An hour ago
Watch bank stocks ahead of Friday’s results
JPMorgan Chase, Wells Fargo and Citigroup are ready to report their latest quarterly results on Friday morning.
For 2023, the three stocks are well ahead of the SPDR S&P Bank ETF (KBE). JPMorgan is up 8.7% this year, while Wells Fargo is down nearly 3.8% and Citigroup is down more than 8%. By comparison, KBE suffered a loss of nearly 20% in a year that saw higher interest rates and weakening loan demand.
JPMorgan and Citigroup were nearly flat last month, but Wells Fargo fell 6.5% in the period. All three are on track for modest weekly gains. Friday’s results could affect stocks during the session.
Read more about upcoming bank earnings reports here.
-Darla Mercado, Ethan Kraft
An hour ago
Recovery will be the theme of third-quarter earnings season, says Ed Yardeni
A strong third-quarter earnings season could set markets up for a year-end rally, according to Ed Yardeni.
The founder of Yardeni Research believes that earnings bottomed out in the second quarter and a recovery should follow in the third quarter.
“What’s really gone down is the profit margin because companies have come under pressure, but somehow companies are starting to find ways to increase their profit margin. Analyst consensus expectations show that,” he told CNBC’s “Closing Bell” Thursday.
Against the macro backdrop of higher interest rates, Yardeni also believes that big tech companies could be a good bet as they don’t have as much debt and are therefore less exposed to interest rate risks.
“I think technology could actually prove to be a safe haven in an environment where interest rates are going to be higher for longer,” he said.
—Lisa Kailai Han
An hour ago
Shares of Dollar General rose nearly 8% in extended trading
Shares of Dollar General rose nearly 8% in after-hours trading after the company announced it was reinstalling former CEO Todd Vasos.
See grafic…
DG 1-day chart
Vasos, who held the position from June 2015 to November 2022, will immediately take over the management from his successor Jeff Owen. During Owen’s tenure, the company faced declining sales growth and increasing criticism over its unsafe working conditions.
On Thursday, Dollar General also cut its full-year profit forecast. The company now expects earnings of about $7.10 to $7.60 per share, compared to previous forecasts of between $7.10 and $8.30 per share.
Read more about Todd Vasos’ return to Dollar General here.
— Lisa Kailai Han, Gabrielle Fonrouge, Jacob Pramuk
2 hours ago