Bank Earnings and Market Snapshot
Earnings (data from MarketWatch.com)
Goldman Sachs Group Inc. (GS) +1.9%
Net income nearly doubled to $3.48 billion, or $9.68 a share, from $1.79 billion, or $4.79 a share, in the year-ago period, beating the FactSet consensus of $5.54 a share.
Total revenue increased 29.5% to $10.78 billion, above the FactSet consensus of $9.38 billion, as annualized return on equity of 17.5% was the highest quarterly ROE since 2010.
Investment banking revenue rose 7% to $1.97 billion to beat expectations of $1.85 billion, while global markets revenue rose 29% to $4.55 billion.
Within global markets, equities revenue increased 10% to $2.05 billion to top expectations of $2.03 billion, while fixed income, currency and commodities (FICC) revenue grew 49% to $2.50 billion to beat expectations of $2.03 billion
Bank of America Corp. (BAC) -2.8% in premarket trading.
Net income fell to $4.9 billion, or 51 cents a share, from $5.8 billion, or 56 cents a share, in the year-ago period, above the FactSet consensus of 49 cents a share.
Total revenue declined 10.8% to $20.34 billion, missing the FactSet consensus of $20.8 billion, as the global markets, global banking and global wealth and investment management segments missed expectations while consumer banking topped forecasts.
Net interest income fell 16.9% to $10.13 billion, just shy of the FactSet consensus of $10.24 billion. Provision for credit losses increased to $1.39 billion from $779 million, but that was below expectations of $1.88 billion.
Wells Fargo & Co. (WFC), is -2.7% in premarket trading, the bank reported Q3 profit that was less than half what it was last year and was below expectations.
Net income fell to $1.72 billion, or 42 cents a share, from $4.04 billion, or 92 cents a share, in the year-ago period, to miss the FactSet consensus of 44 cents a share.
Total revenue dropped 14% to $18.86 billion, above the FactSet consensus of $17.99 billion.
Net interest income declined about 20% to $9.4 billion to miss expectations of $9.7 billion.
Net interest margin (NIM) fell to 2.13% from 2.66%, just below expectations of 2.19%. Provision for credit losses was $556 million, down from $608 million a year ago and down from $3.38 billion in the second quarter, while the FactSet consensus was $1.79 billion.
Pretty interesting the decline in NIM and this is one of those negative factors on low low rates and one by which spread compression in their product base will lead to tighter margins as consumers will jump ship to the lowest rate offers and competition from online non traditional financiers should continue to benefit.
Here is a quick snapshot of the futures this morning (Tradingview data)
BONDS:
EQUITIES:
FX:
METALS & ENERGY:
Finally, here are the QQQs and the QTFAANGMs this morning:
That’s it for now, good luck today traders and investors, we did see PPI this morning post a +0.4% expecting +0.2% so pretty significant. When you print as much money as the central banks have this year and you have supply side shutdown shocks, it shouldn’t come as too much of a surprise…
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