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WFC | Wells Fargo names Mike Roemer chief compliance officer | Reuters Wells Fargo Co N WFC the third biggest U S bank by assets on Thursday named Mike Roemer chief compliance officer Roemer who joins from Barclays Plc L BARC will take charge in January the company said He takes over from interim CCO Kevin Oden who in June replaced Yvette Clark who was Wells Fargo s chief compliance officer since 2012 Roemer who joined Barclays in 2012 helped in reforming practices in the British bank s markets division following its involvement in the Libor rate rigging scandal and an ongoing investigation into the lender s chief executive Jes Staley over attempts to unmask a whistleblower Hiring a leader with Mike s credentials is an important step in our commitment to building a stronger compliance function and a better Wells Fargo CEO Tim Sloan said
The company is due to report third quarter results on Friday |
WFC | Ohio extends ban on Wells Fargo business by six months | WASHINGTON Reuters Ohio will extend its ban on doing business with Wells Fargo NYSE WFC Co because the bank has not done enough to help consumers and clean up its culture the state s governor said on Thursday This bank has not yet regained the public s confidence Governor John Kasich said in a statement Wells Fargo still has work to do Ohio cut ties with Wells Fargo last October in the wake of a sales scandal that began after the bank was found to have created as many as 2 1 million fake accounts to boost sales targets The number was later revised to 3 5 million and problems with other products including auto insurance life insurance and mortgages have surfaced over the past year At the time Kasich said Ohio would not turn to the bank for help on debt offerings or financial services for one year On Thursday he extended that ban through April I m willing to revisit this situation in six months Kasich said in a statement
Other cities and states have enacted similar bans including New York City Chicago Massachusetts Illinois and California It could not be immediately determined if all of those bans are still in place |
WFC | Today s energy infrastructure fund performance | SMLPX 0 48 TORIX 0 66 ENFR 0 25 MLPI 0 74 MLPX 0 36 FLM 0 01 IDE 1 05 INF 0 38 INFR 0 5 MFD 0 1 MGU 0 38 NFRA 0 21 UTF 0 26 Now read |
WFC | 5 Trade Ideas For Wells Fargo Bonus Idea | Here is your Bonus Idea with links to the full Top Ten
Wells Fargo NYSE WFC is not only one of Warren Buffett s favorite banks for good reason The stock had a strong move higher from a 2011 low to the high in mid 2015 It rose over 160 in that span before commencing a pullback If you remember that is when the Fed suggested that they would at some point stop providing accommodation to the markets The pullback retraced 38 2 of the run higher before finding support
The price bounced off of that support three times over 2016 and started a move higher off of the last time It gathered strength as it passed above 51 the 2016 high level meeting resistance at a price of 57 in December The digestive pullback from there found support quickly and has reversed back to 57 This gives a target to 67 on a Measured move The broader price action back to 2011 is building an AB CD pattern as well with a completion at 80
Momentum is strong with the RSI in the bullish zone and moving higher The MACD is also rising and bullish The Bollinger Bands are moving higher as are the SMA s The trend higher looks to continue The stock has very low short interest at less than 1 and has just passed its earnings report and dividend ex date Both will not happen again until mid April
The February monthly options chain shows largest open interest at the 57 50 Strike on the Call side It is also large above at 60 and on both sides below at 55 The April chain shows a similar mix with the Call side biggest from 55 to 60 and large Put open interest at 55 but also big at 50 Farther afield the January 2018 expiry options show Put activity centered on the 45 strike and at 55 on the Call side Finally the January 2019 options have far and away the most open interest at the 55 Call strike then the 60 Calls All this points to stable expectations
Wells Fargo Ticker WFC
Trade Idea 1 Buy the stock on a move over 57 50 with a stop at 53
Trade Idea 2 Buy the stock on a move over 57 50 and add an April 55 50 Put Spread 1 00 for protection funded by selling an April 60 Covered Call 1 01 credit
Trade Idea 3 Buy the April 57 5 Call 2 15 and sell an April 55 50 Put Spread 0 95 credit
Trade Idea 4 Buy the January 2018 Expiry 57 5 62 5 Call Spread 2 25 and sell the January 45 Put 1 65 credit
Trade Idea 5 Buy an April January 2019 Expiry 60 Call Calendar 5 45 and as April approaches look to roll the short calls up and out to June for another credit
After reviewing over 1 000 charts I have found some good setups for the week These were selected and should be viewed in the context of the broad picture reviewed Friday which with the first FOMC meeting of the year and the employment report behind saw the Equity markets had a strong week and look primed for the next leg higher
Elsewhere look for Gold to continue in its short term uptrend while Crude Oil churns with more sideways price action The US Dollar Index looks to continue to the downside although it is at a good support area should it want to reverse while US Treasuries are biased lower
The Shanghai Composite looks to continue to drift around resistance but higher and Emerging Markets look to continue their recent strength Volatility looks to remain at exceptionally low levels keeping the bias higher for the equity index ETF s SPDR S P 500 NYSE SPY iShares Russell 2000 NYSE IWM and PowerShares QQQ Trust Series 1 NASDAQ QQQ Their charts all look strong on the weekly timeframe and are at the edge of breaking out of ranges on the daily timeframe Use this information as you prepare for the coming week and trad em well
DISCLAIMER The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment I or my affiliates may hold positions or other interests in securities mentioned in the Blog please see my page for my full disclaimer |
CMCSA | UK seeks additional reassurances from Comcast on independence of Sky News | LONDON Reuters Britain has sought additional reassurances from cable company Comcast O CMCSA over the editorial independence of the Sky News television channel following the U S group s takeover of broadcaster Sky L SKYB Comcast emerged triumphant in the long running battle for the pay TV group after it beat Murdoch s Twenty First Century Fox O FOXA in a rare auction held last month I ve left them in no doubt at all about the importance of editorial independence and Sky News and what we expect not just over the immediate period following the changes to corporate ownership but in the longer term culture minister Jeremy Wright told Sky News Wright said he had found reassurances previously offered by Comcast persuasive but also wanted to make sure they were firmed up and would be keen to take further steps to do so if needed He did not provide specific details
We want to make sure they are committed to Sky News in the long term and committed to its editorial independence he said |
CMCSA | Comcast s 40 billion Sky takeover becomes unconditional | LONDON Reuters U S cable company Comcast NASDAQ CMCSA took control of Sky on Tuesday after it acquired the 39 percent of the company owned by Twenty First Century Fox the rival it defeated with a 40 billion knock out bid for the European pay TV group last month Comcast said it held nearly 77 percent of Sky s shares making its takeover wholly unconditional Brian L Roberts chairman and CEO of Comcast said he was pleased to become the majority owner of Sky on Tuesday Led by Jeremy Darroch and his superb team now together with Comcast our combined global leadership in technology and content paves the way for us to accelerate investment and growth in Sky s brand and premier platforms he said We are also fully committed to ensuring Sky News future maintaining its editorial independence and preserving its strong track record for trusted high quality impartial news Sky said the cancellation of its shares was expected to become effective on 7 November |
CMCSA | Comcast Falls 3 | Investing com Comcast NASDAQ CMCSA fell by 3 to trade at 34 34 by 15 56 19 56 GMT on Wednesday on the NASDAQ exchange
The volume of Comcast shares traded since the start of the session was 19 10M Comcast has traded in a range of 34 33 to 35 65 on the day
The stock has traded at 35 88 at its highest and 34 34 at its lowest during the past seven days |
CMCSA | Comcast Rises 3 | Investing com Comcast NASDAQ CMCSA rose by 3 to trade at 34 69 by 15 45 19 45 GMT on Friday on the NASDAQ exchange
The volume of Comcast shares traded since the start of the session was 23 76M Comcast has traded in a range of 33 90 to 34 70 on the day
The stock has traded at 35 83 at its highest and 33 51 at its lowest during the past seven days |
CMCSA | Comcast CMCSA Stock Moves 0 1 What You Should Know | In the latest trading session Comcast CMCSA closed at 41 04 marking a 0 1 move from the previous day This change lagged the S P 500 s 0 on the day Elsewhere the Dow lost 0 05 while the tech heavy Nasdaq lost 0 21
Prior to today s trading shares of the cable provider had gained 3 84 over the past month This has lagged the Consumer Discretionary sector s gain of 4 09 and the S P 500 s gain of 5 49 in that time
CMCSA will be looking to display strength as it nears its next earnings release which is expected to be April 25 2019 In that report analysts expect CMCSA to post earnings of 0 65 per share This would mark year over year growth of 4 84 Our most recent consensus estimate is calling for quarterly revenue of 27 30 billion up 19 8 from the year ago period
CMCSA s full year Zacks Consensus Estimates are calling for earnings of 2 80 per share and revenue of 112 45 billion These results would represent year over year changes of 9 8 and 18 98 respectively
Investors might also notice recent changes to analyst estimates for CMCSA Recent revisions tend to reflect the latest near term business trends As such positive estimate revisions reflect analyst optimism about the company s business and profitability
Research indicates that these estimate revisions are directly correlated with near term share price momentum To benefit from this we have developed the Zacks Rank a proprietary model which takes these estimate changes into account and provides an actionable rating system
The Zacks Rank system ranges from 1 Strong Buy to 5 Strong Sell It has a remarkable outside audited track record of success with 1 stocks delivering an average annual return of 25 since 1988 Within the past 30 days our consensus EPS projection has moved 2 66 higher CMCSA currently has a Zacks Rank of 2 Buy
Valuation is also important so investors should note that CMCSA has a Forward P E ratio of 14 65 right now This represents a discount compared to its industry s average Forward P E of 26 49
We can also see that CMCSA currently has a PEG ratio of 1 16 This popular metric is similar to the widely known P E ratio with the difference being that the PEG ratio also takes into account the company s expected earnings growth rate The Cable Television was holding an average PEG ratio of 2 14 at yesterday s closing price
The Cable Television industry is part of the Consumer Discretionary sector This group has a Zacks Industry Rank of 163 putting it in the bottom 37 of all 250 industries
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors Our research shows that the top 50 rated industries outperform the bottom half by a factor of 2 to 1
You can find more information on all of these metrics and much more on Zacks com |
CMCSA | CMCSA Or RCI Which Is The Better Value Stock Right Now | Investors looking for stocks in the Cable Television sector might want to consider either Comcast CMCSA or Rogers Communication RCI But which of these two stocks presents investors with the better value opportunity right now Let s take a closer look
There are plenty of strategies for discovering value stocks but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns The Zacks Rank favors stocks with strong earnings estimate revision trends and our Style Scores highlight companies with specific traits
Comcast and Rogers Communication are sporting Zacks Ranks of 2 Buy and 3 Hold respectively right now The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates so investors should rest assured that CMCSA has an improving earnings outlook But this is just one piece of the puzzle for value investors
Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether a company is undervalued at its current share price levels
The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics These include the long favored P E ratio P S ratio earnings yield cash flow per share and a variety of other fundamentals that help us determine a company s fair value
CMCSA currently has a forward P E ratio of 14 53 while RCI has a forward P E of 15 07 We also note that CMCSA has a PEG ratio of 1 15 This metric is used similarly to the famous P E ratio but the PEG ratio also takes into account the stock s expected earnings growth rate RCI currently has a PEG ratio of 3 01
Another notable valuation metric for CMCSA is its P B ratio of 2 65 The P B ratio pits a stock s market value against its book value which is defined as total assets minus total liabilities For comparison RCI has a P B of 4 35
Based on these metrics and many more CMCSA holds a Value grade of B while RCI has a Value grade of C
CMCSA sticks out from RCI in both our Zacks Rank and Style Scores models so value investors will likely feel that CMCSA is the better option right now |
CMCSA | Comcast CMCSA Is Up 2 18 In One Week What You Should Know | Momentum investing is all about the idea of following a stock s recent trend which can be in either direction In the long context investors will essentially be buying high but hoping to sell even higher And for investors following this methodology taking advantage of trends in a stock s price is key once a stock establishes a course it is more than likely to continue moving in that direction The goal is that once a stock heads down a fixed path it will lead to timely and profitable trades
Even though momentum is a popular stock characteristic it can be tough to define Debate surrounding which are the best and worst metrics to focus on is lengthy but the Zacks Momentum Style Score part of the Zacks Style Scores helps address this issue for us
Below we take a look at Comcast CMCSA a company that currently holds a Momentum Style Score of A We also talk about price change and earnings estimate revisions two of the main aspects of the Momentum Style Score
It s also important to note that Style Scores work as a complement to the Zacks Rank our stock rating system that has an impressive track record of outperformance Comcast currently has a Zacks Rank of 2 Buy Our research shows that stocks rated Zacks Rank 1 Strong Buy and 2 Buy and Style Scores of A or B outperform the market over the following one month period
You can see the current list of Zacks 1 Rank Stocks here
Set to Beat the Market
Let s discuss some of the components of the Momentum Style Score for CMCSA that show why this cable provider shows promise as a solid momentum pick
A good momentum benchmark for a stock is to look at its short term price activity as this can reflect both current interest and if buyers or sellers currently have the upper hand It is also useful to compare a security to its industry as this can help investors pinpoint the top companies in a particular area
For CMCSA shares are up 2 18 over the past week while the Zacks Cable Television industry is up 0 84 over the same time period Shares are looking quite well from a longer time frame too as the monthly price change of 4 66 compares favorably with the industry s 1 86 performance as well
While any stock can see its price increase it takes a real winner to consistently beat the market That is why looking at longer term price metrics such as performance over the past three months or year can be useful as well Over the past quarter shares of Comcast have risen 15 38 and are up 24 6 in the last year In comparison the S P 500 has only moved 11 89 and 11 51 respectively
Investors should also pay attention to CMCSA s average 20 day trading volume Volume is a useful item in many ways and the 20 day average establishes a good price to volume baseline a rising stock with above average volume is generally a bullish sign whereas a declining stock on above average volume is typically bearish CMCSA is currently averaging 15 453 720 shares for the last 20 days
Earnings Outlook
The Zacks Momentum Style Score also takes into account trends in estimate revisions in addition to price changes Please note that estimate revision trends remain at the core of Zacks Rank as well A nice path here can help show promise and we have recently been seeing that with CMCSA
Over the past two months 9 earnings estimates moved higher compared to 1 lower for the full year These revisions helped boost CMCSA s consensus estimate increasing from 2 73 to 2 84 in the past 60 days Looking at the next fiscal year 9 estimates have moved upwards while there have been 1 downward revision in the same time period
Bottom Line
Given these factors it shouldn t be surprising that CMCSA is a 2 Buy stock and boasts a Momentum Score of A If you re looking for a fresh pick that s set to soar in the near term make sure to keep Comcast on your short list |
WFC | Wells Fargo executives board must face lawsuit over fake accounts federal judge says | By Jonathan Stempel Reuters A federal judge said current and former Wells Fargo NYSE WFC Co officers and directors including Chief Executive Officer Tim Sloan must face nearly all of a lawsuit by shareholders seeking to hold them personally liable for sales abuses and the creations of millions of unauthorized accounts U S District Judge Jon Tigar in San Francisco said shareholders may pursue claims that Wells Fargo officials looked the other way as employees facing unrelenting pressure to meet sales quotas unlawfully opened accounts and misled the public about fraudulent practices at the nation s third largest bank Where as here plaintiffs claims arise from a pervasive and undisputed fraud going to the core of the company s business it is reasonable to infer senior executives knew about or at least recklessly turned a blind eye to the stream of red flags Tigar wrote in a decision dated Wednesday The judge also said that in the unlikely event Sloan did not know about the suspect practices before 2013 when he was chief financial officer he was certainly aware of these issues by December 2013 when he told the Los Angeles Times I m not aware of any overbearing sales culture Wells Fargo spokesman Peter Gilchrist said in an email that the bank was taking decisive steps to rebuild trust including from employees and shareholders We will continue to advocate strongly for our positions before the courts he added Lawyers for the plaintiffs did not immediately respond to requests for comment The shareholder derivative lawsuit seeks to force officers and directors or their insurers to reimburse Wells Fargo for losses caused by their alleged poor oversight and misleading statements as well as governance changes Wells Fargo has been rocked since September 2016 by a series of scandals including the San Francisco based bank s creation of as many as 3 5 million unauthorized accounts Many lawsuits have been filed including on behalf of customers and several top officials including onetime Chief Executive John Stumpf and retail banking chief Carrie Tolstedt have left the bank Stumpf and Tolstedt are defendants in the derivative lawsuit Sloan testified on Tuesday before the Senate Banking Committee about Wells Fargo s response to the scandals and faced attacks from Republican and Democratic senators Senator Elizabeth Warren a Massachusetts Democrat called for Sloan to be fired
The case is In re Wells Fargo Co Shareholder Derivative Litigation U S District Court Northern District of California No 16 05541 |
CMCSA | Comcast secures over 75 percent of Sky shares | LONDON Reuters Comcast O CMCSA said it had secured over 75 percent of Sky s L SKYB shares bringing it closer to finalizing the 40 billion takeover of the British pay TV group U S cable company Comcast has previously said it hoped the acquisition would complete by the end of October Last month Comcast emerged triumphant in the long running battle for Sky after it beat Rupert Murdoch s Twenty First Century Fox O FOXA in an auction Comcast said in a regulatory filing on Thursday that by Oct 9 when its acquisition of Twenty First Century Fox s 39 percent stake completes it will hold or have received acceptances in respect of over 75 percent of Sky s share capital
The company said a further announcement will be made in due course |
WFC | Exclusive U S mulls further Wells Fargo sanction over sales abuses source | By Patrick Rucker and Dan Freed WASHINGTON NEW YORK Reuters The main regulator for Wells Fargo Co N WFC is considering whether to sanction the U S bank over improperly charging customers for car insurance and mortgage loans according to a source familiar with the matter The Office of the Comptroller of the Currency OCC has for weeks debated how to take action on the insurance and mortgage issues which came to light this summer said the source And officials are considering whether to fault the bank for older consumer lending issues said two sources familiar with the moves Wells Fargo earlier reached a 190 million settlement with regulators a year ago after it said its branch staff had opened as many as 2 1 million accounts without customers authorization to meet internal sales target That estimate was hiked to potentially as many as 3 5 million in August after an expanded review The third largest U S bank had promised to erase unfair and deceptive practices according to the sources who declined to be named because the deliberations are private If the OCC determines that Wells Fargo has fallen short of that agreement known as a Matter Requiring Attention the bank could face punishment they said Bryan Hubbard an OCC spokesman said the agency does not comment on supervisory matters A Wells Fargo spokeswoman said the bank would not comment on regulatory matters A decision on whether or not to sanction Wells Fargo could take weeks OCC staff have recommended taking enforcement action one source said Keith Noreika the acting OCC chief could either endorse the staff position reject it or wait until Joseph Otting who has been appointed to lead the agency takes office President Donald Trump tapped Otting a former banker but the Senate must first confirm the choice and lawmakers have not yet scheduled a vote The potential for further sanctions come as Wells Fargo Chief Executive Tim Sloan is expected to appear before the Senate Banking Committee on Tuesday to answer questions about a year long scandal over the bank s sales practices Sloan appearing before the Senate for the first time as chief executive is keen to reassure lawmakers that the San Francisco based bank has moved on from the scandal But with the emergence of more recent problems in other products including auto insurance and mortgages he faces a tough task The problems around auto insurance and mortgage products emerged publicly this year In late July Wells Fargo said hundreds of thousands of customers were due a refund on auto insurance that they did not need A lawsuit in late August accused Wells Fargo of improperly charging thousands of customers nationwide to lock in interest rates when their mortgage applications were delayed
The bank said in its most recent quarterly financial filing on Aug 4 that its rate lock program is the subject of an investigation by the U S Consumer Financial Protection Bureau |
WFC | Wells Fargo CEO defends leadership in heated Senate appearance | By Patrick Rucker and Dan Freed Reuters U S senators grilled Wells Fargo Co N WFC Chief Executive Tim Sloan on Tuesday about what he had done to change the bank s culture after a sales practices scandal erupted last year with one senior Democratic lawmaker calling for his ouster Senate Banking Committee members flagged problems involving auto insurance and mortgage fees that came to light months after the lender disclosed it had created millions of phony customer accounts The ensuing scandal hammered Wells Fargo s reputation and sparked management changes lawsuits and government probes U S Senator Elizabeth Warren seen as a possible 2020 presidential candidate dismissed suggestions that Sloan could be an agent of change at the San Francisco based bank and called for his firing Wells Fargo is not going to change with you in charge said Warren who noted that Sloan had bragged about the bank s ability to open accounts between 2011 and 2014 and had said its strategy did not need to change months before its 2016 scandal The only way we re ever going to stop these scandals is to hold executives personally accountable to fire people who are responsible and when they break the law to march some of them out in handcuffs the Massachusetts lawmaker added Sloan who took over from John Stumpf in October 2016 defended his own leadership and tried to distinguish the bank from the track record of his predecessor Stumpf resigned less then a month after he appeared before the same Senate committee I am angry about how we handled the problems historically Sloan said also noting that his knowledge of Wells Fargo and the actions he had taken since becoming CEO made him qualified to lead the bank But Democratic Senator Sherrod Brown said Wells Fargo was still falling short of the mark criticizing it for forcing legal claims against the bank into private arbitration including one case brought two months ago The changes Mr Sloan and his team made are not enough Brown said The Ohio lawmaker also pointed out that Sloan was a three decade veteran of the bank and questioned why he had not taken action earlier Wells Fargo shares were down 1 percent in early afternoon trading REGULATORY LEGAL TANGLES The stakes are high for Sloan as he tries to shake the year long scandal The Office of the Comptroller of the Currency the leading regulator for Wells Fargo is considering new sanctions against the bank for customer abuses involving auto insurance and mortgage loans Reuters reported on Monday Wells Fargo a year ago reached a 190 million settlement with regulators after it said it had opened as many as 2 1 million accounts without customers authorization to meet internal sales targets The bank raised that estimate in August to potentially as many as 3 5 million after an expanded review Sloan said on Tuesday he was confident no more than 3 5 million accounts had been opened Warren who last year accused Stumpf of gutless leadership has repeatedly called on the Federal Reserve to remove 12 members of Wells Fargo s board of directors including Vice Chair Elizabeth Duke Duke a former Fed governor is set to take over from Wells Fargo Chairman Stephen Sanger at the start of 2018 Wells Fargo s problems with auto insurance and mortgage products emerged publicly this year In late July it said hundreds of thousands of customers were due a refund on auto insurance that they did not need In late August a homeowner sued Wells Fargo for charging too much for his fixed rate mortgage Sloan said on Tuesday the bank will contact 108 000 mortgage customers to remediate any complaints they may have about a fee paid to lock in rates
The bank has already said its rate lock service is under investigation by the Consumer Financial Protection Bureau |
WFC | Wells Fargo credit rating downgraded at Fitch | Wells Fargo s NYSE WFC earnings profile will be diminished from historical levels improved risk governance and controls will take longer than anticipated says Fitch downgrading the bank s credit rating to A from AA The outlook is stable meaning no more cuts are anticipated in the foreseeable future Shares down 0 5 premarket Now read |
