9 Hours Ago
Watch bank shares ahead of Friday’s earnings
JPMorgan Chase, Wells Fargo and Citigroup are on deck to report their latest quarterly earnings Friday morning.
For 2023, the three stocks are well ahead of the SPDR S&P Bank ETF (KBE). JPMorgan is posting an 8.7% gain this year, while Wells Fargo is off nearly 3.8% and Citigroup is down more than 8%. This compares to the nearly 20% loss KBE is facing in a year that has come with higher interest rates and slowing demand for loans.
JPMorgan and Citigroup are close to flat in the past month, but Wells Fargo has lost 6.5% in that period. All three are on pace for modest weekly gains. Friday’s results could sway the stocks during the session.
Read more about the upcoming bank earnings reports here.
–Darla Mercado, Ethan Kraft
9 Hours Ago
Recovery will be the theme of the third-quarter earnings season, says Ed Yardeni
A strong third-quarter earnings season could set up markets for a year-end rally, according to Ed Yardeni.
The founder of Yardeni Research believes that earnings bottomed out in the second quarter and should be followed be a recovery in the third.
“What really came down is the profit margin because companies got squeezed but somehow or other, companies are starting to figure out ways to make their profit margin go up. The analysts consensus expectations are showing that,” he told CNBC’s “Closing Bell” on Thursday.
Against a macroeconomic backdrop of higher rates, Yardeni also believes that mega-cap tech companies could be a good bet, since they don’t have as much debt and are therefore less exposed to interest rate risks.
“I think tech could actually turn out to be the safe haven in an environment where interest rates are going to be higher for longer,” he said.
— Lisa Kailai Han
9 Hours Ago
Shares of Dollar General rally nearly 8% in extended trading
Dollar General stock climbed nearly 8% higher in post-market trading hours after the company announced it was reinstating former CEO Todd Vasos.
See Chart…
DG 1-day chart
Vasos, who held the position from June 2015 to November 2022, will take the reins immediately from successor Jeff Owen. During Owen’s time in the role, the company faced declining sales growth and mounting criticism for its unsafe working conditions.
On Thursday, Dollar General also lowered its full-year profit guidance. The company now expects earnings of about $7.10 to $7.60 per share, versus prior forecasts of between $7.10 to $8.30 per share.
Read more about Todd Vasos’ return to Dollar General here.
— Lisa Kailai Han, Gabrielle Fonrouge, Jacob Pramuk
10 Hours Ago
