Category

Banks

Big Banks

166 Trillion Reasons Why Bank Stocks Are So Cheap

By , Global Credit Strategist, Money Morning • @MichaelELewitt - • Print | Email

My continuing search for sectors of the stock market that are trading cheaply and offer the potential for gain has led me to a controversial slice of the market: bank stocks.

Looking at the "Big Four" in the U.S. banking sector, it's easy to conclude that the sector is undervalued…

But that conclusion may be a bit misleading.

Make no mistake – by traditional measures banks look cheap, and their stocks could do fine until the next financial crisis.

But that's the problem. Looking at banks that way ignores the elephant on their balance sheets, and the potential damage to our portfolios.

Here's what's really driving this critical economic sector into a "buyer beware" investment category...

Banking

Big Central Bank Meetings Present an Opportunity to Profit

By , Associate Editor, Money Morning • @JimBach22 - • Print | Email

Amidst a wave of central bank meetings this week, the European Central bank and the Bank of Japan matter the most.

The BOJ strategy will change little save for the possible extension of a mostly ineffective lending program. The ECB will probably announce a bond-buying program to hasten depreciation of the euro.

Savvy investors can profit from both moves.

Here's what investors need to know about - and how to profit from - this week's central bank meetings...

Earnings

Bank of America (NYSE: BAC) Rounds Out Big Bank Earnings - Here's What We Know

By , Contributing Writer, Money Morning - • Print | Email

Bank of America Corp. (NYSE: BAC) reported Q2 earnings Wednesday that were dragged down by mounting litigation costs in addition to a decline in mortgage originations.

Second-quarter earnings from big banks have so far mostly surpassed estimates, but investor reactions have been mixed.

Wednesday also brought numbers from some major regional banks. Let’s first look at how BofA fared and how reported Q2 earnings affected BAC stock today…

Earnings

Wells Fargo (NYSE: WFC) Starts Big Banks Earnings Season with a Profit Rise and Revenue Drop

By , Contributing Writer, Money Morning - • Print | Email

Wells Fargo & Co. (NYSE: WFC) kicked off second-quarter bank earnings season Friday morning. While the bank didn't deliver any surprises, its numbers failed to impress.

Shares of the largest U.S. bank by market cap, up 28.5% since October, fell nearly 2% to $50.82 on brisk volume following the uninspiring report.

While analysts have trimmed estimates on a number of banks in the last several weeks, expectations for WFC held steady. Here’s the full story on Wells Fargo Q2 earnings, and what it means for WFC stock…

Big Banks

That Warm Air You're Feeling Is the Big Banks' Stinking Bad Breath

By , Chief Investment Strategist, Money Morning • @ShahGilani_TW - • Print | Email

I can't figure out where that warm breeze is coming from.

Oh, it's the air of confidence wafting over me knowing everything's as it should be with our too-big-to-fail banks, and that they're not going anywhere.

The big banks are safe, they have a handle on their assets and liabilities, and the Fed's stress tests are a warm blanket that lets us all sleep well at night.

What, you're still worried?

Top News

Big Bank Earnings Is One of the Most Significant Events of 2014 - And It Could Bring You a Fortune

By , Chief Investment Strategist, Money Morning • @ShahGilani_TW - • Print | Email

The big banks are all reporting their fourth-quarter earnings this week.

Make no mistake: Although it's only January, this will be one of the most significant events of the year…

You see, in the big picture, how the banks fare and what their future prospects are could single-handily determine the trajectory and breadth of the recovery we've been hoping for.

their "financials" could have major implications for your money...

Top News

Wells Fargo & Co (NYSE: WFC) Stock Falls Ahead of Earnings

By , Contributing Writer, Money Morning - • Print | Email

Well Fargo & Co. (NYSE: WFC) stock fell 0.83% Monday, the last trading session before Q4 earnings are released Tuesday before the bell.

We get a fresh read on health of the housing and mortgage markets when Wells Fargo Q4 earnings come out.

Analysts are expecting the San Francisco-based lender to book its 16th consecutive quarter of profit growth. Earnings are projected to have risen 8% year over year.

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Top News

JPMorgan (NYSE: JPM) Stock Price Up Today After Earnings

By , Associate Editor, Money Morning • @KyleAndersonMM - • Print | Email

The JPMorgan Chase & Co. (NYSE: JPM) stock price is up 0.35% today (Tuesday) to $57.64 despite Q4 profit slipping 7% to $5.3 billion, or $1.30 per share. That compares to $5.7 billion, or $1.39 per share, the previous quarter.

Analysts had projected earnings per share (EPS) of $1.35 for JPMorgan.

Somehow, CEO Jamie Dimon pulled another rabbit out of his hat...

Wall Street

The JPMorgan Settlement: $7 Billion Is Tax Deductible

By , Contributing Writer, Money Morning - • Print | Email

The fact that this week's $13 billion JPMorgan settlement was a record between a U.S. company and the government is not the most notable part of this deal…

What's more shocking about this record-high settlement is that more than half of it could be tax-deductible.

Under terms of the $13 billion deal, JPMorgan Chase & Co. (NYSE: JPM) will pay $4 billion toward consumer relief. The remaining $9 billion goes to settle federal and state civil claims stemming from entities involved in the mortgage securities. The state of New York will receive $613.8 million, California $298.9 million, Illinois $100 million, Delaware $19.7 million, and Massachusetts $34.4 million, according to the Department of Justice.

But now we find out that JPMorgan still has an ace up its sleeve...

Top News

Big Bank Earnings Today: Wells Fargo (NYSE: WFC) and JPMorgan (NYSE: JPM)

By , Contributing Writer, Money Morning - • Print | Email

Two of the largest U.S. financial institutions kicked off third-quarter results for big bank earnings today, giving us a peek at how they fared amid tough times for both firms.

Wells Fargo & Co (NYSE: WFC) is in the midst of slashing headcount in its mortgage unit by some 1,800, and JPMorgan Chase & Co (NYSE: JPM) is tangled up in settlement talks with the U.S. Justice Department.

The short story on the banks' earnings: WFC earnings had to use a lot of "accounting gimmickry" to beat earnings-per-share (EPS) expectations, and JPM earnings show the first quarterly loss since Jamie Dimon came on board (he started in 2004 as chief operating officer, then moved to chief executive officer in 2005).

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