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WFC | Why Wells Fargo WFC Stock Might Be A Great Pick | One stock that might be an intriguing choice for investors right now is Wells Fargo Company NYSE WFC This is because this security in the Banks Major Regional space is seeing solid earnings estimate revision activity and is in great company from a Zacks Industry Rank perspective This is important because often times a rising tide will lift all boats in an industry as there can be broad trends taking place in a segment that are boosting securities across the board This is arguably taking place in the Banks Major Regional space as it currently has a Zacks Industry Rank of 14 out of more than 250 industries suggesting it is well positioned from this perspective especially when compared to other segments out there Meanwhile Wells Fargo is actually looking pretty good on its own too The firm has seen solid earnings estimate revision activity over the past month suggesting analysts are becoming a bit more bullish on the firm s prospects in both the short and long term Wells Fargo Company Price and Consensus In fact over the past month current quarter estimates remained unchanged at 1 04 per share while current year estimates have risen from 3 97 per share to 3 98 per share The company currently carries a Zacks Rank 3 Hold which is also a favorable signal You can see So if you are looking for a decent pick in a strong industry consider Wells Fargo Not only is its industry currently in the top third but it is seeing solid estimate revisions as of late suggesting it could be a very interesting choice for investors seeking a name in this great industry segment Zacks Editor in Chief Goes All In on This Stock Full disclosure Kevin Matras now has more of his own money in one particular stock than in any other He believes in its short term profit potential and also in its prospects to more than double by 2019 Today he reveals and explains his surprising move in a new Special Report |
EBAY | eBay profit beats as revenue surges from PayPal business | By Devika Krishna Kumar and Kshitiz Goliya Reuters E commerce company eBay Inc NASDAQ EBAY reported a higher than expected quarterly profit as revenue surged from its payments business that includes PayPal which the company said would be spun off in the third quarter Revenue from eBay s payments business rose 14 percent to 2 11 billion in the first quarter accounting for nearly half of its total revenue EBay s shares rose 5 percent in extended trading on Wednesday The upside all came from PayPal Benchmark Co analyst Daniel Kurnos said EBay has relied heavily on its payments business to offset sluggishness in its marketplace business which includes its core global e commerce platform ebay com Increasing competition and slowing customer additions have hurt the company s marketplace business which reported a 4 percent fall in quarterly revenue PayPal said in April it would continue charging eBay merchants less than it does other merchants and the two companies would stay interdependent for the next five years The business has benefited from a surge in payments using mobile devices as customers increasingly use their smartphones and tablets for online shopping PayPal s mobile payment transactions which account for nearly one third of its total transactions rose more than 40 percent Average transactions per PayPal account rose to 23 in the quarter from 21 said PayPal President Daniel Schulman who is set to be appointed the chief executive of the spunoff company EBay forecast revenue of 4 40 billion 4 50 billion for the second quarter below the average analyst estimate of 4 57 billion according to Thomson Reuters I B E S The company s full year revenue forecast of 18 35 billion 18 85 billion also missed analysts expectations of 18 96 billion which EBay blamed on a strong dollar EBay which gets more than half of its revenue from markets outside the United States said most of the impact of a strong dollar on the company would be in its marketplace business The dollar has risen about 23 percent against a basket of major currencies in the past year EBay reported net income of 626 million or 51 cents per share for the first quarter ended March 31 compared with loss a year earlier Excluding items the company earned 77 cents per share Net revenue rose 4 4 percent to 4 45 billion Analysts on average had expected earnings of 70 cents per share and revenue of 4 42 billion
EBay s shares were trading at 59 64 after the bell |
EBAY | Shares flat on earnings oil jumps on Middle East worry | By Chuck Mikolajczak NEW YORK Reuters Stocks in major markets shook off soft data in big economies to hold near the unchanged mark on Thursday while oil prices climbed on Middle East tensions U S stocks were little changed Some strong earnings from AT T N T up 2 6 percent to 33 73 and eBay O EBAY up 3 7 percent to 58 84 and a rise in energy related shares offset weaker manufacturing data along with lackluster reports on the housing and labor markets There is a little bit less focus on the macro right now because the data is a little bit light and more focused on the more bottom up perspective just because there is so much information said David Lefkowitz senior equity strategist at UBS Wealth Management Americas in New York We ve seen a number of examples of stock prices going up even though earnings guidance is going down because of currency The concerns about the dollar are a little bit overdone A 0 7 percent gain in energy shares also kept the S P 500 near the flat line as an escalation of a civil war in Yemen raised concerns about the security of supplies Brent crude jumped 3 3 percent at 64 80 a barrel while U S crude rose 3 2 percent to 57 93 The Dow Jones industrial average DJI fell 11 48 points or 0 06 percent to 18 026 79 the S P 500 SPX lost 1 08 points or 0 05 percent to 2 106 88 and the Nasdaq Composite IXIC dropped 2 48 points or 0 05 percent to 5 032 69 European shares slipped with Germany s DAX index underperforming following a disappointing purchasing managers survey while weak results from Ericsson hit technology stocks Overall euro zone private sector business growth was weaker than forecast despite help for exporters from a big fall in the euro and the March launch of a sovereign bond buying program from the European Central Bank MSCI s all country world index MIWD00000PUS of equity performance in 46 countries inched up 0 12 percent while the FTSEurofirst 300 index FTEU3 of top European shares was off 0 53 percent at 1 619 71 Germany s DAX GDAXI dropped 1 2 percent Soft Chinese and Japanese manufacturing data served to boost expectations of more policy stimulus there as Japan s Nikkei benchmark stock index N225 touched a 15 year intraday high while China s CSI300 index CSI300 reached a seven year high U S Treasuries yields were little changed on Thursday with benchmark yields hovering near 3 1 2 week highs after a broad selloff in Treasuries German Bunds and British Gilts on Wednesday Benchmark 10 year notes US10YT RR were last down 4 32 in price to yield 1 984 percent
The dollar DXY weakened 0 4 percent against a basket of major currencies in light of the soft U S data and waning fears over an imminent Greek exit from the euro zone |
EBAY | Warren Buffett to auction another charity lunch | Reuters Billionaire investor Warren Buffett has once again agreed to have lunch this year with the winner of an auction to benefit a San Francisco charity
The 16th annual auction to benefit Glide which provides food and services to the poor and homeless will be held on eBay O EBAY from May 31 to June 5 the charity said on Tuesday
Past auctions have raised about 17 8 million including a record 3 456 789 from an anonymous bidder in 2012 Last year s winner Andy Chua of Singapore bid 2 166 766
Other winners have included hedge fund manager David Einhorn of Greenlight Capital and Ted Weschler now a portfolio manager at Buffett s Berkshire Hathaway Inc N BRKa Weschler won two auctions bidding 2 626 311 in 2010 and 2 626 411 in 2011
As in past years this year s winner and up to seven friends will have a private lunch with Buffett at the Smith Wollensky steakhouse in Manhattan
The auctions began in 2000 after Buffett was introduced to Glide by his first wife Susan who died in 2004
Glide was co founded by the Rev Cecil Williams a community leader and longtime pastor at Glide Memorial United Methodist Church in San Francisco s Tenderloin district
Glide helped me understand just how much a life can be transformed by unconditional love and some real material help Buffett said in a statement provided by Glide
Buffett is worth about 71 8 billion ranking third worldwide Forbes magazine said on Tuesday He has run Omaha Nebraska based Berkshire for 50 years |
EBAY | eBay Jumps On Positive Earnings Revenue | eBay Inc NASDAQ eBay a global e commerce platform that connects buyers and sellers company yesterday reported their second quarter 2016 financial results eBay reported second quarter earnings of 0 43 per share which beat analyst expectations of 0 42 per share eBay reported second quarter revenues of 2 2 billion which beat analyst expectations of 2 17 billion
eBay Inc CEO s Comments
Q2 was another good quarter where we delivered strong results and had acceleration in growth said Devin Wenig President and CEO of eBay Inc We are now one year into executing our strategy to provide the best choice the most relevance and the most powerful selling platform and there are signs of momentum in our business We continue to invest in our platforms to ensure eBay is a global commerce leader for years to come Business Wire
eBay Technical Analysis
eBay opened trading yesterday at 26 61 which was up from the previous days trading of 26 50 eBay closed trading yesterday at 26 99 and spiked up after market to 28 85 equivalent to a 7 increase from the closing price Taking a look at the daily chart we can see the last time eBay traded above these levels was on December 7th 2015 when it traded at 29 05 Taking a closer look at the daily chart we can see that eBay has been on an overall upward trend dating back to June 27th when it traded of 22 72 eBay has a float of 1 07 billion shares and traded 2 60 times the normal daily trading volume on Wednesday For trading purposes I would like to see eBay open trading on Thursday above 28 25 and if it does I would be looking to take a long position at the bell My stop loss would be 0 25 from my entry position fearing anything more than that and the stock would start to fill in the gap up
Company Profile
eBay Inc operates e commerce platforms that connect various buyers and sellers worldwide Its platforms enable sellers to organize and offer inventory for sale and buyers to find and buy it virtually anytime and anywhere The company s Marketplace platforms include its online marketplace at eBay com and the eBay mobile apps and StubHub platforms comprise its online ticket platform at stubhub com and the StubHub mobile apps which enable fans to purchase tickets to the games concerts and theater shows Its Classifieds platforms include a collection of brands such as Mobile de Kijiji Gumtree Marktplaats eBay Classifieds and others that offer online classifieds and help people find whatever they are looking for in their local communities The company platforms enable users to find buy sell and pay for items through various online mobile and offline channels which include retailers distributors liquidators import and export companies auctioneers catalog and mail order companies classifieds directories search engines commerce participants shopping channels and networks eBay Inc was founded in 1995 and is headquartered in San Jose California |
WFC | Tiger put clubs in closet after frustrating Masters | Reuters Tiger Woods returns to competition at this week s Wells Fargo NYSE WFC Championship in North Carolina eager to see the benefits of the extended break he took after finishing in a share of 32nd place at last month s U S Masters Woods 42 said it felt great to shut things down after Augusta National where he finished 16 shots back of champion Patrick Reed and focus on what he needs to do to return to winning ways I threw my clubs in the closet for about 10 days Woods told reporters after playing in the pro am on Wednesday I got away from the game didn t touch a club didn t make a golf swing Woods who this week will chase his second victory at Quail Hollow following his triumph in 2007 will tee off in Thursday s opening round alongside Reed and reigning U S Open champion Brooks Koepka While Woods took a break from swinging a club after the Masters he used the down time to work on his physical fitness I started to lift a little bit but I just tried to make sure I kept flexible said Woods who returned to competition this year after spinal fusion surgery last April But then I started grinding to get my muscle strength back and eventually my speed And I ve got them all back Woods will use a new set of irons this week at Quail Hollow after failing to produce any magic with his old set at Augusta I didn t hit my irons very good I drove it great on the weekend but I kept hitting the ball above the hole or in the wrong spot he said And I had defensive putts on most of the days Even on Sunday when I shot four under par I was in some tough spots I needed to be more precise and I wasn t
I need to continue working on it and get sharp and hopefully this will be a good week |
WFC | Fund says Wells Fargo unit worsened vol mageddon losses court filing | By Trevor Hunnicutt Reuters A Chicago fund manager that suffered catastrophic losses in a market plunge this year has blamed the actions of its broker a Wells Fargo NYSE WFC Co unit according to court documents filed on Wednesday The allegations were spelled out in response to a March lawsuit by Wells Fargo Securities against fund manager LJM Partners Ltd The response to the Wells Fargo Securities lawsuit is LJM s first detailed public explanation of why it was one of the biggest casualties of February s vol mageddon the volatility linked collapse of investments that had profited in calmer markets LJM funds posted losses after the Cboe Volatility Index the most widely followed barometer of price swings expected in the S P 500 stock index logged its biggest ever single day jump on Feb 5 But LJM s losses only became permanent the next day the fund s lawyers said in a counter claim filed in federal court in Manhattan By the end of the two days LJM Partners and an affiliate had lost 80 percent or more of their value Wells Fargo Securities forced LJM to unwind its portfolio in a series of catastrophic trades that locked in the portfolio s primarily unrealized losses and made them real LJM said in the filing LJM lost 266 million across its funds at least 115 million more than if LJM had been allowed to apply its trading procedures the counter claim said A spokeswoman for Wells Fargo said in a statement We will defend ourselves and strongly disagree with LJM s claims LJM founder Anthony Caine said in a letter to clients in February that working with its clearing broker LJM agreed that liquidation across all client accounts regardless of clearing broker was the most prudent action given market volatility and portfolio risks Wells Fargo Securities has asked the court to help it retrieve 16 4 million saying the brokerage covered LJM s margin and losses with the Chicago Mercantile Exchange Wells Fargo previously declined to comment on Caine s account LJM which along with the affiliate managed more than 1 billion earlier this year has not answered questions since the company and the affiliate reported their funds losses LJM later told clients it would return what was left of their money In Wednesday s filing LJM s lawyers denied an earlier claim by Wells Fargo that the fund company is now likely to be insolvent
Investors are suing Caine and Anish Parvataneni a portfolio manager at LJM who previously worked for fund investor Ken Griffin s Citadel over what they said was inadequate disclosure about the risks of LJM s investment approach |
WFC | Bangladesh open to out of court settlement over 81 million cyber heist | MANILA DHAKA Reuters Bangladesh would consider an out of court settlement with a bank in the Philippines over 81 million stolen from its accounts in New York by hackers who wired the money to Manila Bangladesh central bank officials said on Thursday In one of the world s biggest cyber heists the hackers stole the Bangladesh Bank money held at the New York Fed in February 2016 using fraudulent orders on the SWIFT payments system and sent it to Rizal Commercial Banking Corp From there it disappeared into the casino industry in the Philippines No one has been charged for the heist despite an international investigation and two years of finger pointing among Bangladesh Philippines the Fed and SWIFT There is an option before us to settle the issue out of court a senior official at Bangladesh s central bank told Reuters The official who declined to be identified cited as a precedent an out of court settlement in February reached by Ecuador s Banco del Austro and Wells Fargo NYSE WFC over a 2015 cyber heist Bangladesh s Finance Minister Abul Maal Abdul Muhith on Thursday met Carlos Dominguez Finance Secretary of the Philippines on the sidelines of a four day annual meeting of the Asian Development Bank in Manila to discuss the cyber heist said two senior central bank officials close to the issue Bangladesh is yet to take legal action but had planned a suit to recover 66 million Around 15 million has been recovered from a Manila junket operator a job that involves marketing casinos to VIPs
We will try for all possible options to recover our stolen money the officials added There was no immediate comment from Dominguez or Rizal bank in Manila |
WFC | Putting woes leave Woods six behind first round leader Peterson | Reuters Tiger Woods struggled to adjust to slow greens as he slipped six strokes behind American leader John Peterson in the opening round of the Wells Fargo NYSE WFC Championship in North Carolina on Thursday On a day when two times Wells Fargo winner Rory McIlroy started with a smooth three under par 68 Peterson made consecutive eagles for a sizzling 65 at Quail Hollow in Charlotte Peterson a former American collegiate champion led a group of five players by two strokes while Woods missed two putts from inside five feet en route to a 71 Woods a 79 times PGA Tour winner who needs three more wins to match Sam Snead s all time record used a new set of irons but it was the flatstick that caused his problems I struggled with my speed all day Woods said It s weird The greens are slow They re springy and firm That s not a combination you would expect I struggled making the adjustments today Woods healthy again after a spinal fusion more than a year ago is playing his seventh tournament of the year He said he was now in playing shape and the goal was just trying to get a little better The 42 year old and four times major winner McIlroy are both making their first starts after disappointing performances at the U S Masters Woods tied for 32nd at Augusta National while McIlroy squandered a chance to complete the career grand slam after starting the final round in second place behind eventual champion Reed McIlroy says he licked his wounds for about a week after a final round 74 at the Masters but is now trying to look forward rather than back I would have taken that score before I went out there he said of his 68 I struggled a little bit with my game in the pro am yesterday I did some practice yesterday afternoon which seemed to pay off I could take it straight from the range onto the golf course this morning I was a little apprehensive today I didn t know what to expect I made some good swings and hit some good putts The Northern Irishman clinched his first PGA Tour victory at Quail Hollow in 2010 while American Justin Thomas last August captured his first major on the same course
Thomas made a mediocre return to the venue on Thursday with a two over 73 while Masters champion Reed fared better with a 71 |
WFC | Golf Rare consecutive eagles boost Peterson to lead in Charlotte | Reuters Self deprecating Texan John Peterson recorded consecutive eagles for the first time in his career to vault to the first round lead at the Wells Fargo NYSE WFC Championship in Charlotte North Carolina on Thursday Pity so few people saw the rare feat Few of the thousands who turned up to follow Tiger Woods bothered hanging around afterwards to watch Peterson who finished in some style playing in peace and quiet in one of the final groups of the day He holed a 55 foot bunker shot at the par five seventh his 16th hole and went even better by holing a wedge shot from 107 yards at the par four eighth He was rewarded with a six under par 65 at Quail Hollow and a two stroke lead Pretty uneventful hole outs but they went in nonetheless Peterson told reporters I ve never made back to back eagles in a tournament and I don t think I ve done it in practice Peterson nearly made it three straight eagles when his approach shot from the rough at the par four ninth honed in on the pin but the law of averages caught up with him and the ball did not drop There was only like seven or eight people and a golden retriever in the grandstands back there and they were getting loud he said So I figured if seven people were getting pretty loud it had to be pretty close Alas the ball trickled seven feet beyond the cup and he missed the birdie chance but it was still a good day in the office and a timely one too Peterson 29 is playing on what the PGA Tour call a medical extension after having hand surgery two years ago He has to compile about 300 000 in earnings this week and in his next two starts to regain full exempt status If he falls short however Peterson says he will be quite happy to quit the nomadic lifestyle and go home to Fort Worth to sell real estate I just don t enjoy the travel out here very much he said I don t like being away from Fort Worth I just like being at home and I like being around my family and friends more than I like chasing it around here I ve got everything in place for both sides of it so I m not going to be bothered if I make it back onto the Tour full time If I don t make it I m not playing golf anymore |
WFC | Tiger makes late birdie to sit on Quail Hollow cutline | Reuters Tiger Woods birdied his final hole of the second round to sit right on the projected cutline at the Wells Fargo NYSE WFC Championship in North Carolina on Friday The former world number one who started on the back nine made his only birdie of the day when he rolled in a 13 footer at the par four ninth for a two over par 73 that left him at two over for the week at Quail Hollow Woods playing his seventh tournament since returning to competition this year from spinal fusion surgery made his third bogey of the day when he three putted from 15 feet at the par three sixth to fall outside the cutline with three holes left After missed chances over the next two holes Woods finally put an end to his putting woes when he rolled in a clutch birdie putt at the last to get within six shots of clubhouse leader and fellow American Johnson Wagner 71 I certainly was frustrated there s no doubt about that I missed so many putts Woods told reporters after a round that included 33 putts But you got to put it behind and move on to the next one and hit the next shot with just as much commitment and I did that all day and unfortunately I didn t make anything until the last hole Sam Burns three under par through 14 holes was the on course leader with a five under total Four times major winner Rory McIlroy who was among the late starters bogeyed his first hole to drop to two under on the week This week marked Woods first start since last month s U S Masters where he arrived as one of the favorites after some encouraging results but ultimately finished in a share of 32nd place The 14 times major champion did not touch a club for 10 days after that disappointing result at Augusta National and arrived at Quail Hollow where he triumphed in 2007 with a new set of irons that he hoped would help turn things around Masters champion Patrick Reed mixed an eagle with three birdies and five bogeys for a second consecutive one under 71 that left him at even par for the week
Justin Thomas who picked up his first major victory in the PGA Championship at Quail Hollow last August was also at even par after a two under 69 that included five birdies and three bogeys |
EBAY | PayPal to pay 7 7 million in U S Treasury sanctions case | WASHINGTON Reuters PayPal the electronic payments firm agreed to pay 7 7 million to settle charges by the U S Treasury Department that it violated numerous sanctions programs against countries that include Iran Cuba and Sudan Treasury said on Wednesday PayPal owned by EBay Inc O EBAY did not adequately screen its transactions for U S sanctions targets for several years through 2013 resulting in 486 apparent violations of U S law Treasury said in a statement PayPal also dismissed alerts and processed about 7 000 worth of payments for Kursud Zafer Cire a Turkish national on the sanctions blacklist tied to proliferators of weapons of mass destruction according to the statement U S companies are not allowed to do business with people on the list who are considered enemies of the United States But PayPal agents dismissed six alerts that flagged Cire as a potential match to the blacklist Treasury said the apparent violations of the sanctions related to weapons of mass destruction constitute an egregious case Treasury said PayPal implemented better screening procedures in April 2013 hired new management in its compliance division and cooperated with the investigation
EBay is planning to split off PayPal from its marketplace division later this year |
EBAY | Uber hires chief security officer from Facebook | Reuters Cab hailing company Uber Technologies Inc under fire for how it charges passengers and ensures their safety said it hired Facebook Inc NASDAQ FB Chief Security Officer Joe Sullivan Sullivan Uber s first chief security officer has spent five years at Facebook and eight years at the U S Department of Justice mainly in cybercrime Uber said in a blog post on Thursday He has also worked at eBay Inc NASDAQ EBAY and PayPal Uber said last month that it had formed response teams to address safety issues involving its services across the world Several cases of women being assaulted by Uber cab drivers were reported last year including in Boston and Chicago in the United States and New Delhi in India The company said in February that it had a security breach that might have disclosed the names and driver s license numbers of about 50 000 drivers across multiple states |
EBAY | PayPal eBay to stay interdependent for five years after split | Reuters PayPal eBay Inc NASDAQ EBAY s electronic payments division said the two firms had agreed that eBay would not reduce the volume of transactions it channels through PayPal while continuing to get better rates for its merchants for five years after the two split PayPal is slated to be separated from eBay s marketplace division in the second half of this year creating a publicly traded company which some analysts say will be worth 40 billion EBay has agreed to ensure it will channel 80 percent of its online gross merchandise sales via PayPal as it does now for the next five years PayPal said in a regulatory filing on Thursday The two companies also agreed to pay each other a commission if the percentage of marketplace sales rose or fell above that mark PayPal for its part said it agreed to continue charging eBay merchants less than it does other merchants which would mean that PayPal rates for eBay merchants will remain largely consistent with today s pricing relationship
The terms of the agreement also prohibit eBay from forming its own payment service and PayPal from starting its own marketplace |
EBAY | Is Ebay Now A Better Buy Than PayPal | As the markets head higher after post Brexit fears have been mostly calmed investors are looking for stocks that could lead to solid gains during the markets run Two sectors that have been of interest lately have been the mobile payment sector as well as the ecommerce sector Ebay Inc NASDAQ EBAY is in the ecommerce sector and actually spun off PayPayl Holdings Inc NASDAQ PYPL in a move that gave Ebay investors one share of PYPL for every one share they owned of EBAY
EBAY is currently a Zacks Rank 2 Buy where has PYPL is currently a Zacks Rank 4 Sell and below is a comparison between the two companies showing why EBAY is a better buy than PYPL
Ebay Inc NASDAQ EBAY
Ebay Inc is one of the largest online trading communities The company creates a powerful marketplace for the sale of goods and services by a passionate community of individuals and small businesses eBay enables trade on a local national and international basis with local sites in numerous markets in the U S and country specific sites in the UK Canada Germany Austria France Italy Japan Korea and Australia
As mentioned eBay is a Zacks Rank 2 Buy and it should be noted that it operates in an industry which is ranked in the top 40 of all industries by Zacks The company also has a B for its Value Style Score which is backed up by a PE ratio of 15 68 an earnings yield of 6 37 and cash flow per share of 2 17
EBay has also seen positive EPS estimate revision activity as of late both for the current quarter and for the current year which has raised the consensus estimate for both time periods Recently the stock was upgraded to outperform by an analyst from Baird who gave the stock a price target of 30
PayPal Holdings Inc NASDAQ PYPL
PayPal Holdings Inc operates as a technology platform company that enables digital and mobile payments on behalf of consumers and merchants worldwide It enables businesses of various sizes to accept payments from merchant websites mobile devices and applications as well as at offline retail locations through a range of payment solutions including PayPal PayPal Credit Braintree Venmo and Xoom products The company s platform allows customers to pay and get paid transfer and withdraw funds to their bank accounts and hold balances in their PayPal accounts in various currencies
