JPMorgan Chase & Co.NYSE
Today, 2:19 AM
- Top executives from the largest U.S. banks and asset managers are set to begin speaking at Goldman Sachs' U.S. Financial Services Conference.
- Those appearing at the event include CEOs of JPMorgan (NYSE:JPM), BofA (NYSE:BAC), Carlyle Group (NASDAQ:CG), Blackstone (NYSE:BX) and American Express (NYSE:AXP).
- Wells Fargo's (NYSE:WFC) new CEO Tim Sloan, who took the top job in October after the bank's fake account scandal, will also take the podium.
Yesterday, 12:40 PM
- The FRBNY's William Dudley isn't concerned about the post-election jump in rates at the long end of the curve, and says the Fed is about to start following suit at the short end.
- Even the dovish Charles Evans from the Chicago Fed admits inflation is getting closer to the central bank's target, and the labor market is close to full employment.
- The 10-year Treasury yield had moved as high as 2.45%, but has pulled back to 2.40%, still up 1.5 basis points on the session.
- On the regulatory front, Fed Governor Daniel Tarullo on Friday set himself up as the chief defender of the current bank regulatory regime, but whether his voice will be heard is a different story given the incoming administration, which looks to be staffed with those favoring a far lighter regulatory hand.
- Financial sector stocks today are about doubling the S&P 500's 0.5% advance.
- TBTF banks: Bank of America (BAC +2.3%), Citigroup (C +1.8%), JPMorgan (JPM +1.3%), Wells Fargo (WFC +0.9%), Goldman Sachs (GS +1.7%), Morgan Stanley (MS +0.4%)
- Regional lenders: U.S. Bancorp (USB +0.7%), PNC Financial (PNC +0.4%), KeyCorp (KEY -0.8%), Fifth Third (FITB +0.5%)
- Insurers: MetLife (MET +0.3%), Lincoln National (LNC), AIG (AIG +0.2%)
- Brokerage: Schwab (SCHW +0.9%), E*Trade (ETFC +0.9%)
- Custodial banks: State Street (STT +0.5%), Northern Trust (NTRS +1%)
- Private equity: Blackstone (BX +0.9%), KKR (KKR +1%)
- Asset Management: BlackRock (BLK +0.1%), Franklin Resources (BEN +0.5%), Affiliated Managers (AMG +1.8%)
Yesterday, 11:41 AM
- There are multi-year highs again across the sector as interest rates continue to rise, but, maybe more importantly, bank investors begin to envision a far less heavy regulatory burden.
- In a speech Friday described by FBR's Ed Mills as "going out swinging," Fed Governor Daniel Tarullo set himself up as the chief defender of the status quo, saying he doesn't see a "sound economic case" for rolling back the post-crisis regulatory regime.
- Whether anyone hears him much going forward is a different story, given names like former BB&T boss John Allison or former FDIC chief Thomas Hoenig being thrown around as possible Fed vice chairmen for bank supervision. Both Allison and Hoenig are fans of following simple leverage ratios, but Tarullo says just focusing on those is "inadequate and dangerous."
- Tarullo's voice will also have to rise above that of Trump's Strategic and Policy Forum led by Blackstone's Stephen Schwarzman.
- XLF +1.15%, KRE +1.1%, KBE +1.25%
- Bank of America (BAC +2.6%), Wells Fargo (WFC +1.4%), JPMorgan (JPM +1.6%), Citigroup (C +2.3%), Goldman Sachs (GS +2.1%), U.S. Bancorp (USB +1%), Regions Financial (RF +1.5%), Synovus (SNV +1.1%), SunTrust (STI +1.4%), Primerica (PRI +2.1%), Bank of New York (BNY +1.4%), State Street (STT +1.1%)
Fri, Dec. 2, 12:03 PM
- An all-star team of business leaders has been named to an advisory board that will talk to Donald Trump during his administration.
