Dow rose 195 advancers over decliners 3-2 & NAZ dropped 58. The MLP index did little in the 122s & the REIT index went up 1+ to the 341s. Junk bond funds fluctuated & Treasuries were bid higher. Oil was flattish holding above 40 & gold fell 2 to 1812.
AMJ (Alerian MLP Index tracking fund)
JPMorgan Chase (JPM), a Dow stock & the largest US lender, posted higher profit than expected as the COVID-19 pandemic hammered the country's economy in the 3 months thru Jun. EPS of $1.38 compared with the $1.04 estimate, even as earnings shrank 51% to $4.7B, thanks in part to lower profit margin on loans as the Federal Reserve slashed interest rates. Revenue climbed 15% to $33.8B amid double-digit growth in stock & bond trading as investors nationwide moved money to safer assets & took advantage of market volatility. While US stocks have rallied from Mar lows as the worst downturn since the depression began easing, a rebound in infections as lockdowns were relaxed has introduced a fresh threat. "Despite some recent positive macroeconomic data and significant, decisive government action, we still face much uncertainty regarding the future path of the economy," CEO Jamie Dimon said. "However, we are prepared for all eventualities as our fortress balance sheet allows us to remain a port in the storm." JPM ended the qtr with $34B of credit reserves & liquidity resources of $1.5T he said. The stock rose 38¢.
If you would like to learn more about JPM, click on this link:
club.ino.com/trend/analysis/stock/JPM?a_aid=CD3289&a_bid=6ae5b6f7
Delta Air Lines (DAL) booked $3.2B in costs due to disruptions caused by COVID-19 during Q2 & said business will take years to mount a sustainable recovery. The air carrier lost $3.8B before taxes & other items ($4.43 per share) as total revenue plunged 88% from a year ago to $1.47B. The estimate was an adjusted loss of $4.07 a share on revenue of $1.42B. Disruptions caused by COVID-19 resulted in a 94% drop in passenger revenue & an 85% reduction in capacity. Non-ticket revenue was down 65%. DAL reduced its late Mar cash burn by 70% to $27M in Jun. The carrier finished Q2 with $15.7B of liquidity. The company expects to be a smaller, more efficient airline coming out of the crisis, with plans to speed up fleet retirements, accelerate airport construction programs while demand is lower & implement voluntary separation & early retirement programs. The stock dropped 70¢.
If you would like to learn more about DAL, click on this link:
club.ino.com/trend/analysis/stock/DAL?a_aid=CD3289&a_bid=6ae5b6f7
Citigroup (C) Q2 profit fell 73%, weighed down by $7.9B the bank set aside for potentially rising loan losses. The spread of the novel coronavirus around the globe & the resulting economic slowdown have pummeled the banking industry & raised concerns about loan defaults by consumers & big businesses alike. The bank posted a profit of $1.3B, down from $4.8B a year earlier. At 50¢ per share, the results exceeded the estimate of 35¢. Per-share earnings were $1.95 a year ago. Revenue rose 5% to $19.8B. The loan-loss provision included $2.2B in net charge-offs & $5.7B it added to its reserves for loans that might default in the future. Analysts had expected the total would be $7.4B. Lenders have responded to the pandemic by allowing customers to temporarily skip payments. But banks are bulking up for a potential wave of defaults & delinquencies later this year, especially if the virus continues to spread. Revenue in the consumer operations was down 10% to $7.3B. Offsetting some of the pain was a strong qtr in the corp & investment bank, where revenue rose 21% to $12.1B. The stock fell 1.18.
If you would like to learn more about Citi, click on this link:
club.ino.com/trend/analysis/stock/C?a_aid=CD3289&a_bid=6ae5b6f7
The big banks reported respectable results during a depression period for the economy. However, earnings from traditional corps are going to be dreary (more like the results at DAL). Tech stocks are suffering from the worsening US-China trade relations. The Dow continues to hold up faily well while negative thinking investors are buying gold.