PayPal is currently a Zacks Rank 4 Sell and has a Value Style Score of a D The low Style Score can be attributed to a high PE ratio of 31 97 cash flow per share of only 1 59 and a price to sales ratio of 4 45 Analysts have been lowering their EPS estimates for the company as of late both for the current year and quarter Estimates for next quarter and next year have been lowered recently as well
Some analysts have voiced concerns over the company s growth prospects though it is projected to see sales growth of 15 6 this year For the current quarter the company has an earnings expected surprise of 6 67 based on the difference between the Zacks Consensus Estimate being higher than the Most Accurate Estimate
Bottom Line
Analysts revision activity and a stock s Zacks Rank are great indicators for the way a stock is likely headed When analysts lower their earnings estimates they are likely losing excitement in the stock s returns but on the other hand when they raise estimates they become more bullish on the stock With eBay s higher Zacks Rank better Value Style Score and rising EPS estimates right now it s looking like the better buy when compared with PayPal which has a lower Zacks Rank decreasing EPS estimates and a more expensive relative price tag |
EBAY | EBay EBAY Beats Q2 Earnings Up 5 5 On Raised Guidance | eBay Inc NASDAQ EBAY just released its Q2 2016 earnings results posting earnings of 0 36 per share and revenue of 2 23 billion
Currently EBAY has a Zacks Rank 3 Hold but it is subject to change following the release of the company s latest earnings report Here are 5 key statistics from this just announced report below
EBAY
Beat earnings estimates The company posted earnings of 0 36 per share Excluding 0 02 from non recurring items matching our Zacks Consensus Estimate of 0 36
Beat revenue estimates The company saw revenue figures of 2 23 billion beating our estimate of 2 17 billion
Q2 was another good quarter where we delivered strong results and had acceleration in growth said President and CEO Devin Wenig He continued stating that We are now one year into executing our strategy to provide the best choice the most relevance and the most powerful selling platform and there are signs of momentum in our business
StubHub which eBay acquired in 2007 notably increased in Gross Merchandise value by 35 to 1 1 billion and increased in revenue by 40 to 225 million in Q2 eBay also crossed the one billion live listings mark for the first time a reflection of its efforts to expand the breadth of selection offered to consumers according to their official announcement
EBAY was up 1 43 or 5 5 to 28 48 as of 4 36 p m EDT in after hours trading shortly after its earnings report was released
Here s a graph that looks at EBAY s latest earnings performance EBAY INC Price and EPS Surprise eBay Inc operates e commerce platforms that connect buyers and sellers worldwide Its platforms enable sellers to organize and offer inventory for sale and buyers to find and buy it virtually
Check back later for our full analysis oneBay Inc s latestquarterly earnings report
If you want information on how to trade during earnings check out the Zacks Market Edge Podcast below |
WFC | Wells Fargo s 401 k practices being examined by Labor Dept WSJ | Reuters The Labor Department is examining whether Wells Fargo Co N WFC pushed participants in low cost corporate 401 k plans to roll their holdings into more expensive individual retirement accounts at the bank according to a person familiar with the inquiry the Wall Street Journal reported on Thursday Labor Department investigators are also examining whether Well Fargo s retirement plan services unit pressed account holders to buy in house funds the WSJ reported Wells Fargo was not immediately available for a comment |
WFC | Woods says will play next two events on PGA Tour | Reuters Tiger Woods announced on Thursday that he will play the next two events on the PGA Tour the Wells Fargo NYSE WFC Championship in North Carolina and the Players Championship in Florida The Players Championship entry is hardly a surprise given that he has twice won the tour s flagship event which is widely considered the most prestigious outside the four majors Break over Time to get back to work Woods wrote on Twitter The 14 times major champion will have had three weeks off after a disappointing U S Masters where he teed up amid massive media hype and perhaps unrealistic expectations The 42 year old was one of the favorites after contending for victory at his previous two starts in Florida but never quite fired on all cylinders and finished equal 32nd He has played six times this year on his comeback after a successful spinal fusion operation last April with a tie for second at the Valspar Championship his best result Woods last competed at the Wells Fargo in 2012 when he missed the cut He won the event in 2007
He won the Players Championship at TPC Sawgrass in 2001 and 2013 |
WFC | Spieth blames couple of really bad swings for New Orleans demise | Reuters Jordan Spieth took the blame for a late meltdown on Friday that cost him and partner Ryan Palmer a chance to play the final two rounds at the Zurich Classic of New Orleans Spieth hit two shots that ended in water hazards and led to double bogeys at the final two holes during the exacting alternate shot format at TPC Louisiana The three times major winner said they were mistakes that had been waiting to happen as he battled his swing for the entire round in the PGA Tour s only official team event I had a couple of really bad swings Spieth told reporters I struggled with my swing really both days Just didn t hit the ball well at all We held it together for a while and then it finally just came out Unfortunately all we needed was two more swings He pulled his tee shot into the drink at the par three 17th before pushing his second shot an iron from the fairway into a similarly watery grave at the par five 18th In barely half an hour the Texas duo went from striking distance of the lead to missing the cut Spieth s shot on the 18th landed in front of a bunker and took a big sideways bounce into the water a mental error he said from indecision I was deciding whether to go over the bunker or short of it and instead I took the club that was right in between and tried to throw it up in the air to get it close to the bunker Spieth said It was just trying to make up for the hole before Partner Palmer then compounded the misery with a wedge shot that came up short and plugged in a bunker leaving Spieth unable to hit out of the sand The pair shot 74 for a four under total of 140 missing the cut by one stroke I cost our team an opportunity which really sucks given how hard we fought today Spieth said It s not a good feeling It s much worse than if it s just you Friday s disappointment came three weeks after the 24 year old threatened to win the U S Masters with a brilliant final round charge at Augusta National He will skip next week s Wells Fargo NYSE WFC Championship before heading to the Players Championship at TPC Sawgrass in Florida |
WFC | Tiger will use new irons at Wells Fargo this week | Reuters Tiger Woods will use a new set of irons at this week s Wells Fargo NYSE WFC Championship in North Carolina the 14 times major winner announced on Tuesday Woods has been trying out the TaylorMade clubs for a while and has decided the time is right to put them to the test in the heat of competition Phase 1 of irons development is complete Looking forward to teeing it up this week he said on Twitter ahead of Thursday s first round in Charlotte The news comes more than a year after Woods signed with TaylorMade and after a disappointing performance last month at the U S Masters Woods struggled with his irons on the way to finishing tied for 32nd I felt I hit it well enough off the tee to do some things but I hit my irons awful for the week he said after his final round at Augusta National Woods in his seventh start of the year after a successful spinal fusion will be joined at Quail Hollow by a strong field that also features Rory McIlroy Justin Thomas and Masters champion Patrick Reed McIlroy and Thomas have fond memories of Quail Hollow McIlroy recorded his first PGA Tour win there in 2010 while Thomas more recently made his major breakthrough at the PGA Championship The course set up this week will be more forgiving than it was when Thomas won last August with more grass around the greens expected to offer better lies for chip shots It was really tough to chip around the greens at the PGA because it was so tight said defending champion Brian Harman who won last year s Wells Fargo at a different venue While Woods will consume most attention fans with an eye on the future could do worse than watch Joaquin Niemann The 19 year old from Chile finished sixth in his professional debut at the Texas Open two weeks ago It gave me a lot of confidence said Niemann who reckons his ability with the driver should hold him in good stead this week Hitting fairways is one of my best parts of my game I just need to hit fairways because the course is really long You don t want to hit five irons from the rough |
WFC | McIlroy hopes to put Masters letdown behind him at Quail Hollow | By Frank Pingue Reuters Rory McIlroy is hoping a return to a familiar hunting ground this week at Quail Hollow for the Wells Fargo NYSE WFC Championship in North Carolina will allow him a chance to bounce back from a near miss at last month s U S Masters A return to an old stomping ground could not come at a better time for McIlroy in his first start since he finished in a share of fifth place at Augusta National where he went out in the final pairing eyeing the final leg of the career grand slam The 28 year old Northern Irishman claimed his maiden PGA Tour victory at Quail Hollow in 2010 and has posted top 10 finishes in six of his eight starts at the venue including a second triumph in 2015 It s always nice to come back to a golf course and an event where you ve played well before and you ve have some really good memories and luckily this week is one of those weeks for me McIlroy told reporters I ve always enjoyed the golf course through the different variations of it from 2010 all the way up until now McIlroy the only two times winner of the Wells Fargo Championship will tee off in Thursday s opening round alongside Englishman Paul Casey and American James Hahn The four times major champion said the Quail Hollow course sets up perfectly for his style of play and caters to his strengths with plenty of mid and long iron shots I ve played it well and it s one of those golf courses that sets up well for me it fits my eye I feel like I can play my game around here and that served me pretty well over the years said McIlroy So hopefully this week is another good week and the start of a pretty busy stretch for me so I am looking forward to kicking that off in a positive fashion McIlroy began the final round of the Masters alone in second place and three shots behind eventual champion Patrick Reed but after a disappointing day finished six shots back Since failing on what was his fourth shot at a career grand slam McIlroy took time off to decompress and only resumed practising over the last 10 days While he acknowledged there may be rust in his game he is eager to get back to competition Felt like going into the few weeks leading up to Augusta I was playing well obviously got myself in the final group but didn t play quite so well on the last day McIlroy said
But the game is feeling good and hopefully I can play my way into the tournament this week and hopefully play my way into contention on the weekend |
WFC | DAX To Open At 7 week Highs Euro Up Before Data | After an ideal opening week for equities in 2018 traders will be testing the waters early on Monday for signs of a reality check US fourth quarter earnings inflation data as well as the durability of the commodity rally are all top of the Watchlist this week
The Dow has not looked back since it broke 25k A goldilocks unemployment report on Friday helped the last leg higher There are jobs being created but without the kind of runaway wage growth that would create enough inflation to tempt the Fed into a fast pace of rate hikes With the macro backdrop looking supportive focus is turning to earnings Banks Wells Fargo NYSE WFC and JP Morgan unofficially kick off earnings season on Friday Markets have been pricing in a short term jolt to bank earnings from tax reform A reduction in the value of deferred tax assets essentially credits for old losses will hurt bank earnings in Q4
Shares in Europe look set for a strong open on Monday The FTSE 100 could buck the trend by opening lower after a record breaking first week of trading in 2018 Optimism stemming from strength of European and global economy should help the German DAX index open at 7 week highs The opening strength tracks small gain in Asia where markets were unperturbed by reports from China that the PBOC think there is room for an increase in interest rates in the short term
The US dollar edged up slightly in Asian trading on Monday recovering a small portion of the losses following the soft jobs report In the greater scheme of things US job gains have averaged over 200k for last 3 months and wages are tracking above the rate of inflation at 2 5 y y This week we will be looking for Fed speakers to get some more colour on last week s Fed minutes The effect of the minutes has been to boost expectations of March rate hike but it wasn t enough to stop the dollar closing last week lower For now markets are placing more emphasis on global growth and demand for global currencies than they are the gradual pace of tightening rates from the Fed San Francisco Head John Williams is first up on Monday evening
The euro is edging back on Monday having not quite achieved a new 3 year high Germany factory orders and Eurozone business and consumer confidence as well as Eurozone retail sales are all scheduled for release on Monday
There are some tentative signs the strong commodity rally last week is starting to fade Gold hit a 4 month high on Thursday but has eased back since to the detriment of gold mining shares Crude oil is finding some resistance from its May 2015 peak near 68 per barrel in Brent
Opening Calls
FTSE 100 to open 6 points lower at 7718
DAX to open 67 points higher at 13 386
CAC to open 16 points higher at 5486 |
EBAY | China regulator blasts Alibaba for illegal business on its websites | By John Ruwitch SHANGHAI Reuters A China regulator has accused Alibaba Group Holding Ltd N BABA of failing to clean up what it called illegal business deals on the e commerce titan s platforms in an unusually strong government criticism of one of the country s biggest private firms The State Administration for Industry and Commerce SAIC in a report published on its website on Wednesday said many products sold on Alibaba s e commerce websites and services infringed upon trademarks were substandard or fake were banned or endangered public security The report was later removed from the main page of the SAIC website Alibaba declined to comment on the report SAIC said the report summarised a July 16 2014 meeting between government business regulators and Alibaba and that it had delayed releasing the report to avoid affecting the e commerce firm s initial public offering which took place in September SAIC did not elaborate Alibaba which raised a record setting 25 billion from its New York IPO is due to release its quarterly results on Thursday Alibaba Group has long paid insufficient attention to the illegal business activities on Alibaba platforms the SAIC report said Alibaba let that abscess fester until it became a danger it added The report said Alibaba officials for their part pledged during the July meeting to take the necessary steps to rectify the problems The SAIC has a broad supervisory role over online trading platforms and business in China Alibaba which until a few years ago was on a U S list of notorious markets for intellectual property infringement has fought hard to tackle counterfeit products to keep its reputation from being tarnished in the run up to and after the IPO the world s biggest ever listing Earlier this month it agreed with the U S Consumer Product Safety Commission to stop the sale of up to 15 illegal or dangerous toys in the United States Online fakes however remain a big problem in China Joe Simone director of Hong Kong based intellectual property consultancy SIPS said the regulator s comments about counterfeit goods were no surprise The frankness of the report and its condemning tone are unprecedented and speak volumes about what the SAIC found in its inspection he added In the report the regulator said Alibaba had misled consumers during sales events including its popular Nov 11 annual Singles Day shopping extravaganza At last year s event Alibaba reported a surge in sales transactions to a record high of 9 billion but merchants told Reuters in they felt pressure from Alibaba s Tmall to boost their figures on the day with heavy discounts and delayed recognition of earlier sales On Wednesday Alibaba s consumer to consumer shopping website Taobao said it would lodge a complaint with the SAIC over a separate investigation by the regulator that allegedly uncovered a range of counterfeit products on the site
1 6 2465 yuan |
EBAY | PayPal to buy Israeli cyber security firm CyActive media | TEL AVIV Reuters Online payments company PayPal a unit of eBay O EBAY will buy Israeli cyber security company CyActive for 60 million Israeli media reported The Globes financial newspaper said the deal is expected to close shortly A spokeswoman for CyActive which was founded in 2013 declined to comment on the reports CyActive which says it can forecast future cyber attacks and offer companies such as utilities detection and prevention received a strategic investment from the venture capital unit of Siemens in September Financial details were not disclosed Siemens joined Jerusalem Venture Partners JVP an Israeli venture capital firm in investing in CyActive JVP was the main shareholder in another cyber security company CyberArk Software O CYBR which went public on Nasdaq in September
This would be PayPal s second acquisition in Israel after it bought FraudSciences which monitors financial fraud in 2008 for 169 million |
WFC | Wells Fargo agrees to pay 1 billion to settle customer abuses | By Patrick Rucker Reuters Wells Fargo NYSE WFC Co will pay 1 billion to settle with U S regulators who say the bank wrongly layered insurance on hundreds of thousands of drivers and routinely hit homebuyers with excessive fees officials said on Friday The penalty was a record from the U S Consumer Financial Protection Bureau CFPB and comes more than eighteen months after Wells Fargo admitted it opened sham accounts for customers a practice that likely ensnared millions Wells Fargo said the settlement lowers its first quarter 2018 net income by 16 cents per share to 96 cents per share It had flagged a possible settlement when it reported earnings last week and said then it may need to restate results The penalty is the first by Mick Mulvaney whom U S President Donald Trump tapped in November as interim head of the CFPB and fulfills Trump s vow to come down hard on the country s third largest lender Mulvaney has worked to dial back the reach of the independent agency and Reuters has reported the CFPB has dropped cases against at least two payday lenders We will enforce the law Mulvaney said in a statement about the Wells Fargo deal That is what we did here While the fine will sting Wells Fargo regulators did offer the bank some relief in the settlement The U S Office of the Comptroller of the Currency OCC a sister regulator to the CFPB dropped Wells Fargo s designation as troubled which will make it easier for departing employees to collect payouts Wells Fargo workers have not been able to collect all their severance without a blessing from regulators ever since a 2016 consent order regarding the phony accounts That check was meant to block bonuses for executives who played a part in scandal But running those checks has taxed OCC staff and delayed payouts for some workers Under the agreement the OCC will still not be able to hire new executives without a sign off from regulators Wells Fargo agreed to the settlement without admitting or denying wrongdoing While we have more work to do these orders affirm that we share the same priorities with our regulators and that we are committed to working with them Wells Fargo president and chief executive Timothy J Sloan said in a statement Taken together the mortgage and auto programs ensnared more than 600 000 customers and will require nearly 300 million in refunds the bank has said The programs allowed Wells Fargo to earn fees from unneeded car insurance and penalties on mortgage paperwork that the bank had botched For homebuyers Wells Fargo promised to rate lock or freeze the interest rate for borrowers who got their mortgage paperwork finished within a few weeks When that deadline slipped and it was the bank s fault Wells Fargo could blame the customer The penalty for late mortgage paperwork often topped 1000 according to a borrower lawsuit Drivers stung by insurance fees were wrongly pushed into policies that they did not need Drivers must carry auto insurance but the bank has a right to force place a policy on borrowers who let coverage lapse Insurers working for Wells Fargo pushed policies onto more than 500 000 customers who already had coverage the bank has said
In July Wells Fargo blamed a third party vendor for wrongly layering insurance policies on its auto borrowers Wells Fargo did not explain that it received payouts when those policies were written |
WFC | Golf Chilean Niemann finishes sixth in stellar professional debut | Reuters Former world number one amateur Joaquin Niemann made a brilliant professional debut when he finished sixth at the Texas Open on Sunday The 19 year old from Chile became the first man since Anthony Kim in 2006 to post a top 10 in his pro debut on the PGA Tour according to the tour Kim tied for second at the Texas Open 12 years ago going on to win three times on tour and playing on the victorious American Ryder Cup team in 2008 Looking remarkably assured in his first pay for play appearance Niemann used his textbook swing and confident putting stroke to card a five under par 67 at TPC Antonio He closed with three straight birdies holing an eight foot putt at the par five 18th to finish at 12 under 276 five strokes behind American winner Andrew Landry It s amazing It s really nice to be standing with the best players in the world and be on the leaderboard Niemann told CBS television He was particularly pleased with his putting Before this week my game was really good Just my putter wasn t good enough Starting this week my putter was working really well Niemann said Niemann was the world s top ranked amateur when he turned pro after missing the cut at the Masters two weeks ago He played on a sponsor exemption in San Antonio and has accepted invitations to several other tournaments Courtesy of his top 10 finish Niemann also qualified for the Wells Fargo NYSE WFC Championship in Charlotte North Carolina in two weeks |
WFC | Newell Starboard end proxy fight with Icahn s backing | By Siddharth Cavale Reuters Consumer products maker Newell Brands Inc N NWL and hedge fund Starboard Value LP have agreed to end a months long proxy fight through a deal brokered by fellow activist investor Carl Icahn that will add three new independent directors to the board Icahn who has amassed a nearly 7 percent stake in the Sharpie maker said on Monday he agreed to give up two of the four seats he secured last month to pave the way for the addition of two new independent directors Gerardo Lopez and Robert Steele to Newell s board In a combined statement Newell and Icahn said they also planned to nominate Bridget Ryan Berman a Starboard nominee for election to the board at the company s 2018 annual meeting With the three additions the board will expand to 12 from 11 now Wells Fargo NYSE WFC analyst Bonnie Herzog said the end of the proxy battle with Starboard should remove an element of uncertainty With a new board in place and a transformation plan underway we see a good setup for Newell shares looking forward she wrote in a note to clients Newell s shares rose as much as 2 percent in early trading as investors cheered the deal just weeks ahead of the company s annual meeting scheduled for the middle of May Starboard had signaled only a few weeks ago that it would push ahead with a proxy contest it started earlier this year even after Icahn received board seats The settlement comes ahead of two separate key meetings that Starboard and the company were supposed to hold this week with proxy advisory firm Institutional Shareholder Services which will now be canceled according to people familiar with the matter Icahn said on Monday the decision to give up seats was to facilitate peace between Newell and Starboard s Jeff Smith who runs the 8 billion hedge fund The company reached out to us and requested that we give up two board seats to avoid a potentially disruptive proxy fight which could have been especially bad at this important time for the company Icahn said in the statement Starboard said it has agreed to withdraw its slate of directors and vote all of its shares in favor of the Newell nominees at the annual meeting Nine of the twelve directors will be new to the board and we are confident this newly reconstituted Board will bring a refreshed sense of urgency oversight and accountability to Newell Starboard s Smith said |
WFC | Mexico Peso Crushed as Leftist Candidate Appears Untouchable | Bloomberg Mexico s peso is all of a sudden the worst performing major currency as investors begin to accept that the next president is likely to be the populist firebrand they feared
It s a stark reversal that took hold over the past week coming after the peso posted the biggest global gains in the first quarter amid optimism the country would reach a favorable outcome in trade talks with the U S and Canada Now traders are refocusing on the political outlook before the July 1 election and see Andres Manuel Lopez Obrador coasting to victory
That view was cemented Sunday night during the first debate when Lopez Obrador who is known for a quick temper played it safe as rivals attacked his security and economic policies That disappointed investors who hoped the confrontations would make the front runner stumble Lopez Obrador now has a more than 20 percentage point lead over the No 2 candidate Ricardo Anaya who failed to inflict much in the way of damaging blows
Finally it looks like it s being priced in said Christian Lawrence a currency strategist at Rabobank in New York International markets have woken up to the looming election
The peso has lost 4 5 percent over the past five days after it reached the highest closing level in six months April 16 and traded at about 18 85 per dollar as of 1 23 p m in New York The currency broke through its 100 day moving average earlier in the day a sign to some technical investors that more losses may be coming
Traders are concerned that Lopez Obrador could roll back the historic opening of the energy industry to foreign investment and that his pledges to increase social spending would blow out the budget deficit The 64 year old former mayor of Mexico City is making his third run at the presidency after losing narrowly in 2006 and by a wider margin in 2012
The combination of recent USD strength the ongoing Nafta uncertainty and the political uncertainty in Mexico as the campaign picks up is all contributing to the weaker peso said Eric Viloria a currency strategist at Wells Fargo NYSE WFC who sees the peso heading to 19 per dollar
To be sure there are political analysts who think as president Lopez Obrador is likely to be more like Brazil s former President Luiz Inacio Lula da Silva who fought for programs to help the poor while preserving market friendly reforms from his predecessor and less like Hugo Chavez who destroyed Venezuela s economy with his socialist policies
Before the recent selloff the currency had gained 9 2 percent this year amid optimism officials would reach a deal on Nafta in the first half of the year even as Lopez Obrador had a steady lead in polls
But the outlook for Nafta also suffered a fresh blow Monday after a tweet from Donald Trump in which he insisted Mexico needed to reinforce border security and said we may make this a condition of the new NAFTA Agreement Investors are concerned that reaching a deal may get more complicated if negotiations were to drag on into a Lopez Obrador presidency
Also not helping matters were comments from central bank chief Alejandro Diaz de Leon who ruled out intervention to support the peso
Updates to add strategist s comment in seventh paragraph |
WFC | All 12 Wells Fargo director nominees elected pay approved | DES MOINES Iowa Reuters Wells Fargo NYSE WFC Co executives said all 12 of the bank s director nominees were elected at its annual meeting held on Tuesday in Des Moines Iowa
Wells Fargo leaders also said the pay of its top executives received support from about 92 percent of shares voted |