WFC | Wall Street rally on pause but more gains seen in 2018 Reuters poll | By Caroline Valetkevitch NEW YORK Reuters A more than eight year bull market on Wall Street will simmer for the rest of 2017 before picking up again next year said strategists in a Reuters poll who were optimistic about corporate profits but concerned about slow tax reform progress The benchmark S P 500 SPX is likely to finish this year at 2 525 about 13 percent above 2016 s end but 0 4 percent down from Tuesday s close of 2 534 58 based on the median forecast of 47 strategists polled by Reuters After strong third quarter gains fueled in part by U S President Donald Trump s recent proposals for the biggest federal tax overhaul in three decades the index is trading at a record already above the median forecast from a June Reuters poll of 2 460 The median S P 500 forecast in the poll for end 2018 was 2 675 The economy and earnings are pretty good and they re the building blocks That s what s given us the good year to date gains and could continue to cause those of us who think stocks are OK but not great to be too cautious said Robert Doll chief equity strategist at Nuveen Asset Management in Princeton New Jersey He has a 2 550 year end target for the S P 500 Recent hurricanes in the United States curbed some consumer spending in August but accounted somewhat for a surge in a measure of U S manufacturing activity to a near 13 1 2 year high in September Other data showed new orders for U S made capital goods increased more than expected in August How long the bull run lasts will depend also on the Federal Reserve whose accommodative monetary policy has helped fuel the market s rally in recent years and whether the U S economy can keep growing as the Fed hikes U S interest rates further Last month the Fed signaled it expects one more rate hike by the end of the year but said it was closely watching inflation If inflation stays low that could mean a less aggressive Fed analysts said Investors also face the prospect of a new Fed chief early next year Chair Janet Yellen whose term expires in February is among several under consideration for the job While investors have cheered Trump s proposed tax reform the plan is only in its early stages and already has prompted criticism including that it could add trillions of dollars to the deficit There are a lot of details that need to be worked out said Scott Wren senior global equity strategist at Wells Fargo NYSE WFC Investment Institute in St Louis Missouri Wells Fargo has a 2017 target of 2 350 for the S P 500 and a 2018 target of 2 500 Republicans so far have been unable to produce any major legislative successes since Trump took office in January despite controlling the White House and both Houses of Congress Strategists expect companies profit growth to help justify lofty valuations and sustain gains in stocks Analysts forecast a year over year earnings gain of 11 5 percent for the S P 500 in 2017 and growth of another 11 1 percent in 2018 Thomson Reuters data shows The S P 500 is trading at about 18 times expected earnings over the next year well above its long term average of about 15 Among sectors technology remains a favorite pick for many strategists The S P 500 technology index SPLRCT has far outpaced gains in the broader market and as of Tuesday was up about 26 percent for the year so far Many strategists in the poll said they expected the market s recent lack of volatility to continue for at least the near term They largely id not see the CBOE Volatility index VIX rising to historically normal levels for at least another three to six months The poll also showed the Dow Jones Industrial Average DJI ending 2017 at 23 000 slightly above Tuesday s close of 22 641 67 The index is forecast to end 2018 24 420
For other stories from the Reuters global stock markets poll |
WFC | CA to allow lawsuits over fake accounts | Governor Jerry Brown yesterday signed into law a bill prohibiting banks from requiring disputes over fake accounts be sent to private arbitration rather than go to court Like most financial institutions Wells Fargo NYSE WFC requires customers to sign away their rights to sue when they sign up for personal accounts and other services It turns out Wells has been using those clauses to prevent customers from suing even though the accounts were fraudulently opened That doesn t sound very sporting CEO Tim Sloan was questioned about this during Congressional testimony this week and he said his bank was no longer taking this position Now read |
CMCSA | European markets dip as trade war pessimism weighs again | By Julien Ponthus LONDON Reuters European stock markets traded in negative territory on Monday as fears of an escalating trade row between the United States and China spread from Asian markets while oil rallied after OPEC ignored U S calls to raise global supply The benchmark index for euro zone blue chips retreated 0 4 percent while the pan European STOXX 600 which also includes stocks in the UK and outside the European Union was down 0 3 percent U S shares were also expected to open lower with futures for the S P 500 and the Nasdaq trading down 0 2 percent and O 4 percent respectively Earlier MSCI s broadest index of Asia Pacific shares outside Japan fell 0 9 percent after China accused the United States of engaging in bullying over trade added 60 billion of U S products to its import tariff list and reportedly canceled mid level talks Buoyant dealmaking with Comcast NASDAQ CMCSA winning a pay TV bidding war for Sky in the UK and Randgold LON RRS Resources merger with Canada s Barrick Gold was not enough to defuse fears that the standoff between the two biggest world economies would hurt This is here to stay commented Adrien Dumas a manager at Mandarine Gestion in Paris arguing that because trade is at the core of the Trump administration s agenda investors should accept that the trade war theme is unlikely to recede any time soon It s a negative and it adds to other issues he said pointing to stress in emerging markets or political risk in Italy and Britain Brexit is also weighing on sentiment he noted OIL JUMPS 2 PCT The UK blue chip index FTSE 100 was down 0 2 percent The pound rose 0 5 percent to 1 3143 after a fall on Friday when British Prime Minister Theresa May said talks with the EU had hit an impasse British opposition leader Jeremy Corbyn said on Sunday he would back a second Brexit referendum if his Labour Party backs the move heaping more pressure on May amid speculation that she could opt to call a snap parliamentary election The euro rose 0 14 percent close to a three month peak at 1 1766 The dollar index which measures the greenback against a basket of major currencies was last at 94 088 just above its weakest point since early July The Japanese yen which sees fund inflows during times of crisis was up 0 05 percent while the trade sensitive Australian dollar was down 0 2 percent Oil prices jumped as U S sanctions restricted Iranian crude exports tightening global supply with some traders forecasting a spike in crude to as much as 100 per barrel Benchmark Brent crude hit its highest since November 2014 at 80 94 per barrel up 2 14 or 2 7 percent before easing back to around 80 65 at 1125 GMT This is the oil market s response to the OPEC group s refusal to step up its oil production said Carsten Fritsch commodities analyst at Commerzbank DE CBKG in Frankfurt
OPEC leader Saudi Arabia and its biggest oil producer ally outside the group Russia on Sunday ruled out any immediate extra increase in output effectively rebuffing a call by Trump for action to cool the market |
CMCSA | Comcast Falls 5 54 | Investing com Comcast NASDAQ CMCSA fell by 5 54 to trade at 35 80 by 09 31 13 31 GMT on Monday on the NASDAQ exchange
The volume of Comcast shares traded since the start of the session was 3 94M Comcast has traded in a range of 35 50 to 35 96 on the day
The stock has traded at 38 06 at its highest and 35 50 at its lowest during the past seven days |
CMCSA | Why The Earnings Surprise Streak Could Continue For Comcast CMCSA | Have you been searching for a stock that might be well positioned to maintain its earnings beat streak in its upcoming report It is worth considering Comcast CMCSA which belongs to the Zacks Cable Television industry
This cable provider has an established record of topping earnings estimates especially when looking at the previous two reports The company boasts an average surprise for the past two quarters of 4 89
For the last reported quarter Comcast came out with earnings of 0 64 per share versus the Zacks Consensus Estimate of 0 62 per share representing a surprise of 3 23 For the previous quarter the company was expected to post earnings of 0 61 per share and it actually produced earnings of 0 65 per share delivering a surprise of 6 56
Price and EPS Surprise
Thanks in part to this history there has been a favorable change in earnings estimates for Comcast lately In fact the Zacks Earnings ESP Expected Surprise Prediction for the stock is positive which is a great indicator of an earnings beat particularly when combined with its solid Zacks Rank
Our research shows that stocks with the combination of a positive Earnings ESP and a Zacks Rank 3 Hold or better produce a positive surprise nearly 70 of the time In other words if you have 10 stocks with this combination the number of stocks that beat the consensus estimate could be as high as seven
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter the Most Accurate Estimate is a version of the Zacks Consensus whose definition is related to change The idea here is that analysts revising their estimates right before an earnings release have the latest information which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier
Comcast currently has an Earnings ESP of 4 53 which suggests that analysts have recently become bullish on the company s earnings prospects This positive Earnings ESP when combined with the stock s Zacks Rank 1 Strong Buy indicates that another beat is possibly around the corner We expect the company s next earnings report to be released on April 25 2019
With the Earnings ESP metric it s important to note that a negative value reduces its predictive power however a negative Earnings ESP does not indicate an earnings miss
Many companies end up beating the consensus EPS estimate though this is not the only reason why their shares gain Additionally some stocks may remain stable even if they end up missing the consensus estimate
Because of this it s really important to check a company s Earnings ESP ahead of its quarterly release to increase the odds of success Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they ve reported |
CMCSA | Cable One To Acquire Fidelity Communications For 525 9M | Cable One NYSE CABO recently signed an all cash deal worth 525 9 million to acquire Fidelity Communications The deal includes Fidelity s data video and voice business and certain related assets Cable One expects cost synergies of 15 million on an annual basis within three years of completing the transaction Additionally the acquisition may generate tax benefits worth 87 million on a present value basis Fidelity which provides services to both residential and business units has about 114 000 residential and 20 000 business customers Notably the company operates in Oklahoma Arkansas Texas Missouri Illinois and Louisiana The acquisition which is expected to close in fourth quarter 2019 is anticipated to expand Cable One s footprint in the non urban markets This may help the company boost its market share and grow its residential and business customer base Notably Cable One currently has more than 800 000 residential and business customers Cable One Inc Revenue TTM Transaction in DetailCable One stated that Fidelity s residential high speed data and business services contributed to more than 50 of its revenues Additionally with a high capacity plant and Fidelity can deliver higher broadband speed The above factors may strengthen Cable One s residential data and business services revenues which were the main top line drivers in fourth quarter 2018 Notably residential data revenues 46 8 of its total revenues and business services revenues 14 9 increased 12 3 and 10 3 year over year to 126 4 million and 40 2 million respectively in the last reported quarter Additionally Cable One has the opportunity to charge higher prices for providing higher Internet speed This is expected to boost average revenue per user ARPU Notably residential data ARPU and business services ARPU increased 9 4 and 2 1 year over year in fourth quarter 2018 Further owing to Fidelity s higher broadband speed and geographical advantage Cable One is expected to increase its data penetration rate As of Dec 31 2018 data penetration rate was 31 7 up 1 7 year over year Acquisitions to Aid Cable One s Top LinePrior to the latest acquisition Cable One had completed the acquisition of Clearwave Communications this January The acquisition is expected to help Cable One deliver enhanced services to business service customers as it will have access to Clearwave s high capacity fiber network Additionally Cable One expects to widen its fiber footprint and increase customers in the business segment Notably Clearwave Communications which is a facilities based service provider owns and operates high capacity fiber network offering services to business and enterprise customers We believe that strength in Cable One s core business coupled with relevant acquisitions will further strengthen its business prospects Zacks Rank Stocks to ConsiderCurrently Cable One carries a Zacks Rank 3 Hold Some better ranked stocks in the broader consumer discretionary sector include Comcast NASDAQ CMCSA Lions Gate Entertainment and Shaw Communications NYSE SJR While both Comcast and Lions Gate sport a Zacks Rank 1 Strong Buy Shaw Communications carries a Zacks Rank 2 Buy You can see Long term earnings growth rate for Comcast Lions Gate and Shaw Communications stands at 12 15 and 5 respectively Today s Best Stocks from ZacksWould you like to see the updated picks from our best market beating strategies From 2017 through 2018 while the S P 500 gained 15 8 five of our screens returned 38 0 61 3 61 6 68 1 and 98 3 This outperformance has not just been a recent phenomenon From 2000 2018 while the S P averaged 4 8 per year our top strategies averaged up to 56 2 per year |
CMCSA | Comcast CMCSA Hits Fresh High Is There Still Room To Run | Have you been paying attention to shares of Comcast CMCSA Shares have been on the move with the stock up 4 3 over the past month The stock hit a new 52 week high of 40 58 in the previous session Comcast has gained 18 3 since the start of the year compared to the 16 9 move for the Zacks Consumer Discretionary sector and the 19 9 return for the Zacks Cable Television industry
What s Driving the Outperformance
The stock has an impressive record of positive earnings surprises as it hasn t missed our earnings consensus estimate in any of the last four quarters In its last earnings report on January 23 2019 Comcast reported EPS of 0 64 versus consensus estimate of 0 62 while it beat the consensus revenue estimate by 8 19
For the current fiscal year Comcast is expected to post earnings of 2 77 per share on 112 42 billion in revenues This represents an 8 63 change in EPS on a 18 95 change in revenues For the next fiscal year the company is expected to earn 3 08 per share on 118 25 billion in revenues This represents a year over year change of 11 09 and 5 19 respectively
Valuation Metrics
Comcast may be at a 52 week high right now but what might the future hold for the stock A key aspect of this question is taking a look at valuation metrics in order to determine if the company is due for a pullback from this level
On this front we can look at the Zacks Style Scores as these give investors a variety of ways to comb through stocks beyond looking at the Zacks Rank of a security These styles are represented by grades running from A to F in the categories of Value Growth and Momentum while there is a combined VGM Score as well The idea behind the style scores is to help investors pick the most appropriate Zacks Rank stocks based on their individual investment style
Comcast has a Value Score of C The stock s Growth and Momentum Scores are B and A respectively giving the company a VGM Score of A
In terms of its value breakdown the stock currently trades at 14 6X current fiscal year EPS estimates On a trailing cash flow basis the stock currently trades at 8 3X versus its peer group s average of 8 3X Additionally the stock has a PEG ratio of 1 19 This isn t enough to put the company in the top echelon of all stocks we cover from a value perspective
Zacks Rank
We also need to look at the Zacks Rank for the stock as this supersedes any trend on the style score front Fortunately Comcast currently has a Zacks Rank of 1 Strong Buy thanks to rising earnings estimates
Since we recommend that investors select stocks carrying Zacks Rank of 1 Strong Buy or 2 Buy and Style Scores of A or B it looks as if Comcast passes the test Thus it seems as though Comcast shares could still be poised for more gains ahead |
CMCSA | Is Comcast CMCSA Outperforming Other Consumer Discretionary Stocks This Year | Investors focused on the Consumer Discretionary space have likely heard of Comcast CMCSA but is the stock performing well in comparison to the rest of its sector peers A quick glance at the company s year to date performance in comparison to the rest of the Consumer Discretionary sector should help us answer this question
Comcast is a member of the Consumer Discretionary sector This group includes 246 individual stocks and currently holds a Zacks Sector Rank of 4 The Zacks Sector Rank includes 16 different groups and is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors
The Zacks Rank is a successful stock picking model that emphasizes earnings estimates and estimate revisions The system highlights a number of different stocks that could be poised to outperform the broader market over the next one to three months CMCSA is currently sporting a Zacks Rank of 1 Strong Buy
Over the past 90 days the Zacks Consensus Estimate for CMCSA s full year earnings has moved 0 02 higher This is a sign of improving analyst sentiment and a positive earnings outlook trend
Our latest available data shows that CMCSA has returned about 18 27 since the start of the calendar year Meanwhile stocks in the Consumer Discretionary group have gained about 16 90 on average This means that Comcast is performing better than its sector in terms of year to date returns
Looking more specifically CMCSA belongs to the Cable Television industry which includes 11 individual stocks and currently sits at 61 in the Zacks Industry Rank This group has gained an average of 19 88 so far this year so CMCSA is slightly underperforming its industry in this area
Investors in the Consumer Discretionary sector will want to keep a close eye on CMCSA as it attempts to continue its solid performance |
WFC | JD com 1 4 as Wells Fargo starts at Outperfrom | As part of a look at e commerce firms at Wells Fargo NYSE WFC JD com NASDAQ JD has gotten an initiation at Outperform Shares are up 1 4 premarket Year to date JD com s ADRs have gained 58 5 on Nasdaq though they ve declined 9 1 over the past week Wells is joining an overall bullish chorus of analysts and has a price target of 50 implying 24 upside Now read |
WFC | Wells Fargo sees healthy premium for Finish Line buyout | Wells Fargo NYSE WFC estimates that Finish Line NASDAQ FINL could be sold in a range of 14 to 16 if the reported deal with Sports Direct LON SPD International OTCPK SDIPF OTCPK SDISY goes through Finish Line closed yesterday at 11 66 after a late spike The investment firm notes that a Finish Line buyout deal makes sense for the British retailer due to the instant penetration into the U S market it would provided and additional leverage with key vendors Source BloombergPreviously Finish Line said to be exploring sale Sept 28 Shartes of Finish Line are up 1 64 premarket to 11 85 Now read |
WFC | Wells Fargo says rehires workers wrongly fired in accounts scandal | WASHINGTON Reuters Tim Sloan the chief executive officer of Wells Fargo Co N WFC apologized for a phony accounts scandal and said the bank has hired back more than 1 000 workers wrongly fired or who left due to the wrongdoing according to prepared Congressional testimony We expected to find more shortcomings and we did Sloan said in prepared remarks to the Senate Banking Committee obtained by Reuters The hearing is set for Tuesday Sloan said the bank found abuses in an auto insurance product and that more customers were affected by the phony accounts scandal than originally thought Sloan said more than 1 780 bank employees who were wrongly fired or left the bank have been rehired since the scandal broke Sloan will testify at the hearing Wells Fargo One Year Later to examine events that led up to affair that resulted in a 190 million settlement with regulators For years Wells Fargo employees created checking saving and other accounts without customer approval
About 3 5 million phony accounts may have been created with about 190 000 of them incurring fees and charges Sloan said |
WFC | Weekly Energy | Oil prices over the course of the last week were relatively stable and WTI crude oil settled at 51 50 USD barrel On Saturday non OPEC members agreed to reduce their oil production by 558 000 barrels day in order to support OPEC members in their last production reduction agreement Additionally Saudi Arabia signaled its willingness to reduce its production even further than agreed Following the announcement of a production cut for non OPEC members WTI crude oil prices were trading higher by 4 6 at the open Amongst the other news items
The state company of Saudi Arabia Saudi Arabian Oil Co has begun informing its clients refineries of the fact that the country will reduce its crude oil exports as of January The cuts will mainly affect American and European refineries while Asian refineries will not be affected This announcement adds credibility to OPECs agreement
According to Emmanuel Kachikwu Nigerian Minister of Petroleum Resources the oil markets should rebalance around mid 2017 This would lead to the end of a three year period where oil supply exceeded demand
Various banks and hedge funds updated their forecasts for WTI oil over the course of 2017 To name only two Pierre Andurand hedge fund manager forecasts 70 USD barrel during the first half of 2017 while Wells Fargo NYSE WFC anticipates oil prices to reach 62 USD barrel in 2017
In light of the historical production cut agreement and the high volatility we invite our clients to contact us in order to review your hedging strategies in CAD L |
WFC | Markets Make Opinions | Looking back over this year s Investment U columns I said plenty that readers disagreed with
About stocks I suggested that the most disrespected bull market in history had further to run I pointed out that folks with all or most of their money in gold weren t just wrong but nuts I said the historic 34 year bull market in bonds was over And I opined that the world s cheapest asset class emerging market equities was overdue for a significant rally
That rally is now further overdue No one bats a thousand
However nothing created more controversy and negative blowback than my two columns defending Wells Fargo NYSE WFC after an internal investigation revealed that the nation s largest bank had opened nearly 2 million fraudulent accounts setting up credit lines and bank cards that customers didn t want or request
Editor s Note You can read Alex s initial commentary on the Wells Fargo scandal here
Readers were incensed that I would side with the fat cats on Wall Street Some insisted that shares of Wells Fargo already near a 52 week low were about to take a real beating
I disagreed And still do
The brouhaha wasn t a tempest in a teacup It was more like a tempest in a thimble
Hold on I didn t gloss over Wells Fargo s fraudulent actions In those columns I wrote
This wasn t just wrong It was inexcusably wrong It has damaged the bank s reputation with its customers And the firm in addition to paying a 185 million fine is getting hit with a wave of class action lawsuits that will cost it many millions more
The bank is paying a serious price in penalties litigation and lost goodwill as it should
I further predicted that CEO John Stumpf could lose his job
That too may be appropriate since the fiasco shows an astonishing lack of internal controls and ultimately the buck stops with the CEO
Ultimately of course Stumpf did have to resign
So what set readers off so It was my contention that while the bank s top management showed a shocking lack of oversight they did not deliberately set out to injure customers
None of the officers or directors received a bigger bonus or greater pay as a result of the bogus accounts Indeed these were money losers for the bank
It s not hard to see why The amount wrongly charged to customers and refunded after the fraud came to light averaged less than 1 per account
The perpetrators here were 12 an hour employees trying to hit performance goals to earn bonuses
As I pointed out at the time this wasn t the rich guy sticking it to the little guy This was the little guy sticking it to the little guy
Yet some folks detest Wall Street banks so much they refuse to believe that top executives don t sit around dreaming up ways to steal a few pennies from customers even if it reduces the bank s earnings and their own compensation
One reader wrote to say her husband worked in sales for the bank and felt pressured by Wells bonus program designed to incentivize opening legitimate accounts She declared
You don t know what it s like to have your income depend on hitting quotas
Really As a young man in my 20s I worked six years in straight commission sales I called it the No Deals No Meals program
Yet for some reason it never occurred to me to defraud customers to boost my income Guess I m not very creative
It is inexcusable that so many Wells employees and their supervisors could screw up so royally while the bank s top brass remained clueless
However Wells is not your local community bank It has more than 8 000 branches over a quarter of a million employees and hundreds of millions of accounts
As a former money manager at one of the world s biggest investment banks I can assure you that the accounts that get the least oversight are the smallest ones And the ones that get less attention still are the ones like the ones here with no transactions and zero balances
There is no evidence that Wells top managers set up an orchestrated scheme to defraud customers These were lower level employees who should have been better supervised exercising poor judgment and deplorable ethics
Recall that Wells Fargo is one of the largest and longest standing holdings of Berkshire Hathaway CEO Warren Buffett doesn t invest in or hold any company unless top management is ethical and competent
They clearly weren t competent in this instance which is why John Stumpf is now scouring the help wanted ads
But investors have sorted all this out properly Shares of Wells Fargo are up 23 since my columns ran That has added another 50 billion to the bank s market cap
It is often said that markets make opinions Indeed And the market is clearly bullish on the prospects for Wells Fargo |
CMCSA | Variety NBC Entertainment chief to exit | NBC NASDAQ CMCSA Entertainment Chairman Bob Greenblatt is preparing his exit after leading a successful turnaround over the past eight years Variety reports Greenblatt has decided the time is right and will meet with NBCUniversal CEO Steve Burke to sort out timing and succession according to the report He s the longest tenured of the heads of the Big Four broadcast networks He joined NBC just as Comcast wrapped its acquisition of NBCU and has steered NBC out of the ratings cellar in large part due to the top drama This is Us which premiered in 2016 That means lots of leadership turnover at the nets with Fox and ABC set to shake up management as a result of Disney s deal to acquire Fox assets Now read |
CMCSA | What s In Store For Titan Machinery TITN In Q4 Earnings | Titan Machinery Inc NASDAQ TITN is set to report fourth quarter and fiscal 2018 results ending Jan 31 2019 on Mar 27 In the last reported quarter the company beat estimates by 36 1 Per the earnings record it surpassed estimates in all of the trailing four quarters the average beat being 67 7 In the past three months shares of Titan Machinery have outperformed the it belongs to The stock has risen 67 2 compared with 13 7 growth recorded by the industry during that period Let s see how things have shaped up for the upcoming announcement Titan Machinery Inc Price and EPS Surprise
