly profit year-on-year since Q2 2016.
Today marks the start of the season results in all sectors of the S & P 500 index, but this time, the focus on results is mainly likely to focus on the financial services and information technology. An old market said that there could not be a big gathering without finances, but so far this year, it has already happened. Financial services are closely following the S & P 500, although they have risen slightly since the beginning of the year. JPMorgan Chase's trading figures for the first quarter should be closely monitored by next week, according to information provided by other investment banks. Morgan Stanley has somehow taken precedence over trading, so JPMorgan ChaseThe numbers could help prefigure what people expect of Morgan Stanley, especially for bond trading.
Info Tech, for its part, has been a leading sector all year long, and the results season means that these companies will take over and help define the expectations for the coming months. The sector is very optimistic, judging by its 23% gains since the beginning of the year. The question of profitability should therefore be whether this optimism was justified.
Malaysian market
Speaking of the performance of the sector, the market seemed to remain in the same kind of discomfort that it was in the weeks that followed Thursday, investors may have taken positions ahead of their profits. The volume remained quite low, as it has been for a while.
The S & P 500 has had a very uncommon end, but it remains close to the recent highs just below 2890. No such concerted attempt has been made this week to test 2900, a potential sign that investors are waiting for. maybe market profits in one way or another.
Industry leaders on Thursday included financial services and utilities, while latecomers included health care – which was hard hit – with materials and real estate. Health care has been among the worst performing sectors in the past three months, which some badysts believe could reflect the political pressure being exerted on the industry to drive down prices. Health insurers were among the worst performers in the sector on Thursday.
Although earnings are the big story today, some data is also available. The University of Michigan sentiment for the beginning of April is expected soon after the opening, and the Briefing.com consensus is 97.6, down slightly from the last reading of 98 , 4, but still well above the lows of January and February.
Key data expected next week include March retail sales, March industrial production, March housing starts and building permits.
Figure 1: History of two sectors: Since the beginning of the year, the health care sector (candlestick) is the weakest sector of the S & P 500, affected by the worry about possible legislation to make lower prices. Info Tech (purple line) is the main sector since the beginning of the year. Data Source: S & P Dow Jones Indices. Source of the graphic: The thinkorswim & reg; TD Ameritrade platform. For illustration purposes only. Past performance does not guarantee future results.
Data Source: S & P Dow Jones Indices. Source of the graphic: The thinkorswim & reg; TD Ameritrade platform.
Key facts about China next week: Some important economic data cross the Pacific next Tuesday. This is the day when China is expected to publish its growth in gross domestic product (GDP) in the first quarter, an increasingly important data point for the US market in recent years, while its huge economy is exerting heightened influence on his businesses. . In the fourth quarter, China's GDP growth was 6.4 percent, while GDP growth for the full year of 2018 was 6.6 percent, the lowest level in 28 years. For the first quarter, the consensus of badysts is around 6.3%, according to TradingEconomics, a company that monitors international economic data.
Investors could also consider keeping a close eye on the numbers under the headline, including first-quarter industrial production. This figure reached 5.7% in the fourth quarter – above badysts' expectations – while the third-party consensus for first-quarter industrial production growth was 5.8%. If this number is small, it could throw a cloud over China's hopes of economic recovery. Highly exposed US sectors include Info Tech, industries and materials.
Speaking of GDP: Do not get excited, but estimates of US gross domestic product (GDP) in the first quarter are up slightly. Last month, some badysts began looking for GDP growth of less than 2% in the first quarter, which would have been a dramatic retreat from a total growth of 2.9% in 2018. As of Thursday, The Fed's GDPNow indicator forecasts 2.3% growth in the first quarter, which is not really remarkable, but certainly sounds better than some of the previous estimates. The estimate rose from the previous 2.1% due to recent manufacturing data, the Atlanta Fed said. The first estimate of the government's GDP for the first quarter is expected by April 26.
Yields at bay despite data: So far this week's March inflation figures, slightly above expectations, have apparently not had much impact on Treasury bonds. Yields edged up only slightly on Thursday, following a 0.6% rise in producer prices in March, and the 10-year yield remained slightly below 2.5%. This is basically the level on which it has been pivoting for a while, with some badysts seeing a key technical resistance around 2.55%. At the same time, this reversal between the three-month and ten-year returns, which had attracted so much attention last month, has remained outstanding until April, with yields at ten years Trading about six basis points above Thursday at three months. The 10-year return also offers a comfortable premium of 14 basis points over the two-year return. These two prices were not reversed in March, although they came closer. All adverse economic data, whether from the United States, Europe or China, could potentially exert more pressure on the curve, which could help revive economic fears.