WFC | Wells Fargo investors back leaders despite protests | By Ross Kerber and Elizabeth Dilts DES MOINES Iowa NEW YORK Reuters Wells Fargo Co N WFC investors gave strong backing to the bank s directors and executives on Tuesday indicating they are ready to give its revamped leadership time to rebuild from scandal despite a noisy annual shareholder meeting Wells Fargo executives said each of the bank s 12 director nominees received more than about 89 percent support from investors and about 92 percent of shares were cast in favor of the pay of Chief Executive Tim Sloan and other leaders The figures amounted to a relatively strong outcome especially when compared with last year At the bank s 2017 meeting in Florida the first since the sales scandal drew sustained national attention only three of the board s 12 directors received more than 90 percent of shareholders support and then Chairman Stephen Sanger received just 56 percent approval On average S P 500 directors usually get around 92 percent and pay is backed by around 89 percent of votes cast according to pay consultant Semler Brossy The results signal investors are giving the new board members and other changes a chance said Jill Fisch a University of Pennsylvania Law School professor and corporate governance expert The company has made a lot of dramatic moves and shareholders seem to be saying they appreciate it and are going to wait to see if they are successful Fisch said Though occasionally confronted by protesters and skeptics Sloan and bank Chair Elizabeth Duke mostly stayed on their message of atonement during the 2 1 2 hour meeting They faced tough questioners on topics including environmental issues and their business with firearms makers at a time when other banks have reviewed or cut back on those relationships But they received loud applause a number of times from the audience of several hundred in the Des Moines Marriott hotel ballroom When California State Treasurer John Chiang rose to challenge Sloan s pay Duke responded that I disagree with your analysis of it Tim s time with the company is an advantage a comment that received louder applause than Chiang received Speaking before the meeting individual investor Cherie Mortice of Des Moines said she voted for Sloan and other directors saying it was worth giving the bank a chance to recover I think he s kind of hoping to restore trust I m really hopeful she said None of three shareholder measures on the bank s proxy received a majority of support bank executives said The event came days after Wells Fargo said it would pay regulators 1 billion to settle matters related to mortgage and auto lending abuses About 100 protesters marched into the lobby of the hotel before the meeting holding signs for various causes In 2016 the bank admitted employees had opened potentially millions of sham accounts triggering a leadership revamp The Federal Reserve in February ordered Wells Fargo to halt growth until governance and controls improve Wells Fargo though based in San Francisco has held the meeting in other locations in recent years Tuesday s meeting at moments laid bare divisions in Iowa over one of the state s largest private employers State leaders including Senate Majority Leader Jack Whitver a Republican spoke to welcome executives Others questioned whether Sloan and others were right for the task of reform If I ran my farm the way Wells Fargo ran their business I d be kicked out of Marshall County I d be a failure said one speaker who identified himself as a retired Iowa farmer Wells Fargo s home mortgage and home equity businesses have about 14 500 workers in and around Des Moines
Wells Fargo shares ended down 0 2 percent at 52 51 on Tuesday |
WFC | Top Sector ETFs Of 2017 | As we are approaching the end of 2017 it s time to look back at the hot investing areas of 2017 This is especially true as this year has treated the broader market well The S P 500 has gained about 19 the Nasdaq has crossed the 7000 mark and the Dow Jones hit several highs However some specific sectors shone even brighter in the galaxy of equities in 2017 Below we highlight those wining ones
Technology
The technology sector has been on fire this year thanks to improving economic and industry fundamentals and Trump s corporate tax reform The rise of new technology such as cloud computing big data and Internet of Things has acted as the wind beneath the wings read
Among the tech ETF winners as of Dec 18 2017 are ARK Web x 0 ETF up 98 5 ETFMG Video Game Tech ETF up 59 9 Global X Social Media ETF CM SOCL up 57 iShares North American Tech Software ETF SN IGV up 43 and PowerShares Dynamic Semiconductors ETF TO PSI up 42 8
Homebuilding
The NAHB Wells Fargo Housing Market Index increased 5 points in December to 74 marking the as per analysts from Wells Fargo NYSE WFC December recorded the biggest monthly expansion since March According to these analysts the index is hovering around its highest level since July 1999 indicating solid demand Home sales have also been in great shape iShares U S Home Construction ETF WA ITB has gained about 56 so far this year as of Dec 18 2017 read
Retail
Hopes of tax reform and rapid rise in online shopping has made this corner a winner in 2017 Amplify Online Retail ETF is up about 53 4 so far in 2017 The holiday season makes up about of annual sales for many retailers Already Thanksgiving Black Friday and Cyber Monday have seen a splurge in buying that this will be the first ever holiday season to break 100 billion in online sales This clearly explains why IBUY performed well in 2017 read
Biotech
Ebbing tensions over the price gouging issue hopes of easing regulation positive clinical trials FDA approvals of drugs and success in the immune oncology field led to solid gains for biotech stocks As a result Virtus LifeSci Biotech Clinical Trials ETF HM BBC up 48 1 ALPS Medical Breakthroughs ETF SI SBIO up 38 9 SPDR S P Biotech MX XBI ETF up 37 3 and PowerShares DWA Healthcare Momentum ETF HN PTH up 47 1 hogged attention read
Clean Energy Solar
Rising demand for solar power huge levels of panel installation global warming issues and efficient alternative energy application have boosted clean energy ETFs like Guggenheim Solar ETF LON TAN The fund is up 46 8 so far this year as of Dec 18
The report from the International Energy Agency IEA also caused a spike in solar stocks Per the agency solar power expedited and outpaced the growth in the coal industry for the first time last year This suggests the beginning of a new era for solar power read
Energy
Prolonged oil woes are known to all However investors should note that the oil refining industry has performed exceptionally well This is because it is negatively correlated to the price of oil with players in this industry using oil as an input for processing refined petroleum products like gasoline Thus lower oil prices are boosting margins for refiners and in turn their stocks VanEck Vectors Oil Refiners ETF is up 42 in the year to date frame as of Dec 18 2017
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WFC | 4 Top ETF Areas Of Q4 | The final quarter of 2017 is drawing to an end The journey has been smooth so far thanks to the Trump trade and tax reform talks Also the quarter is known for Santa Rally and holiday shopping season And even though the Fed has enacted its final rate hike of the year earlier this month the move was already baked in at the current level
Among the key ETFs SPDR S P 500 ETF NYSE SPY AX SPY has gained 7 in the fourth quarter as of Dec 22 2017 SPDR Dow Jones Industrial Average SI SPDR ETF surged about 11 1 in the fourth quarter as of Dec 22 2017 and PowerShares QQQ ETF rose around 8 4 in this quarter
Against this backdrop we highlight four ETF areas that offered solid returns in the fourth quarter
Metals
A few metal prices were on a tear in the fourth quarter Among those were iPath Bloomberg Lead SubTR ETN up 31 8 iPath Pure Beta Industrial Metals ETN up 20 2 and iPath Bloomberg Nickel SubTR ETN up 17 2
India Small Cap
India ETFs registered slight gains in the quarter thanks to pro growth prime minister Narendra Modi s State election victory Modi secured key election wins in two states Gujarat and Himachal Pradesh on Dec 18
India s GDP grew 6 3 annually in the July September quarter of 2017 compared with a three year low of 5 7 in the previous quarter Moody s had increased India s sovereign rating for the first time in read
India focused offshore funds and Exchange Traded Funds saw net inflows of 565 million in November and led the total to touch around 6 5 billion in 2017 per in Economic Times
Since small caps are domestically focused the above mentioned factors bode well for small cap stocks and related ETFs Columbia India Small Cap ETF LON SCIN up 19 7 and VanEck Vectors India Small Cap ETF 17 9 are two of the beneficiary funds
Home Construction
The NAHB Wells Fargo Housing Market Index increased five points in December to 74 marking the per analysts from Wells Fargo NYSE WFC December registered the biggest monthly expansion since March read
According to these analysts the index has been hovering around its highest level since July 1999 indicating solid demand Home sales have also been in great shape iShares U S Home Construction ETF WA ITB has gained about 18 8 so far this quarter as of Dec 22 2017 read
Solar
Rising demand for solar power huge levels of panel installation global warming issues and efficient alternative energy application have given a boost to clean energy ETFs like Guggenheim Solar ETF LON TAN The fund is up 16 8 so far this quarter as of Dec 22
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WFC | WFC Approaches Upper Line Of Its 15 Year Channel | Wells Fargo Company NYSE WFC broke out of its 3 year declining brown channel recently and made a quick run almost to the upper line of it 15 year green channel
While WFC could go a little higher and trade sideways at this upper line for some time history says this is a froth channel and the big black channel below it is its dominant channel |
WFC | 5 Precious Metal Funds To Shine As Gold Hits 1 Month High | Gold prices touched their highest settlement in a month on Dec 27 prompted by the U S dollar falling to a four week low A weaker greenback also had a positive impact on silver prices Rising gold and silver prices bode well for the overall precious metals market Gold lost some of its luster in 2016 after a tumultuous 2015 but has managed to maintain its Bull Run this year Moreover the yellow metal with a strong increase this year despite a silent fourth quarter With gold prices shining investors could think of investing in mutual funds that have significant exposure to the precious metals sector Gold Touches 6 Week HighGold prices increased 0 2 to settle at 1 289 10 and hit an intraday high of 1 289 92 an ounce on Thursday its best since Nov 29 Prices of the yellow metal registered nine straight days of gains and increased around 1 in November It has also advanced more than 12 so far this year Additionally silver prices advanced by 0 2 to 16 71 an ounce and hit an intraday high of 16 73 an ounce reaching its highest level since late November Moreover other key precious metals like platinum and palladium also touched new highs recently Platinum rose 0 6 to 922 60 on Dec27 reaching an intraday high of 927 20 its best since Dec 5 Palladium settled at 1 069 50 an ounce on Dec 26 touching its highest level since February 2001 The decline in U S dollar was the primary trigger for the rise in gold prices The U S dollar index declined by 0 2 to 93 4 on Dec 27 The greenback index has also posted a fall of 9 7 so far this year The U S dollar fell recently after the Fed officials reiterated their earlier projection of three possible rate hikes in 2018 Also the central bank did not alter its initial forecast for inflation Moreover concerns remained over Trump s Tax Cuts and Jobs Act of 2017 Experts now predict that following the implementation of the tax overhaul the Federal budget deficit will exceed 1 trillion in 2018 Valuation Concerns a Boon for GoldThe U S Dollar Index increased 34 to touch 103 in 2016 During the same period gold prices fell 34 to 1 250 an ounce In contrast the U S Dollar index has fallen as low as 92 this year helping gold prices surpass the 1 200 an ounce mark The extent of gold s gains this year can be gauged from its best ever level Gold prices touched 1 900 an ounce which is the best level that it touched since 2011 when the Dollar Index had hit a low of 75 With gold prices moving near the key level of 1 300 an ounce the precious metals sector has performed significantly well this year Moreover SPDR Gold Shares HK 2840 ETF GLD NYSE GLD has increased by 3 3 and 12 1 over the last six months and year to date YTD respectively Additionally according to Morningstar the precious metal mutual fund category has posted YTD and one year returns of 11 and 14 5 respectively 5 Precious Metals Mutual Funds to BuyA weak dollar led the gold prices upward which makes precious metals funds a strong investment choice Here we have selected five precious metal mutual funds that boast a Zacks Mutual Fund Rank 1 Strong Buy or 2 Buy Moreover these funds have encouraging YTD returns These also have minimum initial investment within 5000 and low expense ratios We expect these funds to outperform their peers in the future Remember the goal of the Zacks Mutual Fund Rank is to guide investors to identify potential winners and losers Unlike most of the fund rating systems the Zacks Mutual Fund Rank is not just focused on past performance but also on the likely future success of the fund Fidelity Advisor Gold A invests the majority of its assets in securities of companies involved in gold based activities and in gold coins or bullion FGDAX may also invest around one fourth of its assets in different precious metals including gold through its wholly owned subsidiary The fund seeks appreciation of capital The fund has YTD returns of 8 and an expense ratio of 1 16 compared with the category average of 1 24 FGDAX has a Zacks Mutual Fund Rank 1 Wells Fargo NYSE WFC Precious Metals A seeks capital growth for the long run by investing a bulk of its assets in stocks of companies involved in the precious metals business EKWAX may also invest in equity securities of foreign companies like ADRs The fund invests not more than 40 of its assets in equity securities of companies based in emerging markets EKWAX has YTD returns of 9 and an expense ratio of 1 09 compared with the category average of 1 24 The fund has a Zacks Mutual Fund Rank 2 Oppenheimer Gold Special Minerals A invests primarily in common stocks of companies engaged in processing mining and dealing in gold gold bullion and precious metals based ETFs OPGSX invests not more than one fourth of its assets in the Oppenheimer Gold Special Minerals Fund Cayman Ltd The fund seeks growth of capital OPGSX has YTD returns of 17 3 and an expense ratio of 1 15 compared with the category average of 1 24 The fund has a Zacks Mutual Fund Rank 1 VanEck International Investors Gold Y seeks growth of capital and income for the long run INIYX invests a large chunk of its assets in companies involved in gold based activities This non diversified fund may also invest at least one fourth of its assets in the gold mining industry INIYX has YTD returns of 13 1 and an expense ratio of 1 10 compared with the category average of 1 24 The fund has a Zacks Mutual Fund Rank 2 Vanguard Precious Metals and Mining invests heavily in stocks of both domestic and foreign companies whose primary operations concern precious metals including gold The fund seeks growth of capital over the long term This non diversified fund may also invest around one fifth of its assets in gold silver and other precious metals coins and bullion VGPMX has YTD returns of 13 3 and an expense ratio of 0 43 compared with the category average of 1 24 The fund has a Zacks Mutual Fund Rank 1 Want key mutual fund info delivered straight to your inbox 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EBAY | Ebay considering cutting 10 percent of workforce WSJ | Reuters Online retailer eBay Inc O EBAY is mulling over a plan to cut thousands of jobs early next year as it readies to spin off its PayPal unit the Wall Street Journal reported citing people familiar with the company s thinking We are focused on running the business and setting eBay and PayPal up for success as independent companies eBay spokeswoman Amanda Miller said declining to specifically comment on whether the company was considering layoffs Ebay is considering eliminating almost 10 percent of its workforce or about 3 000 employees the WSJ cited one source as saying The cuts are expected to be localized in the company s marketplace division the report said
The spin off announced in September highlighted the slowing growth of eBay s traditional marketplace business Reporting by Anya George Tharakan in Bengaluru and Deepa Seetharaman in San Francisco Editing by Joyjeet Das |
EBAY | EBay CEO to get 23 million exit package after PayPal split | By Deepa Seetharaman SAN FRANCISCO Reuters EBay Inc Chief Executive John Donahoe will get an exit package worth an estimated 23 million after the company splits from payments unit PayPal next year according to an agreement highlighted in a securities filing on Thursday Chief Financial Officer Bob Swan will get an exit package worth about 12 million The figures could change depending on the performance of eBay s share price next year Both Donahoe and Swan said they would step down from their current roles in September when eBay announced its planned split with PayPal John s transition package is closely tied to the performance of the company during the separation period and the company s stock price at the time of separation eBay spokeswoman Amanda Miller said in a statement
The terms were approved by eBay s board on Dec 15 Other executives may also step down after the company splits its marketplace division from PayPal Those other executives who leave will get benefits including a cash payment equivalent to 1 5 times their annual base salary the filing said Reporting by Deepa Seetharaman Editing by Chris Reese |
WFC | Bangladesh eyes settlement in U S cyber heist suit ahead of its own case | By Jonathan Spicer and Ruma Paul
NEW YORK DHAKA Reuters An Ecuadorian bank and Wells Fargo have reached an out of court settlement over a 2015 cyber heist providing a possible precedent for the Bangladesh central bank s planned suit to recover 66 million still lost in one of the world s biggest such cases
A suit by Ecuador s Banco del Austro against Wells Fargo Co N WFC was quietly settled in February less than a month before a trial date was set and the U S district court in Manhattan sealed all discussions according to court documents No other major media has reported the settlement
Wells Fargo did not comment on the settlement and a representative for Banco del Austro could not be immediately reached
Banco had sought to hold Wells responsible for authorizing the fraudulent transfer of 12 million from its account in 2015
Hackers breached Bangladesh Bank s systems in early 2016 and tricked the Federal Reserve Bank of New York into sending as much as 81 million to accounts at Rizal Commercial Banking Corp RCBC PS RCB in the Philippines The accounts were held in fake names and most of the money disappeared into casinos in Manila
Some of the funds were recovered but about 66 million remains untraced
No one has been criminally charged for the heist despite an international investigation and two years of finger pointing among Bangladesh Philippines the Fed and the SWIFT communication network that was used Bangladesh Bank has threatened to sue Manila based RCBC and any legal fallout could set a precedent amid a rash of electronic heists at financial institutions around the world
This is a tricky issue We can t reveal our strategy But yes we are reviewing each and every case including the Ecuador one Bangladesh Bank s deputy governor Abu Hena Mohd Razee Hassan said in a recent interview
While Bangladesh has not taken any legal action bankers and lawyers saw the cyber heist suit by Banco against Wells Fargo as a test for any options available to Bangladesh
They said the settlement could signal that Wells compensated Banco in some way a possibly encouraging sign for Bangladesh Bank But it could still struggle to get a hearing in the United States and prove that Manila based RCBC had a contractual obligation to freeze the stolen funds
There are an awful lot of reasons for people to settle and there are all sorts of laws that may or may not apply said Peter Jaffe a senior associate at Washington based law firm Freshfields Bruckhaus Deringer LLP
RCBC was not the one that was hacked Someone may think that RCBC should have done something different when it saw money coming through its accounts but that is not really a cyber security issue at that point Jaffe said I don t think you would necessarily look to cyber security law or U S commercial code to determine obligations and rights
OBLIGATION UNCLEAR
At issue is the New York Uniform Commercial Code which says a bank that is tricked by thieves must reimburse the customer unless it can prove it used a mutually agreed protocol for verifying the payment messages The customer could counter that the security protocol was not commercially reasonable
In 2016 the judge rejected an attempt by Wells to dismiss Banco s allegations because the Manhattan court could not rule that use of SWIFT s security system alone was enough
Bangladesh has a correspondent banking contract with the New York Fed which has repeatedly stressed that each of its foreign clients has agreed that it can rely on SWIFT protocols The payment messages it received from the hackers in February 2016 were verified by SWIFT and directed the Fed to send much of the funds to RCBC For a graphic of where the money went see
It is unclear what obligation RCBC has to Bangladesh Bank and whether U S law would apply
The Philippine bank said it had received advice from lawyers in the United States that it had strong and valid defences against any suit by Bangladesh Bank
There is no act attributable to RCBC which caused the loss or the theft from Bangladesh Bank it said in a statement on Monday We reiterate that RCBC was merely a beneficiary bank meaning the payment instructions which are alleged to have been the result of hacking were not executed by it
In the immediate wake of the heist Bangladesh s central bank had threatened to sue the New York Fed and SWIFT though relations have since warmed and the pair have committed to help recover the funds The Fed and SWIFT which has since strengthened its security protocols declined to comment on implications of the Banco Wells settlement
Financial firms around the world have reviewed defences after a rash of cyber heists involving SWIFT the latest targeting Malaysia s central bank
Bangladesh s minister of state for foreign affairs Mohammed Shahriar Alam said in a recent interview that the central bank is determined to be reimbursed and that preparations are at a final stage for a suit
It s obvious that we will be filing a case likely in the United States he told Reuters while in New York There are frustrations in Bangladesh about it But together we should have done better by now |
WFC | Wells Fargo nears 1 billion settlement for loan abuses source | By Patrick Rucker Reuters Wells Fargo Co N WFC is close to settling a record fine of 1 billion imposed by two U S regulators for its risk management business a source familiar with the matter told Reuters on Thursday Last week the U S Consumer Financial Protection Bureau CFPB and the Office of the Comptroller of the Currency OCC proposed Wells Fargo to pay the penalty to resolve probes into auto insurance and mortgage lending abuses at the third largest U S bank Wells Fargo declined to comment The CFPB had been readying sanctions alongside the OCC Wells Fargo s day to day regulator The bank still smarting from a prolonged sales scandal in its retail banking business found inconsistencies at its auto lending and mortgage in the summer of 2017 leading to further probes by regulators To appease investors and regulators the bank overhauled its operational structure shook up its board and hired a new compliance officer |
WFC | How The Tax Reform Bill Is Affecting U S Stock Prices | Republicans in congress have drawn some serious media headlines and some serious political ire from their opponents with their recent tax reform bill the Tax Cuts and Jobs Act As commentators and journalist everywhere rush to cover the frenzied news surrounding Capitol Hill businesses are starting the feel the results of tax reform too
So how exactly have US stock prices reacted to the of the Tax Cuts and Jobs Act and are these results likely to stand the test of time Are soaring prices or sinking fortunes indicative of broader economic change A quick dive into the recently passed tax bill shows just how seriously many corporations and their share prices will benefit from it
A 1 5 trillion package
The Tax Cuts and Jobs Act serves as tax relief worth some 1 5 trillion to the American economy with some four out of five taxpayers expected to see their bills reduced in 2018 Broadly speaking investors everywhere are seeing the reform as a huge boon to share prices with some analyst going so far as to say that the S P 500 could enjoy a of 25 thanks to the bill With the US corporate tax rate being slashed from a strangling 35 to a healthier 21 percent it s no wonder many analysts expect company s stocks to be soaring sooner rather than later
The fact that some 80 of taxpayers will be receiving more money in their pocket in 2018 too has many on Wall Street confident that consumers whose confidence in the economy is at an will be spending more Still while the tax cuts ushered in by the GOP led reform efforts will be broadly distributed to most Americans some will benefit more than others and certain industries and companies in particular can expect to have a more roaring 2018 than others
As far as who benefits the most from recent reform many experts are backing companies like Target AT T NYSE T and Wells Fargo NYSE WFC the latter two of which have already announced increased wages and additional employee bonuses in the immediate aftermath of the Tax Cut and Jobs Act s passage As more corporations take advantage of the serious savings they ll soon be enjoying and pass some of those extra dollars onto their employees expect Wall Street analyst to be confident that more long term investments will follow too
Comcast NASDAQ CMCSA for instance has announced that it expects to spend some 50 billion over the next five years alone to expand its IT infrastructure in the wake of the bill s passage Other companies are likely to follow in Comcast s footsteps too and pump more money into long term infrastructure investment plans that are long overdue Thanks to the recent reform effort virtually all companies in the S P 500 could expect higher earnings next year particularly in consumers continue to spend big during the holiday seasons These boons combined paint a rosy picture for US share prices in the coming few years
Tax hiccups No problem
After the GOP s failure to pass serious healthcare reform legislation earlier this year many analysts on Wall Street were reasonably worried that the effort might fall through before reaching the finish line After the republican controlled House had to re vote on the tax bill on Wednesday too following a minor provisional error in the legislation s text some were worried that legislators might encounter last minute speed bumps As the ongoing celebrations led by the president in the Rose Garden have shown however those concerns were seriously misplaced
Now that the Tax Cuts and Jobs Act is on the way towards President Trump s desk to be signed investors everywhere can take a deep breath of relief and look forward towards a more profitable 2018 The S P 500 has already climbed by more than 5 percent since mid November in expectation of the bill s passage and future initiatives friendly to small businesses and corporations alike coming from the Congress and the White House should be expected Already the president s twitter account and republican s PR teams are spinning seriously positive headlines about the economy s future
As investors around the world prepare for the US market to be inundated with share buybacks and higher dividend payouts thanks to the GOP s tax reform efforts expect higher share prices buoyed by some serious confidence in the economy While certain passages of the bill s text like the repealing of the individual mandate instated by the Affordable Care Act are receiving a full frontal bashing from some politicians on the Hill most in the business world see the recent reform effort as long overdue and seriously beneficial to American companies Washington may be getting roiled by scandal after scandal in headlines but when it comes to affecting US stock prices the Tax Cuts and Jobs Act is delivering nothing but good news |
WFC | Will Tax Reform Help Or Hurt Housing ETFs | The homebuilding sector has been in great shape this year Builders confidence is hovering around the highest level in more than 18 years this month The NAHB Wells Fargo Housing Market Index increased 5 points in December to 74 marking the as per analysts from Wells Fargo NYSE WFC December witnessed the biggest monthly expansion since March
Housing starts in the United States touched their in November mainly due to a rise in single family home construction in the South and West New single family home construction in those regions touched their highest monthly rates since July 2007 Overall heading into 2018 the U S housing sector appears sturdy At least the latest pool of data including the home sales gives such cues
What Is the Impact of Likely Tax Reform
But there is a key concern about the impact of the tax reform Homebuilders are expected to lose as the new tax bill lowers the value of the mortgage interest deduction to 750 000 from 1 million thereby limiting the purchase of luxury homes
This in turn would impact the profitability of the homebuilders leading to a decline in the stocks and ETFs Still J P Morgan believes that on average homebuilders will experience a from the tax reform in 2018 considering a 25 corporate tax rate across the board Plus the research house indicated that both single family housing starts and new home sales will likely expand around 10 in 2018 read
Effects of Interest Rates