- The President's Strategic and Policy Forum will be chaired by Blackstone (NYSE:BX) CEO Stephen Schwarzman. Other members include General Motors (NYSE:GM) CEO Mary Barra, JPMorgan Chase (NYSE:JPM) CEO Jamie Dimon, Wal-Mart (NYSE:WMT) CEO Doug McMillon, Disney (NYSE:DIS) CEO Bob Iger and former Boeing (NYSE:BA) CEO Jim McNerney.
- The impressive list is a bit short of Silicon Valley leaders, while hedge fund managers are completely MIA.
- The group is scheduled to meet for the first time in early February.
Thu, Dec. 1, 12:22 PM
- The 10-year Treasury yield is up another seven basis points to 2.46%, and bank investors continue to wrap their arms around the idea that real regulatory loosening is on the way. The XLF is higher by 1.7% vs. the S&P 500 being flat. KBE +2.15%, KRE +2%.
- Bank of America (BAC +3%), Citigroup (C +1.7%), JPMorgan (JPM +2.2%), MetLife (MET +2.2%), Voya Financial (VOYA +3.3%), Northern Trust (NTRS +3.5%).
- Oil is now ahead 4.6% to $51.72, helping the XLE to another 2.1% advance.
- Tech (QQQ -1.4%) continues to struggle. Its decline today puts it lower by 1.1% since the election vs. the S&P's 2.8% advance, a 10% gain for the XLE, and a 14.5% move for the XLF.
Thu, Dec. 1, 8:46 AM
- November monthly performance was: +5.59%
- 52-week performance vs. the S&P 500 is: 0%
- No dividends were paid in November
- Top 10 Holdings as of 9/30/2016: JPMorgan Chase & Co (JPM): 3.11216%, Citigroup Inc (C): 2.91346%, US Treasury Note 1.125%, US Treasury Note 0.5%, Bank of America Corporation (BAC): 2.04729%, Morgan Stanley (MS): 1.65388%, Apache Corp (APA): 1.61818%, Merck & Co Inc (MRK): 1.45989%, US Treasury Note 0.75%, Devon Energy Corp (DVN): 1.39074%
Wed, Nov. 30, 11:45 AM
- While the pick of ex-Goldmanite and Hollywood player Steven Mnuchin for Treasury Secretary can hardly be called "draining the swamp," Pantheon's Ian Shepherdson says it should make Wall Street happy.
- In his first public comments after being selected, Mnuchin promised to "kill" swaths of Dodd-Frank.
- Also making Wall Street (and other bankers/insurers/brokers) happy today is another big move higher in interest rates, with the 10-year Treasury yield up 10 basis points to 2.394%.
- The S&P 500 is just marginally higher, but the KBE is ahead 1.9%, and the KRE 2%. XLF +1.35%
- Bank of America (BAC +3.4%), Citigroup (C +1.9%), JPMorgan (JPM +1.5%), Wells Fargo (WFC +1.8%), Morgan Stanley (MS +2.1%), Goldman Sachs (GS +3.9%), U.S. Bancorp (USB +1%), PNC Financial (PNC +1.4%), KeyCorp (KEY +2.2%), Fifth Third (FITB +2.5%), Regions Financial (RF +2.9%), BB&T (BBT +2.4%), SunTrust (STI +2%)
- MetLife (MET +2%), AIG (AIG +0.8%), Lincoln National (LNC +1.7%), Prudential (PRU +1.1%), Hartford (HIG +1.3%)
- ETFs: XLF, FAS, FAZ, UYG, VFH, IYF, BTO, IYG, FNCL, SEF, FXO, RYF, FINU, RWW, XLFS, FINZ, JHMF, FAZZ, FNCF
Tue, Nov. 29, 3:11 PM
- More confidence that rates are rising for real this time, "wide-sweeping" regulatory changes to come, and a better FICC environment have analyst Brian Kleinhanzi upgrading Bank of America (BAC) and Goldman Sachs (GS +0.9%) to Outperform from Market Perform.
- Kleinhanzi keeps JPMorgan (JPM +0.8%) and Bank of New York (BK +0.2%) at Outperform.