Factors Influencing This QuarterWest Fargo ND based Titan Machinery is a leading global dealership with a network of full service agriculture and construction equipment stores It has been trying to reduce operating expenses and raise equipment gross profit margins The company expects structural improvements in the business to bear fruits in the soon to be released quarter In fact it updated fiscal 2019 Modeling Assumptions including an increase in the earnings per share range Earnings WhispersOur proven model does not conclusively predict an earnings beat for Titan Machinery this quarter This is because a stock needs to have both positive and a Zacks Rank 1 Strong Buy 2 Buy or 3 Hold for this to happen This is not the case here as you will see below Earnings ESP Titan Machinery s Earnings ESP is 0 00 as both the Most Accurate Estimate and the Zacks Consensus Estimate are pegged at two cents You can uncover the best stocks to buy or sell before they re reported with our Zacks Rank Titan Machinery currently carries a Zacks Rank of 3 We caution against stocks with a Zacks Rank 4 or 5 Sell rated going into earnings announcement especially when the company is witnessing negative estimate revisions Stocks to ConsiderHere are a few stocks worth considering from the same space with the right combination of elements American Axle Manufacturing Holdings Inc NYSE AXL has an Earnings ESP of 3 59 and it currently carries a Zacks Rank 3 You can see Wabco Holdings Inc NYSE WBC has an Earnings ESP of 4 66 and it currently carries a Zacks Rank 3 Comcast Corporation NASDAQ CMCSA has an Earnings ESP of 4 53 and it currently has a Zacks Rank of 3 Breakout Biotech Stocks with Triple Digit Profit PotentialThe biotech sector is projected to surge beyond 775 billion by 2024 as scientists develop treatments for thousands of diseases They re also finding ways to edit the human genome to literally erase our vulnerability to these diseases Zacks has just released Century of Biology 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance Our recent biotech recommendations have produced gains of 98 119 and 164 in as little as 1 month The stocks in this report could perform even better |
CMCSA | BlackBerry BB To Report Q4 Earnings What s In Store | BlackBerry Limited NYSE BB is scheduled to report fourth quarter fiscal 2019 financial results ended Feb 28 2019 before the opening bell on Mar 29 In the last reported quarter the company delivered a positive earnings surprise of 50 Let s find out how things are shaping up prior to the announcement Factors at PlayAs a leading player in the enterprise mobility management BlackBerry is widely recognized for productivity and security innovations The cybersecurity software and services company provides one of the most secure mobile enterprise solutions through a broad portfolio of products and services Further the company offers an end to end software and services platform for the Enterprise of Things including computers vehicles sensors equipment and other connected endpoints within the enterprise that communicate with each other to enable smart business processes With a holistic growth model focusing both on organic and inorganic investments BlackBerry aims to expand its leadership in the mobility segment The company s strategy to capitalize on the market s profitable opportunities with BlackBerry Spark its platform to communicate between smart endpoints augurs well During the fiscal fourth quarter BlackBerry completed the acquisition of Irvine CA based cybersecurity firm Cylance for 1 4 billion in cash Cylance s highly skilled cybersecurity workforce and market leading portfolio of endpoint solutions are a strategic fit for Blackberry TO BB and is likely to complement its Unified Endpoint Management and QNX businesses The company further expects the buyout to enhance the cybersecurity capabilities of Blackberry Spark making it an indispensable proposition for Enterprise of Things BlackBerry also launched QNX Platform for Digital Cockpits the world s first digital cockpit solution to enable automakers to provide superior in car experience with security safety and reliability features BlackBerry s ISO 26262 hypervisor ensures that the multiple operating system environments powering the cluster infotainment and other driver information systems do not interfere with one another and impact critical driving functions In addition BlackBerry is committed to helping the private and public sectors accelerating the development of Smart Cities and Intelligent Transportation Systems with a Security Credential Management System service The company also scaled its BlackBerry Secure technology and licensing strategy to enable the electronics industry to bring to market safe and secure IoT devices Increasing market traction of coveted solution offerings for a broad array of customers will likely translate into top line growth For the quarter the Zacks Consensus Estimate for total revenues stands at 227 million down from 239 million reported in the year earlier quarter This is primarily due to changes in the accounting and sales model implementation of ASC 606 Adjusted earnings per share are pegged at 4 cents down from 5 cents reported a year ago What Our Model SaysOur proven model does not conclusively show that BlackBerry is likely to beat earnings this quarter as it does not have one of the two key components A stock needs to have both a positive and a Zacks Rank 1 Strong Buy 2 Buy or 3 Hold for this to happen This is not the case here as you will see below Earnings ESP BlackBerry s Earnings ESP which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate is 0 00 as both are pegged at 4 cents You can uncover the best stocks to buy or sell before they re reported with our BlackBerry Limited Price and EPS Surprise Zacks Rank BlackBerry currently sports a Zacks Rank 1 which increases the predictive power of ESP However the company s 0 00 Earnings ESP makes surprise prediction difficult Note that we caution against stocks with a Zacks Rank 4 or 5 Sell rated going into the earnings announcement especially when the company is seeing a negative estimate revisions momentum Stocks to ConsiderHere are some companies that you may want to consider as our model shows that these have the right combination of elements to post an earnings beat this quarter Comcast Corporation NASDAQ CMCSA has an Earnings ESP of 4 53 and a Zacks Rank 2 You can see Eldorado Gold Corporation NYSE EGO has an Earnings ESP of 38 89 and a Zacks Rank 2 Comfort Systems USA Inc NYSE FIX has an Earnings ESP of 12 73 and a Zacks Rank 2 Today s Best Stocks from ZacksWould you like to see the updated picks from our best market beating strategies From 2017 through 2018 while the S P 500 gained 15 8 five of our screens returned 38 0 61 3 61 6 68 1 and 98 3 This outperformance has not just been a recent phenomenon From 2000 2018 while the S P averaged 4 8 per year our top strategies averaged up to 56 2 per year |
WFC | Allegion announces pricing of 800M of senior notes | Allegion NYSE ALLE priced the previously announced offering by its wholly owned subsidiary Allegion US Holding Company of 400M aggregate principal amount of 3 200 senior notes due 2024 and 400M aggregate principal amount of 3 550 senior notes due 2027 The offering is expected to close on October 2 and will be guaranteed by Allegion upon their issuance Net proceeds from the offering will be utilised to redeem in full its outstanding 5 750 senior notes due 2021 and its outstanding 5 875 senior notes due 2023 to repay borrowings under its senior revolving credit facility and any remaining net proceeds for general corporate purposes The Company expects to realize approximately 13M in annualized interest expense savings as a result of the offering the redemption of its outstanding senior notes and the replacement of its senior secured credit facilities with new senior unsecured credit facilities The Company expects to recognize a 47M charge associated with the redemption of the currently outstanding senior notes and the write off of previously capitalized debt issue costs in 2017 J P Morgan Securities LLC Merrill Lynch Pierce Fenner Smith Incorporated and Wells Fargo NYSE WFC Securities LLC are acting as joint book running managers Press ReleaseNow read |
WFC | U S watchdog settled for small fine over Wells Fargo phony accounts report | By Pete Schroeder WASHINGTON Reuters A consumer watchdog agency could have levied 10 billion in penalties against Wells Fargo NYSE WFC Co last year for opening unauthorized customer accounts but settled for a fraction of that to resolve the matter quickly according to regulatory documents released on Tuesday The documents unveiled as part of a report written by congressional Republicans look set to heighten a fierce partisan debate about the future of the U S Consumer Financial Protection Bureau CFPB Set up by Democrats in the aftermath of the 2007 2009 financial crisis to protect consumers against abuses by large institutions the CFPB is loathed by Republicans who criticize it as a wayward agency that lacks proper oversight Last year the CFPB and two other regulators reached a 185 million settlement 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 has since grown to 3 5 million as Wells has expanded its probe of sales abuses The CFPB s portion of that settlement was 100 million making it the largest fine in the agency s short history But the regulator could have made a claim for over 100 times that amount if it multiplied statutory penalties outlined in consumer law by the number of potential violations according to a memo staff sent to CFPB Director Richard Cordray in July 2016 which Reuters saw on Tuesday Staff recommended the smaller figure however saying it was large enough to be an effective deterrent and would allow the parties to reach a settlement quickly according to the memo The memo was included in a report written by Republican staff on the House Financial Services Committee whose chairman Representative Jeb Hensarling has repeatedly criticized the CFPB and Cordray and tried to undercut the agency s powers through legislation The 929 page report is titled Did the CFPB let Wells Fargo beat the rap CFPB spokesman David Mayorga said the agency has not had a chance to review the report but defended its work policing Wells Fargo
We ordered Wells Fargo to pay the largest penalty we have ever imposed and achieved relief for millions of customers harmed by the bank s egregious and illegal conduct said Mayorga A Wells Fargo representative said the bank was reviewing the report emphasizing its efforts to overhaul its sales practices and regain the public s trust |
WFC | Wells Fargo s lone outsider aims to clean up bank s reputation | By Dan Freed NEW YORK Reuters Before a sales scandal upended its reputation Wells Fargo NYSE WFC Co was something of a proud outsider in Washington and on Wall Street compared to its big bank peers Now the only one of 11 executive officers at the bank who did not work there before its fall from grace is a consummate insider C Allen Parker general counsel 62 years old and former presiding partner at storied law firm Cravath Swaine Moore Since he took the job in March Parker has been trying to improve Wells Fargo s standing with regulators answering questions from authorities and working through a raft of lawsuits over the bank s improper sales practices But Parker says his most challenging assignment is counseling top management as it seeks to replace a hard charging sales culture with one focused on customer service I want to make the legal department of Wells Fargo a beacon for other departments in ethics Parker told Reuters in an interview Faulty incentives and a decentralized management structure led the bank to create as many as 3 5 million accounts in customers names without their permission and to charge others for auto insurance mortgage features and add on products they did not want The problems first came to light more than three years ago but only caught widespread attention when Wells Fargo reached a 190 million regulatory settlement over the phony accounts last year Other issues only surfaced more recently leading some lawmakers analysts and investors to question whether the bank has its arms around the situation RICH ROLODEX Warren Buffett Wells Fargo s top shareholder recently compared it to a kitchen full of cockroaches Parker said he is aiming to tackle the problem and make sure new ones do not spread He declined to discuss details of his interactions with regulators and enforcement agencies but his Rolodex of Washington contacts may help smooth relations there Parker has represented Beltway heavyweights like former U S Secretary of State Henry Kissinger and his friendship with former Securities and Exchange Commission Chair Mary Jo White led him to suggest that she conduct a review of Wells Fargo s board of directors earlier this year Within the legal department Parker brought in Tom Trujillo as his chief operating officer Since joining in August Trujillo has been reviewing the hundreds of outside law firms Wells Fargo hires Parker said Parker s input on how legal tactics affect businesses regulatory relationships and public perception has been extremely influential said Betsy Duke incoming chair of Wells Fargo s board of directors Allen brings an outsider perspective at a time when we are really inviting inspection Duke told Reuters He can take a Wall Street and a Washington view of things FIRESIDE CHATS As a longtime deal lawyer with no experience inside a large company much less one battling a massive scandal Parker might seem an unusual pick for Wells Fargo But as Cravath s presiding partner from 2013 to 2016 he made principles and culture the focus of his tenure holding fireside chats about ethics with CEOs of major corporations His experiences helping Cravath deal with a cyber attack and counseling other banks on difficult issues were also assets according to Wells Fargo CEO Tim Sloan Sloan met Parker at a charity event in 2012 Four years later Sloan was thrust into his current job after the sales scandal forced out his predecessor and Wells Fargo s general counsel was fast approaching retirement Sloan said he had many reasons to hire Parker but one that might go unappreciated given his legal role is his keen business sense He s very commercial Sloan told Reuters I ve found him to be very helpful in terms of talking about strategic business or product type decisions that we might be making Those who have dealt with Parker through his career say he is the type of colleague who remembers names and attends funerals more than most But he is not above a good joke One friend recalled that after Parker helped him resolve a personal dispute with a babysitting service that overcharged by 944 32 he received a bill from Cravath for the same amount
It is a real gift to have that good a sense of humor and yet not have hundreds of embarrassing anecdotes about you said Robert Baron a Cravath partner |
WFC | Wells Fargo CEO to testify before Senate as questions linger over scandal | By Patrick Rucker WASHINGTON Reuters Wells Fargo N WFC Chief Executive Tim Sloan is due to testify before Congress on Oct 3 as the bank deals with fallout from a sales scandal a year ago that continues to spark new revelations Sloan will appear before the Senate Banking Committee which writes rules for his industry at a hearing titled Wells Fargo One Year Later the panel said on Thursday In September 2016 Wells Fargo said its employees may have created more than 2 million accounts without customer approval Several executives were subsequently fired but a review also turned up possible abuses with other products such as auto and life insurance The third largest U S bank has since tried to improve sales practices and restore trust with customers Last month Wells Fargo said the unauthorized accounts totaled as many as 3 5 million Since last October we have taken numerous important steps to fix issues make things right for our customers and build a better bank a bank spokesperson told Reuters via email on Thursday Wells Fargo shares gained 0 57 percent to 54 05 in morning trading On Aug 1 the 11 Democrats on the Senate Banking Committee wrote to its Republican Chairman Mike Crapo asking that both Sloan and the board of directors be called to testify before the Committee this month The letter lists nine new developments since Sloan s predecessor John Stumpf appeared before the Senate Banking Committee in September last year These included concerns about the bank retaliating against employees and purposefully concealing evidence from regulators of systemic problems at the bank During last year s testimony Stumpf seemed unprepared under tough questioning from Democrats and Republicans and Massachusetts Democrat Elizabeth Warren accused him of gutless leadership He resigned less than a month later Warren has repeatedly urged the Federal Reserve to remove all members of the Wells Fargo board of directors who had served during the time the fake accounts were created |
WFC | Wells Fargo hires new law firm to prepare CEO for Senate appearance | By Dan Freed NEW YORK Reuters Wells Fargo Co N WFC has hired law firm Sidley Austin to take the lead in preparing Chief Executive Tim Sloan for his appearance before the U S Congress next month to answer questions about a year long sales practices scandal according to four sources with knowledge of the decision Sloan will appear before the Senate Banking Committee which writes rules for his industry at a hearing titled Wells Fargo One Year Later on October 3 Wells Fargo spokeswoman Jennifer Dunn declined to comment No one from Sidley Austin was available to comment outside of office hours The testimony will be Sloan s first congressional appearance since he took over as CEO in October of last year roughly a month after Wells Fargo reached a settlement with regulators over the creation of as many as 2 1 million unauthorized accounts The bank has since disclosed problems with other products including auto and life insurance and recently revised its estimate for the number of accounts that were potentially opened without customers authorization to 3 5 million In his own congressional appearances last year Sloan s predecessor John Stumpf often lacked answers to questions posed by legislators Massachusetts Senator Elizabeth Warren accused him of gutless leadership He left the bank less than a month later and was replaced by Sloan The law firm that prepared Stumpf for his testimony Gibson Dunn will still be working for Wells Fargo but in a supporting role said one of the sources No one from Gibson Dunn was immediately available to comment outside of office hours Hundreds of outside law firms work for Wells Fargo on various matters and the bank s new general counsel Allen Parker recently hired a new chief operating officer for the legal team Tom Trujillo who is reviewing those relationships
The hiring of Sidley Austin however was directed by Wells Fargo s government affairs office said one of the sources |
CMCSA | Trump Attacks NBC Ethics in Weinstein Reporting Comcast Shares Fall 1 | Investing com U S President Donald Trump attacked NBC via his Twitter account on Tuesday suggesting the network may have shown highly unethical conduct and questioned the company s right to hold a license
In the tweet Trump claimed that NBC s journalistic standards were worse than those he believes are practiced at CNN a long time fake news media target of the president
NBC has been under scrutiny on allegations that the network attempted to kill Ronan Farrow s report on the Harvey Weinstein sex scandal in Hollywood that served as the basis for launching the MeToo movement against sexual discrimination in the film industry
Farrow accused NBC of providing numerous false or misleading statements when the network defended its handling of the report
Farrow insisted that he took the story to another outlet only after it became clear that I was blocked from further reporting
At 11 28 AM ET 15 28 GMT shares in NBC parent Comcast NASDAQ CMCSA were down 1 15 at 36 56 |
CMCSA | Trump hits CNN and NBC urges look at their license tweet | By Makini Brice and David Shepardson WASHINGTON Reuters U S President Donald Trump blasted CNN and NBC News yet again in a tweet on Tuesday criticizing NBC s handling of a story on movie producer Harvey Weinstein and suggesting a look at their license without specifying what exactly he was calling for Trump has frequently criticized the U S news media for what he has said is unfair coverage of him I have long criticized NBC and their journalistic standards worse than even CNN Look at their license he wrote in the tweet which cited the outlet s coverage of Weinstein Ronan Farrow a reporter has said NBC News blocked him from working on a story about Weinstein who is facing criminal rape and sexual assault charges and a civil lawsuit for sex trafficking A former NBC producer corroborated Farrow s allegations Farrow later published the story in the New Yorker magazine NBC News has defended its handling of the story Weinstein has denied ever having nonconsensual sex Comcast Corp NASDAQ CMCSA which owns NBC News declined to comment Following the tweet a decline in the price of Comcast shares on the Nasdaq extended slightly The U S Federal Communications Commission did not immediately comment on the tweet but in October the FCC s chairman said the agency does not have authority to revoke broadcast licenses over editorial decisions Late on Tuesday Trump tweeted that Chuck Todd the host of Meet the Press a news show on NBC suggested that it was time for the press to stop complaining and to start fighting back Actually Chuck they ve been doing that from the day I announced for President They ve gone all out and I WON and now they re going CRAZY Trump said on Twitter Trump blasted NBC and other TV networks last October calling their news Fake and suggesting he would challenge their licenses Democratic FCC Commissioner Jessica Rosenworcel responded to Trump s most recent tweet by posting the FCC rules on licensing One more time this is not how it works she wrote on Twitter The FCC an independent agency does not issue licenses to individual networks but to local stations including those directly owned by broadcasters such as Comcast through NBC
The agency has said the First Amendment of the U S Constitution expressly prohibits the commission from censoring broadcast matter and that its role in overseeing program content is very limited |
CMCSA | Sky to develop mobile games based on its original drama | LONDON Reuters European pay TV group Sky said on Thursday it was joining forces with production company Skybound Entertainment to create its first mobile narrative games aiming to exploit the content of its original TV shows in a new format The games created by the joint venture named Skybound Stories will make the player the protagonist tasked with making choices that shape the storyline Sky said Sky s managing director of content Gary Davey said mobile narrative gaming was comic books for the iPhone generation Interactive story telling designed for mobile consumption is a fascinating new field for us he said And it s great to now explore it with the masters of the craft Skybound Entertainment is involved in TV film and interactive gaming and its productions include The Walking Dead Sky said Sky which has made original shows including Britannia Babylon Berlin and Gomorrah said the games would be based on its forthcoming productions across Europe The group at the center of a bid battle between Comcast NASDAQ CMCSA and Twenty First Century Fox has been producing more content such as original drama and comedy to broaden its offering beyond its strengths in sport movies and major U S drama shows
It has said it will spend 7 billion pounds 9 1 billion on content including sports rights this year |
CMCSA | Comcast Rises 3 01 | Investing com Comcast NASDAQ CMCSA rose by 3 01 to trade at 37 17 by 13 01 17 01 GMT on Thursday on the NASDAQ exchange
The volume of Comcast shares traded since the start of the session was 10 37M Comcast has traded in a range of 36 08 to 37 18 on the day
The stock has traded at 37 18 at its highest and 35 67 at its lowest during the past seven days |
CMCSA | Fox says Sky shareholders have until October 6 to accept offer | Reuters Twenty First Century Fox O FOXA said on Monday that its 14 pounds per share bid for Sky Plc L SKYB will remain open for acceptances until October 6 As of Monday Rupert Murdoch controlled Fox said it had received valid acceptances for shares representing about 0 07 percent of Sky Rival bidder Comcast Corp O CMCSA said last week its bid of 14 75 pounds for each Sky share would remain open for acceptance until Oct 6 and that it had received acceptances for shares representing 0 29 percent of Sky |
CMCSA | Why Is Snap SNAP Up 14 9 Since Last Earnings Report | A month has gone by since the last earnings report for Snap SNAP Shares have added about 14 9 in that time frame outperforming the S P 500