As we all know housing stocks underperform in a rising rate environment so it is time to think how these ETFs will behave in 2018 given the impact of the tax reform and a hawkish Fed J P Morgan expects a 30 basis point rise in the 10 year Treasury by the end of 2018 to 2 7 which won t leave a material impact on the housing sector
The monthly average commitment rate was in November 2017 up from 3 77 in the year ago period but still lower than the levels seen at the start of the year
Valuation in Going into 2018
According to J P Morgan the housing sector began 2017 trading at 9x 2018E EPS and is now trading at around 11 7x 2019E EPS This gives cues of more reasonable albeit still relatively full valuation read
ETFs to Tap
If you believe that the economy will pick up and the housing market will recover in the coming days you can bet on SPDR S P Homebuilders NYSE XHB ETF and iShares U S Home Construction ETF WA ITB You can also consider PowerShares Dynamic Building Construction Fund The funds are up 28 3 54 6 and 28 3 in the year to date frame as of Dec 19 2017 The funds have a Zacks ETF Rank 2 Buy
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EBAY | EBay Earnings Lukewarm In Q3 | By EBay Inc NASDAQ EBAY shares fell slightly after the company reported third quarter earnings that missed Wall Street expectations for revenue on Wednesday The e commerce company posted revenue of 4 35 billion short of analyst expectations of 4 37 billion EBay reported earnings per share of 0 68 beating estimates by 1 cent according to analysts polled by Thomson Reuters Eikon
EBay showed signs of growth internationally in an e commerce market where it could be challenged by Chinese behemoth Alibaba Group which made its initial public offering in September Cross border sales were up 22 percent and mobile sales were up 21 percent CEO John Donahoe said during a call to discuss Q3 results
The company also revised earnings guidance for its fiscal fourth quarter to 0 88 0 91 per share on revenues of 4 85 to 4 95 billion less than current estimates of 0 91 per share on 5 16 billion in sales On Sept 30 eBay announced that it would spin off payment company PayPal from its online auction site into a separate public company
EBay said that increased marketing expenses brought down profits as the company attempted to maintain customer trust following a massive password breach that occurred in May Keith Terry from Goldman Sachs called out Donahoe for his handling of maintaining customer trust through marketing He said during the earnings call that the level of investment eBay is making is less than proportionate to the impact this has had on the business
Donahoe is expected to step down as eBay CEO following the 2015 split |
EBAY | Marc Andreessen quits eBay board ahead of PayPal spinoff | Reuters Venture capitalist Marc Andreessen said he was quitting EBay Inc s O EBAY board following the online retailer s decision last month to spin off its electronic payment unit PayPal The Silicon Valley pioneer has been involved in a public war of words with activist investor Carl Icahn one of eBay s largest shareholders who convinced the company to spin off PayPal after a long campaign After 6 years of service completed decision to split I ve decided now is a good time to step off the eBay board of directors Andreessen tweeted on Monday Icahn could not be immediately reached for comment Andreessen s spat with Icahn involved some highly personal attacks by both sides Icahn said in March that Andreessen as a member of eBay s board had a conflict of interest when the company sold its online phone service Skype in 2009 to private investors including Andreessen s venture capital firm Andreessen in an interview to CNBC this month likened Icahn to an evil Captain Kirk and said that the activist investor cared little for the companies in which he became involved Icahn in an interview to CNBC a day after said Andreessen has screwed more people than Casanova He also said the eBay board member had a high squeaky voice that only a dog can hear The move to spin off PayPal in 2015 came as a huge about face for eBay s leadership who had until then resisted Icahn s calls for a split and led a months long campaign to convince investors that eBay should remain intact Andreessen is best known as a co developer of Mosaic among the first widely used Web browsers and as a co founder of Netscape Communications Corp the maker of the Netscape Navigator browser
EBay s shares were little changed in premarket trading The stock closed at 47 95 on Friday on the Nasdaq Reporting by Sai Sachin R in Bangalore Editing by Kirti Pandey |
EBAY | Online threat to China s UnionPay outweighs foreign card rivals | By Engen Tham SHANGHAI Reuters Chinese bank card operator UnionPay which may soon have to defend its near monopoly against Visa and MasterCard faces a much bigger threat from online payment providers such as Alipay and is upgrading its systems to meet the danger Shored up by a raft of protectionist measures the state backed company has grown in just over a decade from an unknown name to a true heavyweight commanding 50 6 percent of all the global cards in circulation in 2013 according to the Nilson Report statistics newsletter China said last month it would open its credit card market to foreign players following a World Trade Organization ruling in 2012 that it discriminated against U S card firms The prize for the foreign companies would be access to what is projected to become the biggest card market in the world by 2020 Transactions were already around 32 trillion yuan 5 22 trillion in China in 2013 according to data from the People s Bank of China But analysts say the obstacles to a successful foreign invasion of UnionPay s dominant card position are considerable as UnionPay charges merchants much lower rates than the Western card companies as low as 0 04 percent compared with MasterCard s 0 60 1 85 percent in Britain for certain cards The low rates in China will make entry by foreign players extremely difficult as business cases will not stack up based on the lower rates said James McKeogh a partner in consulting at KPMG China A more immediate and perilous threat comes from online payment firms like Alipay a unit of giant e commerce company Alibaba which already dominates a parallel and growing payment universe that rivals the traditional card set up ALIPAY CHALLENGE In less than three years Alipay has grown to control nearly half of China s online third party payment market tapping the hundreds of millions of Chinese still without a credit card That market commanded gross merchandise volume of 17 2 trillion yuan 2 8 trillion in 2013 according to estimates from iResearch UnionPay on the other hand commands a mere 11 9 percent of that market and faces competition from over 250 new online providers that have been awarded licenses from Beijing as it aims to stimulate consumer demand Alibaba told Bloomberg on Wednesday it was open to working with eBay Inc s PayPal to expand its payment options a plan that could magnify Alipay s reach and put further pressure on UnionPay With the opening of the market Li Ye an analyst at Analysys International believes that with government support Alipay could even challenge UnionPay s offline payment dominance Alipay is well placed to become the next UnionPay said Li UnionPay is nevertheless putting up a fight Last month it started working with airlines Lufthansa Emirates EMIRA UL Etihad and Air Holland to provide payment services for online airline tickets through its cards for the first time In September it teamed up with Samsung in near field communication payment NFC which lets users pay by tapping their phones on a device available at local shops UnionPay s company spokesman said it plans to deepen its transformation into a market orientated firm And embrace market competition But Alipay is also trying to clinch a deal with Apple on its own NFC payment system a senior executive from Alibaba told the Wall Street Journal on Tuesday Alipay also has the advantage of being at the heart of the freewheeling profitable and fast growing Alibaba empire which just eight weeks ago pulled off the world s biggest ever IPO in New York UnionPay comes from a much more restrictive lineage a product of government policy so there are a lot of zero commission transactions that keep a lid on profit
1 dollar 6 1257 Chinese yuan Additional reporting by Denny Thomas in Hong Kong and Shanghai Newsroom Editing by Lisa Jucca Kazunori Takada and Will Waterman |
WFC | Trump s consumer watchdog chief vents about leaked information memo | By Patrick Rucker WASHINGTON Reuters The top U S watchdog for protecting consumers against financial abuse on Thursday blamed employees for leaking information about cases that he had dropped or was aiming to settle according to an internal memo reviewed by Reuters Mick Mulvaney the head of the Consumer Financial Protection Bureau said he should be trusted to decide matters concerning his agency and said employees were undermining his work I recognize that there may well be some a few A lot of people who work here who aren t happy that I m working here Mulvaney wrote in a memo to staff on Thursday afternoon That s fine I also recognize that those folks might be interested in undermining my leadership Earlier this week Reuters reported that Mulvaney was seeking a 1 billion penalty against Wells Fargo NYSE WFC Co for harming customers of auto insurance and mortgage loans In recent weeks Reuters reported that Mulvaney had dropped a case against a collection agency for payday lenders Mulvaney s predecessor Richard Cordray had hoped to collect 45 million in compensation for borrowers of the company National Credit Adjusters Both of those stories cited sources familiar with the workings of the cases |
WFC | Wells Fargo faces 1 billion fine from loan abuses | By Aparajita Saxena Reuters Two U S regulators have proposed Wells Fargo Co N WFC pay 1 billion in penalties to resolve probes into auto insurance and mortgage lending abuses at the third largest U S bank overshadowing its first quarter results The San Francisco based lender which reported a quarterly profit said it may have to restate results to reflect the final settlement The proposed penalties were reported earlier this week by Reuters Analysts said that while the 1 billion penalty would not make a significant dent to its balance sheet it may take the bank some time to repair the damage to its reputation Shares of the bank fell 3 4 percent to 50 89 Operationally Wells Fargo can recover but reputationally and how a billion dollars will weigh on them only time can tell said Art Hogan chief market strategist at B Riley in Boston Companies have come back from worse than this but right now they re still in the eye of the storm he added The bank still smarting from a prolonged sales scandal in its retail banking business found inconsistencies at its auto lending and mortgage in the summer of 2017 leading to further probes by regulators To appease investors and regulators the bank overhauled its operational structure shook up its board and hired a new compliance officer But this failed to impress the U S Federal Reserve which imposed restrictions in February on the bank s growth forbidding it to expand its balance sheet beyond 2017 levels until it makes internal changes that addressed risk management A bank s balance sheet is the engine for profit growth said Kyle Sanders analyst at Edward Jones The constraints on Well s ability to take on deposits and make new loans will likely result in lagging earnings growth for Wells relative to peers in the near term Wells estimates restrictions on balance sheet growth will cut annual profit by 300 million to 400 million this year Chief Executive Officer Tim Sloan repeatedly sought to reassure investors that the bank was stable despite the regulatory restrictions I m confident that our outstanding team will continue to transform Wells Fargo into a better stronger company however we recognise that it will take time to put all of our challenges behind us Sloan said in the bank s first quarter results statement on Friday But as recently as last month the bank also said it was examining its wealth and investment management business for possible customer abuse including overcharging and inappropriate referrals after inquiries from government agencies PROFIT RISES REVENUE DIPS Despite its ongoing woes the bank reported a 6 percent jump in profit saying net income applicable to common stock rose to 5 53 billion or 1 12 per share in the quarter ended March 31 from 5 23 billion or 1 03 per share a year ago Analysts on average expected 1 06 per share according to Thomson Reuters I B E S Wells Fargo has been struggling to reduce expenses but failed to keep a leash on costs in the quarter despite Sloan s vow to slash 4 billion in costs by 2019 by closing hundreds of branches and taking other measures Total noninterest expenses for the first quarter rose 3 3 percent to 14 24 billion Sloan reiterated his 2019 cost savings target and said his non interest expense dollar target range for full year 2018 remains unchanged In January the company had said it remained committed to reducing its expenses by 2 billion by the end of 2018 Total revenue in the quarter fell 1 4 percent to 21 93 billion Total loans slipped 1 2 percent to 947 3 billion hurt most by a decline in average loans in its community banking unit which includes consumer banking Non interest income from mortgage banking an area where the bank supersedes its peers fell 23 9 percent due to rising interest rates
Income tax expenses fell 36 percent to 1 37 billion following President Donald Trump s tax overhaul last year |
WFC | 3 Top Wells Fargo Advantage Funds To Boost Your Returns | Wells Fargo NYSE WFC the owner of Wells Fargo Advantage Funds brand is one of the four largest banks in the United States and has a legacy spanning 150 years in the financial services sector With over 111 billion excluding money market assets of assets as on Nov 30 2017 Wells Fargo Advantage Funds diversify their assets across a wide range of mutual fund categories These include both domestic and foreign funds asset allocation funds and fixed income funds In 2010 the boards of trustees of Wells Fargo Advantage Funds and Evergreen Funds had approved the merger of the fund families to create a new fund lineup under the brand name Wells Fargo Advantage Funds The Wells Fargo fund family claims that each fund is guided by a premier investment team chosen for its focused attention to a particular investment style There s a fund to meet the investment goals and risk tolerance of almost any investment portfolio Below we share with you three top ranked Wells Fargo Advantage Funds Each has earned a Strong Buy and is expected to outperform its peers in the future Investors can Wells Fargo CoreBuilder Shares Series M seeks maximization of returns through growth of income and capital WFCMX invests more than 60 of its assets in municipal securities which offer federal income tax exempted interest Wells Fargo CoreBuilder Shares Series M has returned 6 6 year to date WFCMX has an expense ratio of 0 00 as compared to the category average of 0 79 Wells Fargo International Bond R6 invests a bulk of its assets in foreign debt securities issued by governments corporate and supranational agencies ESIRX invests in more than three different countries or supranational agencies The fund may invest around 35 of its assets in debt securities which are rated lower than investment grade Wells Fargo International Bond R6 has returned 9 5 year to date As of October 2017 ESIRX held 152 issues with 4 09 of its assets invested in Poland Government Bond Bonds 04 20 1 5 Wells Fargo Municipal Bond A seeks income which is free from federal income tax WMFAX invests a major part of its assets in municipal securities that offer federal income tax exempted income The fund may invest around one fifth of its assets in securities that are subjected to federal alternative minimum tax Wells Fargo Municipal Bond A has returned 5 5 year to date Robert Miller is one of the fund managers of WMFAX since 2008 To view the Zacks Rank and past performance of all Wells Fargo Advantage Funds investors can Want key mutual fund info delivered straight to your inbox Zacks free Fund Newsletter will brief you on top news and analysis as well as top performing mutual funds each week |
EBAY | eBay trims 2014 revenue outlook amid economic fears | By Deepa Seetharaman
SAN FRANCISCO Reuters EBay Inc NASDAQ EBAY trimmed its full year revenue forecast on Wednesday signaling a weaker than expected holiday shopping season for the e commerce company as it prepares to split from its fast growing payments arm PayPal
EBay s report comes as weak economic data from the United States and China fan fears of a global slowdown forcing investors to re examine the world economy only just emerging from one of the worst recessions in history
We ve gotten indications from some luxury retailers over the last couple of days that times have been more challenging said Scott Kessler equity analyst at S P Capital IQ
There are a lot of question marks when it comes to the sentiment on spending of consumers as we approach the holiday shopping season
EBay shares fell more than 3 percent in after hours trading
U S retail sales which account for about one third of consumer spending recorded their first decline since January last month
Some analysts expressed concern over eBay s marketplaces division which grew less than some forecast
Kessler added that eBay s notable exposure to Europe might have also played a role in depressing its outlook
EBay earned 68 cents per share in the third quarter in line with the average analyst estimate of 67 cents per share according to Thomson Reuters I B E S
The results comes weeks after eBay announced it was spinning off its PayPal payments unit in 2015
EBay cut its full year revenue outlook to between 17 85 billion and 17 95 billion from its previous range of 18 billion to 18 3 billion
The company also forecast fourth quarter revenue of less than 5 billion falling short of the 5 2 billion expected by Wall Street EBay expects fourth quarter earnings per share between 88 cents and 91 cents while Wall Street expected 91 cents
Reporting by Deepa Seetharaman Editing by Chris Reese and Andre Grenon |
WFC | Exclusive U S watchdog seeks record fine against Wells Fargo for abuses sources | By Patrick Rucker WASHINGTON Reuters The top U S watchdog for consumer finance is seeking a record fine against Wells Fargo NYSE WFC Co that could exceed several hundred million dollars for auto insurance and mortgage lending abuses according to three sources with knowledge of the plans The penalty would be the first issued by Mick Mulvaney whom President Donald Trump tapped in November to head the Consumer Financial Protection Bureau CFPB The fine would fulfill Trump s vow to come down hard on the country s third largest lender which has been grappling with a sales practices scandal since September 2016 The CFPB is readying sanctions alongside the Office of the Comptroller of the Currency OCC Wells Fargo s day to day regulator The agencies are ready to sanction Wells Fargo for layering extra insurance on drivers and collecting commissions on those policies Reuters reported last month Both agencies have also been investigating the bank for wrongly levying fees on mortgage borrowers Mulvaney is eyeing a penalty that would settle both those matters and dwarf the 100 million the CFPB fined Wells Fargo in September 2016 to settle its phony accounts scandal said the sources familiar with the talks That 2016 fine had been the CFPB s largest ever Settlement terms have not been finalized but Mulvaney is pushing for a figure as high as 1 billion said three people with knowledge of the discussions A stiff penalty against Wells Fargo could burnish Mulvaney s image as a tough regulator even as his agency has dropped cases against at least two payday lenders Mulvaney has said the CFPB has gone too far in policing industry in the past but that abuses do exist I think you re being na ve if you think there aren t folks out there who are breaking consumer financial protection laws Mulvaney told an industry meeting last month The OCC and Wells Fargo declined to comment A spokesman for the CFPB did not respond to a request for comment Lawmakers will get a chance to question Mulvaney about the settlement talks at two separate hearings in Congress on Wednesday and Thursday Wells Fargo is due to report earnings on Friday and some officials hoped to have a deal by then Mulvaney was asked about the Wells Fargo matter at an industry event on Monday and declined to comment In the case of Wells Fargo and auto insurance agency lawyers have raised concerns about how different customers received different treatment from the bank Drivers who financed a car through a dealer could be pushed into insurance if Wells Fargo suspected a policy had lapsed Drivers who went directly to the bank for a loan were not subject to such force place insurance after 2011 the bank has said The bank has also said it did not monitor insurance for borrowers with high credit scores Borrowers with lower credit scores could get pushed into force placed insurance Lawyers are debating whether the bank should pay a higher fine for the uneven treatment of customers the sources said
Trump had pledged tough penalties for Wells Fargo after Reuters reported in December that Mulvaney put the mortgage lending abuse sanctions on ice |
WFC | Brokers Love These Construction Stocks Maybe You Should Too | The construction sector has demonstrated stability through 2017 amid various challenges with residential construction investment leading the way Despite political and economic uncertainties the sector saw sustainable growth A Look at Total Construction SpendingSpending on construction was up a sizeable 4 1 year over year during the first 10 months of this year per the latest report from the U S Census Bureau Notably U S construction spending rose 1 4 in October marking the best gain in five months with increases logged by all major categories of building Spending on government projects grew 3 in October the biggest one month gain in three years with spending at the federal state and local levels each witnessing growth However spending declined 3 4 year to date On the other hand residential was up 0 4 in the month while nonresidential construction rose 0 9 after four straight declines Homebuilding spending has increased 6 6 so far this year reinstating its stature Solid U S Economy Job Market a Net PositiveGross Domestic Product or GDP expanded at an annual rate of 3 3 in the July September quarter said the Commerce Department in its second GDP estimate on Nov 29 This marks the fastest pace since the third quarter of 2014 and a nice pickup from the second quarter s 3 1 rate Notably it is the first time since 2014 that the U S economy has witnessed growth of 3 or more for two straight quarters Economists are also optimistic that the low level of unemployment 4 1 in October will keep the momentum alive for the sector as a whole October figure was the lowest since December 2000 The United States has added jobs for 85 straight months the longest streak on record Housing Showing a Sign of ConfidenceThe U S housing industry seems to be back on track after a few slow months indicating gradual recovery on strong demand Per the latest report from the Commerce Department new home sales increased 18 7 from a year ago and 6 2 from the prior month This marks the second straight monthly gain and the highest level in 10 years Again confidence among homebuilders increased in November to its highest reading in eight months to 70 and second highest since the recession according to the Housing Market Index by the National Association of Home Builders NAHB and Wells Fargo NYSE WFC Indeed there are concerns that are restricting the industry s growth to some extent for quite a while now The industry has been challenged by shortage of homes for sale suitable land and skilled labor Again limited land availability is driving prices higher putting a serious question to the affordability Again the brisk growth pace of the economy strengthens the case for the Federal Reserve to raise interest rates The U S central bank has increased borrowing costs twice this year That said a booming economy boosts income as well Thus if the rise in income offsets the increase in mortgage payment housing will do just fine Hence housing homebuilding has been on a high on solid home sales data affordable interest mortgage rates and impressive housing starts figure Resilient job growth along with seemingly high homebuilders confidence are adding to the momentum The SPDR S P Homebuilders NYSE XHB ETF and the iShares U S Home Construction ETF WA ITB the two largest exchange traded funds focusing on homebuilders and related fare are up 26 9 and 53 respectively so far this year Investment Involves RiskInvesting in the might sound profitable right now as it falls within the top 6 1 out of 16 sectors of the Zacks Industry Rank which hints at further growth However given the month to month volatile figures investment in the construction sector at times becomes difficult Hence it might be a wise decision to go ahead with stocks preferred by analysts who offer key information which is of great value to investors Winning StocksWith the help of our we have selected four stocks that have been given Strong Buy Buy rating by 80 or more brokers A Zacks Rank 1 Strong Buy or 2 Buy which justifies a company s strong fundamentals further adds value to these stocks You can see Firstly we picked MasTec Inc NYSE MTZ a leading infrastructure construction company operating throughout the United States The company engages in the building installation maintenance and upgrade of energy communication and utility infrastructure The Zacks Consensus Estimate for earnings for both the current year and the next have increased 2 2 and 2 7 respectively in the last 60 days thus reflecting optimism in the stock s prospects and substantiating its Zacks Rank 1 The company is also expected to witness earnings growth of 47 6 for the current year and 9 3 for 2018 Secondly Tecogen Inc NASDAQ TGEN designs manufactures sells and services systems that produce electricity hot water and air conditioning for commercial installations and buildings and industrial processes The company s current year s loss estimate has narrowed to 1 cent from 7 cents over the last 60 days It has an expected earnings growth rate of 83 3 for 2017 For 2018 this Zacks Rank 1 stock has seen earnings estimates move up 400 over the past 60 days and has an expected earnings growth rate of 600 for the year Willdan Group Inc NASDAQ WLDN is a provider of professional technical and consulting services to utilities private industry and public agencies at all levels of government Willdan Group s earnings estimate for the current year has increased 5 5 and 2 2 for the next over the last 60 days The stock has a Zacks Rank 2 and has an expected earnings growth of 19 6 for the current year and 22 for 2018 Lastly we picked Gibraltar Industries Inc NASDAQ ROCK The company manufactures and distributes products to the industrial and buildings market The stock has a Zacks Rank 2 Meanwhile the Zacks Consensus Estimate for 2017 earnings has increased 6 5 and 2 9 for 2018 over the last 60 days Zacks Hidden TradesWhile we share many recommendations and ideas with the public certain moves are hidden from everyone but selected members of our portfolio services Would you like to peek behind the curtain today and view them Starting now for the next month I invite you to follow all Zacks private buys and sells in real time from value to momentum from stocks under 10 to ETF to option movers from insider trades to companies that are about to report positive earnings surprises we ve called them with 80 accuracy You can even look inside portfolios so exclusive that they are normally closed to new investors |
EBAY | What s Next For Facebook | Facebook Had Quite The Day
Currently up almost 17 the stock continues to push toward new all time highs and there s a strong chance that it will soon achieve that The frustration for traders who put a premium on managing risk is that unless you re willing to take the chance on a major down move holding FB or any stock for that matter is not a possibility
For me personally I don t do the earnings plays because for every Facebook there s an EBAY that will crush your portfolio with a 13 sell off
And since buying or shorting a stock with the belief that you actually know what will happen following an earnings release is a foolish proposition a trader with a strong focus on managing risk has to pass on these plays that look great in hindsight but utterly unpredictable prior to
That said here s what I m currently watching from Facebook going forward The last time it had an earnings breakout it quickly filled the gap in the days that followed Granted it was nowhere near as large as this most recent gap but it is a possibility that it will fill it with the weakness that has been seen in the market of late
Otherwise I would wait for a pullback to the breakout level shown below and then stage your entry at that level |
WFC | Wells Fargo to integrate corporate and investment bank WSJ | Reuters Wells Fargo Co N WFC is planning to integrate its corporate and investment bank in an effort to reduce costs the Wall Street Journal reported on Thursday citing people familiar with the matter The bank s plans which could lead to layoffs in the future will affect some industry coverage groups advisory teams equity and debt capital markets origination and certain corporate banking relationship managers according to the WSJ report Wells Fargo s corporate bank and investment bank though not fully merged will now share profit and loss targets across industry verticals the Journal said The Journal also reported that the bank has told staff of several dozen layoffs as recently as on Wednesday in its markets division which is part of Wells Fargo s wholesale division along with corporate and investing banking Those layoffs affect senior and junior employees in areas including credit sales and trading units and are based on a review of the business and staffing level adjustments one of the people told WSJ The layoffs are not directly tied to the corporate bank and investment bank integration the person said