Dow Jones Industrials
AMJ (Alerian MLP Index tracking fund)
| CL=F | Crude Oil | 39.82 | -0.28 | -0.7% |
| GC=F | Gold | 1,806.10 | -8.00 | -0.4% |
JPMorgan Chase (JPM), a Dow stock & the largest US lender, posted higher profit than expected as the COVID-19 pandemic hammered the country's economy in the 3 months thru Jun. EPS of $1.38 compared with the $1.04 estimate, even as earnings shrank 51% to $4.7B, thanks in part to lower profit margin on loans as the Federal Reserve slashed interest rates. Revenue climbed 15% to $33.8B amid double-digit growth in stock & bond trading as investors nationwide moved money to safer assets & took advantage of market volatility. While US stocks have rallied from Mar lows as the worst downturn since the depression began easing, a rebound in infections as lockdowns were relaxed has introduced a fresh threat. "Despite some recent positive macroeconomic data and significant, decisive government action, we still face much uncertainty regarding the future path of the economy," CEO Jamie Dimon said. "However, we are prepared for all eventualities as our fortress balance sheet allows us to remain a port in the storm." JPM ended the qtr with $34B of credit reserves & liquidity resources of $1.5T he said. The stock rose 38¢.
If you would like to learn more about JPM, click on this link:
club.ino.com/trend/analysis/stock/JPM?a_aid=CD3289&a_bid=6ae5b6f7
Dimon warns on economic future, JPMorgan profits better than expected
Delta Air Lines (DAL) booked $3.2B in costs due to disruptions caused by COVID-19 during Q2 & said business will take years to mount a sustainable recovery. The air carrier lost $3.8B before taxes & other items ($4.43 per share) as total revenue plunged 88% from a year ago to $1.47B. The estimate was an adjusted loss of $4.07 a share on revenue of $1.42B. Disruptions caused by COVID-19 resulted in a 94% drop in passenger revenue & an 85% reduction in capacity. Non-ticket revenue was down 65%. DAL reduced its late Mar cash burn by 70% to $27M in Jun. The carrier finished Q2 with $15.7B of liquidity. The company expects to be a smaller, more efficient airline coming out of the crisis, with plans to speed up fleet retirements, accelerate airport construction programs while demand is lower & implement voluntary separation & early retirement programs. The stock dropped 70¢.
If you would like to learn more about DAL, click on this link:
club.ino.com/trend/analysis/stock/DAL?a_aid=CD3289&a_bid=6ae5b6f7
Delta says recovery will take years as it announces 'staggering' loss
Citigroup (C) Q2 profit fell 73%, weighed down by $7.9B the bank set aside for potentially rising loan losses. The spread of the novel coronavirus around the globe & the resulting economic slowdown have pummeled the banking industry & raised concerns about loan defaults by consumers & big businesses alike. The bank posted a profit of $1.3B, down from $4.8B a year earlier. At 50¢ per share, the results exceeded the estimate of 35¢. Per-share earnings were $1.95 a year ago. Revenue rose 5% to $19.8B. The loan-loss provision included $2.2B in net charge-offs & $5.7B it added to its reserves for loans that might default in the future. Analysts had expected the total would be $7.4B. Lenders have responded to the pandemic by allowing customers to temporarily skip payments. But banks are bulking up for a potential wave of defaults & delinquencies later this year, especially if the virus continues to spread. Revenue in the consumer operations was down 10% to $7.3B. Offsetting some of the pain was a strong qtr in the corp & investment bank, where revenue rose 21% to $12.1B. The stock fell 1.18.
If you would like to learn more about Citi, click on this link:
club.ino.com/trend/analysis/stock/C?a_aid=CD3289&a_bid=6ae5b6f7
Citigroup profit falls 73% as it girds for coronavirus economy
The big banks reported respectable results during a depression period for the economy. However, earnings from traditional corps are going to be dreary (more like the results at DAL). Tech stocks are suffering from the worsening US-China trade relations. The Dow continues to hold up faily well while negative thinking investors are buying gold.
Dow Jones Industrials
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