Will the recent positive trend continue leading up to its next earnings release or is Snap due for a pullback Before we dive into how investors and analysts have reacted as of late let s take a quick look at the most recent earnings report in order to get a better handle on the important drivers Snap Q4 Loss Narrows User Base StabilizesSnap reported fourth quarter 2018 loss of 4 cents per share narrower than both the Zacks Consensus Estimate of a loss of 8 cents and the year ago quarter s loss of 13 cents Revenues surged 36 4 from the year ago quarter to 389 8 million surpassing the consensus mark of 379 million The revenue figure was also better than management s guided range of 355 380 million Geographically revenues from North America 69 of revenues increased 22 6 year over year to 268 9 million Revenues from Europe 16 soared 56 3 to 62 5 million Rest of the World ROW revenues were 58 5 million compared with 26 3 million in the year ago quarter Average revenues per user ARPU rallied 37 year over year and 31 quarter over quarter to 2 09 On a year over year basis North America Europe and ROW ARPUs increased 23 57 and 125 respectively Daily Active Users DAU DetailsSnap s DAU of 186 million was down 1 million year over year but remained unchanged sequentially Management had expected DAUs to fall sequentially North America DAU was 79 million down 1 million year over year but remained flat sequentially Europe DAU was 60 million flat year over year but up 1 million sequentially ROW DAU was 47 million unchanged both year over year and sequentially In the reported quarter iOS DAU increased both sequentially and year over year User engagement continues to improve as average time spent on the platform was above 30 minutes per day Average time spent on iOS grew faster during the fourth quarter compared with the year ago quarter Ad Revenue DetailsTotal Ad impressions grew 179 year over year and 31 sequentially Price per ad impression dropped 48 from the year ago quarter but increased 3 sequentially Ad revenues from premium content doubled on year over year basis This was driven by strong performance of commercials Snaps 6 second non skippable video ads Moreover higher user engagement with the Discover product benefited ad revenues Further collection Ads which enable a business to showcase four products in a single Snap were responsible for the increase in ad spending that benefited ad revenues Snap s penetration is improving The company s premium mobile video ads reached more than 70 of the total 13 to 34 year old U S population on a monthly basis Moreover popularity of Snap s Lens product continues to increase On average more than 70 of users played with or viewed a Lens every day during the reported quarter Management stated that users played with or viewed Lenses 700 million times on New Year s Eve up nearly 40 year over year By the end of 2018 more than 300 000 Lenses had been created by Snapchat community through Lens Studio Those Lenses were viewed more than 35 billion times Furthermore Snap launched Lens Challenges Users can participate in challenges in Lens Explorer by creating a Snap with a Lens that is themed on a particular song dance holiday or event Redesign Product Improvements New Features Aid GrowthSnap s Publisher Stories and Shows are now watched by 30 more people every day compared to last year Moreover consumption of Stories per day on average is increasing according to management Further Dead Girls Detective Agency a Snap Original Show produced in collaboration with Comcast NASDAQ CMCSA division NBCUniversal garnered 14 million unique viewers Notably more than 40 of the users who completed the first episode went on to watch the entire season The content strength is helping Snap s partners to reach new unique audience NBC News announced that two thirds of the 25 to 35 million Snapchatters watching its Stay Tuned show represented a net new audience for them More than 60 of ESPN s SportsCenter audience tuned in three or more times per week in the reported quarter Further BitmojiStories a new cartoon starring Snapchatters and their friends reached more than 40 million viewers in December 2018 Snap strengthened its international footprint by partnering Filter Copy in India and Layalina in the Middle East These will help the company offer local and culturally relevant content New Product DetailsSnap has started rolling out its new Android application Early test results are promising particularly on low end devices which are now taking 20 less time on average to open Snapchat Snap expanded its augmented reality platform and launched Snap Camera which lets people use their favorite Lenses when creating or streaming video on desktop and laptop computers Snap introduced Friendship Profiles a collection of images videos messages links and more that users and friends have saved in Chat This new solution makes it easy to find favorite Memories and the important things that are saved over time in one place Snap launched Product Catalogs that help ecommerce businesses to easily create Snap Ads through their websites Additionally Snap Pixel grew rapidly with more than 600 million purchase events in the reported quarter up from 230 million in third quarter 2018 Snap also improved its machine learning models for installing app and lower funnel bidding events which contributed to higher always on revenues Operating DetailsIn fourth quarter 2018 reported cost of revenues increased 11 3 year over year to 212 9 million Adjusted cost of revenues excluding stock based compensation and related payroll tax expenses depreciation amortization and certain other non cash non recurring items increased 10 year over year and 6 on a sequential basis to 202 million The growth can be attributed to higher revenue share cost and other cost Infrastructure cost 66 3 of cost of revenues increased 2 3 year over year but declined 4 3 sequentially Adjusted operating expenses declined 9 year over year and 3 sequentially to 238 million Adjusted operating expenses as percentage of revenues were 61 compared with 91 in the year ago quarter and 82 in the previous quarter Adjusted EBITDA loss narrowed to 50 million from loss of 159 million in the year ago quarter and loss of 138 million in the previous quarter Balance Sheet and Cash FlowSnap ended the quarter with cash cash equivalents and marketable securities of 1 28 billion down from 1 41 billion as of Sep 30 2018 During the quarter the company used approximately 126 1 million of cash which is an improvement of 50 million year over year and 6 million sequentially Free cash outflow was 148 8 million which improved by 49 million year over year and 10 million sequentially GuidanceFor first quarter 2019 Snap expects revenues between 285 million and 310 million reflecting growth of 24 34 Top line growth is expected to be hurt by the lack of Olympic related revenues that contributed modestly to the year ago quarter s revenue growth Adjusted EBITDA loss is expected to be between 165 million and 140 million compared with loss of 218 million reported in the year ago quarter
How Have Estimates Been Moving Since Then
In the past month investors have witnessed an upward trend in fresh estimates The consensus estimate has shifted 10 33 due to these changes
VGM Scores
At this time Snap has a subpar Growth Score of D however its Momentum Score is doing a lot better with a B However the stock was allocated a grade of F on the value side putting it in the bottom 20 quintile for this investment strategy
Overall the stock has an aggregate VGM Score of F If you aren t focused on one strategy this score is the one you should be interested in
Outlook
Estimates have been broadly trending upward for the stock and the magnitude of these revisions looks promising Notably Snap has a Zacks Rank 3 Hold We expect an in line return from the stock in the next few months |
CMCSA | Why Is Twenty First Century Fox FOXA Up 2 2 Since Last Earnings Report | It has been about a month since the last earnings report for Twenty First Century Fox FOXA Shares have added about 2 2 in that time frame outperforming the S P 500
Will the recent positive trend continue leading up to its next earnings release or is Twenty First Century Fox due for a pullback Before we dive into how investors and analysts have reacted as of late let s take a quick look at its most recent earnings report in order to get a better handle on the important catalysts Fox Q2 Earnings Top Revenues LagTwenty First Century Fox delivered second quarter fiscal 2019 adjusted earnings of 37 cents per share beating the Zacks Consensus Estimate by 7 cents However the figure decreased 11 9 on a year over year basis owing to lack of contribution from stake in Sky following its sale to Comcast NASDAQ CMCSA Revenues of 8 49 billion increased 5 7 from the year ago quarter However the figure missed the Zacks Consensus Estimate of 8 58 billion The top line growth can primarily be attributed to increasing affiliate revenues from the Cable Network Programming and growth in affiliate and advertising revenues in the Television segments offset by lower home entertainment revenues at the Filmed Entertainment segment Notably foreign currency had a negative impact of about 195 million on revenue growth Quarter DetailsSegment wise Cable Network Programming revenues 53 7 of total revenues increased 3 6 to about 4 56 billion Television segment net revenues 25 3 increased 18 9 on a year over year basis to about 2 15 billion However Filmed Entertainment revenues 25 4 declined 3 9 to 2 16 billion On the basis of components affiliate revenues 41 of total revenues increased 7 1 from the year ago quarter to 3 48 billion Advertising revenues 31 7 increased 8 1 year over year to 2 69 billion Other revenues 2 4 increased 34 9 to 201 million However Content revenues 24 9 declined 1 year over year to 2 12 billion The Cable Network Programming segment gained from higher affiliate and advertising revenue growth partially offset by increase in programming and contractual expenses Increase in contractual rates of all domestic cable brands led to year over year increase of 8 in domestic affiliate revenues Domestic advertising revenues increased 6 year over year primarily due to higher pricing at Fox News However international affiliate revenues declined 4 owing to unfavorable impact of a stronger U S dollar which was offset by local currency growth at FNG International and STAR International advertising revenues decreased 9 on account of unfavorable impact of a stronger U S dollar and lower local currency advertising revenue at FNG International more than offset local currency advertising growth at STAR Filmed Entertainment revenues declined due to lower syndication revenues at television production studio and lower home entertainment revenues from film studio The Television segment gained from higher advertising and affiliate revenues Advertising revenues increased 15 year over year due to increased number of sports broadcast and higher political advertising revenues generated from the mid term U S elections Increase in contractual retransmission consent fee and higher content revenues from FOX Broadcast Network s on demand streaming service led to year over year increase of 21 in affiliate revenues Operating DetailsThe company s total segment operating income before depreciation and amortization OIBDA came in at 1 57 billion up 8 8 year over year on the back of higher contributions of the Filmed Entertainment and Cable Network Programming segments partially offset by lower contribution at Television segment Notably foreign currency had a negative impact of about 94 million on OIBDA growth OIBDA as percentage of revenues expanded 50 basis points bps on a year over year basis to 18 4 OIBDA at Cable Network Programming rose 7 to 1 45 billion on higher affiliate revenues 4 The increase was partially offset by 2 rise in expenses Higher sports rights costs at both FS1 and the Regional Sports Networks RSNs and increase in FX entertainment costs resulted in increased expenses This was modestly offset by lower cricket rights costs at STAR OIBDA contribution from domestic market rose 10 year over year due to increase in contributions from FOX News and RSNs OIBDA contribution from International cable channels declined 8 year over year owing to unfavorable impact of a stronger U S dollar partially offset by local currency growth at both FNG International and STAR Filmed Entertainment s OIBDA increased to 193 million up 47 from the year ago quarter The increase can be attributed to higher contribution from film studios due to the global release of Bohemian Rhapsody lower theatrical costs on account of less number of films released in second quarter fiscal 2019 and strong performance of The Greatest Showman across home entertainment and pay television This was partially offset by lower domestic syndication contribution and higher new series deficits Notably Bohemian Rhapsody the biopic about Queen lead singer Freddie Mercury won the award for best picture drama this year s Golden Globes Moreover Rami Malek portraying the legendary singer won the trophy for best actor in a motion picture drama Television segment reported OIBDA loss of 22 million declining 78 million from the year ago quarter Growth in affiliate advertising and content revenues 19 was more than offset by increase in expenses 24 The rise in expenses was due to higher sports programming costs on account of the inaugural season of Thursday Night Football offset by lower expenses of entertainment programming Operating and selling general and administrative expenses increased 4 8 year over year to 6 94 billion Balance Sheet and Cash FlowAs of Dec 31 2018 cash cash equivalents were 21 28 billion compared with 7 08 billion as of Sep 30 2018 due to cash inflow from Sky stake sold to Comcast Cash flow from operations was 557 million for six months ended Dec 31 2018 compared with 504 million for six months ended Dec 31 2017 Recent AnnouncementsDuring the reported quarter Fox sold its 39 stake in Sky to Comcast for about 15 1 billion due to which it had a pre tax gain of 10 8 billion Disney s acquisition of Twentieth Century Fox Film and Television studios and certain assets of the cable and international television businesses are expected to close in the first half of calendar year 2019 The acquisition is subject to few regulatory approvals and receipt of certain tax opinions with respect to the treatment of the transaction under U S and Australian tax laws Earlier the acquisition was approved by the United States Justice Department on Jun 27 2018 and European Commission on Nov 6 2018 Prior to the close of acquisition Twenty First Century Fox will separate few business units including FOX Television Stations FOX Business FOX Broadcasting Company FS1 FS2 FOX News and Big Ten Network to create a new entity called Fox Corporation Notably on Jan 7 2019 Twenty First Century Fox announced that it has filed registration statement with the U S Securities and Exchange Commission SEC to create Fox Corporation
How Have Estimates Been Moving Since Then
In the past month investors have witnessed an upward trend in fresh estimates
VGM Scores
Currently Twenty First Century Fox has a poor Growth Score of F however its Momentum Score is doing a bit better with a D Following the exact same course the stock was allocated a grade of D on the value side putting it in the bottom 40 for this investment strategy
Overall the stock has an aggregate VGM Score of F If you aren t focused on one strategy this score is the one you should be interested in
Outlook
Estimates have been trending upward for the stock and the magnitude of this revision looks promising It comes with little surprise Twenty First Century Fox has a Zacks Rank 2 Buy We expect an above average return from the stock in the next few months |
WFC | MannKind medical chief bids adieu shares down 2 | MannKind MNKD 2 VP Chief Medical Officer Raymond Urbanski M D Ph D will resign effective September 29 to take a position in another company that will enable him to pursue his passion for oncology He joined MannKind in October 2015 Now read |
WFC | Soaring Canadian dollar set to pull back in coming months Reuters poll | By Fergal Smith TORONTO Reuters Canada s dollar which has soared over 12 percent against its U S counterpart since May will give up some of those gains in coming months as the boost from Bank of Canada interest rate hikes begins to fade a Reuters poll found on Monday The loonie notched its strongest level since May 2015 on Friday at C 1 2063 after the BOC surprised some investors on Wednesday with its second rate increase in three months The BOC s moves have driven Canadian bond yields above their U S peers for the first time in about three years adding to the loonie s allure However the central bank is likely done raising interest rates this year a Reuters poll of primary dealers showed on Thursday though the central bank is seen charting a more aggressive tightening path for 2018 than had been anticipated earlier Just as the Bank of Canada turned on the rate hike cycle with very short notice they could also turn it off very quickly if the currency strengthens too much said Daniel Katzive head of FX strategy North America at BNP Paribas PA BNPP The Canadian dollar was seen weakening to C 1 2300 in a month from around C 1 2160 on Monday the median forecast in a poll of over 40 foreign exchange strategists showed From there the currency is expected to soften to C 1 2400 in three months before stabilizing While there is scope for further BOC tightening over the coming months we would expect that it would occur at a more gradual pace said Eric Viloria senior currency strategist at Wells Fargo NYSE WFC Gains for the loonie have come despite the uncertain prospects of the future of the North American Free Trade Agreement given that most of Canada s exports go to the United States Canadian U S and Mexican officials began negotiations last month to update the trade pact However U S President Donald Trump recently said he would probably need to terminate NAFTA to get what he considers a fair trade deal The Canadian currency has also shrugged off recent volatility in crude oil prices one of the country s major exports U S crude prices tumbled more than 3 percent on Friday on worries energy demand would be hit hard by Hurricane Irma and they extended their decline early on Monday In our view we are already overshooting a little bit in USD CAD relative to what s a long term sustainable level Katzive said His estimate of fair value for the currency is around C 1 2700 While primary bond dealers prevailing view in a Reuters poll was of no more BOC rate hikes in the rest of 2017 the overnight index swap market reflects traders view of a nearly three in four chance of the central bank hiking again by December We still think the Bank of Canada is going to move again later on in the year but this one a rate hike by December is priced in said Krishen Rangasamy senior economist at National Bank Financial
What s not priced in is a Federal Reserve hike If we are right and the Fed hikes in December the U S dollar could make a comeback later in the year or the beginning of next year he added Polling by Anu Bararia and Sarmista Sen Reporting by Fergal Smith Editing by W Simon |
WFC | Wells Fargo CEO sees progress on expenses in second half | By Dan Freed Reuters Wells Fargo Co N WFC expects to gain better control of costs in relation to revenues as it works to recover from a sales scandal its chief executive officer said on Tuesday Tim Sloan CEO of the third largest U S bank said expenses will likely account for 60 percent to 61 percent of revenues in the second half of 2017 down slightly from the previous two quarters He spoke at an industry conference hosted by Barclays LON BARC on Tuesday However Sloan said the expense estimate does not include potentially nonrecurring expenses including reasonably possible but not yet accrued litigation expenses Sloan who has called its efficiency ratio unacceptable said he expects the bank to return to its long term target efficiency ratio of 55 percent to 59 percent some time next year Its shares rose 1 1 percent to 51 24 on Tuesday Wells Fargo s full year net interest income will likely increase by the low to mid single digits from 2016 the CEO said Third quarter lending will be slowed by reduced activity in autos commercial real estate and the runoff of its junior lien mortgage portfolio Sloan said He said the declines would be partially offset by increased nonconforming residential first mortgage lending Wells Fargo s business has been under pressure for the past year as the bank opened as many as 3 5 million accounts without customer authorization over several years The ensuing scandal led to a companywide review which turned up problems with other products including auto and life insurance
Sloan s predecessor John Stumpf resigned last year under pressure and other senior executives and board members have resigned or been fired |
WFC | Lakeland Industries beats by 0 05 revenue in line | Lakeland Industries NASDAQ LAKE Q2 EPS of 0 25 beats by 0 05 Revenue of 23 9M 7 3 Y Y in line Press ReleaseNow read |
WFC | Hurricane Harvey to make mild dent in U S economic growth Reuters poll | By Indradip Ghosh and Shrutee Sarkar BENGALURU Reuters U S economic growth will take a mild hit in the current quarter from Hurricane Harvey that slammed into Texas but the outlook for the coming year remained steady in the latest Reuters poll suggesting lost output will likely be recouped Harvey was the most powerful storm to hit Texas in more than 50 years killing over 60 people and displacing more than 1 million citizens It also forced a temporary closure of refineries and the governor of Texas said the damage was around 180 billion Asked about the impact of Hurricane Harvey on economic growth in the current quarter the median forecast from 48 economists who answered an extra question was for a 0 3 percentage point hit to seasonally adjusted annualized growth But the impact was expected to be short lived according to economists who responded to the survey Sept 7 12 before and as another powerful storm Hurricane Irma ripped through the Caribbean and then Florida killing more than 60 displacing and leaving millions of households without power Previously major hurricanes like Katrina in 2005 and Sandy in 2012 had cost more than half of the GDP growth rate for the respective quarters the storms hit But data following those storms also suggest that the U S economy was able to add solid job numbers and bounce back from government reconstruction efforts A storm of this magnitude is likely to have negative near term effects on nationwide economic data If flooding remains disruptive for several weeks we would expect a drag on non farm payrolls but the historical experience here is mixed said James Sweeney chief economist at Credit Suisse SIX CSGN The effect on GDP is even more ambiguous since many costs of dealing with the storm actually boost growth offsetting some of the lost income and output President Donald Trump s administration struck a deal with Democrats that includes 15 25 billion in aid for areas affected by Hurricane Harvey and other natural disasters Still the range of forecasts suggests not everyone is convinced of just a mild dent in growth Hurricane Harvey could pose a sizeable drag given the presence of high value added energy sectors in the Gulf Coast region and the timing of the storm s landfall wrote Michael Gapen chief U S economist at Barclays LON BARC in a note to clients Barclays predicted a 1 0 to 1 5 percentage point hit which was the most pessimistic call in the poll Despite that the latest Reuters poll consensus was for the U S economy to expand an annualized 2 6 percent in this quarter and 2 5 percent in the next That was up a bit from the previous predictions of 2 5 and 2 4 percent for the respective quarters in the August poll as economists had already begun upgrading their growth forecasts for the current quarter before Hurricane Harvey struck But inflation expectations have been lowered slightly from the previous month with the core PCE price index the Federal Reserve s preferred measure of inflation not expected to reach the central bank s 2 percent target at least until 2019 The consensus is for core PCE inflation to average 1 4 1 9 percent in each quarters from the current through the end of next year In the August poll the predictions were for it to average 1 5 2 0 percent Still the Fed is widely expected to announce steps at its meeting next week to start shrinking its balance sheet worth over 4 trillion The survey of nearly 100 economists showed the central bank is expected to raise the federal funds rate once more in the final three months of this year to 1 25 1 50 percent But 44 of 73 economists who answered an extra question said their conviction for another Fed rate hike this year has decreased The remaining 29 said it had stayed the same We still have a December rate hike call but recent developments are making the path to a December rate hike more narrow said Sam Bullard senior economist at Wells Fargo NYSE WFC That lack of confidence amongst poll participants is mainly driven by the divide among Fed policymakers on the outlook for inflation and future interest rate hikes
For other stories from the Reuters global long term economic outlook polls package Polling by Sarmista sen and Vartika Sahu Editing by Chizu Nomiyama |
WFC | SoFi CEO Cagney to step down immediately | Reuters Online lender Social Finance which is currently investigating claims of sexual harassment by employees said on Friday its chief executive Mike Cagney resigned effectively immediately The company had said on Monday that Cagney would step down but stay on as CEO until a successor was found Executive Chairman Tom Hutton will become interim chief executive officer the company said on Friday Cagney s resignation comes after the San Francisco based company known as SoFi launched an investigation this month into claims that current and former employees were sexually harassed at work A former Wells Fargo NYSE WFC trader and hedge fund manager Cagney co founded SoFi in 2011 to compete with banks in the student loan market SoFi targeted students from elite institutions such as Stanford and Harvard and young people skeptical of traditional banks in the wake of the financial crisis flocked to the new platform In a note to employees on Monday Cagney said a combination of HR related litigation and negative press have become a distraction from the company s core mission to focusing attention on him personally SoFi has a non traditional work culture hosting cocktail parties yoga sessions and singles meetups for its customers which it refers to as members The company s recent woes echo problems elsewhere in the technology sector
Ride hailing company Uber also based in San Francisco is struggling to overcome allegations of sexual harassment and executive misconduct Venture capitalists have also faced criticism over their treatment of female entrepreneurs |
CMCSA | Trump seeks to backtrack on 2017 comments on Comey firing | By Susan Heavey WASHINGTON Reuters U S President Donald Trump sought to backtrack on comments last year in which he tied his decision to fire FBI Director James Comey to a probe into Russian election meddling accusing NBC News on Thursday of fudging their interview but offering no supporting evidence Trump made his accusation as the man who took over the federal Russia investigation from Comey Special Counsel Robert Mueller digs deeper into a probe that has already led to a series of indictments of former Trump aides Trump fired Comey on May 9 2017 a move that Comey said later was aimed at undercutting the probe The Trump administration said at the time of Comey s dismissal that the president had acted on the recommendation of Attorney General Jeff Sessions and No 2 Justice Department official Rod Rosenstein In an interview with NBC Nightly News anchor Lester Holt that aired two days after the firing Trump accused Comey of being incompetent and noted the recommendation but also raised the issue of the Russia investigation saying he was thinking of this Russia thing when he fired him In a Twitter post on Thursday Trump accused the news outlet and Holt of fudging my tape on Russia but gave no evidence to back up his claim In addition to looking into Russia s alleged interference in the 2016 presidential election which Moscow denies Mueller is investigating any collusion with Russia by Trump s campaign and any attempt by the president to impede the probe The Comey firing could be central to a potential obstruction of justice case Legal experts have said Mueller s team must weigh whether the president acted with an improper or corrupt intent when he took actions such as firing Comey Trump has denied any collusion with Russia or any obstruction of justice He has said since the interview with Holt that he did not fire Comey over the federal probe Trump said in the Holt interview regardless of recommendation I was going to fire Comey knowing there was no good time to do it And in fact when I decided to just do it I said to myself I said you know this Russia thing with Trump and Russia is a made up story It s an excuse by the Democrats for having lost an election that they should ve won Representatives for NBC News part of Comcast Corp O CMCSA declined to comment on Trump s tweets on Thursday Representatives for the White House did not respond to a question about Trump s accusation ATTACKS ON NEWS MEDIA In the most dramatic day yet in the Russia investigation federal prosecutors last week secured the conviction of Trump s former campaign manager for financial crimes and a plea agreement from the president s longtime attorney that included pleading guilty to campaign finance violations Trump in a string of tweets last week said he had nothing to hide from Mueller s probe Trump s tweets on Thursday were his latest attack on the news media He has repeatedly called critical reports about him fake news and on Thursday he also called for the firing of CNN s president Jeff Zucker Representatives for CNN owned by AT T N T declined to comment U S news organizations have pushed back against the stream of criticism from Trump Federal authorities on Thursday charged a California man with threatening to kill Boston Globe employees for the newspaper s role leading a defense this month of press freedoms by hundreds of news organizations
Shares of AT T and Comcast did not move on the president s tweets |
CMCSA | UK s Sky to invest in Israeli VC fund and open Berlin office | Reuters Pay TV group Sky plans to step up investments in tech start ups in Europe and the Middle East by opening a new office in Germany and investing 4 million in an Israeli venture capital fund Europe s biggest pay TV group has built one of the most technically advanced platforms in Europe helped in part by investments and partnerships it has made with more than 20 companies in the United States Britain and France One of its early investments was in Roku a provider of devices that connect televisions to streaming services which listed last year Sky with distribution platforms in Britain Ireland Germany Italy and Austria said it had been impressed with the tech talent in Berlin and Israel It will scout for the most interesting companies from Berlin and invest 4 million in Israeli venture capital fund Remagine Ventures