The San Francisco based bank declined to comment when contacted by Reuters |
WFC | Rival banks applauded U S watchdog on 2016 Wells Fargo settlement emails | By Michelle Price and Elizabeth Dilts WASHINGTON NEW YORK Reuters Rival lenders privately congratulated the top U S consumer watchdog on its 100 million settlement with Wells Fargo NYSE WFC over the bank s phony accounts scandal according to internal documents published by the Consumer Financial Protection Bureau this week On Sept 8 2016 the CFPB and two other regulators announced they had reached settlements totaling 190 million with Wells Fargo after discovering the third largest U S lender had opened as many as 2 1 million bank and card accounts in customers names without their permission The number of potentially affected customers subsequently grew to 3 5 million as Wells expanded its probe of sales abuses The CFPB s portion of the settlement was 100 million making it the largest fine in the agency s short history The settlement sparked a flurry of internal back patting among enforcement officials in the days that followed and unusually drew applause from other banks according to internal emails published following a Freedom of Information Request I have had a number of bankers reach out to me to express gratitude for the CFPB s action against Wells Fargo and disgust that such a situation occurred Gary Stein a manager in the CFPB s office of deposits wrote in an email to Melissa Baal Guidorizzi senior counsel for enforcement on Sept 12 2016 While many were from community banks not all were I don t recall an action like this we have taken getting so much applause and so little pushback The next day Baal Guidorizzi forwarded the feedback to the broader CFPB enforcement team the documents show Seems that the case was popular even in the banking community I am hoping that this feedback will help balance some of the concerns about industry reaction in our future work Congratulations again to the team she wrote Wells Fargo spokeswoman Jennifer Dunn declined to comment Wells had long been celebrated on Wall Street for its cross sell ratio which measured its ability to sell multiple products to each customer But the metric had been questioned by envious rivals who struggled to achieve the same results In interviews after the Wells Fargo scandal erupted executives from other banks told Reuters they believed Wells went awry by measuring employee performance through sales and product numbers in its retail operation rather than using customer service metrics The bankers said at the time that while incentive programs differed it was standard across the industry to incorporate customer feedback when considering employee rewards Wells has since changed the way it measures sales performance
A spokesman for the CFPB declined to comment |
WFC | Proxy adviser ISS recommends vote for all Wells Fargo board nominees | Reuters Proxy advisory firm Institutional Shareholder Services ISS on Friday recommended Wells Fargo NYSE WFC Co shareholders vote for all Wells Fargo board nominees at the bank s annual meeting on April 24 The backing of the Wells Fargo board by the influential proxy advisor comes at an important time for the San Francisco Bank as it works to regain the trust of investors and regulators ISS also added a caveat saying that incumbent nominees on Wells Fargo board prior to 2017 need cautionary support while support for all new nominees is warranted The proxy adviser also suggested shareholders vote for a proposal to reduce the ownership threshold for shareholders to call a special meeting The Bank s shareholders were also suggested to vote against a shareholder proposal to reform executive compensation policy with social responsibility
ISS also recommended the bank s shareholders to vote for a shareholder proposal that the bank report on incentive based compensation and risks of material losses |
WFC | Forget Wells Fargo WFC Add These 4 Bank Stocks Instead | Shares of Wells Fargo Company NYSE WFC have lost more than 2 year to date amid industry wide weakness and legal issues underperforming the s rally of 9 5 While the San Francisco CA based banking giant recorded growing deposits and loan balances over the past few years displayed a strong capital position and remained focused on undertaking strategic acquisitions the recent litigation issues have primarily challenged its profitability Troubles have been mounting for Wells Fargo following the revelation of opening of millions of unauthorized accounts last year Cross selling which has been the company s key strength in recent years drew regulators attention as they discovered that thousands of employees of the bank had unlawfully enrolled consumers in products and services without their knowledge or consent in order to receive incentives for meeting sales targets Though the bank is taking necessary steps to address the issue it undoubtedly keeps the company s financials under pressure for the near term In addition to the above persistent rise in operating expenses over the last few quarters seems to be a concern for Wells Fargo The company remains focused on expense management with the target of eliminating 4 billion of expenses by 2019 Nevertheless we believe its bottom line will continue to be affected in the near term on legal expenses related to the above mentioned sales scam and other litigation issues Additionally Wells Fargo s high debt burden remains another headwind The company has debt to equity ratio of 1 32 compared with the industry average of 0 88 It underlines the financial instability of the company in an unstable economic environment Further Wells Fargo s quarterly dividend payment might not be sustainable as its earnings have been volatile for the last several quarters Also given its high debt level and above industry dividend payout ratio continuation of dividend payout is doubtful which is disadvantageous for value investors Moreover Wells Fargo has been witnessing downward earnings estimate revisions over the last 60 days The Zacks Consensus Estimate declined 4 3 to 3 97 for 2017 For 2018 it moved down 2 5 to 4 32 during the same time frame
With Wells Fargo currently carrying a Zacks Rank 4 Sell and a of C we don t see it as an attractive investment option Our research shows that stocks with a Value Score of A or B when combined with a Zacks Rank 1 Strong Buy or 2 Buy offer the best upside potential Investing in large cap stocks is often perceived as a safe strategy to stay afloat amid market turmoil However it may not meet expectations at all times Selecting the Winning StocksWith the help of the we have zeroed in on four finance stocks with market capitalization of more than 500 million All these stocks carry a Zacks Rank 1 or 2 and have expected long term 3 5 years EPS growth rate of more than 8 Further these have a Value Score of A or B You can see Here are the four stocks that met the criteria First Interstate BancSystem Inc NASDAQ FIBK headquartered in Billings is the bank holding company for First Interstate Bank providing various banking products and services in the United States Zacks Rank 2Value Score BExpected EPS Growth 3 5 years 9 South Bend IN based 1st Source Corp NASDAQ SRCE operating as the bank holding company for 1st Source Bank provides commercial and consumer banking services trust and investment management services and insurance to individual and business clients in the United States Zacks Rank 2Value Score BExpected EPS Growth 3 5 years 10 Heritage Commerce Corp NASDAQ HTBK headquartered in San Jose operates as the bank holding company for Heritage Bank of Commerce providing various commercial and personal banking services to residents and the business or professional community in California Zacks Rank 2Value Score BExpected EPS Growth 3 5 years 10 Los Angeles CA based Preferred Bank NASDAQ PFBC provides various commercial banking products and services to small and mid sized businesses entrepreneurs real estate developers and investors professionals and high net worth individuals in the United States Zacks Rank 2Value Score BExpected EPS Growth 3 5 years 10 Today s Stocks from Zacks Hottest StrategiesIt s hard to believe even for us at Zacks But while the market gained 18 8 from 2016 Q1 2017 our top stock picking screens have returned 157 0 128 0 97 8 94 7 and 90 2 respectively And this outperformance has not just been a recent phenomenon Over the years it has been remarkably consistent From 2000 Q1 2017 the composite yearly average gain for these strategies has beaten the market more than 11X over Maybe even more remarkable is the fact that we re willing to share their latest stocks with you without cost or obligation |
WFC | 5 Precious Metals Funds Shining As Gold Hits 6 Week High | Gold prices touched their highest settlement in the last six weeks on Nov 27 With the U S dollar falling to a two month low gold prices received a strong boost A weaker greenback also had a positive impact on silver prices Rising gold and silver prices bode well for the overall precious metals market Gold lost some of its luster in 2016 after a tumultuous 2015 but has managed to maintain its Bull Run this year With gold prices shining this looks like a good time to invest in mutual funds that have significant exposure to the precious metals sector Gold Touches 6 Week HighGold prices increased 0 9 to settle at an intraday high of 1 306 90 an ounce on Monday its best since Oct 16 This in turn has led the precious metal to post a gain of 2 7 so far in November marking its best monthly increase since February Additionally silver prices advanced by 0 157 to 17 25 an ounce during the intraday The decline in U S dollar was the primary trigger for the rise in gold prices During the intraday the U S dollar index declined by 0 3 to 92 50 on Nov 27 The greenback index also posted a fall of 1 6 over the last one month Weak durable orders and PMI data had a negative impact on the greenback Additionally in the minutes of the Oct 31 to Nov 1 FOMC policy meeting Fed officials hinted at lower rate hike prospects next year despite confirming a December rate hike this year Some policymakers showed concerns over persistent slowdown in inflation and hinted that the central bank may scale back to one or at two rate increases next year which is less than the previously expected three rate hikes A moderate pace of future tightening and low inflation have also weighed on dollar which in turn has given a boost to gold prices Valuation Concerns a Boon for GoldThe U S Dollar Index increased 34 to touch the level of 103 in 2016 During the same period gold prices fell 34 to 1 250 an ounce In contrast the U S Dollar index has fallen as low as 92 this year helping gold prices surpass the 1 200 an ounce mark The extent of gold s gains this year can be gauged from its best ever level Gold prices touched 1 900 an ounce which is its best level that it touched back in 2011 when the Dollar Index hit a low of 75 With gold prices moving above the key level of 1 300 an ounce the precious metals sector has performed significantly well this year Moreover SPDR Gold Shares HK 2840 ETF GLD NYSE GLD has increased by 1 3 and 11 4 over the last six months and year to date YTD respectively Additionally according to Morningstar the precious metal mutual fund category has posted YTD and one year returns of 6 8 and 4 respectively 5 Precious Metals Mutual Funds to BuyWe have selected five precious metal mutual funds that boast a Zacks Mutual Fund Rank 1 Strong Buy or 2 Buy Moreover these funds have encouraging YTD returns These also have minimum initial investment within 5000 and low expense ratios We expect these funds to outperform their peers in the future Remember the goal of the Zacks Mutual Fund Rank is to guide investors to identify potential winners and losers Unlike most of the fund rating systems the Zacks Mutual Fund Rank is not just focused on past performance but also on the likely future success of the fund Vanguard Precious Metals and Mining seeks growth of capital over the long term The fund invests heavily in stocks of both domestic and foreign companies whose primary operations concern precious metals including gold This non diversified fund may also invest around one fifth of its assets in gold silver and other precious metals coins and bullion VGPMX has YTD returnsof 9 1 and an expense ratio of 0 43 compared with the category average of 1 32 The fund has a Zacks Mutual Fund Rank 1 American Century Global Gold Investor seeks capital growth and dividends BGEIX invests in securities other than stocks like debentures bonds gold gold futures etc The fund focuses on investing in those precious metals companies that are involved in mining fabricating exploring processing and distribution of gold BGEIX has YTD returns of 8 6 and an expense ratio of 0 67 compared with the category average of 1 24 BGEIX has a Zacks Mutual Fund Rank 1 Fidelity Select Gold seeks appreciation of capital FSAGX normally invests a large part of assets in securities of companies that are engaged in various activities like exploration mining and processing of gold The fund may also invest nearly one fourth of its assets in various precious metals including gold through a wholly owned subsidiary FSAGX has YTD returns of 5 6 and an expense ratio of 0 84 compared with the category average of 1 24 The fund has a Zacks Mutual Fund Rank 1 USAA Precious Metals and Minerals seeks growth of capital for the long run and safeguards the capital s purchasing power against inflation USAGX invests a major portion of its assets in equity securities of U S and non U S companies which are involved in the mining exploration and processing of gold and other precious metals like silver and platinum USAGX has YTD returns of 5 5 and an expense ratio of 1 22 compared with the category average of 1 24 The fund has a Zacks Mutual Fund Rank 2 Wells Fargo NYSE WFC Precious Metals A seeks capital growth for the long run by investing a bulk of its assets in stocks of companies involved in the precious metals business EKWAX may also invest in equity securities of foreign companies like ADRs The fund invests not more than 40 of its assets in equity securities of companies based in emerging markets EKWAX has YTD returns of 6 7 and an expense ratio of 1 09 compared with the category average of 1 24 The fund has a Zacks Mutual Fund Rank 2 Want key mutual fund info delivered straight to your inbox Zacks free Fund Newsletter will brief you on top news and analysis as well as top performing mutual funds each week |
EBAY | Ebay in talks to take bitcoins at payments unit WSJ | SAN FRANCISCO Reuters Ebay Inc s O EBAY PayPal is in talks with Coinbase Inc and other bitcoin transaction providers to integrate the virtual currency within its Braintree payments system The Wall Street Journal reported on Thursday
Executives at PayPal which owns the service that handles payments for startups from room bookings network AirBnB to car on demand service Uber have not struck any agreements the Journal cited people familiar with the matter as saying
A deal would be an endorsement for a crypto currency which is gaining acceptance with a slowly growing number of businesses including online retailer Overstock com But some industry executives have warned about the risks of an unregulated currency
Ebay bought Braintree for 800 million in 2013 to boost PayPal s mobile presence
We do believe that Bitcoin will play an important role in payments in the future but we have nothing to announce eBay spokeswoman Jennifer Hakes said
Reporting by Eddie Chan Editing by Andre Grenon |
EBAY | EBay considering PayPal spinoff report | Reuters EBay Inc is considering a spinoff of PayPal its fast growing payments unit as soon as next year tech news website The Information reported citing sources Shares of the online retailer jumped nearly 4 percent to 55 48 at midday EBay told potential candidates for the position of PayPal chief executive officer a post that David Marcus vacated in June about a possible spinoff of the payments unit the website reported Marcus is now a Facebook Inc executive A PayPal spinoff would mark an about face for the company EBay CEO John Donahoe has resisted demands by activist investor Carl Icahn to hive off the payments service saying PayPal was integral to eBay s business and vice versa and a split would not make sense The board will continue to assess all alternatives to create that long term value and to enhance the growth and competitive positions of both eBay and PayPal This position has not changed eBay spokeswoman Amanda Miller said Whether eBay has decided to spin off all or part of PayPal and what structure that could take remained unclear The Information reported
Icahn eventually backed off from his demand in April saying that while he supported a PayPal split in the near future now was not the time Some investors however feel an independent PayPal can grow by attracting online retailers wary of rival eBay Reporting by Supantha Mukherjee and Edwin Chan Editing by Rodney Joyce and Jeffrey Benkoe |
WFC | Johnson taking proper steps in quest for Masters triumph | By Frank Pingue AUGUSTA Georgia Reuters Dustin Johnson is once again in fine form heading into next week s U S Masters and is not leaving anything to chance in his latest quest for the Green Jacket that so many expected him to slip into last year Johnson was the planet s hottest golfer and the favorite to triumph at Augusta National in 2017 but never got to tee off after a freak tumble down the stairs at his rental home injured his back on the eve of the tournament This time around the long hitting American will have no such worries the world number one is renting a one story Augusta area house for the year s first major It s not the same one no Johnson said at February s Genesis Open when asked if he was renting the same property It s just got bad juju so I m not going there Last year s injury kept Johnson out of competition for a month but in his first event back at the Wells Fargo NYSE WFC Championship he came second followed by a share of 12th at The Players and a T13 at the Byron Nelson He then missed the cut in his next two starts the Memorial and U S Open and could only muster a share of 54th place at the British Open before saying in July that he was still feeling the effects of his back injury He has since returned to full fitness and after watching last year s Masters from his couch Johnson will surely be chomping at the bit for a chance to secure a second major title after his U S Open triumph in 2016 While not quite as hot as last year when he arrived at the Masters on the back of victories in three consecutive starts against strong fields the 33 year old has plenty of reasons to feel upbeat Johnson has already won once during the PGA Tour s 2017 18 wraparound season along with two second place finishes Prior to crashing out of the World Golf Championships Dell Technologies Match Play event in Austin Johnson s worst finish in five starts this season had been a tie for 16th at the Genesis Open Next up is Augusta National where the length that Johnson enjoys off the tee will be accentuated I m definitely looking forward to it this year Johnson speaking to the Augusta Chronicle said of the Masters You know I was very disappointed I didn t get to play last year but things happen
So you ve just got to roll with it But yeah it s a place where I always love going to play I feel like I really like the golf course |
WFC | NY Fed names Williams to top post amid political backlash | By Jonathan Spicer and Ann Saphir NEW YORK SAN FRANCISCO Reuters John Williams the genial president of the Federal Reserve Bank of San Francisco and a top monetary economist was promoted on Tuesday to head the New York Fed in a politically explosive decision that has been criticized for ignoring more diverse candidates The New York Fed s directors said Williams will on June 18 succeed William Dudley in what is seen as the second most influential position at the U S central bank In selecting a white man and long time Fed insider they said he was the best of an exhaustive and inclusive search of diverse candidates and highlighted Williams commitment to public service Fed Chairman Jerome Powell had a bigger hand than predecessors in stressing the need to select someone with monetary expertise according to people familiar with his role in the process That suggests Williams 55 could in effect become the face of the current policy of gradual U S interest rate hikes even as the New York Fed president s traditional role as financial markets expert could diminish In a statement Powell welcomed Williams to the role and said he valued his insight and wise counsel during my years at the Federal Reserve and look forward to continuing to work with him in the years ahead The New York chief is traditionally among the Fed s three core policymakers and unlike other district presidents has a permanent vote on rates The job also oversees market operations including the management of some 4 4 trillion in assets and supervises the largest U S banks two weak spots on Williams resume relative to some other candidates Reuters reported to be considered as the list narrowed in recent months The Fed s Board of Governors in Washington approved the decision in New York Powell and the other two Fed governors had a say on the ideal nominee before he was chosen according to the co chairs of the New York Fed s search committee Because this is the only top Fed job where the candidate is not selected by U S President Donald Trump and confirmed by the Senate Democratic lawmakers and community activists saw it as an opportunity to lobby for someone who breaks from a long tradition of white men with ties to Wall Street The outcry against the selection process reached an extraordinary pitch last week after the Wall Street Journal cited unnamed sources and reported Williams as the front runner In response at least two U S senators urged more congressional oversight of the process and argued women and people of color should not be overlooked so that the Fed better reflects the public While the ranks of minorities and women are growing across the Fed all but two of its 15 current policymakers are white and all but three are men The 104 year old central bank had never had a black district president until last year I am disappointed by the search committee s selection of another Fed insider Senator Sherrod Brown ranking Democrat on the committee that oversees the Fed said on Tuesday The New York Fed directors heading the search Board Chair Sara Horowitz and Glenn Hutchins published a timeline saying that roughly half of the qualified candidates at each stage in the search process were diverse including two of the final three They did not name candidates Williams best fulfilled the criteria we d identified as well as the feedback we d received through our public outreach efforts said Horowitz founder of the Freelancers Union POWELL S HAND Dudley a key architect of the Fed s crisis era response will step down on June 17 He and Williams were reliable advocates for years of near zero rates to drive down unemployment In 2016 Williams was among the first of the so called doves to back more frequent hikes in part due to worries over inflation that has not yet materialized For a graphic of the Fed s doves and hawks see for a graphic of the legacy of the Fed s stimulus see After succeeding former Fed Chair Janet Yellen as San Francisco Fed president in 2011 Williams has continued to publish his influential research suggesting the neutral rate of interest has dropped sharply thanks to an aging population dragging down overall economic growth Williams has repeated he does not actively monitor financial markets at his office desk because he wants to focus on longer term trends not the ups and downs of asset prices an omission that has raised questions for some bankers that interact daily with the New York Fed Democratic Senator Elizabeth Warren meanwhile questioned his fitness to oversee Wall Street given that the 2016 Wells Fargo NYSE WFC fake accounts scandal happened on his watch in San Francisco But Powell a trained lawyer and former banker who succeeded Yellen in February has quietly stressed continuity and economic expertise amid a ongoing leadership transition Reuters reported March 1 that Powell had in January favored Williams for Fed vice chair but Williams bid for that job fell through and the White House ultimately decided on Richard Clarida an economist at Pimco who is yet to be formally named The search committee co chairs said they had regular consultations with the Fed Board to make sure they were considering the right sort of candidate One source familiar with the New York Fed s search process said Powell made it clear he trusts Williams The Fed Board declined to comment on Powell s role In an interview on Tuesday Yellen who stepped down as Fed chair in February called Williams an adept practical and thoughtful policymaker who made important contributions that have been immensely influential in the conduct of monetary policy Yet the drum beat of criticism in recent weeks including a demonstration outside the New York Fed and letters from state and city lawmakers is raising worries within the Fed about independence from political pressure Some lawmakers have in the past said the New York Fed president should be a presidential appointment like Fed governors Just as public companies are subject to greater shareholder activism and need to be proactive and vigilant about corporate governance the Fed needs to take its shareholders seriously recognize they have been failing in their stated desire for diversity and address the obvious shortcomings in their search process said Julia Coronado founder of MacroPolicy Perspectives and a former Fed economist The New York Fed s directors said diversity was a focus from the beginning and even hired a second executive search firm specializing in it Reuters previously named six candidates who were interviewed for the job most of them with Wall Street ties including two women and two black men
Williams departure leaves another vacancy at the central bank for which the San Francisco Fed s head of research Mary Daly is seen as an early contender |
WFC | PennyMac Financial Services higher 2 2 after Wells Fargo upgrade | Wells Fargo NYSE WFC resumes coverage on PennyMac Financial Services NYSE PFSI 2 2 with outperform The PT of 28 represents a 22 81 upside over the yesterday s closing price of 22 80 Now read |
WFC | Wells Fargo Faces Legal Issues High Costs Time To Sell | We issued an updated research report on Wells Fargo Company NYSE WFC on Nov 20 The San Francisco based company has traditionally followed organic and inorganic growth strategies However it is struggling with legal issues and escalating costs Troubles mounted for Wells Fargo following the revelation of opening of millions of unauthorized accounts in 2016 Cross selling which has been the company s core strength in recent years drew regulators attention after it was discovered that numerous employees of the bank had unlawfully enrolled consumers in products and services without any consent
This was followed by the disclosure of issues in the bank s auto insurance business and online bill pay services Though Wells Fargo is taking necessary steps to address the issue it undoubtedly puts the company s financials under pressure for the near term In the past few quarters the company has been witnessing higher non interest expenses Wells Fargo is focused on expense management with the target of reducing 4 billion in costs by 2019 However the company s bottom line will continue to be hurt in the near term by legal expenses related to the sales scam and other litigation issues Though the company has an impressive capital deployment plan with a decent dividend payout ratio its debt equity ratio compares unfavorably with that of the industry Moreover the company s volatile performance in the past few quarters indicates that its capital deployment activities might not be sustainable which will disappoint shareholders However easing margin pressure and substantial deposits provide some respite to the company At the same time Wells Fargo s financials exhibit improving credit metrics Nevertheless analysts have a negative outlook on the stock As a result in the past 30 days the Zacks Consensus Estimate for 2017 earnings has declined marginally to 3 97 per share from 4 00 The estimate for 2018 earnings has been stable at 4 32 Wells Fargo currently carries a Zacks Rank 4 Sell Notably the stock has lost 1 9 since the beginning of 2017
Stocks to ConsiderEnterprise Financial Services Corp NASDAQ EFSC has been witnessing upward estimate revision in the last 30 days Additionally the stock has rallied more than 6 2 in the past six months It currently carries a Zacks Rank 2 Buy First Financial Bancorp NASDAQ FFBC has been witnessing upward estimate revision in the past month Also the company s shares have increased nearly 4 9 in the past six months It holds a Zacks Rank of 2 JMP Group LLC NYSE JMP has been witnessing upward estimate revision for the last 30 days The company s shares have rallied around 3 8 in six months time It also carries a Zacks Rank of 2 Zacks Hidden TradesWhile we share many recommendations and ideas with the public certain moves are hidden from everyone but selected members of our portfolio services Would you like to peek behind the curtain today and view them Starting now for the next month I invite you to follow all Zacks private buys and sells in real time from value to momentum from stocks under 10 to ETF to option movers from insider trades to companies that are about to report positive earnings surprises we ve called them with 80 accuracy You can even look inside portfolios so exclusive that they are normally closed to new investors |
