What’s happening?
Shares of Goldman Sachs Group Inc. (NYSE:GS) plunged 5% in active trading on Tuesday after its earnings failed to meet Wall Street’s expectations.
So what
Goldman reported earnings of $5.15 per share, below the consensus forecast of $5.31 per share. A noteworthy decline in Fixed Income, Currency, and Commodities (FICC) income stunned analysts, as the company reported earning just $1.69 billion from trading activities, down from $2 billion in the prior quarter. Trading revenue grew just 1% year over year.
Image source: Getty Images.
More than other large financial institutions, Goldman relies on trading to generate a profit. This quarter, FICC revenue made up about 21% of net revenue compared to 24.5% of net revenue in the December quarter.
Goldman’s results were particularly poor when compared to Bank of America(NYSE:BAC),JPMorgan(NYSE:JPM), and Citigroup(NYSE:C), all of which reported improvements in trading revenue. Bank of America reported a 17% increase in FICC revenue this quarter over the same period last year. Likewise, JPMorgan reported revenue of $4.2 billion in its Fixed Income Markets breakout, a 17% improvement compared to the same period a year ago.Citi stole the show with a 19% increase in fixed-income revenue compared to the prior-year period.
stock picks: CytomX Therapeutics, Inc.(CTMX)
Advisors’ Opinion:
- [By Lisa Levin]
CytomX Therapeutics Inc (NASDAQ: CTMX) shares were also up, gaining 24 percent to $18.89. Bristol-Myers Squibb Co (NYSE: BMY) and CytomX Therapeutics disclosed that they have extended worldwide partnership to discover Probody therapeutics for the treatment of cancer and other diseases.
stock picks: Freeport-McMoran, Inc.(FCX)
Advisors’ Opinion:
- [By Ben Levisohn]
Freeport-McMoRan (FCX) soared to the top of the S&P 500 today as metal & mining stocks rallied sharply after President Donald J. Trump signed executive orders meant to increase spending on infrastructure.
Agence France-Presse/Getty Images
Freeport-McMoRangained 8.4% to $17.04 at 4:12 p.m. today, while the S&P 500 rose 0.7% to 2,280.07.
In a note released yesterday, Jefferies analyst Christopher LaFemina and team noted that investor interest in Freeport-McMoRan and other miners has been rising:
We met with 52 investors in the US over the past two weeks and have done calls with 117 investors globally over the past three weeks. This all follows a week of 30 investor meetings in London in December. The mix has been slightly more hedge funds than long only funds, but long only interest in mining has greatly increased. We expect the sector to outperform as fundamentals improve and long only rotation into mining continues. Buy Glencore, Freeport-McMoRan, Fortescue Metals, Rio Tinto (RIO), and BHP Billiton (BHP).
Freeport-McMoRan’s market capitalization rose to $24.6 billion today from $21.4 billion yesterday. It reported net income of $12.2 billion on sales of $16.3 billion in 2015.
Freeport-McMoRan is scheduled to report earnings tomorrow.
- [By Ben Levisohn]
Freeport-McMoRan (FCX) tumbled to the bottom of the S&P 500 today as the dollar rose and copper prices fell.
Agence France-Presse/Getty Images
Freeport-McMoRandropped 4.9% to $13.31 today, while the S&P 500 fell 0.6% to 2,381.92. The ICE U.S. Dollar Index rose 0.4% today, and
Front Month Comex Copper for March delivery declined 1.7% to $2.6795 today.Axiom Capital’s Gordon Johnson warns that iron ore prices might be ready to drop:
Beware: An Imminent End to an Epic Restock Suggests Iron Ore Prices May Snap Back Toward Fundamentals. Our work suggests ~70% of global iron ore demand can be met at a cash cost of <$23/t; add in $8/t for interest, CAPEX, & other, & we get to a breakeven of $31/t. In addition, w/ inventory restocking & current prices making further investment attractive, despite current excesses, we believe iron ore prices should be ~$40/t (i.e., below marginal costs); in this fashion, w/ Chinese real estate investment on the decline, we view iron ore spot prices >$62/t as a stretch. So what has been propping prices? In our view, one word restocking; first by the mills, undergoing the biggest restocking effort of Chinese steel in >6-yrs., & then by the traders, which have built their iron ore port stocks to a record, w/ days of inventory at a 2.5-yr. high (Ex. 18-19). Yet, w/ data pointing to peak steel inventory, implying risk to n-term ore demand, & the govt probing speculative trading, we see the current restocking cycle as very much so in the later innings
Freeport-McMoRan’s market capitalization fell to $19.2 billion today from $20.2 billion yesterday. It reported a net loss of $4 billion on sales of $14.8 billion in 2016.