The British company formed in 1990 is currently at the center of a bidding battle between Rupert Murdoch s Twenty First Century Fox and U S cable giant Comcast NASDAQ CMCSA |
CMCSA | Mediaite NBC bombshell only the beginning | The Daily Beast s story on NBC News NASDAQ CMCSA alleged internal efforts to kill Ronan Farrow s expose on Harvey Weinstein is apparently only the beginning of their reporting on the network s misconduct problems There s more to come a source with knowledge told Mediaite A lot more The investigation centers around sexual harassment and misconduct at NBC News that had execs at the network panicked Now read |
WFC | Analyst Wells Fargo s new fake account numbers not so bad | The news that Wells Fargo WFC 0 6 has found 1 4M more possibly unauthorized accounts bringing the tally to as many as 3 5M isn t as bad as it might seem says Sandler O Neill Partners That s because of the much wider scope of the new examination analyst Scott Siefers tells CNBC It s important to keep this in context Yes the number of affected accounts was up by 65 percent or so but it is important to bear in mind they basically doubled the amount of time in their review he explains calling for closure to this part of the scandal But Wells Fargo investors have to wrestle with what s been a slowing top line revenue growth trend There s still a litany of uncertainties out there In that vein I think that the valuation discount is warranted still Keefe Bruyette Woods agrees that the review wrap up is a positive The retail sales practice scandal settlement was announced nearly a year ago and at this stage we now expect the trickle of new information to slow considerably That said the company still has to resolve issues related to its auto lending business collateral protection insurance CPI and guaranteed auto protection waivers GAP insurance and we expect those items to remain an overhang on shares of WFC in the near term Now read |
WFC | Vanguard withheld support for key Wells Fargo directors filings | By Ross Kerber BOSTON Reuters Vanguard Group one of the world s biggest fund managers voted against three directors at Wells Fargo NYSE WFC Co this year including Chairman Stephen Sanger according to U S filings a rare rebuke from the bank s second largest shareholder The lack of support from Vanguard was disclosed on Wednesday and Thursday just as Wells Fargo announced it had uncovered more than a million additional accounts potentially opened without customers knowledge in a drawn out scandal that has already resulted in a 190 million settlement with regulators and the ouster of its chief executive officer Investors are concerned that as the sales scandal deepens it will make it more difficult to restore the San Francisco bank s once pristine brand Shares in Wells Fargo fell 0 6 percent on Thursday to close at 51 07 They are down 7 3 percent so far this year Vanguard said it voted against certain directors at a U S financial company that was fined for fraud in an annual voting report on Thursday Vanguard executives including Investment Stewardship Officer Glenn Booraem declined to confirm the language referred to Wells Fargo According to filings with the Securities and Exchange Commission Vanguard funds supported 12 of 15 Wells Fargo directors on the ballot and backed the company s management on all nine shareholder proposals up for a vote at the April meeting Wells Fargo declined to comment on the investor votes Mutual funds often the largest owners of U S corporations wield decisive clout through their proxy voting over governance questions like the election of directors or the setting of executive pay But while the majority of the votes take place during the springtime annual meeting season the funds rarely detail any of their votes until securities filings appear in late August The fund firms also generally support corporate boards Vanguard said it backed director put up for election by management 96 percent of the time at U S companies in the most recent proxy season In the case of Wells Fargo it was clear that many shareholders were displeased with only three of 15 directors receiving more than 90 percent support from voting shareholders at the bank s annual meeting on April 25 Sanger received just 56 percent Vanguard s regulatory filings showed funds like Vanguard Total Stock Market Index Fund voted against Wells Fargo directors including Federico Pena chair of its Corporate Responsibility Committee Enrique Hernandez who had chaired its risk committee and Sanger Other funds that voted critically at Wells Fargo included American Funds like Income Fund of America which did not support nine of 15 directors filings show American Funds representatives did not respond to a request for comment Wells Fargo said this month that former Federal Reserve governor Elizabeth Duke will replace Sanger on Jan 1 and two other directors will also retire Hernandez and Pena remain on the board but Hernandez will no longer chair its risk committee and Pena and Sanger are leaving the committee In its annual voting report Vanguard wrote of its votes at the financial company we concluded that certain directors had fallen short of their responsibility to understand the risks and culture of the company and to challenge management when necessary Vanguard s report stated that while it supported the changes made by the company s board since the vote we will continue to engage to ensure ongoing progress According to Thomson Reuters data Vanguard holds a 6 percent stake in Wells Fargo second only to the 9 percent stake held by Warren Buffett s Berkshire Hathaway NYSE BRKa Inc which has supported the bank |
WFC | Lost support for Wells Fargo directors | A rare rebuke from the bank s second largest shareholder Vanguard voted against three directors at Wells Fargo NYSE WFC this year including Chairman Stephen Sanger according to U S filings The lack of support was disclosed as Wells announced it had uncovered more than a million additional accounts opened without clients authorization marking a 70 increase over the bank s initial estimate Now read |
WFC | Wells Fargo buys dip in RLJ Lodging | Believing management will take steps to polish its tarnished reputation Wells Fargo NYSE WFC s Jeffrey Donnelly upgrades RLJ Lodging NYSE RLJ to Outperform from Market Perform His 23 price target suggests about 15 upside The FelCor NYSE FCH deal he says was an unanticipated departure from an otherwise straightforward story and RLJ shares are currently trading at one of the steepest discounts based on NAV to peers Shares are down 17 4 YTD Source Bloomberg s Lily KatzNow read |
WFC | California on brink of letting customers sue banks | Reuters California is one step away from allowing state residents to sue financial institutions for fraud rather than letting banks force customers to settle disputes in arbitration after the state legislature gave final approval on Tuesday to a bill inspired by last year s Wells Fargo scandal
The bill passed by the Democratic controlled legislature now requires the approval of Governor Jerry Brown a Democrat who is expected to sign it into law shortly
Under the bill judges could override contract clauses that require customers to settle disputes through arbitration in cases where a bank commits fraud using customers personal information
Mandatory arbitration clauses which have become standard practice since a 2011 U S Supreme Court decision make consumers agree not to sue in the future as a condition of purchasing products or services
Clauses inserted into Wells Fargo account opening agreements have blocked customers from taking the third largest U S bank N WFC to court over last year s disclosures that it opened millions of accounts without customer knowledge Regulators fined the bank 190 million for the alleged deceit of which 5 million was to be paid to customers
The U S Consumer Financial Protection Bureau released a rule this summer ending forced arbitration clauses for banks and credit cards but the rule is not retroactive and does not apply to Wells Fargo customers in the phantom accounts scandal even those recently revealed as alleged victims |
WFC | Wells Fargo whistleblower lawsuit is revived by U S appeals court | By Jonathan Stempel NEW YORK Reuters Wells Fargo Co N WFC faces a new legal worry after a federal appeals court on Thursday revived a whistleblower lawsuit by two former employees who said they were fired for trying to report misconduct by lenders that the bank later absorbed The 2nd U S Circuit Court of Appeals in Manhattan ordered a federal district judge to revisit the case which concerned behavior predating the 2008 financial crisis and recent scandals concerning Wells Fargo s own practices after the Supreme Court made it easier for some whistleblowers to sue We look forward to stating our legal position with the district court Wells Fargo spokeswoman Elise Wilkinson said Robert Kraus a former Wachovia Corp controller and Paul Bishop a former World Savings Bank mortgage salesman had accused their employers of hiding mortgage improprieties and billions of dollars of losses They said this enabled the lenders along with San Francisco based Wells Fargo to falsely certify their compliance with banking laws and borrow or receive aid from the Federal Reserve at favorable rates Wachovia bought World Savings parent Golden West Financial Corp an adjustable rate mortgage specialist for 24 2 billion in 2006 and Wells Fargo took over both for 12 7 billion at the end of 2008 The plaintiffs sued under the federal False Claims Act which lets whistleblowers pursue claims that the government was defrauded and if successful share in recoveries U S District Judge Brian Cogan in Brooklyn dismissed the case in 2015 and the appeals court upheld his decision in May 2016 But the next month the Supreme Court ruled in another case that some courts made it too hard to pursue False Claims Act cases and said whistleblowers could sue over misrepresentations that were material to the government s payment decision Ordered to reconsider Kraus and Bishop s case the appeals court directed Cogan to apply this new materiality standard to their claims Tejinder Singh a partner at Goldstein Russell representing the whistleblowers in an interview said the decision serves as a warning for companies Going forward companies will likely feel far less safe taking undue advantage of government programs and when they do transgress it will be easier for whistleblowers and the government itself to obtain redress he said Wells Fargo is also combating fallout from practices including its creation of up to 3 5 million unauthorized accounts charging 800 000 borrowers for unneeded auto insurance and enrolling a potential 528 000 customers for online bill paying without permission
The case is U S ex rel Bishop et al v Wells Fargo Co et al 2nd U S Circuit Court of Appeals No 15 2449 |
FCX | Freeport McMoRan Follows Copper Down on Another Virus Selloff | By Kim Khan
Investing Freeport McMoRan sank in midday trading Monday as the world s biggest copper producer fell afoul of the pervasive virus concerns and effect on the Chinese economy
Freeport McMoRan NYSE FCX shares sank 6
Copper prices also sank off 3 heading for their ninth straight down session which would be the metal s longest losing streak in six years
China the world s top buyer of metal is hitting worldwide investments as concerns of a wider spreading of the coronavirus and an economic slowdown grew The government has taken emergency measures to contain the disease like extending the Lunar New Year holiday as the death toll hit 81
Copper regarded as a bellwether of the global economy has given up all of its gains since early December when a rally pushed prices up nearly 10 to eight month highs as investors welcomed the first phase of a U S China trade deal and hoped for a rebound in economic growth
Chinese demand accounts for about 50 of the majority of base metals and looking at the latest data regarding the coronavirus it s now spread quite widely said analyst Timothy Wood Dow at BMO Capital in London
On Friday we didn t know this it seemed quite contained Now this wider geographical spread is very concerning so that s feeding through to the market
Freeport sold off last week following its fourth quarter earnings report While profit was better than expected it was down more than 80 from the year ago period
Shares had been up sharply going into the report
Reuters contributed to this report |
CMCSA | UK regulator sticks to 14 pounds a share floor for Sky from Disney | LONDON Reuters Britain s Takeover Panel said on Thursday it had confirmed its ruling that Walt Disney might have to offer at least 14 pounds a share to buy UK pay television group Sky Disney would only be forced to make such an offer if it completes a deal to buy Twenty First Century Fox s TV and film assets which include a 39 percent stake in Sky before either Fox or rival suitor Comcast NASDAQ CMCSA succeed in taking control of the British broadcaster The price is designed to reflect the level of the offer Disney is making for Fox and its holding in Sky
The regulator had set the level of a possible mandatory Disney offer for Sky at 14 pounds a share on July 13 But it has had to hold a series of hearings since then to review the level after a number of groups appealed the decision |
CMCSA | Sky expects to pay advisers on Fox deal up to 123 7 million in fees | LONDON Reuters Sky L SKYB said on Monday that it expected to pay its advisers between 90 million pounds and 97 million pounds 123 7 million if Twenty First Century Fox O FOXA succeeds with its takeover of the British broadcaster The UK pay television group will spend as much as 61 5 million pounds on financial and broking advice and up to 20 million pounds on lawyers for their work on the Fox bid according to a circular published by Sky Other costs include fees for accountancy and public relations advice
Fox which already owns 39 percent of Sky is battling U S cable giant Comcast O CMCSA for control of the broadcaster Comcast is currently in the lead after Sky s independent directors last month recommended its 14 75 pound a share offer which trumped Fox s 14 pound a share bid |
CMCSA | Comcast gets valid acceptances for less than 1 percent of Sky shares | Reuters Comcast Corp NASDAQ CMCSA said it had received valid acceptances for shares representing just 0 21 percent of Sky Plc LON SKYB after its 14 75 pound per share offer to buy 61 percent of the European broadcaster Comcast also said the offer period was being extended and would remain open for acceptances until Sept 12 Comcast gatecrashed Fox s attempt to buy the 61 percent of Sky that it does not already own earlier this year and the U S cable giant s latest higher offer which it submitted in July has been recommended to shareholders by the broadcaster s independent directors
Under British takeover rules Rupert Murdoch s Fox has until Sept 22 to trump Comcast s offer for Sky |
CMCSA | Comcast Rises 3 20 | Investing com Comcast NASDAQ CMCSA rose by 3 20 to trade at 36 44 by 10 57 14 57 GMT on Friday on the NASDAQ exchange
The volume of Comcast shares traded since the start of the session was 3 95M Comcast has traded in a range of 35 32 to 36 44 on the day
The stock has traded at 36 44 at its highest and 35 01 at its lowest during the past seven days |
CMCSA | Comcast CMCSA Up 6 2 Since Last Earnings Report Can It Continue | It has been about a month since the last earnings report for Comcast CMCSA Shares have added about 6 2 in that time frame outperforming the S P 500
Will the recent positive trend continue leading up to its next earnings release or is Comcast due for a pullback Before we dive into how investors and analysts have reacted as of late let s take a quick look at its most recent earnings report in order to get a better handle on the important drivers Comcast Benefits from Growth in High Speed Internet RevenuesComcast reported fourth quarter 2018 adjusted earnings of 64 cents per share that beat the Zacks Consensus Estimate by couple of cents The figure jumped 36 2 year over year Revenues on a pro forma basis including Sky operations from Jan 1 2017 increased 5 2 year over year to 28 28 billion Consolidated revenues surged 26 1 year over year to 27 85 billion The Zacks Consensus Estimate was 25 74 billion Cable Communication Revenue DetailsRevenues climbed 5 2 from the year ago quarter to 14 13 billion High speed Internet revenues increased 10 1 year over year to 4 40 billion primarily driven by an increase in the number of residential high speed Internet customers and rate adjustments Business Services revenues were up 9 5 to 1 84 billion primarily due to increasing number of customers adopting the company s product offerings Advertising and other revenues advanced 27 7 and 19 1 to 863 million and 467 million respectively on a year over year basis Advertising revenues were driven by higher political advertising revenues Growth in other revenues was driven by an increase in X1 licensing revenues Voice revenues were 978 million down 3 year over year primarily due to declining number of residential voice customers Video revenues also dipped 1 6 to 5 58 billion reflecting a decrease in the number of residential video customers Total Customer Relationships increased 258K to 30 3 million Total high speed Internet customer net additions were 351K Total security and automation customer net additions were 39K at the end of the quarter Total video customer net losses were 29K while total voice customer net losses were 2K At the end of the fourth quarter 67 6 of Comcast s residential customers received at least two Xfinity products NBCUniversal Revenue DetailsRevenues increased 7 1 year over year to almost 9 40 billion Cable Networks revenues increased 8 9 from the year ago quarter to 2 89 billion primarily due to higher distribution revenues up 10 3 content licensing other revenues surged 28 4 and advertising revenues flat Broadcast Television revenues increased 3 7 from the year ago quarter to almost 3 10 billion owing to higher advertising up 2 1 and distribution other revenues up 18 5 Filmed Entertainment revenues increased 14 from the year ago quarter to 1 98 billion Theatrical revenues soared 189 3 driven by strong collections from Dr Seuss The Grinch and Halloween Home Entertainment and content licensing revenues decreased 14 3 and 8 8 respectively Theme Parks revenues were 1 51 billion increasing 3 5 year over year reflecting higher attendance and per capita spending Sky Revenue DetailsPro Forma Revenues increased 5 6 year over year at constant currency cc to 5 02 billion Direct to consumer revenues increased 4 from the year ago quarter at cc to 3 98 billion primarily driven by improving pay TV penetration growth in Sky Mobile and Sky Fibre customers and rate adjustments in the United Kingdom Average direct to consumer revenue per customer relationship increased roughly 1 Content revenues jumped 35 7 at cc to 363 million driven by increased penetration of premium sports and movie channels on third party pay TV networks in the United Kingdom and higher monetization of the company s slate of original programming Notably the company won exclusive sports rights in Italy and Germany At cc advertising revenues increased 2 9 from the year ago quarter to 682 million Revenues grew due to increased sports inventory in Italy and Germany and growth in advanced advertising in the United Kingdom Pro Forma Total Customer Relationships increased 164K to 23 6 million in the reported quarter Operating DetailsConsolidated adjusted EBITDA increased 21 6 from the year ago quarter to 8 19 billion However adjusted EBITDA margin contracted 110 basis points bps to 29 4 Pro Forma including Sky operations from Jan 1 2017 adjusted EBITDA increased 11 1 from the year ago quarter to 8 26 billion Moreover adjusted EBITDA margin expanded 160 bps to 29 2 Consolidated programming production costs increased 34 from the year ago quarter to 9 25 billion As percentage of revenues programming production costs increased 190 bps on a year over year basis Consolidated operating income increased 9 3 year over year to 4 51 billion However operating margin contracted 250 bps from the year ago quarter to 16 2 Segment wise Cable Communications adjusted EBITDA increased 7 3 from the year ago quarter to 5 78 billion Adjusted EBITDA margin expanded 80 bps to 40 9 Notably adjusted EBITDA per Customer Relationship increased 3 8 Cable Communications programming expenses increased 2 9 on a year over year basis owing to higher retransmission consent fees and sports programming costs Non programming expenses increased 4 5 from the year ago quarter NBCUniversal adjusted EBITDA increased 12 3 from the year ago quarter to 2 12 billion Cable Networks and Broadcast Television adjusted EBITDA grew 4 3 and 109 3 respectively Theme Parks adjusted EBITDA inched up 0 7 However Filmed Entertainment adjusted EBITDA declined 23 6 on a year over year basis Sky s adjusted EBITDA on a pro forma basis and at cc increased 12 4 to 765 million Adjusted EBITDA margin expanded 110 bps to 15 2 Notably Sky s Operating Costs and Expenses increased 4 5 at cc to 4 26 billion Cash Flow LiquidityIn fourth quarter 2018 Comcast generated 5 8 billion of cash from operations compared with 6 billion in the previous quarter Free cash flow was 3 10 billion compared with 4 30 billion in the year ago quarter As of Dec 31 2018 cash and cash equivalents were 11 10 billion up from 10 62 billion as of Sep 30 2018 Consolidated total debt was 111 74 billion During the quarter Comcast paid dividends of 865 million and repurchased shares worth 1 billion As previously announced the company will stop buying back shares in 2019 to reduce debt level that increased significantly post the Sky acquisition Moreover Comcast raised dividend by 10 to 84 cents per share on an annualized basis for 2019
How Have Estimates Been Moving Since Then
In the past month investors have witnessed an upward trend in fresh estimates
VGM Scores
Currently Comcast has a strong Growth Score of A though it is lagging a lot on the Momentum Score front with a C Charting a somewhat similar path the stock was allocated a grade of B on the value side putting it in the top 40 for this investment strategy
Overall the stock has an aggregate VGM Score of B If you aren t focused on one strategy this score is the one you should be interested in
Outlook
Estimates have been trending upward for the stock and the magnitude of this revision looks promising Notably Comcast has a Zacks Rank 3 Hold We expect an in line return from the stock in the next few months |
CMCSA | What s In Store For LKQ Corporation LKQ In Q4 Earnings | LKQ Corporation NASDAQ LKQ is set to report fourth quarter and 2018 results before the opening bell on Feb 28 In the last reported quarter the company s earnings were in line with estimates Per the earnings record it missed estimates in two of the trailing four quarters while beating earnings estimates once and meeting in another The average earnings surprise was 1 00 Year to date shares of LKQ Corporation have gained 16 1 compared with 11 4 increase recorded by the S P index Let s see how things have shaped up for the upcoming announcement Factors Influencing This QuarterFor 2018 LKQ Corporation has reduced expectation of organic revenue growth by 0 5 and currently expects it to be 4 5 5 The guidance reflects that the company expects lowered global organic revenue growth from parts and services in the fourth quarter Further volatility in foreign currencies high metal costs and business seasonality impelled it to reduce adjusted earnings per share outlook by 0 04 The current expectation is 2 19 2 22 per share This specialty auto parts provider is achieving robust growth in the European segment majorly driven by the acquisition of STAHLGRUBER in 2018 However the company expects levels to decline in the fourth quarter from robust levels witnessed in the first half of 2018 Further it plans to increase inventory levels in the U K in the fourth quarter to protect the business from any supply chain disruptions in case of a no deal Brexit Despite cost pressures LKQ Corporation expects growth to continue in North America majorly in the key markets consisting New York California Pennsylvania Florida and Michigan Growth will be driven by improved pricing and continued developments of telematics and road map platforms Earnings WhispersOur proven model does not conclusively predict that LKQ Corporation is likely to beat on earnings this quarter This is because a stock needs to have a positive and a Zacks Rank 1 Strong Buy 2 Buy or 3 Hold for this to happen But that is not the case here as you will see below Earnings ESP LKQ Corporation has an Earnings ESP of 2 04 You can uncover the best stocks to buy or sell before they re reported with our Zacks Rank The company currently carries a Zacks Rank of 4 Sell which increases the predictive power of ESP However this combined with its Earnings ESP makes a surprise prediction difficult Note that we caution against stocks with a Rank 4 or 5 Strong Sell going into the earnings announcement especially when the company is witnessing negative estimate revisions Stocks to ConsiderHere are a few stocks with the right combination of elements to outpace earnings estimates this time around Westport Fuel Systems Inc NASDAQ WPRT has an Earnings ESP of 50 00 and it currently carries a Zacks Rank 3 You can see AMC Networks Inc NASDAQ AMCX has an Earnings ESP of 2 21 and it currently carries a Zacks Rank 3 Comcast Corporation NASDAQ CMCSA has an Earnings ESP of 7 94 and it currently has a Zacks Rank of 3 Breakout Biotech Stocks with Triple Digit Profit PotentialThe biotech sector is projected to surge beyond 775 billion by 2024 as scientists develop treatments for thousands of diseases They re also finding ways to edit the human genome to literally erase our vulnerability to these diseases Zacks has just released Century of Biology 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance Our recent biotech recommendations have produced gains of 98 119 and 164 in as little as 1 month The stocks in this report could perform even better |
WFC | Signet Jewelers roars higher again | Signet Jewelers NYSE SIG is up another 6 5 to add to yesterday s post earnings rally Wells Fargo NYSE WFC takes its price target up to 75 on confidence in Signet s new direction under CEO Gina Drosos Drosos talked tech innovation during the company s earnings conference call The retail jewelry shopping experience hasn t transformed in decades and we can leverage our interactions and data analytics to leapfrog our consumer insights she noted Previously Signet beats by 0 29 beats on revenue Aug 24 Previously Signet 20 after results shine Aug 24 Now read |