- Turning to regional banks, KBW boosts its estimates for 2017 and 2018 for the large players, and upgrades Citizens Financial (CFG +1.9%) and Comerica (CMA +1.6%) to Outperform, while downgrading KeyCorp (KEY +0.3%) and PNC (PNC -0.2%) to Market Perform. The switch comes as KBW turns its focus on those lenders best positioned for a rising rate environment, and from regulatory relief, not to mention other levers should rates not rise.
- Source: Bloomberg
Mon, Nov. 21, 10:48 AM
Wed, Nov. 16, 5:45 PM
- JPMorgan Chase (NYSE:JPM) will pay more than $200M to settle allegations that it had hired children of Chinese decision makers to win business, according to a Reuters report.
- JPM reportedly would pay ~$130M to the SEC, which had opened an investigation into the bank in 2013 over the hiring practices, plus ~$70M to the Justice Department, with no individual prosecutions at this time.
- JPM -0.2% AH following an earlier Fox Business report that Jamie Dimon likely would be named the new Treasury Secretary.
Wed, Nov. 16, 4:01 PM
- Mario Bartiromo is reporting the JPMorgan (NYSE:JPM) CEO will get the job.
- Previously: Trump considering Jamie Dimon for Treasury chief - CNBC (Nov. 10)
Wed, Nov. 16, 3:30 AM
- EU antitrust regulators are set to fine HSBC, JPMorgan (NYSE:JPM) and Credit Agricole (OTCPK:CRARY) by the end of the year for rigging financial benchmarks linked to the euro, Reuters reports.
- Charges were levied in May 2014 against the three banks, which denied wrongdoing.
- Deutsche Bank, RBS and Societe Generale admitted guilt in December 2013, while Barclays avoided a fine because it alerted the European Commission.
Mon, Nov. 14, 7:27 AM
- Rates are flying across the globe again this morning, with the U.S. 10-year Treasury yield up 10 basis points to 2.25%.
- Though S&P 500 futures are flat, financial names are set for another big open. Premarket: Bank of America (NYSE:BAC) +1.4%, Citigroup (NYSE:C) +1.1%, JPMorgan (NYSE:JPM) +0.75%, Wells Fargo (NYSE:WFC) +0.7%. The XLF +0.6%
Thu, Nov. 10, 11:50 AM
Thu, Nov. 10, 11:03 AM
- For now, the 10-year Treasury yield is holding onto the huge gain in posted yesterday, up two basis points today to 2.086%. TLT -0.4%, TBT +0.8%. Fed Funds futures have priced in about a 100% chance of a December rate hike.
- The yield curve has shifted both higher and steeper - pure manna for the companies that borrow short and lend long. There's also a new sheriff coming to town, and bank investors are no doubt mulling an eased regulatory regime. KBE +2.45%, KBE +2.4%
- Bank of America (BAC +3.5%), Wells Fargo (WFC +4.5%), JPMorgan (JPM +3.1%). Underperformers among the TBTF players: Citigroup (C +1.1%), Goldman (GS +1.1%)
- Regional banks: Regions (RF +4.2%), PNC Financial (PNC +3.3%), Fifth Third (FITB +1.7%). Online brokers: E*Trade (ETFC +2.9%), Schwab (SCHW +2.8%), Ameritrade (AMTD +2.6%), Interactive Brokers (IBKR +2.7%)
Wed, Nov. 9, 3:20 PM
- The downgrade came out prior to the election results, but it's mostly a valuation call, so JPMorgan's (JPM +5.8%) big move today shouldn't sway David George and team.
- Calling JPMorgan a great company and a core bank holding, George says the stock is fairly valued and would wait for a sizable pullback before adding. Wells Fargo (NYSE:WFC) offers a better risk-reward, but George cautions that investor sentiment towards banks seems a little too positive at the moment, with prices mostly discounting a December rate hike and improving macro outlook.
- Putting numbers on it, JPMorgan trades largely inline with big cap bank peers on forward earnings vs. an 85% relative multiple at the start of 2015, and at a 70% relative multiple to the S&P 500 vs. the long-term average of 65%.
- "We think an extended Fed tightening cycle is unlikely, and investors are underestimating the risks of further flattening in the yield curve and rising market volatility."