Dow jumped 211, advancers over decliners 5-2 & NAZ went up 10. The MLP index rose 2+ to 171 & the REIT index added 1 to 415. Junk bond funds inched higher & Treasuries drifted lower in price. Oil soared 2+ to the 62s & gold fell 8 to 1739.
AMJ (Alerian MLP index tracking fund)
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JPMorgan (JPM), a Dow stock, reported Q1 proft spiked nearly 400% after the bank released cash that had been set aside to cover bad loans. EPS rose to $4.50, as
revenue climbed 14% year over year to $33.1B. The company was
helped by favorable comparisons after having to build up reserves in the
year-ago period to protect against the economic slowdown caused by the
COVID-19 pandemic. JPM released $5.2B of reserves during the qtr, decreasing the size of its buffer to $26B. The forecast expected EPS of $3.10 on revenue of $30.5B. The
results reflect a "strong underlying performance across our businesses,
partially driven by a rapidly improving economy," CEO Jamie Dimon said. Markets revenue rose 25% from a year ago to $9.1B & fixed-income
trading revenue rose 15% to $5.8B, driven by strong performance
in securitized products & credit. Equities trading revenue jumped 47%
to $3.3B. The company also benefited from record issuance of special purpose
acquisition companies, which saw more activity during the qtr than in all of the record-breaking 2020. The firm
reported investment banking revenue rose 222% from last year to $2.9B. Assets under management jumped 28% to $2.8T. The 90¢ div was maintained. The stock was off 65¢.
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
JPMorgan profit surges as bank releases cash set aside for bad loans
Wells
Fargo (WFC) earnings soared in Q1. The
lender posted profit of $4.7B, up from $653M a year earlier. A
year ago, big banks set aside Bs of $s
to prepare for a coronavirus recession, hammering their profits at the
time. Revenue of $18.06B, was up 2% from $17.72B a year earlier & beat the $17.52 estimate. The 7fold rise in profits came during what is shaping up to be
an economic resurgence. That has prompted banks to release some of the
money they stowed away last year to protect against soured loans, which
has boosted their bottom lines. The buoyant economy has been a boost for bank investors, lifting shares
of the largest lenders far more than the broader market so far this
year. WFC, a laggard last year, has been among the biggest
gainers this year, rising 32% so far in 2021. While consumers & businesses could still default en masse when
gov aid programs wear off, banks are deciding they pocketed more
than they needed at the beginning of the crisis. WFC released $1.05B from its reserves in Q1. The stock gained 1.49.
If you would like to learn more about WFC, click on this link:
club.ino.com/trend/analysis/stock/WFC?a_aid=CD3289&a_bid=6ae5b6f7
Wells Fargo earnings jump as economy bounces back
Europe's economy is on track to return to its pre-crisis levels in 2022, the IMF said, though this projection depends on the region's Covid-19 vaccination campaign. European countries have been forced to introduce new restrictions or toughen previous public health measures in recent weeks as Covid infections have surged. This led to a 0.2 percentage point drop in the IMF's growth forecast for this year, which currently stands at 4.5%. “On the assumption that vaccines become widely available in the summer of 2021 and throughout 2022, GDP growth is projected at 3.9% in 2022, bringing Europe’s GDP back to the pre-pandemic levels,” the IMF said in its latest regional economic outlook. However, uncertainty over how the pandemic will evolve continues to cloud the outlook, particularly when it comes to potential new variants & the speed of the vaccination rollout. “There’s an unknown on how quickly the third wave can be defeated, that we don’t have in the forecast and that is certainly a downside risk,” Alfred Kammer, director of the IMF's European dept, said. “A downside risk is also if the vaccination would be slower than we all currently expect,” he said, before adding: “We need to be ready that the virus is going to surprise us again.” The IMF said it expected to see high prices in the continent throughout 2021. “Inflation, currently contained by economic slack, is projected to edge up by 1.1 percentage points to 3.1% in 2021, partly due to higher commodity prices,” the Fund added. Surging inflation could force the ECB to adjust its ultra-loose monetary stance.
Europe’s pandemic-stricken economy could return to pre-crisis levels next year, IMF says
Bank earnings were generally well received. Investors hope that earnings season will continue with a positive tone.
Dow Jones Industrials
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