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News For USB From The Last 14 Days
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October 13, 2015
14:58 EDTUSBEarnings Watch: Wells Fargo gets multiple upgrades amid 8% pullback
Wells Fargo (WFC), one of the largest banks in the U.S., is expected to report third quarter earnings before the open on Wednesday, October 14 with a conference call scheduled for 10:00 am EDT. EXPECTATIONS: Analysts expect earnings per share of $1.04 for the third quarter on revenue of $21.75B. The consensus range is 95c-$1.11 on revenue of $21.17B-$22.35B, according to First Call. Along with its last earnings report, Wells Fargo said it expects to operate within its targeted efficiency ratio range of 55%-59% for FY15. On September 16, the bank reiterated that it expects to stay at the higher end of that efficiency range. LAST QUARTER: On July 14, Wells Fargo reported second quarter EPS of $1.03, matching the consensus estimate. The bank's quarterly revenue of $21.32B missed expectations for $21.7B. NEWS: On July 20, the board of the Federal Reserve met to discuss a final rule to impose a risk-based capital surcharge on the most systemically important U.S. bank holding companies. Using the most recent available data at that time, the Fed estimated a GSIB surcharge of 4.5% for JPMorgan (JPM), a 3.5% surcharge for Citi (C), 3% surcharges for Bank of America (BAC), Goldman Sachs (GS) and Morgan Stanley (MS) and smaller surcharges ranging down to as low as 1% for Bank of NY Mellon (BK), State Street (STT) and Wells Fargo. On September 30, Wells Fargo announced that its railcar finance, leasing and fleet management business has signed an agreement to purchase GE Railcar Services from GE Capital (GE). Terms of the transaction were not disclosed. This morning, Wells Fargo announced it has signed an agreement to purchase GE Capital's Commercial Distribution Finance and Vendor Finance platforms as well as a portion of its Corporate Finance business. The acquisition includes total assets of approximately $32B as well as businesses employing approximately 3,000 team members. Other terms of the transaction were not disclosed. STREET RESEARCH: On July 29, Guggenheim upgraded Wells Fargo to Buy with a $64 price target. The firm believes Wells Fargo's strong asset generation will enable it to sustain NII growth even in the absence of higher short-term rates and that high fee contribution should continue to support revenue growth. On September 2, Sandler O'Neill analyst R. Scott Siefers upgraded Wells Fargo to Buy with a $59 price target, telling investors that the bank has been positioning itself better to "capture opportunities irrespective of the rate environment." Deutsche Bank analyst Matt O'Connor recommended purchasing "higher quality large regional banks" on September 8, upgrading to Buy from Hold shares of Wells Fargo, PNC Financial (PNC) and U.S. Bancorp (USB). The same day, Evercore ISI upgraded Wells Fargo to Buy based on valuation and maintained its $57 price target. The firm said Wells Fargo is poised to gain loan growth share despite the inconsistent macro backdrop, noting as well that its net interest margin is benefiting from repositioning towards low long-term rates. On October 9, JPMorgan analyst Vivek Juneja upgraded Wells Fargo to Overweight, saying share buybacks and an "attractive" dividend yield should drive higher capital return relative to peers in the second half of 2015. Juneja, who views Wells as a "steadier port in uncertain markets," lowered his price target for shares to $58.50 from $59.50. PRICE ACTION: Over the last three months, shares of Wells Fargo have declined more than 8%. Ahead of Wednesday morning's report, Wells Fargo slid fractionally to $52.08 per share in afternoon trading.
October 5, 2015
06:53 EDTUSBAverage ATM fees reach $4.52, WSJ says
The average ATM fee rose to $4.52 this year as regulators have pressured banks to reduce other fees and consumers aren't using ATMs as frequently as in the past, reports the Wall Street Journal, citing a Bankrate Inc. survey. Publicly traded companies in the space include Bank of America (BAC), Citi (C), Goldman Sachs (GS), JPMorgan (JPM), Morgan Stanley (MS), U.S. Bancorp (USB), Wells Fargo (WFC), and Cardtronics (CATM). Reference Link
October 2, 2015
13:26 EDTUSBBanks, brokers slide as weak jobs report pushes out rate hike
Shares of banks and brokers are sliding after a weak jobs report pushed out the probability of near-term rate hike. WHAT'S NEW: Friday morning, the Labor Department reported that the U.S. economy added only 142,000 jobs in September compared to economists expectations of 203,000. The Labor Department's September jobs report strengthened the argument that the Fed will not raise rates in October, and even lessened the probability of a December rate hike. An increase in interest rates would let banks and brokers benefit from higher spreads on deposits. PRICE ACTION: Shares of Bank of America (BAC), Citigroup (C), Goldman Sachs (GS), JPMorgan (JPM), Morgan Stanley (MS), U.S. Bancorp (USB), and Wells Fargo (WFC) are all declining despite a rebound in the broad market. OTHERS TO WATCH: Shares of online brokers, including TD Ameritrade (AMTD), Charles Schwab (SCHW), E*TRADE (ETFC), and Interactive Brokers (IBKR) are also lower in afternoon trading.
September 30, 2015
07:46 EDTUSBFed liftoff may be more turbulent for banks than expected, WSJ says
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