EBAY | Bitcoin Integration With PayPal Being Actively Considered Says eBay CEO | By John Donahoe CEO of ecommerce giant eBay Inc NASDAQ EBAY said he is actively considering an integration of popular digital currency Bitcoin BTC eUSD with the company s payment processing service PayPal
In a Q A session at the company s annual shareholder meeting on 13 May Donahoe said bitcoin is a new exciting and emerging technology with lot of potential
We think bitcoin will play a very important role in the future Exactly how that plays out and how we can best take advantage of it and enable it with PayPal that s something we re actively considering It s on our radar screen
This is not the first time Donahoe has spoken about his positive view of bitcoin
In an interview with Bloomberg in February he said that multiple digital currencies can be integrated into PayPal and are not posing a threat to his business
Nothing holding us back
There is nothing holding PayPal back from pursuing digital payments today as part of eBay In fact PayPal is pursuing digital payments and is the leading digital payments alternative in many different environments Donahoe said
You can use digital currencies in the PayPal digital wallet that s in fact what PayPal is doing is building a digital wallet that can take multiple types of currency
Last month eBay launched a virtual currency section of its US website allowing users buy andsell digital currencies as well as mining contracts and mining equipment
In the UK bitcoin owners would be able to list on the site s classifieds section allowing the buying and selling of the cryptocurrency Deals in classified ad formats mean actual transactions of bitcoins would take place outside of eBay
EBay is still not accepting bitcoin or other digital currencies for payments Its payment processing unit PayPal is facing stiff competition from bitcoin
In a filing with the US Securities and Exchanges Commission SEC eBay earlier regarded bitcoin as a potential competitor to PayPal
While PayPal charges a 2 3 fee for processing transactions payments using bitcoin could be done with negligible fees as they can be transferred without going through banks or clearing houses |
EBAY | eBay Urges Customers To Change Passwords After Hack Attack | By Online retailer eBay Inc NASDAQ EBAY said Wednesday that a database containing user information was hacked between late February and early March and encouraged users to change their passwords
San Jose California based eBay said financial or credit card information was not compromised in the hacking attack But customer information including encrypted passwords email addresses physical addresses phone numbers and dates of birth was stolen The attack was detected about two weeks ago Extensive forensics identified the compromised database eBay said
Information security and customer data protection are of paramount importance to eBay Inc and eBay regrets any inconvenience or concern that this password reset may cause our customers the online retailer said in a statement We know our customers trust us with their information and we take seriously our commitment to maintaining a safe secure and trusted global marketplace
Emails notifying eBay users of the attack and urging them to change their passwords were set to be sent out later Wednesday
The company said the cyber attack compromised a small number of employee log in credentials allowing unauthorized access to eBay s corporate network Working with law enforcement and leading security experts the company is aggressively investigating the matter and applying the best forensics tools and practices to protect customers
Following the attack eBay said it hasn t seen signs of increased fraudulent activity on its website There was also no evidence of compromises to eBay owned online payment site PayPal The company added that PayPal information is stored on a separate secure network |
EBAY | Sotheby s And eBay Team Up In Bid For Online Luxury Shoppers | By People looking to buy the world s most expensive timepiece valued at 17 million will soon be able to shop at the same site they would use to buy a 5 vintage wind up Mickey Mouse watch
High end art auction house Sotheby s NYSE BID will soon be live streaming sales from its New York headquarters thanks to a partnership with online shopping giant eBay Inc NASDAQ EBAY to try reach the millions of customers who use the Internet to shop for luxury items
We believe there is a great opportunity through this partnership to truly make art more accessible to exponentially more collectors Sotheby s Chief Operation Officer Bruno Vinciguerra said in a Monday public statement That s what makes this so exciting
Since 1744 Sotheby s has made a name for itself selling million dollar works of art to high profile clients in 90 cities from New York to Tokyo but now hopes to reach some 145 million registered customers that now shop on eBay
The growth of the art market new generation technology and our shared strengths make this the right time for this exciting new online opportunity Vinciguerra said We are joining with eBay to make our sales more accessible to the broadest possible audience around the world
The global market for art and antiques is worth roughly 65 9 billion up 8 percent since last year according to the 2014 Art Market Report from The European Fine Art Fair TEFAF
In May Sotheby s announced a 31 percent revenue increase to 123 1 million for the first quarter of this year and upcoming sales include a series of paintings by Pablo Picasso one of which with an estimated value of 15 20 million and a few classic Impressionist canvases by Claude Monet
Starting this fall users can log on to a special eBay site to access live auctions in New York with more locations to come after
This isn t the first time they attempted such a partnership In 2002 eBay was planning to feature some Sotheby s online auctions but discontinued the program a year later citing a lack of profits |
WFC | U S industrial output soars housing starts fall | By Lucia Mutikani WASHINGTON Reuters U S industrial production surged in February boosted by strong increases in output at factories and mines but the economic outlook for the first quarter was dimmed by a larger than expected plunge in homebuilding last month The broad based rise in production likely reflected increased investment spending in the wake of hefty corporate income tax cuts which came into effect in January Economists however worried tariffs on steel and aluminum imports imposed by President Donald Trump last week could weigh on output Much of manufacturing is a user of steel and aluminum said John Ryding chief economist at RDQ Economics in New York The policy to impose tariffs poses potential risks to the broader output gain given how important trade is to manufacturing Industrial production jumped 1 1 percent last month the Federal Reserve said on Friday That was the largest increase in four months and followed a 0 3 percent decline in January February s increase beat economists expectations for only a 0 3 percent gain Manufacturing output vaulted 1 2 percent the biggest gain since October after falling 0 2 percent in January Production of primary metals which include steel and aluminum increased 0 5 percent last month after jumping 1 5 percent in January Output of fabricated metal products which use steel and aluminum climbed 1 6 percent in February after rising 0 4 percent in the prior month Production at mines shot up 4 3 percent last month boosted by an 11 6 percent surge in oil and gas well drilling The robust gains in manufacturing and mining production offset a weather driven 4 7 percent plunge in utilities output Industrial capacity utilization a measure of how fully firms are using their resources increased 0 7 percentage point to 78 1 percent its highest reading since January 2015 It remains 1 7 percentage points below its long run average Officials at the Fed tend to look at utilization measures as a signal of how much slack remains in the economy how far growth has room to run before it becomes inflationary Capacity use at factories rose to its highest level since April 2008 It has now broken out above the 20 year average Is this a sign of more meaningful price pressure ahead said Robert Kavcic a senior economist at BMO Capital Markets in Toronto Steadily rising price pressures and a tightening labor market are seen giving the Fed ammunition to raise interest rates next Wednesday The dollar was little moved by the data as speculation that more top Trump administration officials could be ousted from the White House hurt investor sentiment Prices for U S Treasuries were trading marginally lower and stocks on Wall Street rose HOMEBUILDING FALLS In a separate report the Commerce Department said housing starts declined 7 0 percent to a seasonally adjusted annual rate of 1 236 million units as a plunge in the construction of multi family housing units offset a second straight monthly increase in single family projects Economists polled by Reuters had forecast housing starts falling to a 1 290 million unit rate Permits for future home building decreased 5 7 percent to a rate of 1 298 million units in February While the volatile multi family housing segment accounted for the decline in home building last month the broader housing market appears to be slowing Sales of new and previously owned homes have slumped in recent months as a dearth of properties boosted prices sidelining some first time home buyers House price gains topped 6 0 percent in December Mortgage rates have also risen with the 30 year fixed rate currently averaging 4 44 percent not too far from a four year high of 4 46 percent according to mortgage finance agency Freddie Mac But the housing market remains underpinned by a robust labor market There is growing optimism that tightening job market conditions will translate into faster wage growth in the second half of this year Annual wage growth has been stuck below 3 0 percent even as the unemployment rate has dropped to a 17 year low of 4 1 percent Single family homebuilding which accounts for the largest share of the housing market increased 2 9 percent to a rate of 902 000 units in February Single family home construction rose in the Northeast South and West but tumbled in the Midwest Permits to build single family homes slipped 0 6 percent in February to an 872 000 unit pace With permits lagging starts single family home construction could slow in the months ahead A survey on Thursday showed confidence among homebuilders dipping in March but remaining in strong territory Builders were less upbeat about sales and buyer traffic over the next six months Starts for the volatile multi family housing segment tumbled 26 1 percent to a rate of 334 000 units in February the lowest level since September 2017 Permits for the construction of multi family homes dropped 14 8 percent to a 426 000 unit pace But there was some good news in the report Single family house completions surged to their highest level since March 2008 The number of single family housing units under construction in February was the most since June 2008 This should help to alleviate some of the property shortage and probably slow the house price inflation The tide appears to be turning somewhat with completions of single family homes trending higher over the past year said Mark Vitner a senior economist at Wells Fargo NYSE WFC Securities in Charlotte North Carolina
Profits margins are still being crimped however and affordability is being constrained further by higher mortgage rates |
WFC | Facebook shares slide after reports of data misuse | By Munsif Vengattil
Reuters Facebook NASDAQ FB Inc s shares fell more than 4 percent in premarket trading after media reports that a political consultancy that worked on President Donald Trump s campaign gained inappropriate access to data on 50 million Facebook users
The move would knock 23 8 billion off the social network s market value of 538 billion as of Friday s close and shares in other social media companies including Twitter Inc NYSE TWTR and Snap Inc NYSE SNAP also dipped in early deals in New York
One Wall Street analyst said the reports raised systemic problems with Facebook s business model and a number said it could spur far deeper regulatory scrutiny of the platform
The head of European Parliament said on Monday that EU lawmakers will investigate whether the data misuse has taken place adding the allegation is an unacceptable violation of citizens privacy rights
Facebook was already facing new calls for regulation from U S Congress and questions about personal data safeguards after the reports from the New York Times and London s Observer over the weekend
The papers reported on Saturday that private information from more than 50 million Facebook users improperly ended up in the hands of data analytics firm Cambridge Analytica and that the information had not been deleted despite Facebook demands dating back to 2015
We think this episode is another indication of systemic problems at Facebook said Brian Wieser analyst at New York based brokerage Pivotal Research Group which already has a sell rating on a stock that rose 60 percent last year
Wieser argued that regulatory risks for the company would intensify and enhanced use of data in advertising would be at greater risk than before
He added however that it was unlikely to have a meaningful impact on the company s business for now with advertisers unlikely to suddenly change the trajectory of their spending growth on the platform
This episode appears likely to create another and potentially more serious public relations black eye for the company and could lead to additional regulatory scrutiny said Peter Stabler analyst at Wells Fargo NYSE WFC
The losses would be Facebook s biggest daily fall since a broader market pullback in February In January when Facebook announced changes to its newsfeed which it said would hit user engagement in the near term shares fell 4 5 percent in one day
It s clear with more heat in the kitchen from the Beltway that further modest changes to their business model around advertising and news feeds content could be in store over the next 12 to 18 months said Daniel Ives research analyst at GBH Insights
He also argued that the issue was background noise on which Facebook could calm any regulatory nerves through further investments in security ad content AI improved content algorithms and screening mechanisms
No analysts had so far changed their price targets or recommendations on Facebook in response to the reports Wall Street is largely bullish on the stock with 40 of 44 analysts recommending the stock buy or higher
Shares of the company were down 4 4 percent at 177 90 by 09 13 a m ET |
WFC | Tether USDT Back in the Game Lifts Bitcoin to 9 000 | After an almost two month hiatus the Tether minting wallet brought a new tranche of tokens this time 300 million USDT in one transaction Immediately the new tokens were sent to a known Bitfinex address
The minting wallet has printed hundreds of millions of USDT within days in December and January and the gap in new issues coincided with a slide of more than 65 from the peak price
The event coincides with a planned maintenance on Bitfinex
It is unknown what effect the USDT may have or whether bot trading would continue even if usual trades are locked down for about two hours
Is Tether Backed by Dollars Yet
The sudden and large scale printing of USDT continues to raise questions whether the tokens are in fact redeemable at any time for dollars For a while the company had no recourse to a banker after parting ways with Later the company claimed to be serviced by a Polish bank but there has been no audit of the bank accounts
The company registered in Puerto Rico has not shown a local bank to handle the transactions But BitMex offered circumstantial evidence
Tether Addendum New data from Puerto RicoBank deposits were up 248 to 3 3 billion in the quarter This extraordinary growth coincides with the recent crypto boom The data supports our speculation that Noble Bank is Tether s primary reserve bank
BitMEX Research BitMEXResearch
The inflow of funds in Puerto Rico may be quite a stretch and the community disparaged the attempt to show that Tether has actual funds The demand for an audit continues
Binance Absorbs USDT
Binance now has a balance of more than 371 million USDT paired with Bitcoin but also other hot assets including the most recent addition of Technically this allows users to trade without the complexities of handling cash
But the presence of USDT may be distorting the prices and hiding the fact that real dollar liquidity is rather scarce
Even so the BTC market price increased to 9 133 47 up more than 6 in the past day and picking up again Trading volumes remain relatively thin and the share of Tether trading is more than 14 of the entire crypto market At the moment trading Bitcoin against the dollar takes up more than 23 of the market but the gap between USD and USDT gets smaller
But the most curious event is the sudden recovery of BTC prices immediately after the printing of Tethers At the moment the BTC price on Bitfinex is lower at 9 049 20 and the coin trades at a premium of around 9 300 against the Korean Won |
WFC | BioSyent reports Q4 results | BioSyent OTCPK BIOYF Q4 EPS of 0 10Revenue of 5 9M 17 8 Y Y Press ReleaseNow read |
WFC | U S bond market signals inflation on slow simmer | By Richard Leong NEW YORK Reuters The U S bond market shows investors are confident that inflation has picked up from last year s low levels but they are not so sure it will head much higher from here The muted outlook comes as Federal Reserve officials at a two day policy meeting that began on Tuesday are likely discussing whether they should stick with their path on raising key short term interest rates or quicken the pace of rate hikes as the U S economy approaches full employment If you take a 30 000 feet view near term inflation is recovering but with long term inflation the market is not buying it will pick up much said Boris Rjavinski senior rate strategist at Wells Fargo NYSE WFC Securities in New York Yield spreads between regular Treasuries and Treasury Inflation Protected Securities TIPS also known as inflation breakeven rates on Wednesday were running at 2 03 percentage points to 2 10 percentage points across maturities according to Tradeweb Earlier this month the five year 10 year and 30 year TIPS breakeven rates hit 2 15 percent 2 13 percent and 2 13 percent respectively their highest levels since December 2015 This inversion of breakeven rates where short dated rates are higher than longer dated ones reflects an acceleration of inflation expectations in the short term while overall expectations continue to rise according to Tradeweb TIPS breakeven rates fell sharply in the first half of 2017 on a string of disappointing inflation readings but recovered in the second half as inflation numbers improved and the passage of tax overhaul in Washington seemed likely FLATTENING YIELD CURVE The slim difference in TIPS breakeven rates is just one market indicator that reflect investors tame outlook on inflation despite the tax code overhaul in December and a two year budget agreement in February The narrowing of short dated and long end bond spreads which are hovering at the tightest levels in a decade also support notion of investors muted inflation outlook U S consumers seem to agree with investors assessment that inflation remains a distant threat University of Michigan data on Friday showed consumers inflation outlook for a year from now rose to 2 9 percent in early March from 2 7 percent in February but that their five year view was unchanged at 2 5 percent UNCERTAIN INFLATION OUTLOOK The two recent developments from Washington are expected to boost business and consumer spending and ratchet up federal borrowing which would spur inflation Those developments however have been offset by views of the impact of U S President Donald Trump s efforts on imposing tariffs They have stoked fears of a trade war that could increase costs for domestic consumers but hurt U S exports and weigh on long term economic growth It s made people more pessimistic in the long run said Aaron Kohli interest rate strategist at BMO Capital Markets in New York Several Fed policymakers and economists argue that with underlying inflation measures still short of the Fed s 2 percent goal there is no urgency for the U S central bank to boost the pace of rate hikes Back in December the average expectation among Fed officials was for three rate increases for 2018 Inflation while showing a modest pickup in recent months is far from flaring up The Labor Department said a week ago its consumer price index rose 0 2 percent last month after jumping 0 5 percent in January In the 12 months through February the CPI rose 2 2 percent up from 2 1 percent in January as the flat reading from last year dropped from the calculation The annual increase on the core rate on personal consumption expenditure the Fed s preferred inflation gauge was unchanged at 1 5 percent in January which continued to run below 2 percent since May 2012 There is some progress no question but they will counter balance it because they haven t seen a sustained recovery to the 2 percent Well Fargo s Rjavinski said of uptick in inflation so far this year |
WFC | Here s Why Wells Fargo Sees a Trade War Benefiting the Greenback | Bloomberg While the dollar has few fans among Wall Street strategists Wells Fargo NYSE WFC predicts that the greenback stands to gain from escalating trade tensions
President Donald Trump ordered sweeping tariffs on Chinese goods Thursday prompting concern that America s largest foreign creditor will retaliate But Wells Fargo predicts that the row could revive the greenback The Bloomberg dollar index gained Thursday paring its 2018 drop to about 2 9 percent while U S stocks slumped
For Wells Fargo the prospect of a trade war poses a risk for its broader 2018 outlook which is for a weaker U S currency What it boils down to is their view that a wave of protectionism could lead to narrower American trade deficits feeding through into dollar strength
We are of the view that any sort of trade war scenario would likely be dollar positive said Erik Nelson a currency strategist at the bank The U S economy is probably positioned to be hurt the least in such a scenario and the U S dollar has shown some risk off behavior in recent months
The consensus is leaning in the other direction partly on speculation that Chinese retaliation or a tit for tat trade war would crimp foreign demand for U S assets For one thing with the U S facing swelling budget deficits there s a sense that the dollar is vulnerable should international buyers shun American debt
For Nelson a trade war would benefit the greenback in particular against currencies of emerging market countries that have large trade surpluses with the U S and are sensitive to global equity weakness
That list includes currencies such as the Mexican peso South Korean won and the ruble
Today s market move weaker equities stronger USD is definitely consistent with the pattern we have seen in recent months and moreover I think is a fairly telling indication of what could occur in a trade war scenario Nelson wrote in an email |
WFC | GBH Insights sees golden opportunity in crisis era Facebook | GBH Insights is also looking to buy the dip on Facebook NASDAQ FB though it might take a while for the current data chaos to pan out The firm is maintaining a rating of Highly Attractive and price target of 225 implying 41 upside Facebook shares rebounded to finish up 0 4 after a daylong pummeling driven chiefly by morning news of an FTC investigation The FTC news added further agita to the Cambridge inferno that has created a dark cloud over Facebook s stock GBH says and it expects rangebound trading as regulators users and advertisers work through the thorny details But laying out two scenarios this is either a golden buying opportunity to get on an unparalleled social media user base or it s a seminal negative moment that changes Facebook s business model and growth trajectory GBH ultimately sides with a relatively trouble free emergence We believe the stock will make the climb back to the 180 200 range as the dust settles over the next few quarters with fundamentals remaining on track despite this representing the darkest chapter for Facebook and Zuckerberg in its 14 year history the firm says Earlier Wells Fargo NYSE WFC also said the sell off has been overdone and set a 230 price target Now read |
EBAY | eBay Q4 Earnings Preview Taking The Auction Rev Stream s Pulse | By EBay Inc NASDAQ EBAY operator of the world s largest online marketplace is expected to post a 16 1 percent profit increase in the fourth quarter on modest deceleration in Marketplaces revenue growth from eBay com offset by slight revenue acceleration from PayPal
The San Jose Calif company which will report fourth quarter results on Wednesday after markets close is expected to record net income of 1 05 billi
on or 66 cents per share compared to 927 million or 57 cents per share a year earlier Revenue is projected to be 4 55 billion up 14 1 percent from 3 99 billion in the last quarter of 2012
Excluding items analysts expect earnings per share of 80 cents compared with 70 cents in the fourth quarter of last year
Analysts appear underwhelmed as consensus earnings per share are even lower than the bottom range of the company s own earnings guidance of 67 to 69 cents which was published at the time of its third quarter earnings release
ChannelAdvisor the third party traffic tracker reported that in terms of eBay s Marketplaces reported that eBay com s same store sales SSS grew by 11 6 percent in the fourth quarter of 2013 significantly slower than the 18 9 percent year on year growth in the third quarter Though it is worth noting that correlation between ChannelAdvisor SSS data and eBay Marketplaces revenue has been lessening in the past year as the company focused on growing relationships with larger merchants according to a Goldman Sachs research note
Two other factors may have some impact on revenue in the last quarter The holiday season was six days shorter in 2013 compared to 2012 and eBay may have benefited at the margin from more shoppers moving online However eBay likely suffered from longer shipping times for many of its sellers and also faces a tough comparison with its fourth quarter results in 2012 As such the company provided a cautious holiday outlook which appears to be in line with the ChannelAdvisor data and analyst forecasts
We are forecasting Marketplaces revenue of 2 26 billion Goldman Sachs analysts wrote We expect growth to be 10 2 percent in 4Q which assumes a neutral to slightly positive FX impact
The company s payment division PayPal continues to outperform the rest In particular PayPal said its total payment volume TPV grew more than 115 percent year on year on both Thanksgiving Day and Black Friday Worldwide monthly unique visitors to PayPal grew 12 6 percent in the fourth quarter compared to the 2 4 percent year on year growth in the third quarter while monthly unique visitors in the U S grew 3 6 percent compared to the 4 2 percent decline in the third quarter
We are forecasting PayPal revenue of 1 86 billion up 21 0 percent year on year compared with the 18 6 percent growth achieved in 3Q according to the Goldman Sachs note
Overall eBay s mobile traffic continues to grow robustly through November according to comScore a third party traffic tracker Total monthly uniques grew 40 6 percent year on year while Marketplaces total uniques accelerated to 123 4 percent and PayPal uniques grew 27 9 percent
The company also officially closed the acquisition of Braintree on Dec 19th for 800 million in cash While the newly acquired branch should not have a material impact on eBay s total payment volume and revenue this quarter the acquisition is expected to perform well for the company |
EBAY | Carl Icahn Goes After EBay s Board | By In a harshly worded letter dispatched to shareholders of eBay NASDAQ EBAY on Monday billionaire activist investor Carl Icahn criticized the Internet company s management and its board over various aspects of corporate governance
The complete disregard for accountability at eBay is the most blatant we have ever seen Indeed for the first time in our long history we have encountered a situation where we believe we should not even have to run a proxy fight to change the board composition Icahn wrote in the open letter and reiterated his demand that eBay should spin payment gateway PayPal off into a separate company
EBay fired off a quick response to Icahn s letter defending board members Marc Andreessen and Scott Cook whom Icahn had singled out for criticism in the letter for investing in companies such as Boku Bitcoin Wallet Coinbase and Intuit all of which he said compete directly with eBay
New eBay shareholder Carl Icahn has cherry picked old news clips and anecdotes out of context to attack the integrity of two of the most respected accomplished and value driven technology leaders in Silicon Valley the company statement said adding The overlap between Intuit and eBay is small fully disclosed and within the SEC safe harbor for interlocking directorates
Icahn also went after eBay CEO John Donahoe stating that Donahoe was feeding information to competitors on the eBay board and appeared to lack awareness about what is going on around him
The CEO seems to be completely asleep or even worse either naive or willfully blind to these grave lapses of accountability and stockholder value destruction Icahn said in the letter
According to Icahn eBay s board consists of two directors who hold stakes in companeies directly competing with eBay and another demanding to cease hiring at eBay Icahn also accused other board members of funding competitors and looking for personal gains at the expense of eBay s shareholders
