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3 Top Bank Stocks To Watch Today

Bank stocks to know as the fourth-quarter earnings season kicks off.
The post 3 Top Bank Stocks To Watch Today appeared first on Stock Market News, Quotes, Charts and Financial Information | StockMarket.com.

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3 Bank Stocks To Watch Reporting Earnings Today

With the end of the second trading week of 2022, investors are likely eyeing the top bank stocks in the stock market today. By and large, this would be thanks to some of the biggest U.S. banks kicking off the current earnings season. Notably, the current attention on the industry as a whole is higher than ever. On top of banks, arguably, setting the tone for earnings seasons, there is another factor to consider as well. Namely, investors across the board are likely eager to see how the Omicron coronavirus variant alongside rising inflation is weighing in on the economy now.

Not to mention, there are also the Federal Reserve’s plans to raise interest rates this year. As it stands, Fed members are already expecting three rate hikes in 2022 while some banks think there could be four. Nevertheless, an increase in interest rates would, naturally, serve to benefit banks. In fact, Federal Reserve policymakers recently signaled that they will start raising U.S. interest rates in March. This update comes from Fed Governor Lael Brainard on Thursday this week.

At the same time, some of the top names in the industry are not sitting idly by as well. For instance, we could take a look at the likes of Bank of America (NYSE: BAC). This week, it announced sweeping changes to its overdraft and non-sufficient fees while introducing a new cash flow forecasting solution. Both of which will ideally help the bank better serve its clients amidst rising inflation. Elsewhere, Morgan Stanley (NYSE: MS) is raising annual bonuses for its top-performing staff this year. As such, could one of these big banks reporting earnings today be worth watching in the stock market now?

Top Bank Stocks To Watch Right Now

JPMorgan Chase & Company

To begin with, we will be taking a look at JPMorgan Chase. In brief, JPMorgan is a leading financial service firm in the U.S. Among its banking industry peers, the firm is a leader in the global investment banking industry. The firm manages trillions in assets worldwide. Overall, JPMorgan provides a vast array of financial services. This ranges from serving consumers, and businesses of varying sizes to commercial banking alongside financial transaction processing and asset management.

In its latest quarterly report, JPMorgan posted an earnings per share of $3.33 on revenue of $30.35 billion. To highlight, this would be above consensus estimates of $3.01 and $29.9 billion respectively. Additionally, the company also notes that its total assets under management now add up to a whopping $3.1 trillion. This marks a sizable 15% year-over-year increase. CEO Jamie Dimon also notes that JPMorgan’s global investment banking fees are up by 37% year-over-year. The firm cites steady growth in its mergers & acquisitions division as one of the core reasons for this.

On top of that, the bank is also reporting positive year-over-year figures in its consumer-focused segments as well. This is evident from its Consumer & Community Banking sector reporting a year-over-year increase of 22% in client investment assets. Similarly, JPMorgan also reports that combined debit and credit card spending are up by 26% over the same time. Given all of this, will you be keeping a watchful eye on JPM stock?

bank stocks (JPM stock chart)
Source: TD Ameritrade TOS

[Read More] Stock Market Today: Dow Jones, S&P 500 Down Today; JPMorgan Slides On Earnings

Wells Fargo & Company

Another banking titan that is on earnings watch today would be Wells Fargo. By the company’s estimates, it currently serves one in three U.S. households and over 10% of small businesses in the U.S. Furthermore, Wells Fargo also prides itself as being the leading middle-market banking provider in the region. As you can imagine it offers a variety of financial services as well. This includes but is not limited to banking, investments, mortgage products and services, as well as consumer and commercial finance.

As it stands, WFC stock is currently up by over 10% year-to-date. Thanks to its latest quarterly earnings report, I could see this trend persisting. For the most part, Wells Fargo posted stellar figures across the board. Firstly, the bank reported an earnings per share of $1.25 for the quarter. This tops Wall Street’s estimates of $1.13. Secondly, the company raked in a total revenue of $20.85 billion, exceeding projections of $18.82 billion. If that wasn’t enough, Wells Fargo also saw its net income skyrocket by 86% year-over-year to a total of $3.09 billion.

According to CEO Charlie Scharf, the current recovery in the economy is a key growth driver for the quarter. Scharf notes “we saw increased consumer spending, higher investment banking fees, higher asset-based fees in our Wealth and Investment Management business, and strong equity gains in our affiliated venture capital and private equity businesses.” With all this in mind, would you consider adding WFC stock to your watchlist?

