Charles Schwab Reports Strong Numbers for May

Charles Schwab (SCHW) is expected to report strong numbers in the second quarter mainly due to supportive macro fundamentals and higher expected interest income sequentially. The Fed’s meeting, which ended on June 13, showed that it will increase interest rates faster than predicted. The Fed’s hawkish stance would likely be beneficial for brokerages (VFH) like TD Ameritrade (AMTD), Interactive Brokers Group (IBKR), and E*TRADE Financial (ETFC). According to data released on June 14, Charles Schwab ended May with total client assets of $3.38 trillion—a month-over-month rise of 2% and the substantial YoY (year-over-year) rise of 13%.