WFC | Stocks dollar recover as North Korea jitters abate | By Saqib Iqbal Ahmed NEW YORK Reuters U S stocks rebounded from a sharply lower open on Tuesday and helped an index of global equity markets pare losses as investors shrugged off concerns over North Korea s latest missile test Treasury yields were off early lows and the dollar index DXY which measures the greenback against a basket of six major currencies traded little changed on the day The dip in risk appetite that dominated most of the trading session and sent benchmark 10 year U S Treasury yields lower and gold to a more than nine month peak gave way as the U S trading session progressed MSCI s world index MIWD00000PUS which tracks shares in 46 countries was down 0 29 percent after earlier falling as much as 0 57 percent to a one week low on heightened worries about North Korea North Korea fired a ballistic missile over Japan s northern Hokkaido island into the sea on Tuesday prompting a warning from U S President Donald Trump that all options are on the table as the United States considers its response When the President says All options are on the table the best strategy for investors is sometimes to do nothing said Brian Jacobsen senior investment strategist at Wells Fargo NYSE WFC Funds Management in Menomonee Falls Wisconsin Market analysts were relieved that the rift did not escalate further with Trump s focus on the devastation caused by Tropical Storm Harvey the most powerful hurricane to strike Texas in 50 years when it made landfall last week While it s possible all these unfortunate events can add up to something more consequential the economy is pretty darn big and resilient Jacobsen said The Dow Jones Industrial Average DJI rose 56 97 points or 0 26 percent to finish at 21 865 37 the S P 500 SPX gained 2 06 points or 0 08 percent to close at 2 446 3 and the Nasdaq Composite IXIC added 18 87 points or 0 3 percent to end at 6 301 89 Geopolitical tensions and a surging euro sent European shares to their lowest in six months The pan European STOXX 600 STOXX ended the session down 1 percent Benchmark 10 year Treasury prices rose on safety buying but some reluctance to buy bonds at their lowest yields of the year capped the rally Benchmark 10 year Treasury yields US10YT RR fell as low as 2 086 percent before edging back up to 2 1292 Gold considered a good store of value during volatility in other markets jumped to its highest since November before reversing course to trade down 0 04 percent to 1 307 01 The dollar index DXY which measures the greenback against a basket of six major currencies was 0 22 higher at 92 406 after earlier hitting 91 621 its lowest since mid January 2015 The rebound in U S stock appears to have calmed some of the fears that were weighing on the dollar said Shahab Jalinoos global head of FX strategy at Credit Suisse SIX CSGN in New York All that Korea news you can still classify in the known unknown category he said None of it is anything the market has never seen before so the market s capacity to bounce back from that was really high Crude oil prices which dropped more than 1 5 percent as the market grappled with the shutdown of more than 16 percent of refining capacity in the United States after a tropical storm ripped through the heart of the country s oil industry recovered ground to settle little changed on the day
Brent crude futures LCOc1 rose 11 cents to settle at 52 00 a barrel while U S crude futures CLc1 settled at 46 44 down 13 cents |
WFC | Homeowner s lawsuit says Wells Fargo charged improper mortgage fees | By Dena Aubin NEW YORK Reuters A homeowner has filed a lawsuit accusing Wells Fargo Co N WFC of improperly charging thousands of customers nationwide to lock in interest rates when their mortgage applications were delayed Filed on Monday in San Francisco federal court the lawsuit said Wells Fargo managers pressured employees to blame homeowners for the delays sometimes by falsely stating that paperwork was missing so homeowners could be stuck with extra fees Wells Fargo Spokesman Tom Goyda said the bank is reviewing past practices on rate lock extensions and will take steps for customers as appropriate The lawsuit which will request the court grant class action status comes as Wells Fargo is trying to recover from a scandal last year when the bank was fined for opening accounts for customers without their authorization in order to boost sales figures Last month a new lawsuit accused it of charging several hundred thousand borrowers for auto insurance they did not request Monday s lawsuit accuses the bank of violating state and federal consumer protection laws including the U S Real Estate Settlement Procedures Act and the U S Truth in Lending Act Earlier this month Wells Fargo disclosed that the Consumer Financial Protection Bureau was investigating the fees the company charged to lock in interest rates for delayed mortgage loans In a securities filing the bank said it was working with regulators to see if customers had been harmed by the fees Interest rate locks are guarantees by a lender to lock in a set interest rate usually for several weeks while a loan is processed If the rate lock expires before a loan closes lenders often cover the cost of extending the lock if the delay was their fault Wells Fargo usually locked in rates for 30 to 90 days but often took longer than that to process applications because of understaffing the lawsuit said The bank routinely blamed borrowers for delays and charged them to extend rate locks according to the lawsuit Fees could be significant amounting to 0 125 percent to 0 25 percent of the loan amount the complaint said The named plaintiff Nevada resident Victor Muniz said he was charged 287 50 for a rate lock extension this year after his application for a mortgage was bogged down by bank delays Muniz was told by a bank employee that Wells Fargo would pay to extend the rate lock but a regional manager reversed that decision the lawsuit said The case is Muniz v Wells Fargo Co U S District Court California Northern District No 17 cv 4995 |
WFC | Wells Fargo uncovers more fake accounts in drawn out scandal | By Dan Freed Reuters Wells Fargo NYSE WFC Co hiked the tally of accounts that were potentially opened without customers knowledge by over a million on Thursday after an expanded review of improper sales practices The revelation is the latest chapter in a year long scandal at the San Francisco bank and puts it back in the crosshairs of lawmakers as they prepare to return to Congress next week Democratic U S Senator Elizabeth Warren a leading voice on consumer finance issues tweeted Unbelievable after Wells Fargo said it had found an additional 1 4 million accounts were potentially opened without permission bringing the total estimate to about 3 5 million She repeated her call for the bank s top brass to appear before the Senate Banking Committee Every new disclosure seems to expand the scope of the bank s troubles which creates the perception that the scandal is getting bigger rather than going away said Jaret Seiberg an analyst with Cowen Washington Research Group We believe the political and regulatory spotlight will continue to shine brightly on Wells Fargo That is likely to limit the ability of the bank to grow aggressively The scandal over phony accounts first erupted last September when Wells Fargo reached a 190 million settlement with regulators over the matter That led to the departure of its veteran chief executive John Stumpf a divisive shareholder meeting and disclosures of other sales practice problems ranging from unwanted auto insurance to improper mortgage fees Once lauded on Wall Street for its ability to sell more products to customers than any of its big bank rivals Tim Sloan who took over as chief executive last year faces a long slog to revive the bank s reputation The problems reported on Thursday came after a third party hired by Wells Fargo examined accounts stemming back to 2009 a broader timeframe than a review conducted last year The bank previously disclosed the expanded review in a quarterly securities filing but not its results Wells will return 2 8 million to customers who appear to have had consumer and small business accounts opened without permission It also uncovered about 528 000 potentially unauthorized online bill pay enrollments a newly disclosed problem and will return 910 000 to customers who were affected The bank also faces multiple regulatory probes and private lawsuits A pending settlement for one private lawsuit led Wells to review accounts dating back to 2002 Sloan said on a conference call with reporters With the expanded analysis now complete we will focus on remediation and making things right for our customers he said The unauthorized online billpay fees were small Sloan said often 1 They resulted from branch employees setting up accounts in order to achieve product sales goals that have since been eliminated The bank has refunded these amounts Wells Fargo shares were down 0 8 percent in early afternoon trading underperforming the S P Financial which was flat The additional refunds amount to a tiny fraction of the bank s quarterly earnings but investors who spoke to Reuters in recent weeks said they were less worried about the hard costs than a degradation of the bank s once pristine brand They also expressed concern about Wells becoming an easy political target going into the midterm elections Warren Buffett who runs Wells Fargo s largest investor Berkshire Hathaway NYSE BRKa Inc said this week he still considers it a great bank despite selling some of his holdings But he acknowledged the bank will likely find more problems now that it is shining a light in dark places
There s never just one cockroach in the kitchen he said on CNBC |
WFC | 3 Numbers German Factory Orders To Rise For 3rd Month | New factory orders in Germany are expected to increase again for September
Healthy export orders should give German manufacturing a welcome lift
Analysts see Eurozone retail sales dipping for a second month in September
The Fed s Labor Market Conditions Index may favor a rate hike next month
Germany s economy is in the spotlight today with the release of factory orders for September We ll also see the September data for Eurozone retail sales followed by the Federal Reserve s Labor Market Conditions Index for October
Heading up new factory orders in Germany are set to increase for September
Germany Factory Orders 0700 GMT Europe s growth rate appears to be picking up It s still a modest rebound but two econometric estimates advise that the macro trend is set to improve in the final months of 2016 Will today s monthly update on Germany s factory orders fall in line with the outlook for a stronger expansion
Friday s weekly update from Now casting com estimates fourth quarter Eurozone GDP growth of just over 0 6 which is double the gain posted in the official Q3 report from Eurostat Meanwhile the Bank of Italy s Euro Coin Indicator a proxy for Eurozone GDP inched higher in the October profile the fifth straight improvement Although the central bank s estimate is lower output increased 0 38 for the three monthly through last month the latest uptick marks an ongoing rise in the macro trend
Perhaps then it s no surprise to learn that Germany s mighty manufacturing sector seems to rebounding after a summer slowdown or so survey data suggests The Markit BME Manufacturing PMI for Europe s biggest economy increased to a 33 month high in October
The improvement in the sector was fuelled by a marked increase in new order intakes which in turn led to a solid expansion in production the chief economist at IHS Markit said last week Strong demand from export markets contributed to the rise in overall new business during the month with Asia and the US specifically mentioned by our panellists as sources of growth
Today s attention turns to hard figures for new industrial orders for Germany in September TradingEconomics com projects a modest 0 3 rise for the monthly comparison which would mark the third straight advance If the prediction holds another data point will lend support for arguing that the fourth quarter is looking up
Eurozone Retail Sales 1000 GMT Today s release on consumer spending across Europe offers another clue for deciding if the case for expecting firmer growth is the genuine article
Survey data however casts a shadow on the outlook The Eurozone Retail PMI dipped back into the red if only slightly in September The mild setback follows the uptick in August that lifted the index to its first growth reading above the neutral 50 mark since May But it doesn t help to learn that retailers reported that sales also fell from year earlier levels according to IHS Markit
A relapse in French retail sales following four months of growth was the main factor behind the downturn at the end of the third quarter though the worst overall performance was again seen in Italy an IHS Markit economist advised last month
Note however that consumer confidence in Europe ticked up in October to a three month high which suggests that sentiment is at least stabilising after a rocky year Today s hard numbers on spending however are expected to show more weakness in the monthly comparison for September
TradingEconomics com s consensus forecast sees sales slipping 0 2 marking the second month in a row of contraction The year over year trend however is on track to perk up to a 1 6 gain after decelerating sharply in August
In short Europe s headline growth may be improving but today s results are on track to deliver a mixed message with softer sales in September coupled with a firmer year over year increase
US Labor Market Conditions Index 1500 GMT Payrolls posted a respectable increase in October but it s also clear that the deceleration in the labour market rolls on
Employment at the headline level private and government jobs increased a bit less than 1 7 last month vs the year earlier level the slowest annual pace in more than a year The trend for private sector payrolls is even slower relative to its history rising slightly below 1 8 the weakest gain in five years
But any worries about an ageing recovery are offset to a degree by firmer growth in wages and a dip in the jobless rate for October
This is a good solid report consistent with the Fed moving in December and certainly consistent with 2 economic growth said the chief economist at Wells Fargo NYSE WFC Securities Growth across wages was strong which is going to reinforce the Fed s view
But there are also signs that that the cycle may be past its prime Employment growth continues but the pace of growth is slowing noted economist Bob Dieli at NoSpinForecast com in a research note to clients on Friday For the moment however annual growth is still well above the range where we have to be concerned about the immediate onset of a business cycle peak
The question is whether today s update of the Fed s Labor Market Conditions Index LMCI will complicate the outlook for jobs and the economy overall This monthly index which aggregates a range of indicators has been in the red for all but one month so far this year and today s release for October is expected to remain in sub zero territory according to TradingEconomics com s econometric estimate
Another negative reading isn t enough to derail the case for a rate hike Nonetheless ongoing weakness for LMCI is one more reason to wonder if Fed Chair Janet Yellen can muster enough votes on the monetary committee for squeezing policy next month
Disclosure Originally published at Saxo Bank TradingFloor com |
WFC | 7 Charts Show The State Of The Markets Right Now | It feels like we have almost packed a full year s worth of stock market price action into just the last two weeks With so many diverging market sectors and overall fluctuations I thought it would be prudent to do an examination of some key charts
Taking a closer look at these categories can help frame macro views as well as determine areas of strength and weakness
1 SPDR Dow Jones Industrial Average ETF NYSE DIA
Perhaps the most surprising area of strength has been the rocket ship that is the Dow Jones Industrial Average The Dow is often easily overlooked for its concentrated mix of just 30 mega cap stocks However this index as represented by the exchange traded fund DIA has now blasted off to all time highs on the back of the Trump victory into the White House
It s worth pointing out that there was a technical breakdown of the trend channel near the start of the month that ultimately proved to be a fake out DIA is now up over 10 so far this year and leads all major domestic stock indices except for small caps
2 iShares Russell 2000 ETF NYSE IWM
Speaking of small cap stocks the Russell 2000 Index has finally made it back into all time high territory IWM has been proclaimed one of the strongest areas of momentum since the February 2016 lows and continues to show diverging strength from its large cap peers
Leadership in the small cap category is often cited as a convincing sign of strength for the bulls Although a move of 10 in such a short period may call for a bit of hesitation with respect to putting new money to work here I would rather investors who have missed this rally wait for a pullback before they decide to commit fresh capital
It can be enticing to try and chase recent performance especially in an area that looks red hot However those feelings of enthusiasm can quickly turn to regret if you commit the cardinal sin of buying near an inflection point IWM is now up more than 14 so far this year
3 SPDR S P Bank ETF NYSE KBE
The banks There has been a great deal of commotion surrounding the financial services industry in 2016 Scandals have plagued Wells Fargo NYSE WFC European banks have fought disparate circumstances and regulatory woes are an ever present outcropping Nevertheless investors seemed heartened for this industry after the Trump win which sent KBE soaring
Many chartists have pointed out that the banks are slowly returning to share prices not seen since the 2008 financial crisis That boost of confidence is attractive in the near term However this is another area that should be viewed with caution for new money after a big rip higher Chasing a knee jerk reaction can be a dangerous circumstance without proper framing for risk
4 CBOE 10 Year Treasury Note Yield TNX
One of the major catalysts for strength in financial stocks is the rip higher in Treasury bond yields The 10 Year Treasury Bond has now retraced nearly its entire move for the year and now sits just above 2 1 This trend of rising rates started four months ago when fixed income became over loved and over bought
This move has been magnified by the results of the election and the possibilities of additional rate hikes by the Federal Reserve Consider that this index is now more than 50 off its lows and you can start to get a feel for how far it has come in such a short period
5 Interest Sensitive Asset Classes
It s not just bonds that have been affected by this trend either Interest rate sensitive asset classes like utility stocks via Utilities Select Sector SPDR NYSE XLU REITs via Vanguard REIT NYSE VNQ and preferred stocks via iShares US Preferred Stock NYSE PFF have seen their prices decline significantly off the highs as well The chart below illustrates those trends by their ETF equivalents
Many of these sectors are also highly represented in low volatility stock indices which have significantly underperformed the broad market over the last several weeks
6 iShares MSCI EAFE ETF NYSE EFA
International stocks have truly been a mixed bag EAFE represents a broad swath of emerging and developed nations Latin America and other emerging countries have been selling off dramatically while Europe has mostly held it together This dichotomous relationship has created some churning action in broad based international funds like EFA
International stocks are mostly flat on a year to date basis and will likely experience continued volatility in the near term The impact of currency fluctuations and other factors will contribute to a tug of war effect within many of these diversified funds Nevertheless it s worth pointing out that on a relative basis these stocks are considered undervalued versus their U S peers
7 PowerShares DB Commodity Index Tracking Fund NYSE DBC
Commodities certainly experienced a bit of selling this month as well The initial expectation was that precious metals would do well under a new administration However the surge in risk assets led to a sell off in gold and silver A similar effect was achieved in the energy markets as well Thus broad based commodity baskets like DBC have declined from their highs and may test the recent August lows
Commodities have been a difficult area of the market for trend followers to get behind Although there does seem to be a burgeoning belief in the return of inflation under a Trump presidency Only time will tell how that plays out
The Bottom Line
So much has taken place in such a short period in the financial markets However I would caution against making in the midst of so much anxiety Often the first reaction is to try and capitalize on new momentum or quickly try to insulate your portfolio from certain risks
It seems too early to speculate that the shock waves will continue indefinitely Even if you have been caught off sides by this event it would behoove you to take a calm and measured approach to any asset allocation shifts The risks may quickly outweigh the benefits if you try to time every little reaction in the market without weighing both sides
Disclosure FMD Capital Management its executives and or its clients June hold positions in the ETFs mutual funds or any investment asset mentioned in this article The commentary does not constitute individualized investment advice The opinions offered herein are not personalized recommendations to buy sell or hold securities |
WFC | Wells Fargo WFC Stock Has Surged Since Earnings Can It Last | About a month has gone by since the last earnings report for Wells Fargo NYSE WFC Shares have added about 15 6 in the past month easily outpacing the S P 500 in that time frame
Will the recent positive trend continue leading up to their next earnings release or is the stock due for a pullback Before we dive into how investors and analysts have reacted as of late let s take a quick look at the most recent earnings report in order to get a better handle on the important catalysts
Recent Earnings
Wells Fargo Tops Q3 Earnings Costs Provisions UpBuoyed by a strong top line growth Wells Fargo s third quarter 2016 recorded a positive earnings surprise of about 1 The company s earnings of 1 03 per share beat the Zacks Consensus Estimate by 0 01 However it compared unfavorably with the prior year quarter s earnings of 1 05 per share Wells Fargo witnessed organic growth in revenues Moreover a strong capital position acted as a tailwind However higher provisions and expenses were the dampeners Notably the company did not witness any reserve build or release during the quarter consistent with third quarter 2015 Third quarter net income applicable to common stock came in at 5 2 billion down 4 year over year Revenues Up Expenses RiseThe quarter s total revenue came in at 22 3 billion surpassing the Zacks Consensus Estimate of 22 billion Revenues also grew around 2 on a year over year basis Furthermore on a year over year basis revenue generation at the business segments was impressive Wealth and Investment Management and the Wholesale Banking segments total quarterly revenue jumped around 5 7 and 13 respectively However Community Banking segment s revenues decreased 4 2 Wells Fargo s net interest income in the quarter came in at approximately 12 billion up 4 year over year Increased interest income from trading assets and other interest income drove the results However net interest margin contracted 14 basis points year over year to 2 82 primarily due to growth in long term debt and deposits partially offset by the benefit of earning asset growth Non interest income came in at around 10 4 billion almost in line with the prior year quarter Lease income and other non interest income increased while there was a fall in net gains from equity investments and debt securities On the other hand non interest expense at Wells Fargo was 13 3 billion up 7 from the prior year quarter The rise in expenses was primarily due to higher employee benefits and FDIC and other deposit assessment related expenses The company s efficiency ratio was 59 4 up from 56 7 recorded in the prior year quarter and above the targeted efficiency ratio range of 55 59 A rise in efficiency ratio indicates a fall in profitability Wells Fargo expects the efficiency ratio to remain at an elevated level going forward Loans and Deposits RiseAs of Sep 30 2016 total loans were 961 3 billion almost in line with the prior quarter Total deposits were 1 3 trillion up 2 from the prior quarter Credit QualityAllowance for credit losses including the allowance for unfunded commitments totaled 12 7 billion as of Sep 30 2016 increasing from 12 6 billion as of Sep 30 2015 Provision for credit losses was 805 million up 14 5 year over year Net charge offs were 805 million or 0 33 of average loans in the reported quarter up from the prior year quarter net charge offs of 703 million 0 31 Nonetheless non performing assets fell 9 8 to 12 0 billion in the quarter from 13 3 billion in the prior year quarter How have estimates been moving since then
Following the release and in the last month investors have witnessed an upward trend for fresh estimates There have been four revisions higher for the current quarter compared to two lower However the full year time frame has been more mixed as we have seen three estimates higher and four lower for the current year figures in the past one month look
WELLS FARGO NEW Price and Consensus
VGM Scores
At this time Wells Fargo s stock has a poor Growth score of F however its momentum is doing a bit better with a D One positive though is the stock was allocated a grade of B on the value side putting it in the top 40 for this investment strategy This solid grade on the value front is due in part to the company s forward PE of just 13 2 a level that is better than the industry at large and the market overall too
Overall though the company has a grade of just C for its overall fundamental score so a mixed bag on this front for WFC investors to say the least
Outlook
While estimates have been broadly trending upward for the stock the magnitude of these revisions hasn t been very impressive As a result shares of WFC have a Zacks Rank 3 hold meaning that we are expecting an in line return from WFC in the next few months
So although Wells Fargo has some nice catalysts going forward including rising rates we think the company is just a hold right now Considering the top 20 industry rank investors may want to consider looking elsewhere in the banking sector for picks as there are plenty in the segment with better ranks or more promising fundamental metrics at this time see
Want the latest recommendations from Zacks Investment Research Today you can download 7 Best Stocks for the Next 30 days |
CMCSA | FCC chairman Pai says Trump has not contacted him on Sinclair deal | By Kara Carlson Reuters U S President Donald Trump has not contacted the Federal Communications Commission about its lack of approval for Sinclair Broadcast Group s O SBGI deal to buy Tribune Media Co N TRCO which Trump has called disgraceful on Twitter FCC Chairman Ajit Pai said on Thursday No one in the White House has contacted us to express a view about the merger Pai said In July the FCC unanimously voted to refer the merger for an administrative review to determine if the conservative leaning Sinclair engaged in misrepresentation or displayed a lack of candor about the merger to the commission Trump s tweet raised the question of whether he had involved himself in the decision making progress of an independent regulator In its order for administrative review the FCC said Sinclair did not fully disclose facts about the 3 9 billion acquisition Pai had expressed serious concerns prior to the vote Within days of the FCC action Trump tweeted So sad and unfair that the FCC wouldn t approve the Sinclair Broadcast merger with Tribune This would have been a great and much needed Conservative voice for and of the People The Republican president said it was disgraceful that the FCC was standing in the way of the merger which he compared to a 2011 FCC approved deal in which Comcast Corp O CMCSA acquired NBC On Thursday Pai reiterated previous statements to Congress defending the decision to review I will simply say what I said to Congress which is I stand by our decision We looked at the facts and applied the law as we do in any transaction Sinclair owns 192 stations the largest number of local TV stations in the United States The company said in May 2017 it planned to acquire 42 new stations from the Tribune But it had said it would sell 23 of its existing stations to obtain regulatory approval
The administrative review hearing could cause significant delays and potentially kill the deal |
CMCSA | UK regulator confirms Disney must offer at least 14 pounds per share for Sky | LONDON Reuters Britain s takeover regulator said on Friday that a review had confirmed its ruling that Walt Disney might have to offer at least 14 pounds a share to buy UK pay television group Sky Disney would only be forced to make such an offer if it completes a deal to buy Twenty First Century Fox s TV and film assets which include a 39 percent stake in Sky before either Fox or rival suitor Comcast NASDAQ CMCSA have managed to take control of the British broadcaster