WFC stock chart
Source: TD Ameritrade TOS

[Read More] Best Artificial Intelligence Stocks To Buy Right Now? 5 To Watch

Citigroup Inc.

Following that, we have Citigroup or Citi for short. In essence, the bank currently serves approximately 200 million customer accounts and operates in over 160 countries worldwide. From consumers, and corporations to governments and institutions, Citi serves a broad range of clients. Likewise, its financial services portfolio spans consumer banking and credit, corporate and investment banking, securities brokerage, and wealth management.

More importantly, investors will likely want to know how Citi’s latest quarterly figures square up against the competition. Well, for one thing, the firm reportedly posted an earnings per share of $1.46 on revenue of $17 billion for the quarter. This surpasses consensus projections of $1.38 and $16.75 billion respectively. However, the company’s net income is down by 26% year-over-year at $3.2 billion. Explaining this drop, the bank cites an increase in overall expenses throughout the quarter. This also includes the “pre-tax impact” from the sale of its consumer banking businesses in Southeast Asia.

Providing insight into the company’s current plans moving forward is CEO Jane Fraser. Fraser highlights, “We continue to make steady progress on executing our strategy as demonstrated most recently by the signing of an agreement to sell four consumer businesses in Asia. We are also aligning our organization and reporting structure with our strategy, including the creation of the Personal Banking and Wealth Management and Legacy Franchises segments. This will make it easier for our investors to understand the performance of our core businesses and optimize the businesses we have chosen to exit.” With Citigroup looking to streamline its business, would you consider C stock a viable long-term play?

C stock chart
Source: TD Ameritrade TOS

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AMC CEO Looks To Refinance Debt Amid Dip In Stock Price

A skittish stock market and a struggling box office are complicating the theater chain’s attempts to turn around its debt situation.

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A skittish stock market and a struggling box office are complicating the theater chain’s attempts to turn around its debt situation.

Let’s give credit where it’s due. Most people don’t follow through with their New Year’s Resolutions, but at least AMC Entertainment (AMC) - Get AMC Entertainment Holdings, Inc. Class A Report CEO Adam Aron is trying.

Following a Tweet earlier this month in which the head of the beleaguered movie theater chain announced plans to “refinance some of our debt to reduce our interest expense, push out some debt maturities by several years and loosen covenants,” he’s now making moves to try to get the job done. 

Aron has reportedly been “in advanced talks with multiple parties” about refinancing, according to The Wall Street Journal. But the ongoing volatility of the stock market, amongst other factors, is complicating matters.

Irfan Khan / Los Angeles Times via Getty Images

Rough Years For AMC

To make it through the pandemic, AMC ended up having to take on a great deal of debt. It reportedly owed $5.5 billion as of last September and also owed $376 million worth of lease payments, which were deferred for a while during the pandemic. 

But as we’ve previously mentioned, the past few years have been tough for theater chains such as AMC. Even before the pandemic put a pause on theater-going in 2020, leading to an absolutely brutal total box office gross drop of 81.4%, general audiences were increasingly only heading out to movie theaters for blockbuster films and franchise installments, often from the Marvel Cinematic Universe or the “Fast & Furious.”

AMC had a reported net loss of $13.5 million in 2019, even as total revenue was up 2.4% to $1.44 billion from the year before. Things improved for the company last year once people felt safe returning to the theaters, as access to vaccines helped unlock some pent-up demand, and the box office rose by 112.5% to $4,468,850,254. 

A big chunk of that rebound is due to the jaw-dropping success of “Spider-Man: No Way Home,” which recently returned to the top of the box office, on its way to making $1.69 billion worldwide. (Will Peter Parker eventually conquer the blue aliens from “Avatar” to become the highest-grossing film of all time? Stay tuned.) 

But you can’t turn around a struggling industry based on the success of one film, and even Marvel and Disney  (DIS) - Get Walt Disney Company Report can’t put out a general-audience pleasing blockbuster every week. 

Even with a new “Scream” film out, last weekend’s box office total barely totaled more than $43 million, a far cry from five years ago. “That's down from a pre-pandemic $105 million in 2020, $73 million in 2019, $102 million in 2018, and $111 million in 2017, according to data from Box Office Mojo.”

Memes Saved AMC (For A Little While)

Last year AMC received an unexpected lifeline when it became the subject of an internet-driven rush that turned it into a short-lived meme stock. 

After a Reddit-incubated army of internet investors, who dubbed themselves “apes,” began buying shares in AMC through trading applications such as Robinhood, shares of the company temporarily rose to a robust $62.55 a share. Prices would eventually return to earth, hitting $35 a share after the hype dropped down. But the boost allowed Aron to buy the company some time. 