Regarding hiring this is old news any restrictions ended years ago and Intuit historically had not been a source of talent for eBay Inc eBay s statement said
Icahn also raised fingers at Andreessen s support for the company s acquisition of Skype and its subsequent sale to Microsoft for 8 5 billion He stated that the transaction had cost the stockholders hugely and only benefited private equity firms to the tune of 4 billion
The 77 year old billionaire who owns more than 2 percent of eBay and put two of his own employees on its board last month also questioned Cook s stake in Intuit a competing business with PayPal in which Cooke has a stake worth 1 billion
How can the board have a conversation about the strategy or performance of PayPal when a representative of a direct competitor who has so much at stake is in the room Even worse Mr Cook also apparently believes he can tell eBay whom the company cannot hire Icahn wrote in the letter
Icahn also renewed his calls for the company to split PayPal and eBay into two separate companies and asked shareholders to vote for the two directors appointed by him to the board because eBay needs fresh stockholder representation on the board to steer it towards long term success and away from becoming yet another example of a technology company with a management team and board that refused to adapt
According to Forbes PayPal s co founder Elon Musk also supports the plan to separate the two companies
It doesn t make sense that a global payment system is a subsidiary of an auction website It s as if Target owned Visa or something Musk said according to Forbes If PayPal were to be made a standalone business it could eventually have a valuation of 100 billion according to Musk
EBay s stock closed 3 13 percent higher on Monday |
EBAY | eBay s Q1 Profit Beats Estimate But Outlook Disappoints | By eBay Inc NASDAQ EBAY posted a better than expected first quarter profit on Tuesday boosted by its PayPal payments unit but the e commerce giant s second quarter forecast fell short of estimates
The company earned 70 cents per share during the quarter better than the average analyst estimate of 67 cents per share according to Thomson Reuters I B E S
But eBay forecast second quarter per share profit between 67 cents and 69 cents less than the 70 cents per share expected by Wall Street analysts The company s shares fell more than 3 percent in after hours trading |
EBAY | Separation To Benefit eBay And PayPal | The markets have seen plenty of M A activity over the year but we ve also seen some very high profile separations The looming split of PayPal and eBay NASDAQ EBAY should not be seen as a divorce but more as an opportunity for both to spread their wings Although initially both parties found a plethora of synergies the development of their respective business plans has seen these benefits diminish over the years A new freedom to focus independently on their own business models should see both companies improve capital returns gains that subsequently will be reflected in their share prices
At the moment PayPal is being traded on a when issued basis but the majority of shares will be free to trade from Friday 17 July onwards In order to help the newly independent company in the initial stages it has received a 5 billion float from eBay The new CEO of PayPal has not been slow to spend this even before the separation was completed the City became aware of plans to acquire transfer provider Xoom Corporation NASDAQ XOOM It s anticipated that PayPal will go it alone with a market capitalization of around 44 billion which should equate to a share price of 36
The day before the PayPal shares start trading eBay will release its second quarter figures The adjusted earnings per share are expected to increase year on year from 0 69 in 2014 to 0 725 The firm s sales are also projected to improve from 4 366 billion to 4 489 billion in 2015 These improving figures have seen the online auction house s pre tax profits increase from 803 million to 1 11 billion
All of this has seen the institutional analysts remain fairly bullish on the company with 21 buy recommendations 25 holds and only three sell recommendations The average twelve month price target for the company is 63 99 higher than the current 61 29
The company s share price has enjoyed a strong bullish run over the last twelve months which has seen shares add almost 21 in that time Although the markets might have some reservations about the diversification that eBay is due to embark upon the more streamlined company could well offer even more rewards in the future |
WFC | Wells Fargo CEO s 2017 pay jumps 35 percent to 17 6 million | Reuters Wells Fargo Co N WFC Chief Executive Tim Sloan s made 17 6 million in 2017 up 35 percent from the previous year despite opting out of the bank s annual incentive plan The third largest U S bank is looking to rebuild its reputation following a 2016 scandal that involved thousands of Wells Fargo employees opening perhaps millions of unauthorized customer accounts Sloan who said in January that the bank was not certain it had fully uncovered and fixed all problems related to the scandal was among the top executives who did not receive cash bonuses for 2016 Earlier this month Wells Fargo said it was examining its wealth and investment management business for possible customer abuse including overcharging and inappropriate referrals after inquiries from government agencies Sloan took over the top job in October 2016 after former CEO John Stumpf was forced to resign in the wake of the scandal Some 15 million of Sloan s 2017 pay consists of stock awards Wells Fargo said in a regulatory filing
Chief Financial Officer John Shrewsberry s compensation for 2017 was 11 9 million compared with 9 3 million in the previous year |
WFC | Stein Mart pops after earnings credit transaction | Stein Mart NASDAQ SMRT announces that it closed on a new 50M term loan The company says it amended its credit agreement with Wells Fargo NYSE WFC to provide for the repayment of the existing 25M first in last out A 1 tranche of the credit facility All other key terms of the Credit Facility remain unchanged CFO update This transaction will provide us with additional liquidity bringing our cash and unused borrowing availability today to more than 60 million This shows the confidence that our lending partners have in our business SMRT 65 premarket to 1 27 Source Press ReleasePreviously Stein Mart reports Q4 results March 14 Now read |
WFC | Dollar firms as traders look to next week s Fed meeting | By Saqib Iqbal Ahmed NEW YORK Reuters The dollar rose to a two day high against a basket of major currencies on Thursday as traders braced for next week s Federal Open Market Committee meeting at which the Fed is expected to raise interest rates The dollar index DXY which measures the greenback against a basket of six other major currencies was up 0 26 percent at 89 937 We think the dollar is consolidating ahead of the Federal Reserve meeting next week said Eric Viloria currency strategist at Wells Fargo NYSE WFC Securities in New York The outlook for the greenback however remains murky amid political uncertainty in the Trump administration and renewed worries about trade wars analysts said The Fed raised rates three times last year and the U S dollar still weakened overall but surrounding each of those Fed interest rate increases there was some firming in the U S dollar but then it tended to soften after said Viloria The greenback found some support from upbeat U S data on Thursday which showed the number of Americans filing for unemployment benefits fell last week Other data on Thursday showed a rise in the prices of imported goods in February amid U S dollar weakness bolstering expectations that inflation will pick up this year Labor market strength and a steady increase in price pressures could allow the Federal Reserve to further raise interest rates at a gradual pace The greenback slipped 0 35 percent against the Japanese currency to 105 95 as trade tensions encouraged investors to buy the Japanese currency Traders are concerned about a U S shift towards increased protectionism under President Donald Trump s administration with Wall Street rattled on Wednesday after the president sought to impose fresh tariffs on China The yen is expected to benefit from any increase in trade protectionism given Japan s strong current account surplus and the currency s reputation as a safe haven The Norwegian central bank kept rates on hold at 0 5 percent on Thursday but said it expected to raise rates after the summer somewhat earlier than a previously forecast December hike pushing the crown to a fresh four month high against the euro The Swiss franc was down slightly against the dollar after the Swiss Central Bank kept its ultra loose monetary policy in place The New Zealand dollar came under pressure after mixed economic growth data there cemented bets on interest rates staying at record lows for a long time yet
The kiwi slipped 0 55 percent against the greenback to 0 729 after weaker than expected fourth quarter GDP data |
WFC | U S labor market tightening inflation gaining steam | By Lucia Mutikani WASHINGTON Reuters The number of Americans filing for unemployment benefits fell last week pointing to sustained labor strength even as economic growth appears to have slowed early in the first quarter Other data on Thursday showed an increase in the prices of imported goods in February amid weakness in the U S dollar and rising commodity prices bolstering expectations that inflation will pick up this year Import prices are likely to rise further after President Donald Trump last week imposed tariffs on steel and aluminum imports to shield domestic industries from what he has described as unfair competition from other countries Labor market strength and a steady increase in price pressures could pave the way for the Federal Reserve to raise interest rates at its March 20 21 policy meeting The U S central bank has forecast three rate increases for this year but some economists believe it will raise its projection to four hikes at the meeting The strong willingness of companies to hold onto labor is a strong signal of the difficulty of replacing workers said John Ryding chief economist at RDQ Economics in New York At this point we would expect another robust gain in jobs in March and a drop in the unemployment rate to 4 0 percent The economy created 313 000 jobs in February and the unemployment rate remained at a 17 year low of 4 1 percent Initial claims for state unemployment benefits declined 4 000 to a seasonally adjusted 226 000 for the week ended March 10 the Labor Department said Claims fell to 210 000 during the week ended Feb 24 the lowest level since December 1969 Claims have now been below the 300 000 threshold which is associated with a strong labor market for 158 straight weeks That is the longest such stretch since 1970 when the labor market was much smaller Fed officials consider the labor market to be near or a little beyond full employment Economists are optimistic that tightening labor market conditions will boost wage growth in the second half of this year That should help to underpin consumer spending which slowed at the start of the year The government reported on Wednesday that retail sales fell in February for a third straight month Data on home sales business spending on equipment and industrial production in January have also been weak Gross domestic product growth estimates for the first quarter are as low as 1 7 percent at an annualized rate The economy grew at a 2 5 percent pace in the fourth quarter the government reported last month But revisions to December data on construction spending factory orders and inventories have suggested the fourth quarter growth estimate could be raised to a 3 1 percent pace The government will publish its third GDP growth estimate for the fourth quarter later this month The U S dollar DXY was stronger against a basket of currencies in midday trading U S government bond prices were slightly weaker and U S stock indexes rose as industrial stocks mounted a recovery after three days of losses SKILLS MISMATCH Diminishing labor market slack is also expected to help boost inflation toward the Fed s 2 percent target Manufacturing surveys from the New York Fed and Philadelphia Fed published on Thursday showed a mixture of tightening labor market conditions and rising prices for inputs The Philadelphia Fed said firms in the mid Atlantic region reported difficulties finding skilled workers especially those with specific machine and tool skills It said more than half the firms were raising wages to address the shortages The New York Fed s Empire State survey showed manufacturers in New York state continuing to pay more for inputs with the survey s prices paid index rising this month to its highest level since March 2012 The firming inflation trend was corroborated by a fourth report from the Labor Department showing import prices rising 0 4 percent last month after accelerating 0 8 percent in January That lifted the year on year increase in import prices to 3 5 percent from January Prices for imported capital goods jumped 0 6 percent in February the biggest increase since April 2008 after being unchanged in January Prices of imported consumer goods excluding automobiles rose 0 5 percent the largest gain since January 2014 after edging up 0 1 percent in the prior month These price increases likely reflected the dollar s depreciation against the currencies of the United States main trading partners and will eventually filter through to core producer and consumer inflation The dollar has lost 9 1 percent of its value on a trade weighted basis since January 2017 Imported iron and steel prices increased 2 2 percent last month and were up 12 6 percent on a year on year basis The cost of imported aluminum rose 0 4 percent pushing the annual increase to 10 3 percent Trump slapped tariffs of 25 percent on steel imports and 10 percent on aluminum imports
Leading up to the March announcement of steel and aluminum tariffs import prices for both metals were already up by double digits this past year said Sarah House a senior economist at Wells Fargo NYSE WFC Securities in New York Assuming tariffs are limited to aluminum and steel we expect only a marginal effect on final consumer prices |
WFC | Wells Fargo CEO defends pay calls Senator Warren s criticism inappropriate | By Steve Friess DETROIT Reuters Wells Fargo Co N WFC Chief Executive Tim Sloan on Thursday defended a 35 percent gain in his latest compensation package while describing comments last year by Democratic U S Senator Elizabeth Warren who had called for his ouster as inappropriate The third largest U S lender has been battling a sales practices scandal that erupted in September 2016 with the revelation employees had opened potentially millions of phony accounts in customers names It s not surprising I disagree with almost everything Elizabeth Warren says Most of her comments are both ill informed and inappropriate Sloan told reporters after speaking to the Detroit Economic Club Warren long a consumer advocate in October told Sloan she did not believe the bank would be able to change with him in charge in remarks during his testimony before the Senate Banking Committee Warren s office did not immediately respond to a request for comment on Sloan s remarks Sloan who took over when former CEO John Stumpf abruptly departed in October 2016 said in January that Wells Fargo was not certain it had fully uncovered and fixed all scandal related issues Internal reviews and regulatory probes have revealed problems in other areas beyond the initial unauthorized accounts including mortgage lending and auto insurance Earlier this month Wells Fargo said it was examining its wealth and investment management business for possible issues In the question and answer session with reporters Sloan noted that the increase in his 2017 compensation from a year earlier in part reflected that he had been in the role for an entire year Regulatory filings on Wednesday showed Sloan s pay rose 35 percent from the previous year even though he had opted out of an annual incentive plan I went to the board and said that I don t believe that it would be appropriate if I were paid a bonus for the year because we haven t made enough progress in terms of advancing he said on Thursday He also said that the bank s scandal related issues have not resulted in any net loss of retail customers We ve had certain customers on the retail side that have left but the net number of customers during this entire period continues to grow he said The Federal Reserve in February imposed a cap on the lender s balance sheet until it improves governance and Wells pledged a refresh of its board
Reuters reported on Wednesday that U S regulators are preparing to sanction the bank for receiving commissions on auto insurance policies it helped force on drivers |
WFC | MMA Capital Management reports Q4 results | MMA Capital Management NASDAQ MMAC Q4 EPS of 0 84Revenue of 7 67M 42 3 Y Y 10 KNow read |
WFC | Wells Fargo s wealth management unit now under federal investigation WSJ | The federal probe into Wells Fargo NYSE WFC has moved beyond the retail unit and into the bank s wealth management division writes Emily Glazer Issues raised by whistleblowers include proprietary bank investment products which are more profitable for the lender According to the filing earlier this month Wells is assessing whether there have been inappropriate referrals or recommendations including with respect to rollovers for 401 k plan participants certain alternative investments or referrals of brokerage customers to the company s investment and fiduciary services business The lender is also reviewing fee calculations with some fiduciary and custody accounts as instances of overcharging have occurred Shares flipped into the red as news broke now down 0 8 on the session Now read |
WFC | Housing Isn t Just About Real Estate | The National Association of Realtors NAR reported today that sales of existing homes resales were up slightly in September 2017 on a monthly basis At a seasonally adjusted annual rate of 5 39 million last month that was practically unchanged from the 5 35 million estimate for August that was the lowest in a year
On an annual basis resales in September were 1 5 less than those in September 2016 It was the first contraction for existing home sales since July 2016
There may be some storm effects to consider in these figures but for yet another economic account softness weakness or however you wish to classify the trend started long before Harvey and Irma were superheated winds blowing across the Sahara Perhaps some house closings were delayed in process by them but the lack of significant rebound in September suggests underlying fundamentals rather than anything else
Those fundamentals continue to be reluctance as a macro rather than financial or other matter The level of estimated inventory of homes available for sale continues to shrink The change in inventory a proxy really of labor market confidence dates back to right when you would expect the middle of 2015 and the appearance of a serious slowdown that has yet to be reported in the mainstream thus it can t be manipulated emotion as some economists like to claim
As noted in identifying the same sort of softness in especially apartment construction as well as the timing these inflections follow almost perfectly the deceleration in the labor market Again the real estate equation is pretty simple fewer new jobs fewer new households demand for new housing units as well as fewer home owners willing to risk making a jump
The breakdown of the monthly resale volume leaves no doubt as to what is taking place in the market The volume of sales at the lower ends is down in the lowest tier by nearly 20 year over year The 100k to 250k segment which saw sales decline by nearly 6 in September 2017 from September 2016 accounted for 43 of all resales Together with the bottom tier the two form a small majority of all activity
In 2013 14 a similar skew contraction in the lower price ranges was to some degree attributable to lower sales of foreclosures and short sales the final remnants of housing bust imbalances being drawn off It wasn t solely related to that as financing elements also came into play after the violent MBS rout of summer 2013 roiled mortgage markets and led many banks including the largest mortgage company Wells Fargo NYSE WFC to scale back home lending
In 2017 there isn t even those possibilities meaning that people who own lower end homes are those who aren t selling them despite all incentives to do so including the natural human instinct to move up when times are good It leaves only the labor market and really broad perceptions about the labor market as it really is quite apart from the unemployment rate view of the economy
Sales at the upper ends aren t as robust as they were either but it does once again propose rather stark economic disparity the same bifurcation that has been evident since the Great Recession The lack of economic recovery is not universal no recovery really is and has hit those at the bottom the hardest In other words some parts of the economy have recovered and the people in those parts are acting like it and probably wonder what all the fuss is about It helps account for among other things further differences in trends like retail sales stagnation versus consumer confidence rising back to and even above pre crisis highs
This is an economic problem as old as the Industrial Revolution No economy will ever be perfectly equal nor should we ever want it to be so compressed in that way like feudalism The difference in the 2010 s is displayed pretty clearly again here though meaning that the lack of full recovery has left far too much of a proportion globally at the wrong end to be healthy The contraction in 2008 09 made that oversized proportion but then the lack of growth thereafter has trapped those within it
An actually healthy economy is one where mobility is a two way proposition you might get knocked down by a recession or the like but you can get right back up and climb the ladder again That s what keeps those outside to a small and manageable level Economic dissatisfaction is almost always a function of perceptions about mobility which affects more than the 15 or 16 million left out of the official labor force
What s worse the proportion of Americans fearing the wrong direction of economic mobility appears to be growing more people sensing less opportunity and greater risk of falling therefore unwilling to sell their homes as well as a whole bunch of other negative factors that don t show up so easily in economic statistics as the gap between actual economic output and what is badly needed recovery only grows larger It becomes a self reinforcing problem starting in the labor market and working outward auto sales being another good indication
They always say that action speaks louder than words Here we see pretty clearly consumers in action when economists like Janet Yellen are instead focused on the words of the unemployment rate That s why they missed the near recession in 2015 16 how bad does that rate hike in December 2015 look in hindsight totally clueless and why they continue to miss the after effects from it |
WFC | Bad News Banksters Double Cross Their Customers | By Clint Siegner
Crooked bankers are all over the headlines again
The world s largest metals hedge fund Red Kite Management Ltd is suing Barclays LON BARC for rigging copper prices Federal prosecutors launched an investigation of Wells Fargo NYSE WFC bankers working on its foreign exchange desk Friday And on October 23rd a jury in New York convicted an HSBC trader of fraud
The Mark Johnson said he thought we got away with it to his coworkers after cheating their client in a massive foreign exchange transaction But he was wrong The jury found him guilty for his involvement in a 2011 exchange in which the Cairn Energy Plc converted 3 5 billion dollars to British pounds
Johnson had taken Cairn s order and promptly turned around to provide the details of the upcoming transaction to other HSBC traders They front ran the client s order by buying pounds which they then resold to the client for approximately 8 million in profit When Cairn complained about the high price at which their trade was executed Johnson blamed the Russians
The of Wells Fargo also involves foreign exchange Federal agents got involved shortly after news that Wells Fargo had fired four traders and re assigned a senior executive Sources said the bank took this action after completion of an internal investigation Details as to which client was involved and how they were cheated are not yet public
Few will be shocked if it turns out that Wells Fargo was swindling another customer Over the past year the bank admitted employees had created as many as 3 5 million phony accounts and charged related fees We also know the bank has been overcharging clients for auto insurance and mortgage related products
The at Barclays Bank on behalf of Red Kite are a variation on the same theme abuse the customer s trust The complaint indicates that bankers used knowledge of the firm s open copper trades to profit at their client s expense
Very often in the commodity markets when an investor places an order to buy or sell with a banker the banker will take the other side of the trade
Any loss becomes his gain Red Kite hopes to recover 850 million in losses in the suit
To have honest markets people are going to have to be held to account Unfortunately it s unlikely a senior bank executive will actually be prosecuted even if it is warranted
Regulators also aren t likely to punish pervasive fraud by revoking any bank s trading privileges Some lower level staffers have been fired and some of those could go to jail but history shows that is about as far as captured federal officials are likely to go
There is hope that the civil suits like the one being waged by Red Kite could bear fruit in terms of holding banks accountable Civil penalties aren t the same as prison time but if they are large enough perhaps it will give bankers pause
There is also the market In a story we can only hope is related last week Deutsche Bank DE DBKGn and Barclays PLC ADR NYSE BCS both announced their trading revenue fell 30 in the third quarter At some point people will start to think twice about whether their bank can really be counted on to treat them fairly and start looking for alternatives Perhaps that has already begun
About the Author Clint Siegner is a Director at the national precious metals company named 2015 Dealer of the Year in the United States by an independent global ratings group A graduate of Linfield College in Oregon Siegner puts his experience in business management along with his passion for personal liberty limited government and honest money into the development of Money Metals brand and reach This includes writing extensively on the bullion markets and their intersection with policy and world affairs |
EBAY | FOREX Dollar gains on cooling risk appetite weak stocks | Dollar up broadly pulls away from 14 month low vs euro
Weaker stocks cool risk demand but dlr gains seen limited
Riskier FX hit Swedish crown falls on Riksbank decision
Adds comment updates prices changes byline
By Jessica Mortimer
LONDON Oct 22 Reuters The dollar rose broadly on
Thursday recovering from 14 month lows versus the euro and a
currency basket as weaker corporate earnings and falls in equity
and commodity markets dampened investor appetite for risk
Commodity linked currencies such as the Australian Canadian
and New Zealand dollars fell coming off recent multi month
highs versus the U S dollar as European shares and oil prices
lost more than 1 percent
Disppointing earnings from eBay Inc on Wednesday were
compounded on Thursday by below forecast results from Ericsson
cooling some of the recent optimism about prospects for a global
economic recovery
Dollar strength fits with lower risk appetite and falling
stock markets said Johan Javeus SEB currency strategist in
Stockholm
Currencies like the Australian and New Zealand dollars have
had a good run over the last few weeks and this is a good
opportunity to take some profit he added
Earlier the U S dollar had also benefited from Chinese
growth data Although growth accelerated the numbers
disappointed some in the market who had expected even stronger
expansion prompting selling in higher yielding currencies
But the dollar stayed not far from multi month lows with
the euro just below the 1 50 level it scaled on Wednesday and
analysts expect its downtrend to resume on the view that U S
interest rates will stay low while the global economy improves
By 1146 GMT the dollar had gained 0 4 percent against a
basket of currencies to 75 258 pulling back from a 14 month low
of 74 940 touched the previous day
The euro was down 0 1 percent on the day at 1 4997 though
it was still within sight of 1 5047 hit on Wednesday its
strongest since August 2008
The euro s proximity to 1 50 suggests that the market is
not taking the current correction as too serious said Michael
Klawitter senior currency strategist at Commerzbank in
Frankfurt
Among riskier currencies the Australian dollar fell 0 4
percent to 0 9229 the New Zealand dollar lost 0 5 percent to
0 7549 while the U S dollar gained 0 6 percent against its
Canadian counterpart to C 1 0490
Sterling also fell against the dollar and the euro stalling
a dramatic rally in the past nine days after UK retail sales
showed no growth in September confounding expectations for a
rise
RIKSBANK HOLDS RATES
The Swedish crown lost ground after the country s central
bank held interest rates at a record low 0 25 percent and
forecast they would stay near zero for another year
The decision was broadly expected but analysts said there
was some surprise at its move to pump another 100 billion