The Takeover Panel set the level of a possible mandatory Disney offer for Sky at 14 pounds a share on July 13 But its hearings committee subsequently examined the decision on July 27 after the regulator said that various interested parties affected by the ruling had asked for a review |
CMCSA | Fox posts offer document for Sky deal | Reuters Twenty First Century Fox Inc O FOXA on Tuesday posted an offer document and form of acceptance for its 14 pounds a share offer to buy UK s Sky L SKYB on Tuesday Fox now intends to implement Sky s acquisition by way of a takeover offer rather than a scheme of arrangement as described in the Companies Act 2006 with the deal conditional on 75 percent or more Sky shareholders accepting the offer The deadline to set out a revised offer document is Sept 22 Fox added Fox s current offer still lags Comcast Corp s O CMCSA 14 75 pounds a share bid leaving the world s biggest entertainment group in the lead of the long winded takeover battle for the British pay TV group
In a separate announcement Sky acknowledged Fox s offer document and said its independent committee would respond to the offer within 14 days |
CMCSA | Fox tops estimates as Deadpool 2 cable earnings drive gains | By Munsif Vengattil Reuters Twenty First Century Fox Inc s quarterly profit and revenue topped Wall Street targets on Wednesday thanks to the popularity of edgy superhero movie Deadpool 2 and as the company s cable unit earned higher fees from distributors The results which showed most of Fox s businesses were performing above expectations come as the Rupert Murdoch controlled media conglomerate prepares to sell the bulk of its film and TV assets to Walt Disney Co in a 71 billion deal The cash and stock transaction has already won approval from U S regulators but awaits the green light from more than a dozen countries including China Russia and regulators from the European Union Fox is on track to close the deal in the first half of 2019 Co Chairman Lachlan Murdoch said on a conference call with analysts while reiterating that news and live sports will underpin the profile of the new Fox Revenue from both Fox s film and cable divisions topped financial analysts estimates comfortably in the fourth quarter ended June 30 Fox s filmed entertainment unit saw revenue jump some 27 percent to 2 3 billion driven largely by the success of Deadpool 2 in which actor Ryan Reynolds plays a foul mouthed superhero The film distributed by Fox s Twentieth Century Fox studio has so far grossed 730 million worldwide at the box office Revenue from the cable division home to the Fox News and FX channels rose 13 8 percent and accounted for more than half of overall revenue Affiliate fees the fees Fox receives from cable operators climbed 12 3 percent to 3 57 billion The growth reflected subscriber increases in both digital multi channel video programming distributors services and our younger under penetrated channels Fox CEO James Murdoch said on the conference call The Indian Premier League a hugely popular cricket tournament airing on Fox s Star India and watched by over a billion viewers drove a 55 percent surge in international advertising revenue Overall Fox s revenue jumped 17 7 percent to 7 94 billion topping expectations of 7 56 billion Net income attributable to shareholders increased to 920 million from 476 million a year earlier Excluding one time items Fox earned 57 cents per share topping analysts estimates of 54 cents
Fox is also trying to buy the 61 percent of British pay TV group Sky it does not already own On Tuesday Fox triggered a 46 day deadline to raise its bid for Sky in a battle with Comcast NASDAQ CMCSA The company now has until Sept 22 to trump Comcast s offer for Sky |
CMCSA | Comcast expands basic broadband offering to low income veterans | Comcast NASDAQ CMCSA has expanded its broadband program targeted at lower income customers for the 11th time It s widening eligibility for Comcast Internet Essentials to low income veterans about 1M of which live in Comcast s footprint the company says The company has connected more than 6M Americans to the Internet through the program more than 2M in the last year alone in the program s biggest year yet Now read |
WFC | Wells Fargo changes board names Duke chair in response to scandal | By Dan Freed Reuters Wells Fargo Co N WFC Vice Chair Betsy Duke will replace retiring Chair Stephen Sanger next year one of several changes announced on Tuesday in a board overhaul following a sales practices scandal Sanger will retire at year end earlier than his previous plans to depart in April upon reaching a mandatory retirement age of 72 The two longest serving directors Cynthia Milligan and Susan Swenson will retire at the same time Juan Pujadas a former PricewaterhouseCoopers principal will join as an independent director on Sept 1 The board also detailed changes to four of its committees and said it would make more changes over time trying to balance competing needs for directors with Wells Fargo experience and those with new perspectives on the company Wells Fargo had long maintained a reputation as a well run highly profitable institution that managed to sell more products to customers than any of its big bank rivals That image was shattered nearly a year ago when it revealed that thousands of its employees created as many as 2 1 million phony accounts in customers names without their permission Since then the bank has ousted executives clawed back pay changed incentive structures for low level employees and implemented a new risk management structure Nonetheless it still facing numerous lawsuits and regulatory probes and in recent weeks detailed new problems in its mortgage auto loan and retail banking operations In a joint interview Duke and Sanger said the board expedited changes to its structure and composition after discussions with investors who offered most directors relatively little support in a vote earlier this year This company is going to end up being a better bank than it would have been without this incredible wakeup call Duke said It had been so successful for so long it was difficult to recognize the need for change COMMUNITY BANKER Changes Wells Fargo has made enable us to have our arms around sales practices issues in a way that we obviously didn t before Sanger said Issues found within business units are being elevated to the board and regulators and are then being addressed much more quickly than before he added Sanger who has been on Wells board for 14 years became chair in October after then Chair and Chief Executive Officer John Stumpf abruptly departed and the board decided split the two roles Investors told directors they had not made changes to the board s structure and composition quickly enough prompting the hiring of Mary Jo White former Chair of the U S Securities and Exchange Commission to conduct an internal review White who now works at the law firm Debevoise Plimpton interviewed directors about who the next chair should be and consulted with regulators before handing down an assessment Sanger said Duke said she saw herself as someone who can ensure Wells Fargo changes from a sales driven institution to one focused on service I am a community banker to my very toes she said pointing to her experience at small banks in Virginia and at the Federal Reserve The two Wells Fargo board members who received the lowest vote totals Enrique Hernandez and Federico Pe a will remain on the board but director Karen Peetz will replace Hernandez as chair of the risk committee
Sanger said investors told him they did not have a particular problem with any individual but voted against directors who held leadership positions on the board or its committees He characterized Hernandez as one of the very strongest directors whose departure would be bad for shareholders |
WFC | Matson 24 as company faces new competition for lucrative trading routes | Matson MATX 24 5 shares suffer their biggest selloff ever amid concerns over a new competitor to its West Coast to Hawaii shipping business TOTE Maritime yesterday announced plans to establish a new shipping service to Hawaii and has signed a letter of intent to acquire up to four newbuild containerships similar in size to the Aloha class vessels now being built for MATX In response Stephens downgrades MATX to Equal Weight from Overweight with a 23 price target slashed from 36 citing competition concerns in MATX s core shipping lane and anticipating significant multiple contraction for MATX and an extended period of volatility and uncertainty for the stock Also Wells Fargo NYSE WFC downgrades MATX to Underperform from Market Perform with a 22 price target cut from 35 Now read |
WFC | Matson sees record setting one day sell off | Investing com Matson Inc NYSE MATX shares plunged on Friday amid concerns that new competition will hamper the company s business
On Thursday TOTE Maritime announced plans to establish a new shipping service to Hawaii and has signed a letter of intent to acquire up to four newbuild containerships similar in size to the Aloha class vessels now being built for Matson
Following concerns that new competition will drive down Matson s revenue sparked a few analysts to downgrade their ratings on the company Stephens downgraded Matson to Equal Weight from Overweight and slashed its price target to 23 for 36 Wells Fargo NYSE WFC downgraded Matson to Underperform from Market Perform with a 22 price target
Matson s shares were down 23 in afternoon trade their largest daily loss ever |
WFC | Wells Fargo troubles shift from phony bank accounts to real ones | By Dan Freed Reuters After paying customers millions of dollars for opening phony accounts they did not want Wells Fargo Co N WFC has said it is now grappling with the possibility it harmed customers by closing real accounts they needed leaving them without access to funds Wells the third largest U S bank disclosed in a regulatory filing on Aug 4 that the Consumer Financial Protection Bureau CFPB is looking into the matter one of many regulatory probes the bank faces over its treatment of depositors and borrowers A Reuters review of the regulator s complaints database found several instances of customers reporting financial hardship in recent years after Wells Fargo unexpectedly froze or closed their accounts Some of the complaints described fraudulent deposits of unknown origin Others said they were victims of identity theft and Wells Fargo closed their accounts and refused to reopen them or open new ones One customer said the bank closed an account after a hacker changed personal information and then Wells Fargo improperly sent funds to the wrong address The complaints had consistent themes of confusion about why accounts were frozen or closed and reflected desperation over being unable to access money as well as frustration over not getting help from Wells Fargo s customer service I moved money from my mother s savings account into her checking account the day before she passed away one Wells Fargo customer wrote This checking account has been locked by the fraud department for almost 3 months Now her debts are delinquent and mortgage about to go into foreclosure Reuters could not independently confirm reported details because the CFPB does not make complainants identities public Well Fargo s major competitors did not report similar issues or regulatory probes in their quarterly filings We continue to work with our regulator on this matter As always our goal is to protect our customers and the bank from fraud and we want to do so in ways that minimize the risk and impact on our customers Wells Fargo spokesman Kristopher Dahl said in an email to Reuters A spokesman for the CFPB declined to comment Wells Fargo s troubles started nearly a year ago when it said it had opened as many as 2 1 million accounts in customers names without their permission Since then the bank has said it charged customers for insurance they did not request may have required others to pay unnecessary mortgage fees and also may have inappropriately tacked products like identity theft protection on to customers accounts Unlike those issues which stemmed from Wells Fargo trying to generate more revenue from customers the frozen accounts appear to have arisen from an abundance of caution Banks have had to contend with a rising number of scams As a rule lenders are very zealous in protecting against suspicious activity said Brad Rustin partner at law firm Nelson Mullins who counsels financial companies on compliance That has been driven partly by other regulators like the U S Treasury Department which require banks to root out fraud money laundering and other financial crimes
It is not clear whether Wells Fargo was particularly aggressive in that regard or if a broad review of operations after the phony accounts scandal erupted led the bank to discover issues with improper account closures |
CMCSA | Trump calls FCC decision on Sinclair Tribune merger unfair | By David Shepardson WASHINGTON Reuters President Donald Trump on Tuesday criticized the Federal Communications Commission for not approving Sinclair Broadcast Group Inc s 3 9 billion acquisition of Tribune Media calling it disgraceful compared with the FCC s approval several years ago of a deal involving the NBC television network So sad and unfair that the FCC wouldn t approve the Sinclair Broadcast merger with Tribune This would have been a great and much needed Conservative voice for and of the People Trump said in a post on Twitter Trump s broadside was an unusual attack on a decision of an independent federal agency that makes merger decisions based on whether they in the public interest Liberal Fake News NBC and Comcast gets approved much bigger but not Sinclair Disgraceful Trump said in his tweet referring to the 2011 approval of Comcast Corp s acquisition of NBC Universal Comcast at the time was a provider of video and residential internet service NBC Universal included the Universal movie studio as well as NBC and other assets Sinclair the largest U S local broadcast station owner won the backing of Trump in a tweet in April but has come under scrutiny by others Advocacy group Free Press has said that Sinclair forces stations to air pro Trump propaganda a charge it denies FCC Commissioner Jessica Rosenworcel said on Twitter on Tuesday that she did not agree with Trump s tweet Last week the Republican led FCC said it would not approve the acquisition by Sinclair and sent the matter to a hearing before an administrative law saying that Sinclair would maintain control in practice of some stations it had agreed to divest even if not in name The FCC s order dealt a serious and potentially fatal blow to Sinclair s bid to acquire Tribune Tribune did not immediately comment on Tuesday Democrats have attacked FCC Chairman Ajit Pai whom Trump named to head the agency for what they claim are a string of decisions benefiting Sinclair and a news media report that Trump s election campaign struck a deal with Sinclair for favorable coverage Pai has repeatedly denied he has taken actions aimed at benefiting Sinclair and said last week he had serious concerns about the merger Sinclair has also denied improper conduct Trump last year had suggested that NBC s licenses could be challenged over its news reporting something that Pai had rejected Pai and an FCC spokesman did not immediately respond to requests for comment on Trump s tweet Sinclair and Comcast Corp NASDAQ CMCSA also did not respond The FCC said the administrative judge will review whether Sinclair engaged in misrepresentation or a lack of candor and whether the deal would violate the FCC s broadcast ownership rules
Sinclair has denied withholding any information or misleading the FCC |
CMCSA | Comcast CMCSA Stock Sinks As Market Gains What You Should Know | Comcast CMCSA closed the most recent trading day at 35 43 moving 1 8 from the previous trading session This change lagged the S P 500 s daily gain of 1 56 Elsewhere the Dow gained 1 77 while the tech heavy Nasdaq added 2 2
Prior to today s trading shares of the cable provider had gained 5 96 over the past month This has lagged the Consumer Discretionary sector s gain of 8 66 and the S P 500 s gain of 6 41 in that time
Investors will be hoping for strength from CMCSA as it approaches its next earnings release which is expected to be April 24 2019 The company is expected to report EPS of 0 63 up 1 61 from the prior year quarter Meanwhile our latest consensus estimate is calling for revenue of 26 06 billion up 14 33 from the prior year quarter
For the full year our Zacks Consensus Estimates are projecting earnings of 2 73 per share and revenue of 107 43 billion which would represent changes of 7 06 and 13 67 respectively from the prior year
Investors might also notice recent changes to analyst estimates for CMCSA These revisions help to show the ever changing nature of near term business trends As such positive estimate revisions reflect analyst optimism about the company s business and profitability
Our research shows that these estimate changes are directly correlated with near term stock prices Investors can capitalize on this by using the Zacks Rank This model considers these estimate changes and provides a simple actionable rating system
The Zacks Rank system ranges from 1 Strong Buy to 5 Strong Sell It has a remarkable outside audited track record of success with 1 stocks delivering an average annual return of 25 since 1988 The Zacks Consensus EPS estimate has moved 1 69 lower within the past month CMCSA is holding a Zacks Rank of 3 Hold right now
In terms of valuation CMCSA is currently trading at a Forward P E ratio of 13 23 This represents a discount compared to its industry s average Forward P E of 19 38
We can also see that CMCSA currently has a PEG ratio of 1 09 This metric is used similarly to the famous P E ratio but the PEG ratio also takes into account the stock s expected earnings growth rate Cable Television stocks are on average holding a PEG ratio of 2 05 based on yesterday s closing prices
The Cable Television industry is part of the Consumer Discretionary sector This industry currently has a Zacks Industry Rank of 25 which puts it in the top 10 of all 250 industries
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups Our research shows that the top 50 rated industries outperform the bottom half by a factor of 2 to 1
Make sure to utilize Zacks Com to follow all of these stock moving metrics and more in the coming trading sessions |
CMCSA | CMCSA Vs RCI Which Stock Is The Better Value Option | Investors looking for stocks in the Cable Television sector might want to consider either Comcast CMCSA or Rogers Communication RCI But which of these two stocks offers value investors a better bang for their buck right now We ll need to take a closer look
The best way to find great value stocks is to pair a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system The proven Zacks Rank emphasizes companies with positive estimate revision trends and our Style Scores highlight stocks with specific traits
Both Comcast and Rogers Communication have a Zacks Rank of 2 Buy right now Investors should feel comfortable knowing that both of these stocks have an improving earnings outlook since the Zacks Rank favors companies that have witnessed positive analyst estimate revisions But this is only part of the picture for value investors
Value investors analyze a variety of traditional tried and true metrics to help find companies that they believe are undervalued at their current share price levels
The Style Score Value grade factors in a variety of key fundamental metrics including the popular P E ratio P S ratio earnings yield cash flow per share and a number of other key stats that are commonly used by value investors
CMCSA currently has a forward P E ratio of 13 48 while RCI has a forward P E of 15 41 We also note that CMCSA has a PEG ratio of 1 11 This figure is similar to the commonly used P E ratio with the PEG ratio also factoring in a company s expected earnings growth rate RCI currently has a PEG ratio of 3 08
Another notable valuation metric for CMCSA is its P B ratio of 2 36 The P B ratio is used to compare a stock s market value with its book value which is defined as total assets minus total liabilities For comparison RCI has a P B of 4 45
These are just a few of the metrics contributing to CMCSA s Value grade of B and RCI s Value grade of C
Both CMCSA and RCI are impressive stocks with solid earnings outlooks but based on these valuation figures we feel that CMCSA is the superior value option right now |
WFC | California insurance regulator to probe Wells Fargo over auto policies | By Suzanne Barlyn Reuters California will investigate whether Wells Fargo Co N WFC and an insurance company harmed hundreds of thousands of residents by selling them insurance they did not need the state s insurance regulator said on Tuesday California Insurance Commissioner Dave Jones said in a statement his department will look into so called force placed or lender placed auto insurance underwritten by National General Insurance Co DU NGIN for customers with auto loans from Wells Fargo Wells Fargo declined to comment on the probe while a National General representative could not be immediately reached for comment Unwanted auto insurance is the latest chapter in a months long scandal over sales practices at Wells where employees also created as many as 2 1 million deposit and credit card accounts in customers names without their permission The probe by California follows subpoenas issued by New York state s banking and insurance regulator to two Wells Fargo units on Aug 2 The New York Department of Financial Services NYDFS is demanding Wells turn over loan contracts with New York borrowers its financing agreements with auto dealers and agreements between Wells units and insurers among other details according to copies of the subpoenas seen by Reuters Wells first became aware of potential problems a year ago when the auto lending business began receiving an unusually high number of complaints Franklin Codel head of consumer lending said in a recent interview The bank said it would refund about 80 million to an estimated 570 000 customers who were wrongly charged for auto insurance from 2012 to 2017 including roughly 20 000 whose vehicles were repossessed Wells Fargo discontinued its Collateral Protection Insurance CPI program in September 2016 after finding inadequacies in vendor processes and our internal controls that negatively impacted some customers the company said in a statement
National General was identified as an underwriter of the insurance in a report into the matter prepared for Wells by consultancy Oliver Wyman The New York Times obtained a copy of the report |
WFC | Wall Street swings lower after Trump warns North Korea | By Sinead Carew Reuters U S stocks closed lower on Tuesday after a late afternoon selling spree as investors fled for safety after U S President Donald Trump vowed to respond aggressively to any threats from North Korea After scaling back from record highs earlier in the session Wall Street s three major indexes dipped after Trump said North Korea will be met with fire and fury like the world has never seen if it threatens the United States Trump s response was aggressive and that s why the market turned lower said Ken Polcari Director of the NYSE floor division at O Neil Securities Japan said on Tuesday it was possible that North Korea had already developed nuclear warheads and warned of an acute threat posed by its weapons programs as Pyongyang s continues missile and nuclear tests in defiance of U N sanctions Investors who took the North Korea report from Japan in their stride earlier in the day lost their appetite for risk after Trump s comments to reporters during his vacation at his golf club in New Jersey The Dow Jones Industrial Average DJI ended down 33 08 points or 0 15 percent at 22 085 34 snapping a 9 day streak of closing records The S P 500 SPX lost 5 99 points or 0 24 percent to close at 2 474 92 and the Nasdaq Composite IXIC dropped 13 31 points or 0 21 percent to 6 370 46 The CBOE Volatility Index VIX better known as the VIX and the most widely followed barometer of expected near term stock market volatility closed at 10 96 its highest in about a month Ten out of the 11 major S P 500 sectors ended lower after the comments with the only gains seen in the utilities sector SPLRCU which is seen as a bond proxy because of its slow but predictable growth and dividends Utilities closed up 0 3 percent while the materials sector SPLRCM was the S P s biggest loser with a 0 9 percent drop Trading volume also picked up in the late afternoon of what had been a sleepy summer session while the U S Congress is expected to be in recess until Sept 5 The S P hasn t moved more than 0 5 percent in one day since July and has fallen more than 1 percent only twice this year The financial sector index SPSY gave back gains after news California insurance regulator will probe whether Wells Fargo Co N WFC and an insurance company harmed residents by selling insurance they did not need Wells Fargo still ended up 0 3 percent at 52 71 Shares of Michael Kors N KORS ended up 21 5 percent after the luxury goods maker raised its full year revenue forecast NYSE declining issues outnumbered advancers 1 73 to 1 on Nasdaq a 1 47 to 1 ratio favored decliners
About 6 22 billion shares changed hands on U S stock exchanges slightly above the 6 15 billion average for the last 20 sessions |
WFC | Republican Democratic senators seek answers in Wells auto scandal | By Lisa Lambert WASHINGTON Reuters A group of U S senators from both parties on Wednesday turned up the heat on Wells Fargo NYSE WFC Inc over its latest scandal in which hundreds of thousands of car loan borrowers were charged each month without their knowledge for collision insurance which many of them did not need The Republican chairs of the committee and the subcommittee that would head any congressional investigations into insurance sales Senators John Thune and Jerry Moran along with those panels senior Democrats Senators Bill Nelson and Richard Blumenthal wrote to Wells CEO Timothy Sloan with questions about the scandal as basic as how many customers were affected They also requested copies of the bank s internal report that first identified the problem The group sent similar questions to Barry Karfunkel CEO of National General Holdings Corporation which provided the insurance Last week Moran said he was seeking additional information from Wells about reports the bank charged 800 000 borrowers for insurance without their knowledge or consent but did not give specifics Many borrowers already had cheaper insurance with other companies The letter asks Sloan when the bank which paid 190 million in fines and penalties last year over creating phantom bank accounts first learned about the insurance sales practices and also what steps it is taking to prevent a recurrence and to refund the erroneous charges to customers The letters do not mention possible hearings or subpoenas but the senators have the authority launch an investigation using both if they are not satisfied with responses to their letters Wells and National have until Aug 23 to answer the questions The Wells letter shows senators are concerned with reports that thousands of borrowers fell into delinquency because they could not afford the premiums on top of their monthly payments and the possibility bank management pushed employees to sign customers up for insurance with incentives or special benefits Incentives are at the heart of last year s scandal where employees said they created accounts in customers names or pushed account holders to buy additional products they did not need in order to meet high sales targets The senators are also seeking information about possible commissions paid or revenues shared between Wells and National Wells spokeswoman Jennifer Dunn said the bank is committed to addressing the lawmakers concerns
Customer harm is not acceptable at Wells Fargo she said We are committed to fixing these mistakes and earning back trust |