AMC used the cash infusion to repurchase $35 million worth of debt that carried a minimum interest rate of 15%, according to Yahoo! Finance. The deal cost $41.3 million, but it is expected to reduce the overall annual interest on its debt by about $5.3 million.

This year Aron is stepping up his efforts to refinance AMC’s debt, but it’s rough out there at the moment. 

Amid Wall Street’s current market contraction, AMC’s stock has dropped by 41% this year, erasing the meme stock gains, and AMC’s $1.5 billion in secured 10% bonds “traded as low as 92 cents on the dollar, down from 99.5 cents at the start of the year,” according to The Wall Street Journal. 

AMC isn’t looking to refinance all of its debt. Instead, it is targeting some of the bonds with especially high interest, as a way to cut expenses even as bond prices continue to drop.

But it seems like the meme stock rush has turned out to be a double-edged sword. 

AMC was able to stay in business by “selling new shares, taking on new debt, and getting landlords to agree to delay collecting rent payments.” But meme investors have objected to Aron’s plans to allow more AMC shares to be sold, out of fear that it would dilute what they’ve already purchased. 

Aron and AMC have a skittish-at-best stock market and an industry that is struggling to get people into theaters for all but event films. On the other hand, it has a loyal group of investors that are nonetheless limiting the company’s options. 

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About 35% of People Who Received Placebo in Vaccine Trials Report Side Effects and More COVID-19 News

According to a recent study conducted by researchers at Harvard Medical School and Beth Israel Deaconess Medical Center, 76 percent of the adverse side effects (such as fatigue or headache) that people experienced after receiving their first COVID-19…

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About 35% of People Who Received Placebo in Vaccine Trials Report Side Effects and More COVID-19 News

The placebo effect is where a person who received a placebo instead of a drug or vaccine shows clinical signs, positive or negative, associated with the actual treatment. Much has been made about the side effects of the COVID-19 vaccines, but a new study found a startlingly high number of adverse events associated with people who received placebos in clinical trials. For that and more COVID-19 news, continue reading.

COVID-19 Vaccine Side Effects: Real or Placebo Effect?

A recent study out of Harvard Medical School and Beth Israel Deaconess Medical Center evaluated 12 COVID-19 vaccine trials with a total of 45,380 participants. The study found that 76% of the adverse side effects reported, such as fatigue or headache, after the first shot were also reported by participants who received a placebo. Mild side effects were more common in people receiving the vaccine, but a third of those given the placebo reported at least one adverse side effect. The statistics from the study showing that 35% of placebo recipients reported adverse side effects is considered unusually high. Several experts suspect that there’s such a high report of adverse events because of the amount of misinformation found on social media about the dangers of the vaccines and the amount of media coverage.

This is not to say that the adverse side effects felt by people who received the vaccines are all in their heads. People do have side effects to vaccines, but this study reports on an unusually high level of the placebo effect. Nocebo is used to describe a negative outcome associated with the placebo.

Source: BioSpace

“Negative information in the media may increase negative expectations towards the vaccines and may therefore enhance nocebo effects,” said Dr. Julia W. Haas, an investigator in the Program in Placebo Studies at Beth Israel Deaconess and the study’s lead author. “Anxiety and negative expectation can worsen the experience of side effects.”

Four Factors for Long COVID

A study published in Nature Communications identified specific antibodies in the blood of people who developed long COVID. Long COVID is not well understood and has a range of up to 50 different symptoms, and it is difficult to diagnose because there is no one test for it. The study, conducted by Dr. Onur Boyman, a researcher in the Department of Immunology at University Hospital Zurich, compared more than 500 COVID-19 patients and found several key differences in patients who went on to present with long COVID. The most obvious was a significant decrease in two immunoglobulins, IgM and IgG3. The study found that a decrease in these two immunoglobulins, which generally rise to fight infections, combined with other factors, such as middle age and a history of asthma, was 75% effective in predicting long COVID.

75% of COVID-19 ICU Survivors Show Symptoms a Year Later

A study out of the Netherlands found that a year after being released from an intensive care unit (ICU) for severe COVID-19, 75% of patients reported lingering physical symptoms, 26% reported mental symptoms, and up to 16% noted cognitive symptoms. The research was published in JAMA. The research evaluated 246 COVID-19 survivors treated in one of 11 ICUs in the Netherlands. The mental symptoms included anxiety (17.9%), depression (18.3%), PTSD (9.8%). The most common new physical symptoms were weakness (38.9%), stiff joints (26.3%), joint pain (25.5%), muscle weakness (24.8%), muscle pain (21.3%) and shortness of breath (20.8%).