- [By Chris Lange]
The stock posting the largest daily percentage gain in the S&P 500 ahead of the close Monday was Freeport-McMoran Inc. (NYSE: FCX) which rose about 4% to $14.73. The stocks 52-week range is $9.24 to $17.06. Volume was nearly 21 million compared to its average volume of 18.5 million.
- [By Reuben Gregg Brewer]
Freeport-McMoRan Inc. (NYSE:FCX) and Barrick Gold (NYSE:ABX) rank among the largest gold and copper miners in the world. After years of retrenching, both are in better operational and financial shape than they were when commodity prices started to tumble in 2011. But now that metals prices are finally rising, there are new troubles to face. Barrick’s headwinds, however, don’t look nearly as formidable as what Freeport-McMoRan is facing.
- [By Craig Jones]
On CNBC's Fast Money Halftime Report, Jon Najarian spoke about unusually high options activity in Freeport-McMoRan Inc (NYSE: FCX). He said that traders were buying the January 13, 14-strike calls on Tuesday. He added that these calls expire prior to the earnings release and he is wondering if someone is betting that the company is going to pre-announce earnings results. Around 9,000 contracts were traded in the first half of the session and Jon Najarian decided to follow the trade. He is planning to hold the long position in Freeport-McMoRan for a week.
- [By Jon C. Ogg]
The metals and mining sector has seen many winners, particularly in steel and copper. Freeport-McMoRan Inc. (NYSE: FCX) is big in copper and shares were last seen down 0.3% at $13.90 late on Monday, which might have been up more had it been less diversified. Shares of Freeport-McMoRanare up 26% in the past fivetrading days. The stock has a market cap of $18 billion.
stock picks: iShares MSCI Emerging Markets (EEM)
Advisors’ Opinion:
- [By Dan Caplinger]
2017 has been a tumultuous year, with plenty going on in the political and financial realms. Yet the stock market has done quite well, and index funds that track popular stock benchmarks have given their investors solid returns. In particular, among the most popular exchange-traded funds, iShares MSCI Emerging Markets (NYSEMKT:EEM), PowerShares QQQ (NASDAQ:QQQ), and iShares Core MSCI EAFE (NYSEMKT:IEFA) have delivered some of the best returns.
- [By Craig Jones]
On CNBC's Trading Nation, Todd Gordon recommended a bearish options strategy in iShares MSCI Emerging Markets Indx (ETF) (NYSE: EEM). He said that the ETF is under pressure because of weak commodity prices and strong U.S. dollar. He explained that falling bond prices have caused a rally in the U.S. dollar.
- [By Craig Jones]
Speaking on Bloomberg Markets, Dan Deming of KKM Financial suggested a bullish options strategy in iShares MSCI Emerging Markets Indx (ETF) (NYSE: EEM).
