Previous close | 7.50 |
Open | 7.50 |
Bid | 7.70 |
Ask | 7.85 |
Strike | 40.00 |
Expiry date | 2026-09-18 |
Day's range | 7.50 - 7.50 |
Contract range | N/A |
Volume | |
Open interest | 13 |
Bank of America (BAC), Citigroup (C), and Goldman Sachs (GS) reported earnings before Tuesday's opening bell. Results from big banks show a rise in profit from a year ago, supported by investment banking strength. Nathan Stovall, S&P Global Market Intelligence director of financial institutions research, joins Seana Smith and Brad Smith on Morning Brief to break down what investors need to know about the results and what they signal about the wider sector. “There's lots of positive things to see in here,” Stovall tells Yahoo Finance. Looking “at the investment banking piece, not only is that positive from [an] earnings perspective, but I think it speaks to increased risk appetite among corporates.” He explains, “Banks are thermometers of their economies, and when you talk about the big market folks like the Goldmans and the Citis and the BofAs of the world, we're actually seeing their corporate clients willing to take a little bit more risk, pursue more deals, stronger, in particular, on things like debt underwriting.” “The other thing I'd really point to is heading into this quarter, the big question was going to be on credit, and where are we going to see real cracks in the armor? And we haven't. We really haven't seen any real deterioration, both from the commercial lending segments or the consumer lending segments. So a lot of holding up and signs of pointing to either a soft landing or almost a no landing scenario, which is very encouraging for the US economy and certainly bank stocks.” Amid changing macroeconomic conditions, including the Federal Reserve’s ongoing rate easing cycle, Stovall says “the real question” for big banks is when the results will reflect the relief of rate cuts. “We didn't expect we would see that really show up in Q3 results because we haven't seen rates come down on deposits until the last few weeks of the quarter, [but] the good news there is we're seeing improved guidance from the banks that have reported.” Overall, Stovall says third quarter results suggest “the picture is getting a little bit better, and if you think about where we were starting heading into this quarter, there was a lot of fear there of how ugly that could get and whether or not there would be improvement soon. And I think these banks are guiding that we are going to see better days ahead.” Given investors’ worries going into big bank earnings and the solid results, Stovall says, “The fact that you aren't seeing a lot of negativity come out of the banks that have reported, I think, is one of the reasons you saw a rally on Friday and that the stocks are holding up. And I wouldn't be surprised if you saw continued strength here after the prints today.” To watch more expert insights and analysis on the latest market action, check out more Morning Brief here. This post was written by Naomi Buchanan.
Bank of America (BAC), Goldman Sachs (GS), and Citigroup (C) are among the next round of Big Banks to report corporate earnings, due out on Tuesday, October 15. Other notable companies reporting their third quarter earnings include UnitedHealth Group (UNH), Johnson & Johnson (JNJ), and Albertsons (ACI). Lastly, Federal Reserve Governor Adriana Kugler is set to release commentary tomorrow, with Wall Street listening closely for any clues to the central bank's next interest rate move in November. To watch more expert insights and analysis on the latest market action, check out more Market Domination Overtime here. This post was written by Luke Carberry Mogan.
HSBC head of US financials research Saul Martinez sits down with Julie Hyman and Josh Lipton on Market Domination to discuss what investors can expect from Big Bank earnings, with Citi (C), Bank of America(BAC), Goldman Sachs (GS), and Morgan Stanley (MS) set to report this week. “With all these banks, the question is: Do we see a trough in net interest income in the second half or in early 2025? And do we start to see growth again in net interest income next year? That's a critical question because if you do start to see net interest income growing, which is the biggest revenue component of banks, you start to get an outlook that allows banks to post positive operating leverage and improving EPS momentum and ROTC momentum,” Martinez tells Yahoo Finance. “In the case of Bank of America, especially tomorrow, that's a key driver. What they say about net interest income in the fourth quarter and into 2025, and whether they continue to see that improving in 2025 is going to be a really important determinant for how the share price reacts.” Given JPMorgan’s strong investment banking results reported last week, Martinez says he’s cautiously optimistic about Morgan Stanley and Goldman Sachs's upcoming reports. He explains, “We favor investment banks over traditional banks.” “We think the earnings revision cycle, which has been negative for a few years, is inflecting. We think [in] the wealth management business there’s some positive signs there in terms of net new fee-generating assets. But the investment banking side is a big piece of that as well. We think they are positively leveraged [for an] improving investment banking cycle. We still think we’re in the middle innings of that improvement, and that could last a couple of years.” Martinez names Goldman and Morgan Stanley as “primary beneficiaries.” Ahead of Citi’s quarterly results, Martinez says he’ll be watching for “dynamics that point to a better profitability outlook over the next couple of years,” especially given “there's a lot of stuff that is in their control expenses.” To watch more expert insights and analysis on the latest market action, check out more Market Domination here. This post was written by Naomi Buchanan.