Dow soared 474, advancers over decliners better than 4-1 & NAZ gained 186. The MLP index went up 1+ to the 195s & the REIT index rose 3+ to the 461s. Junk bond funds were little changed & Treasuries remained in demand. Oil went over 81 & gold added 3 to 1797.
AMJ (Alerian MLP index tracking fund)
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Bank of America (BAC) posted Q3 results that exceeded expectations as it benefited from better-than-expected loan losses &
record advisory & asset management fees. Profit surged 58% to $7.7B, or 85¢ a share,
as revenue climbed 12% to $22.9B. Results were helped by a $1.1B reserve release that led to a $624M boost after
chargeoffs. “We reported
strong results as the economy continued to improve and our businesses
regained the organic customer growth momentum we saw before the
pandemic,” CEO Brian Moynihan said. “Deposit growth was strong and loan balances increased for the second
consecutive quarter, leading to an improvement in net interest income
even as interest rates remained low.” Net interest income, a
closely watched figure for banks, jumped 10% to $11.1B, exceeding
the $10.6B estimate. Investors had wanted to see loan growth improve from a weak H1 because that helps banks produce more interest income. Indeed, loan balances increased 9% on an annualized basis from Q2, driven by strength in commercial loans & more loan growth is expected from here. The stock added 1.14.
If you would like to learn more about BAC, click on this link:
club.ino.com/trend/analysis/stock/BAC?a_aid=CD3289&a_bid=6ae5b6f7
Bank of America tops estimates on reserve release, strong advisory and asset management results
Initial jobless claims fell below 300K for the first time since the early days of the Covid-19 pandemic, the Labor Dept said. In another sign the jobs market is getting closer to its old self, first-time claims for unemployment insurance totaled 293K, the best level since Mar 2020, which saw 256K claims just as the Covid-19 spread intensified. The estimate for claims was 318K. Last week's total represented a decline of 36K from the previous week. The 4-week moving average, which helps smooth out weekly volatility, dropped to 334K, a 10,500 decline that also marked the lowest number since Mar 2020. Also, continuing claims, which run a week behind the headline number, fell by 134K to 2.6M, another pandemic-era low. Jobless claims fell as enhanced unemployment benefits associated with the pandemic began to fade. The rolls of those getting benefits under all programs declined by more than ½ a M to 3.65M. Most of the decline came from those leaving 2 pandemic-related federal programs as well as other extended benefits. A year ago, the total receiving benefits was close to 25M. The drop in claims comes at an important time for the labor market, which has added jobs over the past 2 months at a decidedly slower-than-expected pace – 366K in Aug & 194K in Sep, leaving the household employment total still more than 5M shy of where it was pre-pandemic.
Jobless claims fall below 300,000 for the first time since the pandemic began
Citigroup (C) reported stronger-than-expected results for its Q3 as trading revenue helped the company deliver a major increase
in profits. EPS was $2.15 on
$17.15B in revenue. The forecast called for EPS of $1.65 on revenue of $16.97B. Net income came in at $4.6B, compared with $3.1B a year ago, a 48% increase year over year. Trading
revenue for fixed income & equity markets topped estimates at $3.18B & $1.23B, respectively. Analysts expected $3.07B
in revenue from fixed income trading & $910M in revenue from
equities trading. Equity trading
revenue was up 40% year over year. “The recovery from the pandemic
continues to drive corporate and consumer confidence and is creating
very active client engagement as you can see through our strong results
in Investment Banking and Equity Markets, both up approximately 40%
year-over-year, in addition to double-digit fee growth in Treasury and
Trade Solutions as we help our clients reposition their supply chain,”
CEO Jane Fraser said. Citi released $1.16B in loan loss provisions. The stock added 11¢.
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 surges 48%, driven by strong trading revenue
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