TD Ameritrade & reg; comment for educational purposes only. ISPC Member.
">
The earnings season kicked off early Friday as two large US banks shared the first quarter results and the market reacted favorably. The great successes of JPMorgan Chase and Wells Fargo really help to give a positive tone to overall profits.
JPMorgan Chase earned $ 2.65 a share in the first quarter, well above the $ 2.35 estimate from third parties. The turnover, which many badysts had forecast, is expected to grow 5% to $ 29.9 billion, as the company appears to benefit from rising interest rates and the strength of banking services. individuals. Equities rose more than 2.5% in pre-market transactions.
JPMorgan ChaseThe company's president and chief executive, Jamie Dimon, who has a lot of influence around Wall Street, released a sunny report on the US economy in a statement, stating: "Despite geopolitical uncertainty global, the US economy continues to grow, employment and wages are rising, inflation is moderate, financial markets are healthy and consumer and business confidence remains strong. "
Sometimes we live too much in the moment. Let's not forget that the Fed raised rates in December and that it JPMorgan Chase benefited the first weeks of the quarter. This could help explain why things do not look so bad from the point of view of net interests that some might imagine.
One element that emerged from the results report – and could help paint a rebaduring picture of the economy – was: JPMorgan ChaseThe credit card sector, where sales volume increased by 10% and merchant processing services, by 13%. This could go against consumer health concerns after less impressive retail sales reports so far this year. The company said "consumer spending remains robust".
On a less positive note, JPMorgan Chase experienced a decline in equity and fixed income transactions in Q1 This was not surprising considering the relative lack of market volatility in early 2019. However, trading revenues were not as low as some badysts expected, which could raise expectations, especially for Morgan Stanley but also for Goldman. Sachs.
Wells Fargo was the other big bank that announced Friday morning, and its results also exceeded the consensus of third parties. Earnings per share of $ 1.20 exceeded the average estimate of $ 1.10, while revenues of $ 21.6 billion exceeded average estimates of $ 20.99 billion. Stocks climbed about 2% just after the company released earnings.
In his press release, Wells Fargo cited "strong credit performance and high levels of liquidity," although revenues fell year-over-year. Mortgage banking products have increased significantly from the fourth quarter and it may be interesting to hear any observations on the housing market from corporate executives if they respond to them in their appeal. . Wells Fargo has a huge presence in the mortgage business.
Chevron also announced mergers and acquisitions in the energy sector on Friday, announcing its intention to buy Anadarko Petroleum for $ 33 billion in cash and stock. Mergers and acquisitions have recently increased slightly, which seems to be a pretty big one.
Look what is said
The season of results began under unusual circumstances. Usually, from the first days of the results, people wonder what kind of numbers they will have heard in the previous quarter. However, this time, most market players and badysts already seem to expect relatively weak performance in the first quarter, and that depends on what happens next. You do not normally see this.
In other words, the orientation and the executive language could have a bigger impact than the numbers say. Judgment begins today with calls for bank results and continues next week, when four other major key banks reported. Bank of America, Citigroup, Goldman Sachs and Morgan Stanley are expected to release their numbers by Wednesday.
As the results season approaches, the market seems to have anticipated an improvement in the situation later this year, but the leaders themselves have every interest in hearing this.
It can be said that few leaders have such a powerful mouthpiece as Jamie Dimon of JP Morgan Chase, who chairs his company's earnings conference this morning. Dimon has the potential to move the market with his statements, and what he says could be more important than in many other areas, because many people want to know his opinion on the evolution of the economy.
It is also a bit surprising that so far this year, we have not really heard the CEOs talk about the tariff situation. This is something that they should perhaps start looking at and that is worth listening to, especially by financial companies, but also by the CEOs of industrial companies, materials and information technology, whose the activities could be affected by commercial battles with China.
Another thing to consider is CEOS's possible perspective on Europe's soft economy and its implications for US companies. If you look at the statement of the European Central Bank (ECB) at its meeting this week, it sounded rather ugly. The minutes of the Fed, meanwhile, had a much more moderate tone of the type "wait and see".
You can not meet low expectations? Let's wait Ramifications
While the focus can be on direction and statements from leaders, also think of keeping something else in mind: even though expectations are relatively low in most sectors, companies that can not reach these weak expectations may be harder than usual. Companies that meet the lukewarm expectations will probably not be very rewarded. Companies that meet or exceed expectations and combine this with a positive forecast for the remainder of 2019 are the ones that could benefit the most.
As a reminder, FactSet is predicting a 4.2% decline in S & P 500 earnings in the first quarter, a first quarterly decline in earnings compared to the second quarter of 2016.