Pennsylvania Averaging Most COVID-19 Deaths Per Day in a Year

In general, COVID-19 deaths are dropping across the country. However, in two states, Pennsylvania and New Jersey, the numbers are increasing. Pennsylvania is averaging 156 COVID-19 deaths per day over the past seven days, which is a 17% uptick compared to two weeks ago. The number of deaths per day in Pennsylvania is below what was hit in January 2021, largely due to the availability of vaccines. New Jersey averages 111 deaths from COVID-19 per day, an increase of 61% over the last two weeks and the highest since May 2020. Similarly, New Jersey cases and hospitalizations are declining.

Omicron Surge: Shattering Cases and Hospitalizations, but Less Severe

According to the CDC, although the current Omicron surge is setting records for positive infections and hospitalizations, it’s less severe than other waves by other metrics. Omicron has resulted in more than 1 million cases per day in the U.S. on several occasions, and reported deaths are presently higher than 15,000 per week. However, the ratio of emergency department visits and hospitalizations to case numbers is lower compared to COVID-19 waves for Delta and during the winter of 2020–21. ICU admissions, length of stay, and in-hospital deaths were all lower with Omicron. They cite vaccinations and booster shots as the likely cause. Although the overall result is that Omicron appears less severe, it’s not completely clear if that’s because the viral variant doesn’t infect the lower lung as easily as other variants, or because so much of the population has either been vaccinated or exposed to the virus already. It is clearly far more infectious than other strains, which is placing a real burden on healthcare systems. The number of emergency department visits is 86% higher than during the Delta surge.

J&J Expects Up to $3.5 Billion in COVID-19 Vaccine Sales This Year

Johnson & Johnson projected annual sales of its COVID-19 vaccine for 2022 to range from $3 billion to $3.5 billion. This was noted during the company’s fourth-quarter 2021 report. In December 2021, the U.S. Centers for Disease Control and Prevention recommended the PfizerBioNTech or Moderna shots over J&J’s due to a rare blood condition observed with the J&J shot. By comparison, Pfizer and BioNTech project their vaccine will bring in $29 billion in 2022, after having raked in almost $36 billion in 2021. Moderna expects approximately $18.5 billion this year, with about $3.5 billion from possible additional purchases. Although final figures for Moderna aren’t in yet, they projected 2021 sales between $15 and $18 billion.

BioSpace source:

https://www.biospace.com/article/about-35-percent-of-people-receiving-placebo-in-vaccine-trials-report-side-effects-and-more-covid-19-news

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COVID-19 cases at highest ever in Americas – regional health agency

New cases of COVID-19 in the Americas in the past week were the highest since the pandemic began and the very contagious Omicron variant has clearly become the predominant strain, the Pan American Health Organization said on January 26.

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COVID-19 cases at highest ever in Americas – regional health agency

BRASILIA, Jan 26 (Reuters) – New cases of COVID-19 in the Americas in the past week have been the highest since the pandemic began in 2020 and the very contagious Omicron variant has clearly become the predominant strain, the Pan American Health Organization said on Wednesday.

There were more than 8 million new cases, 32% higher than the previous week, while fatalities throughout the region also increased by 37%, with 18,000 new deaths caused by COVID-19.

The United States continues to have the highest number of new infections, although cases decreased by nearly 1 million over the last week, the regional health agency said.

Mexico’s southern states have seen new infections triple and Brazil has seen new cases surge 193% over the last seven days, PAHO said in weekly briefing.

Medical workers take care of patients in the emergency room of the Nossa Senhora da Conceicao hospital that is overcrowding because of the coronavirus outbreak, in Porto Alegre, Brazil, March 11, 2021. REUTERS/Diego Vara

Children in the Americas are facing the worst educational crisis ever seen in the region, with millions of children yet to return to classes, according to PAHO, which recommended that countries try to get them safely back to school to protect their social, mental and physical wellbeing.

It urged parents to get their children vaccinated.

Many countries have already authorized and are safely administering COVID vaccines to adolescents, PAHO said.

Last week, the WHO’s expert group on immunization authorized the COVID vaccine developed by Pfizer Inc (PFE.N) for children aged 5 to 12 years, offering a roadmap for countries to roll out vaccines for them, the regional agency said.

Reporting by Anthony Boadle; Editing by David Gregorio

Our Standards: The Thomson Reuters Trust Principles.

 

Reuters source:

https://www.reuters.com/world/americas/covid-19-cases-highest-ever-americas-says-regional-health-agency-2022-01-26

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