WFC | Can a small town Virginia banker fix Wells Fargo s board | By Dan Freed Reuters Wells Fargo Co N WFC will likely turn to a former community banker and Fed official to head its board as the scandal ridden bank tries to restore its former reputation as a solid plain vanilla lender people familiar with the matter told Reuters Betsy Duke who only joined the board of the third largest U S lender in 2015 will be promoted as Wells tries to repair damage caused by widespread sales abuses against customers Shareholders gave the board a very thin endorsement at the bank s annual meeting in the spring and Duke is likely to become the next chairwoman said investors analysts and two people with knowledge of board discussions Chairman Stephen Sanger reaches the mandatory retirement age of 72 in April ahead of the next annual shareholder meeting On Thursday the Wall Street Journal reported Sanger would now step down in early September That step would likely speed the ascension of Duke a former small town banker from Virginia Beach Wells Fargo declined to comment Sanger and Duke did not respond to requests for comment on Thursday Some board members discussed making Duke Wells Fargo s chairwoman last October when then Chairman and Chief Executive Officer John Stumpf stepped down and the board decided to split the two roles a person familiar with the matter said However Duke told colleagues she was not ready said the person who was not authorized to speak publicly Instead Duke was elevated to vice chair under Sanger Pressure on Wells Fargo to make changes has intensified as new problems have surfaced in recent days Revelations last month that the bank enrolled unknowing borrowers in costly auto insurance prompted New York City Comptroller Scott Stringer who oversees public pension funds that hold roughly 11 6 million Wells Fargo shares to call for Sanger s replacement The bank said it may have charged as many as 570 000 auto borrowers for insurance they did not want leading to an estimated 20 000 wrongful repossessions Early this month the bank agreed to pay 108 million to settle a whistleblower lawsuit over hidden mortgage fees to U S military veterans Also in its latest quarterly financial report Wells Fargo said it was examining whether it had caused unnecessary financial harm to customers through mortgage fees frozen deposit accounts and add on products like identity theft protection Last September the bank settled with regulators over opening accounts for up to 2 1 million customers without their knowledge A MAIN STREET BANKER Several people who have worked with Duke ticked off multiple reasons they believe she will replace Sanger They noted that she comes from small town lenders rather than large Wall Street institutions making her the ideal leader for Wells Fargo s board at this time Anne Conner president of TowneBank where Duke had been chief operating officer said Duke encouraged her to focus on substantive matters that mattered to a bank s bottom line She cares about me as a woman executive in an industry that s largely dominated by men said Conner Former colleagues at the Fed where Duke served as a governor from 2008 2013 said they gained valuable insights from her practical knowledge of banking As Fed officials discussed how to implement the Dodd Frank banking reforms passed after the financial crisis Duke voiced concerns excessive regulations would put small banks at a disadvantage said one former colleague who asked not to be identified She brought a deep knowledge of banking and credit to our deliberations on monetary policy and the response to the crisis at a time when that perspective was critical to the Fed s planning said former Fed Vice Chairman Donald Kohn who worked with Duke while she was a governor from 2008 2013 A LOT OF LEADERSHIP AND EFFORT After Wells Fargo s accounts scandal came to light one person close to the board said Duke used her Fed experience to take the lead in explaining to fellow directors how regulators would view the bank s actions Duke has put a lot of leadership and effort into helping us manage implementation of regulatory reforms Wells Fargo Chief Financial Officer John Shrewsberry told Reuters in an interview adding she has become more heavily involved in those reforms Shareholders who spoke about voting against Sanger supported Duke on the grounds that her relatively short tenure on the board gave her less responsibility for Wells Fargo s scandals
This is welcome news Stringer said in a statement |
CMCSA | Comcast drops out of the 71 billion bidding war for 21st Century Fox assets handing Disney victory | announced on Thursday that it was no longer pursuing its bid to buy some of 21st Century Fox s assets This ended a bidding war it had entered with Disney for the assets which exclude the Fox News Channel and Fox Business Comcast said it would now focus on its bidding war with Fox for the British broadcaster Sky Comcast said Thursday that it no longer intended to pursue its acquisition of some assets handing a victory in their bidding war The cable provider said it would instead focus on Comcast had entered a bidding war with Disney for some of 21st Century Fox s assets excluding the Fox News and Fox Business channels on June 20 for the assets to 38 a share or a total of 71 3 billion in cash and stock I d like to congratulate Bob Iger and the team at Disney and commend the Murdoch family and Fox for creating such a desirable and respected company Brian Roberts Comcast s CEO said in a Comcast originally held back on bidding for Fox s production assets until a federal judge A Comcast Fox merger like a Disney Fox merger would have been similarly vertical by combining a distributor with a content producer The Justice Department last week moved to to clear the 85 billion merger between AT T and Time Warner It had argued that the deal would reduce competition and raise prices Comcast s most recent offer for Sky values the broadcaster at 26 billion 34 billion up from its previous offer of 22 billion 21st Century Fox had bid 14 a share for Sky Comcast shares gained nearly 3 in premarket trading while Disney rose 1 2 |
CMCSA | Report Comcast works to retain Sky chief in deal bid | Comcast NASDAQ CMCSA is looking to keep Sky OTCQX SKYAY Chief Executive Officer Jeremy Darroch as part of its renewed bid to acquire the UK satellite broadcaster The Times of London reports That s a move by Comcast chief Brian Roberts to ensure an orderly change of ownership in the deal according to the report Brian holds Darroch in very high regard and they have a good personal relationship a source told The Times Previously UBS goes Neutral on Fox as bidding hits endgame Jul 20 2018 Previously Comcast drops out of Fox battle with Disney Jul 19 2018 Previously Disney filing suggests Fox could cede Sky race to Comcast Jul 16 2018 Previously CNBC Comcast focused on Sky unlikely to top bid for Fox Jul 16 2018 Now read |
CMCSA | Comcast CMCSA Q4 Earnings And Revenues Surpass Estimates | Comcast CMCSA came out with quarterly earnings of 0 64 per share beating the Zacks Consensus Estimate of 0 62 per share This compares to earnings of 0 49 per share a year ago These figures are adjusted for non recurring items
This quarterly report represents an earnings surprise of 3 23 A quarter ago it was expected that this cable provider would post earnings of 0 61 per share when it actually produced earnings of 0 65 delivering a surprise of 6 56
Over the last four quarters the company has surpassed consensus EPS estimates four times
Comcast which belongs to the Zacks Cable Television industry posted revenues of 27 85 billion for the quarter ended December 2018 surpassing the Zacks Consensus Estimate by 8 19 This compares to year ago revenues of 21 92 billion The company has topped consensus revenue estimates three times over the last four quarters
The sustainability of the stock s immediate price movement based on the recently released numbers and future earnings expectations will mostly depend on management s commentary on the earnings call
Comcast shares have added about 2 7 since the beginning of the year versus the S P 500 s gain of 5
What s Next for Comcast
While Comcast has underperformed the market so far this year the question that comes to investors minds is what s next for the stock
There are no easy answers to this key question but one reliable measure that can help investors address this is the company s earnings outlook Not only does this include current consensus earnings expectations for the coming quarter s but also how these expectations have changed lately
Empirical research shows a strong correlation between near term stock movements and trends in earnings estimate revisions Investors can track such revisions by themselves or rely on a tried and tested rating tool like the Zacks Rank which has an impressive track record of harnessing the power of earnings estimate revisions
Ahead of this earnings release the estimate revisions trend for Comcast was mixed While the magnitude and direction of estimate revisions could change following the company s just released earnings report the current status translates into a Zacks Rank 3 Hold for the stock So the shares are expected to perform in line with the market in the near future You can see the complete list of today s Zacks 1 Rank Strong Buy stocks here
It will be interesting to see how estimates for the coming quarters and current fiscal year change in the days ahead The current consensus EPS estimate is 0 64 on 25 41 billion in revenues for the coming quarter and 2 76 on 104 22 billion in revenues for the current fiscal year
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well In terms of the Zacks Industry Rank Cable Television is currently in the top 12 of the 250 plus Zacks industries Our research shows that the top 50 of the Zacks ranked industries outperform the bottom 50 by a factor of more than 2 to 1 |
WFC | Wells Fargo says investigation could find more fake accounts | Investing com Shares of Wells Fargo Company NYSE WFC are retreating on Friday after the company filed with the Securities and Exchange Commission stating that a wider look into its sales practice issues could reveal a significant increase in the identified number of potentially unauthorized accounts
Over the past year Wells Fargo has been hit with fines due to unfair business practices including the scandal over its creation of unauthorized customer accounts and charging borrowers for auto insurance they did not want or need
On Thursday Wells Fargo was ordered to pay the U S government 108 million to settle a lawsuit claiming it charged military veterans hidden fees to refinance their mortgages
Wells Fargo s shares were down about 1 5 in afternoon trade |
WFC | Wells Fargo reviews more products for financial harm to customers | By Olivia Oran NEW YORK Reuters Wells Fargo Co N WFC is examining whether it caused unnecessary financial harm to customers through mortgage fees frozen deposit accounts and add on products like identity theft protection the bank said in a U S securities filing on Friday The disclosures signal that the bank s problematic sales practices go further than investors and analysts had expected after Wells reached a regulatory settlement in September over unauthorized customer accounts We were surprised that this wasn t disclosed when the original sales practices were disclosed said Piper Jaffray analyst Kevin Barker Given the scope of the issues out there it seems like this is a bigger deal than we had originally thought Wells Fargo shares dropped 1 3 percent to 52 70 in afternoon trading Wells the third largest U S bank by assets discovered the new issues as part of a third party consultant s review required by the settlement It expects that review to be complete in the third quarter Wells is focusing on whether fees it charged to extend interest rate lock periods on residential mortgages as well as its practice of freezing or closing deposit accounts for suspected fraud caused undue harm to customers It is also looking at how it tacked products like identity theft protection and debt protection onto other accounts The disclosures come a week after the bank said it charged 570 000 auto borrowers for insurance they did not want pushing 274 000 of them into delinquency and leading to at least 20 000 wrongful repossessions In the new disclosures Wells Fargo said it has also identified issues with guaranteed automobile protection waivers and insurance agreements with dealers that may lead to refunds beyond the 80 million in customer compensation it detailed last week Those disclosures came on top of the bank s revelations that thousands of employees had opened as 2 1 million accounts in customers names without their permission which was the subject of its 190 million settlement with the Consumer Financial Protection Bureau CFPB the Office of the Comptroller of the Currency OCC and the Office of the Los Angeles City Attorney The CFPB is now investigating the mortgage fee and deposit account practices that Wells identified as potentially hurting customers the bank said Also on Friday Wells agreed to pay 108 million to settle allegations stemming back over a decade that it charged military veterans hidden fees then concealed the fees when applying for federal loan guarantees The bank has more work to do to rebuild customer trust and may find more problems as it completes its review Wells Fargo Chief Executive Officer Tim Sloan said in a statement No doubt other work lies ahead he said While the quarterly filing identifies new issues the final conclusions or outcomes for many are unknown at this time The bank is facing a raft of lawsuits and probes related to its sales practices and said it is unable to determine whether it will face material financial harm as a result It also said its legal costs may go as much as 3 3 billion beyond the amount of money it has already set aside up from its 2 billion estimate three months earlier As Wells Fargo s problems have unfurled some shareholders have agitated for changes to the board of directors Last week New York City Comptroller Scott Stringer who oversees public pension funds that hold roughly 11 6 million Wells Fargo shares demanded that the board install a new independent chair
Wells board expects to complete a review of its structure composition and practices in the third quarter according to the filing |
WFC | Infrastructure borrowing drops as U S states await Trump plan details | By Robin Respaut and Hilary Russ SAN FRANCISCO NEW YORK Reuters President Donald Trump arrived in office having promised a bold 1 trillion infrastructure investment plan over 10 years for roads bridges airports and transit systems crumbling by the day across the United States But nearly seven months later the administration has produced few details on the future of federal infrastructure funding one reason why state and municipal governments have issued fewer bonds to improve roads water systems and other projects so far in 2017 An early budget by Republican Trump even proposed stripping popular transportation funding programs Through July new municipal deals to fund transportation utilities and power projects totaled 50 7 billion down 19 4 percent from the same period last year according to an analysis of Thomson Reuters data That decline outpaces a broader drop in the U S municipal bond market overall with total issuance down 13 1 percent thus far in 2017 to 201 7 billion New deals have lagged since November s post election selloff when state and local governments quickly issued bonds fearing potential policy changes and rate increases by the Federal Reserve Since then the lower issuance has been driven by plummeting refunding volumes Such refinancings dominated last year s higher issuance levels but the states and cities that sell such bonds were put off by the overall rise in rates I think people started to realize that the agenda within the Trump administration wasn t going to accelerate as quickly as had been advertised said Randy Gerardes director of municipal securities research at Wells Fargo NYSE WFC in New York That is discouraging news for commuters travelers and the transportation industry that must contend with yawning gap of new projects and maintenance across the country The American Society of Civil Engineers this year assigned a D grade to U S infrastructure The Trump administration has announced a 10 year 1 trillion infrastructure plan financed through 200 billion in government funding underpinned by private investment While states and cities build most of the country s public infrastructure they rely on stable and predictable funding from the federal government to help complete those projects Historically the U S financed the vast majority of its infrastructure through the tax exempt low cost vehicle of the 3 8 trillion U S municipal bond market Trump s plan to utilize private financing to spur the bulk of his infrastructure program is unrealistic said James Grabovac a managing director at McDonnell Investment Management But state and local governments may be reluctant to engage in long term infrastructure financing given that there s a promise of a trillion dollar federal investment program somewhere on the horizon Grabovac said BOND PICKER S MARKET The dearth of infrastructure related bond issuance has left a bond picker s market with more buyers than sellers When deals do come to market people are aggressively bidding them up said Gerardes That s pushing up the price and down the rates Revenue bonds which often finance infrastructure projects because they are repaid with tolls fares and fees instead of tax dollars maintained a small but steady spread over general obligation bonds for all of 2014 and 2015 But that narrowed in the final days of 2016 and revenue bonds are now trading on par with GO bonds That is in part because belief in the safety of the GO pledge has waned since special revenue pledges led to better bondholder recoveries in some Chapter 9 bankruptcies Such competition for new deals could encourage governments to issue more bonds But that hinges on the support of politicians and taxpayers who typically pay higher user fees or increased taxes to service debts Unfortunately neither one of those options are politically palatable said Gerardes State and local finances are also still pressured by lingering pension and retiree healthcare liabilities leaving them wary of taking on more debt to fund infrastructure projects The tides may be changing however Last week transportation deals led the new issuance calendar buoyed by deals from San Francisco Washington Georgia and Illinois Of all infrastructure sectors measured by Thomson Reuters including water and sewer highways and airports public power saw the biggest drop in issuance of 57 4 percent below par value
Bonds issued for seaports and marine terminals however increased by 134 1 percent and for bridges by 59 9 percent |
WFC | Wells Fargo joint venture sued over merchant credit card fees | By Dena Aubin NEW YORK Reuters A Wells Fargo NYSE WFC Bank joint venture that provides credit card processing services to merchants across the country has been hit with a lawsuit accusing it of using misleading sales tactics and overbilling for its services The proposed class action filed on Friday in Brooklyn federal court said Wells Fargo Merchant Services promised merchants that it would give them transparent pricing but charged them unauthorized fees and disguised the fees with deceptive language in monthly statements Wells Fargo Merchant Services a joint venture between Wells Fargo Bank and payment processor First Data Corp helps process credit and debit card purchases for businesses We deny the claims and plan to defend against the misrepresentations outlined in the lawsuit Wells Fargo spokeswoman Sara Hassell said Pricing terms are fair and the accusations do not reflect how we operate our Merchant Services business she said First Data spokesman Mark Murphy declined to comment The lawsuit was filed on behalf of tour operator Queen City Tours in Charlotte North Carolina defunct Pennsylvania restaurant Patti s Pitas and other merchants across the country who say they were charged unauthorized fees by Wells Fargo Merchant Services Hundreds of thousands of merchants were likely affected the lawsuit said Promises were made by aggressive sales tactics and then broken said Adam Webb a lawyer for the merchants The conduct goes back about six years he added Wells Fargo has been grappling with a nationwide scandal over unauthorized accounts opened by employees in its consumer banking division and numerous lawsuits over its sales practices The third largest U S bank last year agreed to pay a 185 million fine to the U S government to settle claims about the unauthorized accounts On Friday it said it would pay the government 108 million to settle allegations that it charged military veterans hidden fees to refinance mortgages The lawsuit regarding cards said Wells Fargo Merchant Services hit merchants with unanticipated or unauthorized fees such as a 35 monthly minimum charge after they signed three year contracts that could be terminated only by paying a 500 penalty Wells Fargo buried some terms in a 63 page fine print guide that could never be completely read or understood by a busy merchant the lawsuit said Statements sent to merchants described some fees as interchange charges indicating they were imposed by a credit card network when in reality Wells Fargo Merchant Services kept part of those fees as profit the lawsuit said The case is Patti s Pitas et al v Wells Fargo Merchant Services U S District Court Eastern District of New York No 17 cv 4583 |
WFC | Golf Players plot plans at new Quail Hollow | By Larry Fine CHARLOTTE North Carolina Reuters Players have come to know Quail Hollow during its years of hosting the PGA Tour s Wells Fargo NYSE WFC Championship but given its recent makeover players were not exactly sure how it will play at this week s PGA Championship Who knows William McGirt told Reuters when asked for a probable winning score after walking off the ninth green It could be six under or it could be 18 under No one knows Three refashioned holes on the front side add teeth to that nine rough has grown in to punish errant drives and a change of grass on the greens has raised the speeds to hazardous levels Under the relaxed policy of the PGA of America players were able to practice while wearing shorts adding a casual air about Monday s preparations But the 156 player field were seriously taking stock ahead of the year s last major starting on Thursday The biggest change we ve seen is the change in the greens double major winner Zach Johnson told Reuters Going from the bent to the bermuda is a substantial change and requires you to be really really careful on your approach shots with the run up and the release James Hahn put on a short game clinic at the ninth pitching from short of the green to two feet past the cup to applause from the fans ringing the putting surface Despite hitting such a sweet shot he dropped another ball and took dead aim again this time flipping the ball up to within one foot on its way to the cup earning a louder cheer But Hahn said the greens could be unfair when hitting from farther out in the fairway noting that he and practice partner Vijay Singh both hit approaches that landed six feet from a cup with drastically different results Mine stopped and Vijay s ran off about 30 feet said Hahn I think that some good shots will not be rewarded Johnson agreed but added I have one word to say and that s golf It s a four letter word McGirt said the rough could be a deciding factor especially if it rains all week as has been forecast This rough is the great equalizer because you re going to get some balls that you can barely advance and some balls that will fly forever he said We ve never played this golf course with actual rough there hasn t been a ton of it McGirt said it can get fiendish when wet It s gonna get squishy It s already getting nasty on a couple of holes out there really nasty I had one on five I hit a seven iron as hard as I could and it went about 80 yards Despite that McGirt expects some sizzling scores The golf course is pretty receptive right now so I d expect fairly low scores |
CMCSA | Comcast makes higher offer for Sky tops Fox bid | Reuters Comcast Corp O CMCSA on Wednesday raised its offer for Britain s Sky L SKYB in a deal valuing the pay TV group at 34 billion challenging a raised bid from Twenty First Century Fox O FOXA
Comcast s offer of 14 75 pounds per share was higher than the 14 pounds per share or 32 5 billion offered by Rupert Murdoch s Fox earlier in the day |
CMCSA | Sky hitting 18 year highs as Jefferies boosts target on bid fight | Sky OTCQX SKYAY is up 3 6 in OTC trading after the latest move in a bidding war for the UK broadcaster a raised bid of 34B from Comcast CMCSA 1 7 Jefferies has given the stock a Street high price target of 17 50 up from 16 that implies 13 upside from today s London close of 15 45 Shares hit an 18 year high The firm sees Comcast s new bid as just the opening shot in an endgame particularly considering Fox s FOX 0 2 FOXA 0 2 clearance from the UK for its own bid Fox shouldn t count on completing its own deal with Disney and should be motivated to avoid losing the chance at control of Sky h t Bloomberg Meanwhile Macquarie has gone to Neutral on Sky with a price target of 14 50 now implying 6 1 downside Now read |
CMCSA | AT T CEO confident Time Warner deal on solid ground | By Vibhuti Sharma and Sonam Rai Reuters The U S Justice Department has only a remote chance of overturning AT T NYSE T Inc s takeover of Time Warner Chief Executive Randall Stephenson said on Friday adding that the move could affect the bidding war for Twenty First Century Fox Inc Shares of AT T fell 1 7 percent to close at 31 67 on Friday after U S officials signaled they would appeal a federal judge s approval last month of the 85 4 billion deal Speaking on CNBC Stephenson said the original court decision was well reasoned At the end of the day the law was on our side he said We think the likelihood of this thing being reversed or overturned is really remote The merger first announced in October 2016 was opposed by U S President Donald Trump AT T was sued by the Justice Department on antitrust grounds but Judge Richard Leon concluded the government failed to show that prices would go up and allowed the deal to go forward Credit rating agency Fitch said in a statement it believed the original decision will be upheld but acknowledged the three judge appeals court panel could disagree Moody s said in a statement AT T s credit ratings remain unchanged Raymond James analyst Frank Louthan downgraded AT T from outperform to market perform on news of the planned appeal saying it is a negative catalyst for the stock This is a significant overhang for an extended period and is not conducive to share price appreciation he wrote Approval of the Time Warner deal last month triggered further moves in a bidding war between Comcast Corp NASDAQ CMCSA and Walt Disney Co over the bulk of Twenty First Century Fox Inc s film and TV assets Disney has received U S antitrust approval for the purchase Stephenson told CNBC the dispute could hurt Comcast s chances of prevailing Comcast is a major cable provider while AT T owns satellite giant DirecTV It does affect that process You re in a situation where two entities are bidding for an asset and this kind of action can affect the outcome he said In Washington Makan Delrahim the assistant attorney general in charge of the Justice Department s antitrust division recently defended the decision to file its initial lawsuit last year The division made multiple settlement offers involving divestitures but the parties offered and would accept only so called behavioral remedies involving promises to refrain from anticompetitive conduct Delrahim wrote in an op ed in the Washington Times on Thursday Senator Richard Blumenthal a Democrat backed the appeal The moment it acquired Time Warner AT T showed its true face and raised prices for consumers he said on Twitter AT T has recently announced price increases It raised the price for wireless customers with some unlimited data plans by 5 per month and informed customers it was increasing the price of its internet streaming service DirecTV Now by 5 per month
We re not as sure as everyone else that Judge Leon s ruling will be upheld on appeal analysts from brokerage MoffettNathanson wrote |
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