- [By WWW.GURUFOCUS.COM]
For the details of RABOBANK NEDERLAND ‘s stock buys and sells, go to www.gurufocus.com/StockBuy.php?GuruName=RABOBANK+NEDERLAND+
These are the top 5 holdings of RABOBANK NEDERLAND Bank of America Corporation (BAC) – 250,000 shares, 100% of the total portfolio. New PositionBlackBerry Ltd (BBRY) – 0 shares, 0% of the total portfolio. Shares reduced by 10000%iShares MSCI Emerging Index Fund (EEM) – 0 shares, 0% of the total portfolio. Shares reduced by 10000%iShares MSCI Brazil Capped Index Fund (EWZ) – 0 shares, 0% of the total portfolio. Shares reduced by 10000%VanEck Vectors Gold Miners (GDX) – 0 shares, 0% of the total portfolio. Shares reduced by 10000%
- [By Shah Gilani]
7) iShares MSCI Emerging Markets ETF (NYSEArca:EEM) traded $603 billion in shares
6) Amazon.com Inc. (NasdaqGS:AMZN) traded $710 billion in shares
stock picks: Citigroup Inc.(C)
Advisors’ Opinion:
- [By John Maxfield]
It was about a century ago that Citigroup (NYSE:C) decided to chart a separate course from the rest of the bank industry. It continued to build its domestic operations, but shifted much of its focus to creating a vast network of banking offices around the world.
- [By Matthew Cochrane]
With this mindset, it is no wonder that PayPal finished 2016 on a wave of deal-making momentum. In the past 12 months, PayPal completed agreements with a number of financial and tech companies including Alibaba Group Holding Ltd (NYSE: BABA), Citigroup Inc (NYSE: C), Facebook Inc (NASDAQ: FB), Mastercard Inc (NYSE: MA), Visa Inc (NYSE: V), and Vodafone Group Plc (NASDAQ: VOD).
- [By John Ballard]
Partnerships play a crucial role in extending PayPal’s reach to new customers and driving higher engagement. The deal with Visa(NYSE:V) opened the door for partnerships with Mastercard(NYSE:MA), Citigroup(NYSE:C), and Fidelity National Information Services (NYSE:FIS). As a result, more deals will come that will increase PayPal’s relevancy and ubiquity in the mobile payment landscape.
- [By Craig Jones]
Dan Nathan spoke on CNBC's Options Action about a bearish options strategy in Citigroup Inc (NYSE: C).
The banking sector traded sharply higher on expectations of deregulation and higher interest rates, but it showed some signs of weakness last week. Nathan thinks the current administration won't be able to change meaningfully the Dodd-Frank Act over the next few months and he sees that as the key catalyst for a possible pull back in the banking sector.
- [By Casey Wilson]
America’s Oldest Companies No. 3: Citigroup Inc. (NYSE: C)
Citigroup was originally founded in 1812 with $2 million in capital as the “City Bank of New York.” Almost 50 years later, in 1865, it joined the U.S. national banking system and quickly rose to the title of “largest bank in the United States” at the time.
stock picks: Vanda Pharmaceuticals Inc.(VNDA)
Advisors’ Opinion:
- [By Roberto Pedone]
Another biotechnology player that looks poised to trigger a big breakout trade is Vanda Pharmaceuticals (VNDA), which is focused on the development and commercialization of clinical-stage drug candidates for central nervous system disorders. This stock has been on fire so far in 2013, with shares up a whopping 258%.
If you take a look at the chart for Vanda Pharmaceuticals, you’ll notice that this stock has recently broke out above some near-term overhead resistance levels at $12.34 to $12.66 a share with solid upside volume. So far, this breakout has held and now shares of VNDA are quickly moving within range of triggering an even bigger breakout trade.
Traders should now look for long-biased trades in VNDA if it manages to break out above its 52-week high at $13.30 a share with high volume. Look for a sustained move or close above that level with volume that hits near or above its three-month average action 908,467 shares. If that breakout hits soon, then VNDA will set up to enter new 52-week-high territory, which is bullish technical price action. Some possible upside targets off that breakout are $15 to $17 a share.
Traders can look to buy VNDA off any weakness to anticipate that breakout and simply use a stop that sits right below some near-term support at $12 a share. One could also buy VNDA off strength once it takes out $13.30 a share with volume and then simply use a stop that sits a comfortable percentage from your entry point.