Swedish crowns 14 5 billion into banks with 11 month
fixed rate loans
SEB s Javeus said one reason behind the crown s fall was
that market participants had speculated that the central bank s
tone could be more optimistic this time round
The market had perhaps been taking a small bet that the
Riksbank would deliver a more hawkish tone saying that things
had improved a bit quicker he said
The euro rose 0 4 percent against the Swedish currency to
10 3300 crowns though it was off an earlier high around
10 3750
Later in the session U S jobless claims data at 1230 GMT
and housing data at 1500 GMT will be in focus
Additional reporting by Naomi Tajitsu editing by Nigel
Stephenson |
EBAY | FOREX Dollar rebounds vs euro as risk appetite cools | Dollar up pulls away from 14 month low vs euro
Weaker stocks cool risk demand supporting U S currency
Euro remains near 1 50 renewed rally expected
China stimulus fears briefly rattle market
Updates prices adds U S data comments changes byline
dateline
By Steven C Johnson
NEW YORK Oct 22 Reuters The dollar rose on Thursday
rebounding from a 14 month low against the euro as
disappointing corporate earnings dented demand for higher
yielding currencies and assets
Commodity linked currencies such as the Australian and
Canadian dollars retreated from around 15 month peaks while
European shares fell and oil prices shed 1 percent
Disappointing earnings from eBay Inc on Wednesday and
Thursday s below forecast results from Ericsson cooled some of
the recent optimism about a global recovery
That caused investors to take profits on recent gains in
the euro and other currencies which have rallied against the
dollar on the view that U S interest rates will stay at record
lows well into 2010 leaving Asia to lead economic recovery
Low rates make the dollar less attractive to investors than
higher yield currencies more closely correlated with recovery
We ve seen a big move across a host of assets lately and a
lot of people are looking for when we re going to top out so
there s some profit taking today said Camilla Sutton senior
currency strategist at Scotia Capital in Toronto But Sutton
also said the theme remains dollar negative
Michael Klawitter senior currency strategist at
Commerzbank in Frankfurt said the euro s proximity to 1 50
suggests that the market is not taking the current correction
too seriously
The euro was last down 0 1 percent at 1 4999 after hitting
a 14 month peak of 1 5046 Wednesday The dollar rose 0 5
percent to 91 46 yen and sterling fell 0 3 percent to 1 6553
off Wednesday s one month high above 1 66
Sterling s dip stalled a nine day rally and data showing
UK retail sales were flat in September helped slow the pound s
upward momentum
Against the Canadian dollar the greenback rose 0 9 percent
to C 1 0517 off a 15 month low near C 1 02 last week
CHINA STIMULUS FEARS
A rise in first time applications for U S jobless benefits
showing the U S labor market remains weak further denting
risk appetite
Earlier data showing China s economy grew 8 9 percent in
the third quarter prompted some concern that authorities may
start to unwind some emergency stimulus spending giving the
dollar a modest boost
But other analysts said the data was not strong enough to
trigger policy tightening
There are fears that when there is a removal of stimulus
the underlying fundamentals won t be enough to drive global
growth but the truth is there is a lot of growth coming out of
China and that whole region Sutton said
The euro rose 0 4 percent to 10 315 Swedish crowns after
Sweden s central bank held interest rates at a record low 0 25
percent and forecast they would stay near zero for another
year
The decision was broadly expected but analysts said there
was some surprise at its move to pump another 100 billion
Swedish crowns 14 5 billion into banks with 11 month
fixed rate loans |
EBAY | US STOCKS SNAPSHOT Wall St advances Dow up 1 pct | NEW YORK Oct 22 Reuters U S stocks advanced on
Thursday with the Dow industrials up 1 percent as insurer
Travelers Cos Inc quarterly profit more than quadrupled and
other blue chip results beat expectations
Apple Inc shares pared losses but disappointing reports
from LM Ericsson and eBay Inc kept the Nasdaq s gains in
check
The Dow Jones industrial average gained 97 34 points or
0 98 percent to 10 046 70 The Standard Poor s 500 Index
rose 5 66 points or 0 52 percent to 1 087 06 The Nasdaq
Composite Index added 4 36 points or 0 20 percent to
2 155 09
Reporting by Rodrigo Campos Editing by Jan Paschal |
WFC | Agree Realty offering 3M shares shares down 1 5 | The public offering of common stock comes with a 30 day underwriter option for an additional 450K shares Agree Realty NYSE ADC intends to forward sell the shares and later use the proceeds when received for property acquisitions and development activity Shares are down 1 5 after hoursSource Press ReleaseNow read |
WFC | Wells Fargo now seeing four rate hikes this year | Wells Fargo NYSE WFC Securities rate strategist Mike Schumacher breaks from the pack telling Bloomberg he expects the Fed to hike four times this year Markets have currently priced in three moves He sees the yield on the 10 year Treasury climbing to 3 20 from the current 2 85 ETFs IEF PST IEI VGIT UST DTYS TYO GSY SCHR TBX TYD ITE DTYL HYDD DFVL TYNS DFVSNow read |
EBAY | GLOBAL MARKETS Poor earnings knock stocks dollar bounces | Disappointing earnings weaken stocks
Europe down 1 4 percent Japan 0 6 percent
Wall Street set for weak start
Dollar bounces off 14 month lows
Euro zone government bonds flat
By Jeremy Gaunt European Investment Correspondent
LONDON Oct 22 Reuters Disappointing corporate results
knocked equities lower on Thursday set Wall Street up for a
poor start and helped the dollar bounce off 14 month lows
Gold and oil both slipped as the dollar rose Euro zone
government debt was stronger
Investors in Europe and Asia picked up on Wednesday s
weakness on Wall Street where there was a late sell off of
banking shares and where a wider than expected loss from Boeing
had hurt overall sentiment
After the bell eBay Inc the global e commerce
site forecast fourth quarter profit and revenue at the low end
of analysts estimates
The sour mood was compounded in Europe on Thursday when
Ericsson posted lower than expected third quarter
core earnings and said sales in its key mobile networks market
were hampered by tough market conditions
World stocks as measured by MSCI were down
0 7 percent with the emerging market component off around 1
percent
Europe s FTSEurofirst 300 lost 1 3 percent Earlier
Japan s Nikkei closed down 0 6 percent
Earnings results have generally been better than expected so
far in this reporting season particularly in the United States
but shares are also around year highs making them susceptible
to a fall if something disappoints
The market was poised for a retreat but I m not expecting
a major correction said Christian Jimenez president of Imene
Investment partners in Paris At these levels if all
companies would report satisfying results that would justify
further gains on the market
DOLLAR BOUNCE
The dollar rose broadly pulling back from a 14 month low
against the euro and a currency basket as global stocks fell
The currency has been trading in inverse correlation to
equities in recent months based on shifting risk appetite among
investors
Analysts said the dollar was still on a downward trend
because of generally positive earnings and the view that U S
interest rates will remain low
The euro s proximity to 1 50 suggests that the market is
not taking the current correction as too serious said Michael
Klawitter senior currency strategist at Commerzbank in
Frankfurt
The euro was down 0 1 percent at 1 4977 after
breaking the 1 50 level on Wednesday The dollar was up half a
percent against a basket of major currencies
Euro zone government bonds were little changed
Longer dated paper remained close to near four week lows hit
on Wednesday as the penultimate Federal Reserve purchase of U S
Treasuries reminded markets that support for government bond
markets from central bank buying may be nearing an end
Additional reporting by Blaise Robinson and Naomi Tajitsu
editing by Mike Peacock
To read Reuters Global Investing Blog click on
for the MacroScope
Blog click on |
EBAY | Ebay Bulls Are Running Out Of Power | Ebay Inc NASDAQ EBAY just like many other stocks bottomed in March 2009 and has been under the bulls jurisdiction ever since Prices managed to climb from slightly above 10 per share six years ago to almost 60 in 2014 And while this impressive rise may convince you eBay is a good stock to invest in the recommends a rather cautious approach The chart below visualizes eBay s path during the last six years as well as the most probable wave count
As the chart clearly shows eBay s uptrend looks very much like a where wave 5 is still in progress According to the theory after every five waves there is a three wave correction in the opposite direction So if this is the correct count we should expect a bearish reversal once wave 5 is over Typically it is supposed to exceed the top of wave 3 In our opinion instead of being over confident investors should be getting out when the 60 mark is reached because the bears would probably take control of the situation soon |
EBAY | ADXS INFN MNTA OPK Up Monday | The indices had a pretty good rally on Monday off of a mutual sharp dropping holding secondary support It s a very resilient market and the stocks that we ve traded have done well Some of our swings are acting very well
Advaxis Inc NASDAQ ADXS was up 3 61 to 28 77 or 14 on 3 million shares Since first being spotted this stock has gone up 400 Since we had the last swing on it it has gone from 8 00 to the 28 9 range and doesn t look like it s stopping any time soon Its channel calls for a lateral price resistance at 34 and then 38 as targets potentially Keep your eye on this one and continue to raise your stops
Infinera Corporation NASDAQ INFN one of our Top 25 picks for the year was up 43 cents to 21 07 or 2 on 1 8 million shares on Monday It continues to step its way higher but the reason it s one of the charts here is because of its move through resistance The pullback late in the day may signal a swing trade It could get to 23 and then 27 which are the targets
Momenta Pharmaceuticals Inc NASDAQ MNTA is still moving up and on Monday it was up 1 27 to 21 12 or 6 4 on 2 4 million shares After the base the run up and then the wedge it broke out of the wedge With the volume increasing to 2 4 million shares and then pulling back midday look for it to run up to 25 6 and the 29
Opko Health Inc NYSE OPK popped out of the little pennant or wedge on Monday up 63 cents to 18 31 or 3 56 on 3 3 million shares That s the best volume in 6 sessions At this point if there s a follow through look for 20 and then 23 going forward
Other stocks on Harry s Charts of the Day included AirMedia Group Inc NASDAQ AMCN Infoblox Inc NYSE BLOX BroadSoft Inc NASDAQ BSFT CorMedix Inc NYSE CRMD eBay Inc NASDAQ EBAY Exelixis Inc NASDAQ EXEL FireEye Inc NASDAQ FEYE Heron Therapeutics Inc NASDAQ HRTX ImmunoGen Inc NASDAQ IMGN NeoPhotonics Corporation NYSE NPTN Ignyta Inc NASDAQ RXDX SolarEdge Technologies Inc NASDAQ SEDG Sigma Designs Inc NASDAQ SIGM and Net 1 Ueps Technologies Inc NASDAQ UEPS |
WFC | Euro stabilizes after German Italian elections | By Richard Leong NEW YORK Reuters The euro edged higher on Monday after a short lived sell off tied to Italy s inconclusive weekend election helped by the creation of a coalition government in Germany that eased political uncertainty there Italy s election which pointed to prolonged political jitters after right wing and eurosceptic parties did better than expected was somewhat balanced by Germany s Social Democrats agreeing to join with Chancellor Angela Merkel s conservatives ending a period of uncertainty in Europe s biggest economy Taken together the election outcomes did not to alter investors view on the strength of the euro zone economy although the Italian results put political risks in the region back on the radar All in all they are neutral to slightly positive for the euro said Nick Bennenbroek head of currency strategy at Wells Fargo NYSE WFC Securities in New York Bennenbroek and other analysts said traders will turn their focus to four major central bank meetings this week as well as the U S payrolls report due Friday The Reserve Bank of Australia will meet on Tuesday while the Bank of Canada will hold a policy meeting on Wednesday European Central Bank policymakers will convene on Thursday while their counterparts at the Bank of Japan will meet on Friday The euro EUR was last up 0 09 percent to 1 2328 The single currency rose to a two week high at 1 2365 in Asian trading after the German results It quickly retreated by 0 8 percent toward the day s low at 1 2267 as results from Italy pointed to a messier outcome than expected a strong showing for anti establishment parties and no group able to form a stable government The euro was up 0 31 percent to 130 65 yen It had fallen as much as 0 7 percent to 129 37 yen its lowest since late August in early London trading In an indicator of how sanguine currency markets were about Italy s turmoil risk reversals in currency derivatives markets for euro dollar were smaller than before France s election verdict in May last year Even latest positioning data showed euro bulls remained upbeat with net long currency positions still near record bullish bets in early February GRAPHIC EUR FX and positions More worryingly from the euro s perspective recent data showed that economic momentum has stalled in the euro zone indicating the single currency may be coming under some pressure A Citi economic surprise index for the currency bloc is at near six month lows The dollar steadied after wobbling last week on U S President Donald Trump s proposed tariffs on imported steel and aluminum raising fears of a trade war The greenback strengthened 0 23 percent at 106 00 yen It hit a 16 month low of 105 23 yen on Friday |
WFC | LJM sued by its broker Wells Fargo over missed payments | NEW YORK Reuters A Chicago fund manager that is closing after big losses in last month s U S stock market plunge was sued on Tuesday for 16 4 million by its clearing broker Wells Fargo Securities for having allegedly missed required margin payments In a complaint filed in Manhattan federal court the Wells Fargo Co N WFC unit said it sued LJM Partners Ltd and its LJM Investment Fund LP commodity pool after being required in its role as clearing agent to pay the Chicago Mercantile Exchange more than 16 million to cover the firm s margin and losses Wells Fargo said LJM failed to make contractually required margin payments to cover the losses and that the lawsuit seeks to recover damages for LJM s breach of contract
LJM did not immediately respond to a request for comment |
WFC | More Wells Fargo scrutiny from Congress | Senator Dick Durbin today sent a letter to Wells Fargo NYSE WFC asking the bank to cease any plans it has to add to college partnerships until it has fully addressed the Federal Reserve s orders from last month according to the WSJ Wells Fargo has programs with a number of colleges in which a student s college ID more or less doubles as a debit card Colleges reap nice fees from banks for these sorts of arrangements and the banks get themselves young soon to be upwardly mobile customers Senator Durbin would also like to know if Wells has informed students of the issues which begat the Fed s unprecedented enforcement actions Students need to know the real story says Durbin Previously Wells Fargo tied to gunmakers Bloomberg March 7 Now read |
WFC | U S trade deficit races to more than nine year high | By Lucia Mutikani WASHINGTON Reuters The U S trade deficit increased to a more than nine year high in January with the shortfall with China widening sharply suggesting that President Donald Trump s America First trade policies aimed at eradicating the deficit will likely fail The trade gap continues to widen a year into the Trump presidency Trump who claims that the United States is being taken advantage of by its trading partners has imposed tariffs on imports of some goods and threatened punitive measures on others to shield domestic industries from competition The protectionist measures have sparked fears of a trade war Trump s economics team is trying to turn back the clock on trade but we doubt they will succeed as they are interfering with the business decisions made by thousands of American companies over the years said Chris Rupkey chief economist at MUFG in New York This is a trade war with ourselves The United States has been running trade deficits for decades with the trend worsening over the last 30 years as companies shifted manufacturing to countries like China The Commerce Department said on Wednesday the trade deficit jumped 5 0 percent to 56 6 billion That was the highest level since October 2008 and exceeded economists expectations of an increase to 55 1 billion Part of the rise in the trade gap in January reflected higher commodity prices The politically sensitive goods trade deficit with China surged 16 7 percent to 36 0 billion the highest since September 2015 The deficit with Canada soared 65 percent to a three year high of 3 6 billion China and Canada are the United States top trading partners Trump in late January imposed broad tariffs on imported solar panels and large washing machines Last week Trump announced he would slap import tariffs of 25 percent on steel and 10 percent on aluminum to protect domestic producers While these actions may prove politically popular with Trump s working class political base especially in states hard hit by factory closures and import competition analysts warn they could undercut economic growth There are fears that the tariffs could jeopardize talks on the North American Free Trade Agreement NAFTA linking Canada Mexico and the United States Trump ordered a renegotiation of the trade pact to offer terms more favorable to Washington Worries of a trade war were heightened on Tuesday by the resignation of Gary Cohn Trump s top economic advisor spooking financial markets Stocks on Wall Street were trading lower while prices for U S government bonds rose attracting safe haven bids The dollar rose versus a basket of currencies FULL EMPLOYMENT Trump s America First trade policies are part of an attempt to boost annual economic growth to 3 percent on a sustainable basis The government in January slashed corporate and individual income taxes But with the economy almost at full employment the increase in demand spurred by the 1 5 trillion tax package will probably be satisfied with imports further worsening the trade deficit The economy s strong fundamentals were underscored by a separate report on Wednesday from ADP Research Institute showing private employers added 235 000 jobs in February The report which is jointly developed with Moody s Analytics was published ahead of the government s more comprehensive employment data on Friday According to a Reuters survey of economists nonfarm payrolls probably increased by 200 000 jobs last month matching January s gains The unemployment rate is forecast falling one tenth of a percentage point to 4 0 percent which would be the lowest level since December 2000 The surge in the January trade deficit was flagged by an advance goods trade deficit report last week When adjusted for inflation the trade deficit increased to 69 7 billion from 68 5 billion in December The so called real trade deficit is above the fourth quarter average of 66 8 billion This suggests trade would subtract from first quarter gross domestic product unless the deficit shrinks in February and March Trade sliced 1 13 percentage points from fourth quarter GDP growth Strong growth in U S domestic demand should continue to pull in non petroleum imports going forward said Jay Bryson global economist at Wells Fargo NYSE WFC Securities in Charlotte North Carolina Net exports likely will exert another significant drag on overall GDP growth in the first quarter The economy grew at a 2 5 percent annualized rate in the fourth quarter Growth estimates for the first quarter are around a 2 0 percent pace In January exports fell 1 3 percent to 200 9 billion weighed down by a 1 8 billion drop in civilian aircraft Crude oil exports also declined But exports of consumer goods rose to a record high and those of motor vehicles parts and engines were the highest since July 2014 Exports to China tumbled 28 1 percent Imports were unchanged at 257 5 billion in January amid a 1 3 billion drop in cellphone imports as well as a 0 9 billion decrease in civilian aircraft Crude oil imports increased by 2 2 billion reflecting higher prices Imports from China rose 2 9 percent A third report from the Labor Department showed worker productivity flat in the fourth quarter instead of declining at a 0 1 percent rate as reported last month Sluggish productivity could make it difficult for the Trump administration to achieve its 3 percent growth target
Annual economic growth has not surpassed 3 percent since 2005 Gross domestic product expanded 2 3 percent in 2017 |
WFC | Massachusetts s securities regulator investigates Wells Fargo Advisors | By Elizabeth Dilts NEW YORK Reuters Massachusetts Secretary of the Commonwealth William Galvin said Thursday his office is investigating possible customer abuses by employees of Wells Fargo NYSE WFC Co s brokerage division Galvin s investigation comes a week after Wells Fargo announced its own internal review into whether employees at its brokerage Wells Fargo Advisors recommended unsuitable investments or made inappropriate referrals or recommendations related to advisory accounts or 401 k roll overs Wells Fargo Advisors spokeswoman Shea Leordeanu said in an emailed statement that the firm has made significant progress in our work to identify and fix any issues make things right and build a better stronger company The third largest U S bank also said it is reviewing whether clients were overcharged for certain fiduciary and custody accounts in a part of the wealth management business that handles trusts according to its annual 10 K U S Securities and Exchange Commission filing Wells Fargo s internal review was prompted by requests from federal regulators and the Massachusetts state secretary said his office is asking for information about the scope of the investigation The bank has been dogged by scandal since September 2016 when it reached a 190 million settlement with the federal and state regulators related to the opening of 3 5 million accounts for customers without their permission by Wells Fargo employees seeking to hit sales targets Wells Fargo s recent banking scandal which involved opening bogus accounts for their customers leads me to believe that where there is smoke there s fire Galvin said in a statement I need to be assured that Massachusetts residents haven t been burned by corporate greed |
WFC | Wells Fargo downgrades Match Group raises target | Wells Fargo NYSE WFC downgrades Match Group NASDAQ MTCH from Outperform to Market Perform but raises the price target by 3 to 45 which is 0 64 above yesterday s close Analyst Peter Stabler says future share expansions will depend more on positive revisions rather than multiple expansion Match Group shares are down 1 9 premarket to 43 50 Now read |
WFC | Company News For Oct 16 2017 | Shares of Applied Optoelectronics Inc NASDAQ AAOI plummeted 20 1 after the company lowered its third quarter 2017 non GAAP EPS to 1 04 to 1 09 down from the earlier projection of 1 30 1 43Wells Fargo Company s NYSE WFC shares declined 2 8 after the company posted third quarter 2017 revenues of 21 926 million below the Zacks Consensus Estimate of 22 320 millionFirst Republic Bank s NYSE FRC shares declined 7 1 after reporting third quarter 2017 earnings of 1 14 a share lower than the Zacks Consensus Estimate of 1 16Shares of NeoGenomics Inc NASDAQ NEO plummeted 15 1 after projecting third quarter revenues of 63 1 million which would be lower by approximately 1 million due to effects of hurricanes |
WFC | U S manufacturing goods trade data point to slow first quarter growth | By Lucia Mutikani WASHINGTON Reuters New orders for U S made capital goods unexpectedly fell for a second straight month in January and shipments barely rose pointing to a slowdown in business spending on equipment and in economic growth early in the first quarter The moderation in growth was underscored by other data on Tuesday showing a widening in the goods trade deficit last month amid decreasing exports The reports joined weak January retail sales industrial production and home sales data in suggesting the economy lost momentum at the start of the year But overall economic activity remains supported by robust consumer confidence which surged to a more than 17 year high in February Rising house prices are also boosting household wealth helping to underpin consumer spending Growth this year should be strong maybe even in the 3 percent range but to get there current business and consumer spending patterns have to change said Joel Naroff chief economist at Naroff Economic Advisors in Holland Pennsylvania Orders for non defense capital goods excluding aircraft a closely watched proxy for business spending plans dropped 0 2 percent last month after declining 0 6 percent in December That was the first back to back drop in these so called core capital goods orders since May 2016 Economists polled by Reuters had forecast these orders rising 0 5 percent last month Orders increased 8 0 percent on a year on year basis There were decreases in orders for machinery primary metals and electrical equipment appliances and components Orders for computers and electronic products and fabricated metal products rose last month Shipments of core capital goods edged up 0 1 percent after accelerating 0 7 percent in December Core capital goods shipments are used to calculate equipment spending in the government s gross domestic product measurement U S financial markets were little moved by the data as investors monitored Federal Reserve Chairman Jerome Powell s debut testimony before the House Financial Services Committee Powell said the U S central bank would stick with gradual interest rate increases Fed officials anticipate three rate increases this year The dollar rose to a more than two week high against a basket of currencies Prices for U S Treasuries fell with the spread between shorter and longer dated yields narrowing Stocks on Wall Street were lower CONSUMER CONFIDENCE SURGES Spending on equipment is slowing after robust growth in 2017 which was partly driven by expectations of hefty tax cuts from the Trump administration which have since materialized There is cautious optimism that companies will use some of their windfall from the 1 5 trillion tax cut package to boost productivity The Trump administration slashed the corporate income tax rate to 21 percent from 35 percent effective January Last year s moonshot in business spending is showing some signs of returning to earth said Tim Quinlan a senior economist at Wells Fargo NYSE WFC Economics in Charlotte North Carolina In another report on Tuesday the Commerce Department said the goods trade deficit rose 3 0 percent to 74 4 billion in January Exports of goods fell 3 1 billion to 133 9 billion Goods imports slipped 0 9 billion to 208 3 billion The department also said wholesale inventories increased 0 7 percent in January Retail inventories rose 0 8 percent The weak core capital goods orders and larger goods trade deficit will likely weigh on first quarter GDP growth However some of the impact could be mitigated by the rise in inventories The Atlanta Fed cut its first quarter GDP estimate by six tenths of a percentage point to a 2 6 percent annualized rate Growth estimates by Wall Street investment banks are as low as a 2 0 percent pace We still have penciled in 2 5 percent GDP growth this quarter but we are growing nervous about what is looking to be an overly optimistic forecast said Chris Rupkey chief economist at MUFG in New York The economy grew at a 2 6 percent rate in the fourth quarter Growth in the first quarter tends to be weak because of a seasonal quirk In a third report the Conference Board said its consumer confidence index increased 6 5 points to 130 8 this month the highest reading since November 2000 The rise came despite recent stock market volatility and was largely driven by labor market optimism The survey s so called labor market differential derived from data about respondents who think jobs are hard to get and those who think jobs are plentiful was the most favorable since January 2001 This measure which closely correlates to the unemployment rate in the Labor Department s employment report is pointing to further declines in the jobless rate and labor market slack The unemployment rate is at a 17 year low of 4 1 percent Better job prospects higher wages are pretty compelling sources of support for the all important American consumer said Jennifer Lee a senior economist at BMO Capital Markets in Toronto Separately the S P CoreLogic Case Shiller composite home price index of 20 U S metropolitan areas rose 6 3 percent in December from a year ago after increasing 6 4 percent in November Prices in the 20 cities advanced 0 6 percent in December from November on a seasonally adjusted basis Tight supply is keeping home prices elevated While that is boosting equity for homeowners it is hurting home sales Sales of both new and previously owned homes fell in January for a second straight month The inventory shortage has become so severe that December showed no slowdown in prices said Joe Kirchner a senior economist at realtor com This increase is likely evidence that unsuccessful summer home buyers stayed in the market well into the winter months in order to close on their dream home
In a fifth report the Federal Housing Finance Agency said its house price index rose 6 5 percent in the 12 months through December |
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