I have known for a long time now that poor investment decisions have real and serious consequences for individuals and families. But I never dreamed that a classic investing disaster could have been instrumental in getting a president elected. It's an astonishing tale. And we can learn from it today… Steve Bannon is widely credited with helping to get Trump elected president. He's now President Trump's chief strategist. His father, Marty Bannon, spent 50 years working for AT&T. Over his career, he accumulated a significant position in the company's stock. For Marty, that investment was an insurance policy for his family. If financial disaster ever struck, he believed at least AT&T would keep going strong. Then, on October 7, 2008, Marty was watching the news. The whole financial system seemed to be unravelling – and his nest egg at AT&T was going down with it. Marty didn't even bother to call his investment-banker son, Steve, to ask for advice. He just panicked, and sold…. his entire position.
Hot Financial Stocks For 2018: Nuveen Municipal Value Fund Inc.(NUV)
- [By Donald van Deventer]
The latest implied forward rate forecast from Kamakura Corporation shows projected 10-year U.S. Treasury yields differing -0.07% to 0.03% from last week while fixed rate mortgage yields varied by -0.01% to 0.08%. Mortgage yields, determined by the Monday through Wednesday weekly survey of the Federal Home Loan Mortgage Corporation, lag Treasury movements simply because of the 3-day yield calculation used in the Primary Mortgage Market Survey. The 10-year U.S. Treasury yield is projected to rise from 2.92% at Thursday’s close (down 0.06% from last week) to 3.374% (down 0.06% from last week) in one year. The 10-year U.S. Treasury yield in ten years is forecast to reach 4.639%, 1 basis point lower than last week. The 15-year fixed rate mortgage rate is forecast to rise from the effective yield of 3.69% on Thursday (down 0.001% from last week) to 4.222% (down 0.006% from last week) in one year and 6.29% in 10 years, up 0.038% from last week. We explain the background for these calculations in the rest of this note, along with some mortgage servicing rights metrics. The forecast allows investors in exchange traded U.S. Treasury funds (TLT) (TBT), total return bond funds (BOND), municipal bonds (NUV) and exchange traded mortgage funds (REM) to assess likely total returns over the next 120 months. Treasury-related exchange traded funds affected by the forward rates include:
Hot Financial Stocks For 2018: SL Green Realty Corporation(SLG)
- [By Nelson Hem]
“Manhattan on Sale? That’s the Case With Two Cheap REITS” by Andrew Bary discusses whether Manhattan-focused real estate investment trusts Vornado Realty Trust (NYSE: VNO) and SL Green Realty Corp (NYSE: SLG) could rally as the New York market firms. Both trade at a discount to the value of private-market property deals, says the article.
Hot Financial Stocks For 2018: Wells Fargo & Company(WFC)
- [By The Ticker Tape]
In the next two weeks, several major financial institutions report earnings. Wells Fargo & Co (NYSE: WFC), JPMorgan Chase & Co. (NYSE: JPM), and Citigroup Inc (NYSE: C) report before market open on April 13. According to consensus third-party analyst estimates, WFC is expected to report $0.96 earnings per share, or EPS, on revenue of $22.16 billion, JPM is expected to report $1.51 EPS on revenue of $24.57 billion, and C is expected to report $1.27 EPS on revenue of $17.97 billion. One area of focus when banks report is the impact of rising interest rates on these company’s net interest income—the difference between revenues generated by a bank’s assets and the expenses associated with paying its liabilities.
- [By Jayson Derrick]
During the year the fiscal year the fund also added to its positions in Wells Fargo & Co (NYSE: WFC), Amazon.com, Inc. (NASDAQ: AMZN), and Exxon Mobil Corporation (NYSE: XOM). Of particular note, the fund increased its exposure in China's Alibaba Group Holding Ltd (NYSE: BABA) by nearly 85 percent to 127 billion yen.
- [By Brian Stoffel]
Wells Fargo (NYSE:WFC) has been in the headlines for all the wrong reasons — namely, for opening at least 2 million fake accounts to meet internal quotas.Remarkably, that didn’t stop the bank from adding nearly 16,000 employees. Perhaps some were hired to replace the reported 5,300 that were let go in the wake of the scandal.
- [By WWW.MONEYSHOW.COM]
For the negative side of the banking story, let’s look at Wells Fargo (WFC). This is the company that has been embroiled in a scandal involving the fraudulent opening of some two million accounts as employees tried every trick in the book to make unrealistic sales quotas.
- [By Ben Levisohn]
Big banks like JPMorgan Chase (JPM), Wells Fargo (WFC), and Bank of America (BAC) have surged more than 20% during the past three months–causing many investors to doubt the possibility for further gains. I’m note one of them–after my disastrous financials call last year, I’m bullish on them in 2017–and neither is Morgan Stanley’s Betsy Graseck, who remains Overweight the big banks, despite their big gains. She explains why:
- [By Teresa Rivas]
On Thursday,Wells Fargo (WFC) reported first-quarter earnings that topped analysts’ expectations, but the stock still ended down for the day.
Wells Fargo said it earned $1 a share on revenue of $22 billion. Analysts were looking for earnings per share of 97 cents on revenue of $22.3 billion.
Analystshave digetsed the news, and are out withtheir takes on the quarter, and opinions run the gamut.
Evercore ISI’s John Pancari reiterated an Outperform rating and $60 price target on Wells:
A more conservative fee outlook (mainly mortgage) and modest tweak to B/S growth expectations led to a slight downside EPS revision to 2018. That said, expense efforts are now the greater focus given the n/t headwinds – but also the substantial opportunity to pare costs and limit pressure on returns. All eyes on the May 11 investor day.
Sandler O’Neil’sR. ScottSiefers reiterated a Hold rating and $55 price target:
WFCcontinues to address the sales scandal decisively and transparently, but too many uncertainties and issues remain.We are keeping our HOLD rating. We considerWFCs 1Q performance fine, but not its best. On the plus side, credit trends were very good, and a rebound in trading allowed total fees to come in better than we had foreseen (though we suspect that at least a portion of this Qs performance will normalize in coming periods). But the NIM only held firm (whereas we would have hoped to see at least a little expansion), loan growth was pretty weak, and costs came in higher than we had anticipated.
Raymond James’s David Long reiterated an Underweight rating:
The EPS beat was driven by a lower tax rate (management guided to a reversion) and a reserve release from improvement in energy-related credits, while the miss on expenses (deferred comp) outweighed the beat on fees (trading gains). Additionally, March retail banking gr
Hot Financial Stocks For 2018: Petroleum Resources Corporation(PEO)
- [By Lisa Levin]
In trading on Wednesday, financial shares fell 0.13 percent. Meanwhile, top losers in the sector included Adams Natural Resources Fund Inc (NYSE: PEO), down 4 percent, and Old Point Financial Corporation (NASDAQ: OPOF) down 3 percent.