Latest news with #earnings season
Yahoo
15-07-2025
- Business
- Yahoo
Markets Hit Record Highs, Banks Report Q2 Results: Stocks to Watch
Stocks crept higher to kick off an eventful week, with the Nasdaq notching a record closing high ahead of the official start of the second-quarter earnings season. Over the weekend, President Trump upped the ante in regards to his tariff agenda, promising 30% duties on Mexico and the European Union. Officials from both countries are pushing to make a deal before the August 1st deadline. Adding to the headlines yesterday, Trump ramped up tensions with Russia over the war in Ukraine, threatening to impose 'secondary' tariffs of up to 100% if a deal is not struck soon. Markets seemed to shrug off the latest tariff flareups, looking past any uncertainty as the Q2 earnings season gets underway. Almost 100 companies are on deck to report results this week, including 38 S&P 500 members. Several big banks reported this morning before the open, with the majority of the pack outpacing estimates. A mainly in-line CPI inflation report added to the bullish sentiment. It'll be interesting to see how stocks react to earnings. Looking at the second quarter as a whole, S&P 500 companies are expected to witness 4.7% earnings growth on 4% higher revenues. These figures represent a significant deceleration from the growth trend of recent quarters. It's an exciting time in the stock market right now with the major U.S. indexes eclipsing their former all-time highs. As we make our way deeper into the third quarter, let's take a step back and try to determine what may lie ahead for the rest of 2025 and beyond. It was certainly a first half to remember. The see-saw action translated to one of the most volatile first halves in recent memory. President Trump's trade war sent shockwaves throughout the financial markets, resulting in a nasty correction earlier in the year as investors priced in potential trade outcomes. By April, market performance began to turn the corner, improving rapidly as investors gained more clarity amid signs of trade-talk progress. The V-shaped, relentless move morphed into a lockout rally that left nonbelievers in the dust. And because many investors missed out on big gains, they will continue to snap up shares on weakness, which should help lift stocks even further. The S&P 500 just delivered one of the greatest three-month rallies in history, advancing more than 25% off the April lows. As we can see below, the current version of the blue-chip index has only accomplished this feat five other times since its inception in 1957: Image Source: Zacks Investment Research In the twelve months following each of these instances, the S&P 500 delivered double-digit gains each time. As the saying goes, strength begets strength. Still, the doubters and naysayers remain prevalent. This is certainly one of the most hated market rallies since the surge in stocks following the onset of the COVID-19 pandemic. There are always reasons that critics can point to as to why stocks can't continue higher, but as we know, stocks climb a wall of worry. Megabank JPMorgan Chase JPM led a slew of banks reporting quarterly earnings Tuesday morning. The banking giant reported Q2 earnings of $4.96 per share, beating the Zacks Consensus Estimate of $4.51/share by 9.98%. The bottom line improved 12.7% versus the year-ago period. Revenues for the second quarter of $44.91 billion also topped estimates. JPM stock, a Zacks Rank #2 (Buy), ticked down slightly but remains in a strong uptrend and near 52-week highs: Image Source: StockCharts Outside of financials, leading chipmaker Nvidia NVDA saw its stock pop about 4% in the early going after the company stated it is filing applications with the U.S. government to resume sales of its previously restricted H20 GPUs to China. 'The U.S. government has assured Nvidia that licenses will be granted, and Nvidia hopes to start deliveries soon,' the company said in a prepared statement. Nvidia will be one of the last companies to report quarterly results this season in late August. The stock has broken out to all-time highs and is resuming its former momentum: Image Source: StockCharts Positive earnings results out of the gate bode well for the remainder of the season. A tame inflation trend in the face of President Trump's tariffs adds to the bullish case. Historical statistics also point to more general market strength over the next twelve months. Make sure you're taking advantage of all that we offer here at Zacks. Disclosure: JPM is a long-term holding in the Zacks Income Investor portfolio. NVDA is a core holding in the Zacks Headline Trader portfolio. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report JPMorgan Chase & Co. (JPM) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Bloomberg
15-07-2025
- Business
- Bloomberg
Wells Fargo 2Q Net Interest Income Misses Estimates
00:00 You have Wells Fargo with a miss and a staying in line when it comes to net interest income. So you do have a member. JPMorgan also slightly missed on net interest income for the quarter. It's the outlook. Now, how much more juice can you squeeze out of the consumer? I had mentioned costs were also going to be a big focus this earnings season, I would say for Wells Fargo. Interesting to see credit quality is also really good. This is a really good news for both JPMorgan and Wells Fargo coming in better than expectations. However, non-interest expense, this is the expenses you have control over coming in a little bit higher than expected. The setup here was that Wells Fargo was already trading at a richer price to book ratio than you had at Bank of America, for example. There's a lot of promise in the stock with the asset cap lifting. So now for Charlie Scharf, it's a show me the money story. They did miss on investment banking as well. These are business lines that they want to grow over at Wells Fargo now that that asset cap is lifted. So high bar now, not everyone can be JPMorgan. They came in at more than a 20% return on tangible common equity. No one thought that they would get that this quarter. So can the rest of the banks keep pace?
Bloomberg
10-07-2025
- Business
- Bloomberg
Asian Stocks to Climb After Rally on Wall Street: Markets Wrap
Asian equities were primed to advance Friday after bullish corporate reports propelled US stocks to new highs ahead of earnings season. Equity index futures for Japan, Australia and Hong Kong all gained, taking cues from a 0.3% rise for the S&P 500 Thursday. The US benchmark is up 6.8% this year having erased losses spurred by President Donald Trump's reciprocal tariff announcement three months ago.
Bloomberg
10-07-2025
- Business
- Bloomberg
Grace Peters on AI, Trade Tensions & Growth Drivers
Stocks have retreated amid uncertainty over the Trump administration's trade policies, as traders await a fresh catalyst for the next leg up in share prices. Although tariff headlines, particularly those focused on country-specific levies and copper, have stirred the markets, they have done little to derail a broader rebound that recently pushed U.S. equities to record highs. Signs of continued economic strength, confidence in the upcoming earnings season, and growing optimism around artificial intelligence are giving traders renewed conviction. Despite lingering concerns over trade, these factors are influencing investment decisions. JPMorgan's Grace Peters, Co-Head of Global Investment Strategy at the Private Bank, joins Bloomberg Radio's Stephen Carroll and Anna Edwards to break down the current landscape. She discusses how tariffs, defense spending, AI, and other factors are shaping her investment outlook. (Source: Bloomberg)
Bloomberg
10-07-2025
- Business
- Bloomberg
Regional Banks' Torrid Rally Draws Bearish Bets as Earnings Loom
A breakout rally in the shares of US regional banks may be setting investors up for disappointment, according to some Wall Street strategists, who recommend betting on a pullback in the sector as earnings season gets underway. The SPDR S&P Regional Banking ETF (KRE), an exchange-traded fund that tracks the performance of Main Street lenders, is up more than 8% over the last month, nearly double the S&P 500 Index 's gains over the same period. Tailwinds for the sector include the prospects of an M&A boom, an easier regulatory environment and expectations of higher-for-longer interest rates.