As we mark the start of the earnings season today in all sectors of the S & P 500 Index, the focus on the results this time will be focused on financial services and investment. information technologies. An old market said that there could not be a big gathering without finances, but so far this year, it has already happened. Financial services are closely following the S & P 500, although they have risen slightly since the beginning of the year. JPMorgan Chase's trading figures for the first quarter should be closely monitored by next week, according to information provided by other investment banks. Morgan Stanley has somehow taken precedence over trading, so JPMorgan ChaseThe numbers could help prefigure what people expect of Morgan Stanley, especially for bond trading.
Info Tech, for its part, has been a leading sector all year long, and the results season means that these companies will take over and help define the expectations for the coming months. The sector is very optimistic, judging by its 23% gains since the beginning of the year. The question of profitability should therefore be whether this optimism was justified.
Malaysian market
Speaking of the performance of the sector, the market seemed to remain in the same kind of discomfort that it was in the weeks that followed Thursday, investors may have taken positions ahead of their profits. The volume remained quite low, as it has been for a while.
The S & P 500 has recorded a very rare unchanged fence, although it remains close to the recent highs just below 2890. This week, no concerted attempt was attempted to test 2900, which could indicate that investors may be expecting profits to catalyze markets. way or the other.
Industry leaders on Thursday included financial services and utilities, while latecomers included health care – which was hard hit – with materials and real estate. Health care has been among the worst performing sectors in the past three months, which some badysts believe could reflect the political pressure being exerted on the industry to drive down prices. Health insurers were among the worst performers in the sector on Thursday.
Although earnings are the big story today, some data is also available. The University of Michigan sentiment for the beginning of April is expected soon after the opening, and the Briefing.com consensus is 97.6, down slightly from the last reading of 98 , 4, but still well above the lows of January and February.
Key data expected next week include March retail sales, March industrial production, March housing starts and building permits.
Figure 1: History of two sectors: since the beginning of the year, the health care sector (candlestick) is the worst performing sector of the S & P 500, affected by concerns about possible legislation to lower the prices. Info Tech (purple line) is the main sector since the beginning of the year. Data Source: S & P Dow Jones Indices. Cartographic Source: TD Ameritrade thinkorswim® platform. For illustration purposes only. Past performance does not guarantee future results.
Data Source: S & P Dow Jones Indices. Cartographic Source: TD Ameritrade thinkorswim® platform.
Key facts about China next week: Some important economic data cross the Pacific next Tuesday. This is the day when China is expected to publish its growth in gross domestic product (GDP) in the first quarter, an increasingly important data point for the US market in recent years, while its huge economy is exerting heightened influence on his businesses. . In the fourth quarter, China's GDP growth was 6.4 percent, while GDP growth for the full year of 2018 was 6.6 percent, the lowest level in 28 years. For the first quarter, the consensus of badysts is around 6.3%, according to TradingEconomics, a company that monitors international economic data.
Investors could also consider keeping a close eye on the numbers under the headline, including first-quarter industrial production. This figure reached 5.7% in the fourth quarter – above badysts' expectations – while the third-party consensus for first-quarter industrial production growth was 5.8%. If this number is small, it could throw a cloud over China's hopes of economic recovery. Highly exposed US sectors include Info Tech, industries and materials.
Speaking of GDP: Do not get excited, but estimates of US gross domestic product (GDP) in the first quarter are up slightly. Last month, some badysts began looking for GDP growth of less than 2% in the first quarter, which would have been a dramatic retreat from a total growth of 2.9% in 2018. As of Thursday, The Fed's GDPNow indicator forecasts 2.3% growth in the first quarter, which is not really remarkable, but certainly sounds better than some of the previous estimates. The estimate rose from the previous 2.1% due to recent manufacturing data, the Atlanta Fed said. The first estimate of the government's GDP for the first quarter is expected by April 26.
Yields at bay despite data: So far this week's March inflation figures, a little higher than expected, have apparently not had much impact on Treasury bonds. Yields edged up only slightly on Thursday, following a 0.6% rise in producer prices in March, and the 10-year yield remained slightly below 2.5%. This is basically the level on which it has been pivoting for a while, with some badysts seeing a key technical resistance around 2.55%. At the same time, this reversal between the three-month and ten-year returns, which had attracted so much attention last month, has remained outstanding until April, with yields at ten years Trading about six basis points above Thursday at three months. The 10-year return also offers a comfortable premium of 14 basis points over the two-year return. These two prices were not reversed in March, although they came closer. All adverse economic data, whether from the United States, Europe or China, could potentially exert more pressure on the curve, which could help revive economic fears.
Comment TD Ameritrade® for educational purposes only. ISPC Member.
