- Wall Street in mixed mood at the start of Tuesday's session
- Investors' attention turns to quarterly results
- Goldman Sachs, UnitedHealth and Bank of America, among others, showed their results
Markets in the US open Tuesday's cash session in a mixed mood. Five minutes after the Wall Street open, the Nasdaq is gaining 0.18%, while the S&P500 is adding 0.08%. Investor attention today is focused on corporate news.
Start investing today or test a free demo
Create account Try a demo Download mobile app Download mobile appCurrent volatility observed on Wall Street. Source: xStation
US100
The Nasdaq-100 index, represented by the US100 contract is trading flat today relative to the close of Monday's trading. However, the index continues to maintain a dynamic uptrend all the time, which with its range oscillates not far from new historical highs. From a technical perspective, it seems that the support set by the 50-day EMA (blue curve on the chart) and the psychological level of $20,000 may be key to sustaining the increases.
Source: xStation 5
Corporate news
Bank of America (BAC.US) is up about 2% after its Wall Street operations performed better than expected, and the company benefited from market volatility. Net interest income beat analysts' estimates.
BANK'S Q3 RESULTS:
- Net interest income $13.97 billion, estimates $13.9 billion
- FICC trading income $2.94 billion, estimate $2.77 billion
- Share trading revenue $2.00 billion, estimate $1.81 billion
- Total wealth and investment management revenue $5.76 billion, estimate $5.63 billion
- Net interest expense income $25.35 billion, estimate $25.27 billion
- Provision for credit losses $1.54 billion, estimate $1.53 billion
- EPS 81c vs. 90c y/y
- Return on average equity 9.44%, estimated 9.01%
- Basel III Tier 1 capital ratio fully implemented, advanced approach 13.5%, estimated 13.5%
- Standard CET1 ratio 11.8%, estimated 11.9%
- Payroll costs $9.92 billion, estimate $9.9 billion
- Investment banking revenues $1.40 billion, estimate $1.24 billion
- Advisory fees $387 million, estimate $341.8 million
- Revenue from debt issuance $780 million, estimate $669 million
- Capital issue proceeds $270 million, estimate $258.4 million
- Net write-downs $1.53 billion, estimate $1.5 billion
- Loans $1.08 trillion, estimate $1.07 trillion
- Total deposits $1.93 trillion, estimate $1.93 trillion
- Efficiency ratio of 65%
- Non-interest expense $16.48 billion, estimate $16.49 billion
Goldman Sachs (GS.US) grows 2%. The bank's profit rose 45% in the third quarter, thanks to a surprising increase in income from stock trading and a resurgent investment banking business.
THIRD QUARTER RESULTS
- Net profit of $12.70 billion, up an estimated $11.77 billion
- FICC sales and trading income $2.96 billion, estimate $2.96 billion
- Global Banking & Markets net income $8.55 billion, +6.8% y/y, estimate $7.65 billion
- Investment banking revenue $1.86 billion, +20% y/y, estimate $1.68 billion
- Revenue from equity sales and trading $3.50 billion, +18% y/y, $2.95 billion estimate
- Advisory revenues $875 million, +5.3% y/y, estimate $757.5 million
- Revenue from equity issuance $385 million, +25% y/y, estimate $359.6 million
- Debt issue proceeds $605 million, +46% y/y, estimate $567.9 million
- EPS of $8.40 vs. $5.47 y/y
- Net interest income $2.62 billion, +70% y/y, estimated $1.84 billion
- Platform Solutions pre-tax loss $559 million, estimated loss $302.7 million
- Total deposits $445 billion, +2.8% q/q.
- Provision for credit losses $397 million vs. $7 million y/y, estimate $411.9 million
- Total operating expenses $8.32 billion, -8.2% y/y, estimate $8.11 billion
- Payroll costs $4.12 billion, -1.6% y/y, estimate $3.89 billion
- Annual ROE +10.4%, estimated +8.73%
- Return on equity +11.1%, estimated +9.44%
- Standard CET1 ratio 14.6%, estimated 14.7%
- Book value per share $332.96, compared with $313.83 y/y
- Efficiency ratio 65.5%, estimated 68.5%
- Assets under management $3.10 trillion, +16% y/y, $2.99 trillion estimate
UnitedHealth (UNH.US) is down 9% after the company lowered the top end of its forecast, a rare move for an insurance giant that has often withstood pressures that hurt its competitors.
ANNUAL FORECAST
Adjusted earnings per share forecast $27.50 to $27.75, previously estimated at $27.50 to $28, estimated at $27.68
Q3 RESULTS
- Adjusted earnings per share $7.15 vs. $6.56 y/y, estimated $6.99
- EPS $6.51 vs. $6.24 y/y
- Revenue $100.82 billion, +9.2% y/y, estimated $99.16 billion
- UnitedHealthcare segment revenue $74.9 billion, +7.2% y/y, estimated $73.65 billion
- Optum revenues $63.9 billion, +13% y/y
- OptumRx revenues $34.21 billion, +19% y/y, estimated $32.21 billion
- OptumHealth revenues $25.92 billion, +8.6% y/y, $27.48 billion estimate
- OptumInsight revenue $4.93 billion, -0.9% y/y, $4.99 billion estimate
- Medical care ratio 85.2% vs. 82.3% y/y, estimated 84.4%
- Operating expense ratio 13.2% vs. 15% y/y, estimate 13.5%
ANALYSTS' RECOMMENDATION
- Blackstone Inc (BX.US): JPMorgan raises target price to $125 from $109, expecting the asset manager's latest fundraising supercycle to drive earnings growth.
This content has been created by XTB S.A. This service is provided by XTB S.A., with its registered office in Warsaw, at Prosta 67, 00-838 Warsaw, Poland, entered in the register of entrepreneurs of the National Court Register (Krajowy Rejestr Sądowy) conducted by District Court for the Capital City of Warsaw, XII Commercial Division of the National Court Register under KRS number 0000217580, REGON number 015803782 and Tax Identification Number (NIP) 527-24-43-955, with the fully paid up share capital in the amount of PLN 5.869.181,75. XTB S.A. conducts brokerage activities on the basis of the license granted by Polish Securities and Exchange Commission on 8th November 2005 No. DDM-M-4021-57-1/2005 and is supervised by Polish Supervision Authority.
