This fund manager has to invest in energy stocks but warns the oil rally is unsustainable
- RBC analyst says was wrong on Exxon as oil giant upgraded to sector perform
- Oil extends gains after reports that an explosion disrupted flow through the Kirkuk-Ceyhan pipeline
- Asian markets mostly lower after Wall Street retreats and oil prices surge
- This is the window of time when value can outperform growth in the stock market
Bank of America stock jumps as profit rises above expectations, while revenue comes up a bit shy
Shares of Bank of America Corp. undefined rallied 2.0% in premarket trading Wednesday, after the moneycenter bank reported fourth-quarter profit that rose above expectations while revenue came up a bit shy, while growth in loans and deposits helped boost net interest income (NII) despite a challenging interest rate environment. Net income rose to $6.77 billion, or 82 cent a share, from $5.21 billion, or 59 cents a share, in the year ago period, and beat the FactSet consensus of 77 cents. Total revenue rose 9.8% to $22.06 billion, below the FactSet consensus of $22.18 billion, as NII grew 11.3% to $11.41 billion to top expectations of $11.32 billion. Within business segments, consumer banking revenue rose 8% to $8.9 billion, global wealth and investment management revenue rose 16% to a record $5.4 billion and global banking revenue increased 24% to $5.9 billion, while global markets revenue fell 2% to $3.8 billion. Within markets, equities revenue rose 3% to $1.4 billion while fixed income, currency and commodities (FICC) revenue fell 10% to $1.6 billion. The stock has slipped 0.5% over the past three months through Tuesday, while the SPDR Financial Select Sector ETF undefined has been little changed and the S&P 500 undefined has gained 1.3%.
Free N95 masks to be made available at U.S. pharmacies, White House says
- Biden administration’s website for free COVID-19 tests has gone live ahead of schedule — here’s everything you need to know
- To mask or not to mask? At the U.S. Supreme Court, there’s not unanimous agreement among justices
- Coronavirus tally: White House to offer 400 million N95 masks to Americans from national stockpile
Here’s what history says about Nasdaq’s near-term returns after first close below its 200-day moving average
- Investors brace for risk of first half-point Federal Reserve rate hike in more than 20 years in March
- Opinion: Why Wall Street is celebrating Joe Biden’s low approval rating
- Are you prepared for a crash? Here’s how to protect your investments.
- This is the window of time when value can outperform growth in the stock market
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Treasury yields extend rise after hitting 2-year highs
Treasury yields continue to push higher Wednesday, as investors look for more aggressive rate increases by the Federal Reserve.
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Morgan Stanley shares jump premarket as profit tops Street estimates
Morgan Stanley shares rose 2.3% in premarket trade Wednesday, after the bank beat profit estimates for the fourth quarter amid strong performances at its investment banking and wealth management divisions. Morgan Stanley posted net income of $3.7 billion, or $2.01 a share, for the quarter, up from $3.4 billion, or $1.81 a share, in the year-earlier period. Revenue rose to $14.524 billion from $13.597 billion a year ago. The FactSet consensus was for EPS of $1.94 and revenue of $14.558 billion. Investment banking revenues rose 6%, driven by higher M&A fees from a flurry of deals. Equity underwriting revenue fell from a year ago amid a decline in follow-on offerings and block trades, but were partially offset by higher revenue from private placements. Fixed income underwriting revenue rose, driven by higher securitized products and high-yield issuances. In trading, equity revenues rose 13% driven by higher prime brokerage revenues and a mark-to-market gain of $225 million on a strategic investment. Fixed income revenues fell 31% from a year ago in what the bank called a "challenging trading environment." In the wealth management division, revenue rose 10% from a year ago to $6.3 billion from $5.7 billion. Net interest income rose thanks to growth in lending and higher brokerage sweep deposits. Investment management revenue rose to $128 billion from $1.1 billion, driven by the acquisition of Eaton Vance, higher performance fees and higher assets under management. Shares have gained 25% in the last 12 months, while the S&P 500 has gained 20.5%.
Activision Blizzard could be paid up to $3 billion if Microsoft buyout deal is terminated
Activision Blizzard Inc. disclosed Wednesday the termination provisions of the $68.7 billion merger agreement with Microsoft Corp. , which include payment of up to $3 billion by Microsoft. The videogame maker said if the merger deal is terminated, including termination under antitrust concerns, if Activision isn't in material breach of any provisions of the deal, Microsoft would pay a termination fee of $2.0 billion if the termination notice is provided before Jan. 18, 2023; pay $2.5 billion if provided after Jan. 18, 2023 but before April 18, 2023; and pay $3.0 billion if provided after April 18, 2023. If, however, Activision terminates the deal to accept a superior proposal from another buyer, Activision would pay Microsoft a termination fee of $2.27 billion. Meanwhile, Activision said its board of directors has "unanimously" approved the merger deal and recommends shareholders vote in favor of the deal. Activision's stock slipped 0.1% in premarket trading after soaring 25.9% on Tuesday after the deal was announced. It has still lost 11.6% over the past 12 months, while Microsoft shares have run up 39.8% and the S&P 500 has advanced 20.5%.
P&G beats the Street, narrows sales guidance
Procter & Gamble Co. shares rose 0.8% in Wednesday premarket trading after the consumer products company reported fiscal second quarter results that beat expectations and narrowed its full-year sales guidance. Net income totaled $4.22 billion, or $1.66 per share, up from $3.85 billion, or $1.47 per share, last year. Sales of $20.95 billion were up from $19.75 billion last year. The FactSet consensus was for EPS of $1.65 and sales of $20.34 billion. "These results keep us on track to deliver our earnings outlook and to raise estimates for sales growth, cash productivity and cash return to shareowners," said Chief Executive Jon Moeller in a statement. Organic sales were up across all segments, with health care and fabric and home care up 8%, and grooming and baby, feminine and family care up 5%. P&G brands include Bounty paper towels, Pantene hair products and Tide laundry care products. For fiscal 2022, P&G is guiding for sales growth in the range of 3% to 4%, up from a previous range of 2% to 4%. The FactSet consensus is for sales of $79.12 billion, implying 3.9% growth. EPS growth is still expected to be in the range of 6% to 9% from $5.50 last year, and adjusted EPS growth is forecast to be in the range of 3% to 6% from $5.66 last year. The FactSet consensus is for EPS of $5.91, suggesting 4.4% growth. P&G stock has gained 17.3% over the past year while the Dow Jones Industrial Average is up 14.4% for the period.
Canopy Growth announces launch of Martha Stewart CBD-based topicals
Canadian cannabis company Canopy Growth Corp. said Wednesday that Martha Stewart CBD has launched a line of CBD-based topicals in its first category expansion, adding to existing products that include gummies, oils and softgels. The new Martha Stewart CBD Wellness Topicals are designed to improve wellbeing, with a cream designed for muscle recovery, one for better sleep and one aimed at stress management. CBD is the non-psychoactive ingredient in the cannabis plant that is widely held to have wellness benefits. The creams are priced at a range of $19.99 up to $99.99 for 150 mL, of the Super Strength CBD cream aimed at muscle recovery. They were designed by Stewart along with Marquee Brands and Canopy Growth. Canopy's U.S.-listed shares were up 1.3% premarket, but have fallen 11% in the last 12 months, while the Cannabis ETF has 57% and the S&P 500 has gained 20.5%.
