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Stock Market & Financial Investment News

News Breaks
April 4, 2014
10:39 EDTETFC, AMTDE-Trade, TD Ameritrade continue sell-off amid concerns
Shares of brokerage firms E-Trade (ETFC) and TD Ameritrade (AMTD) are dropping significantly for a second straight day amid concerns that regulators will look to eliminate one of the companies' more profitable businesses. But two research firms defended the stocks in notes to investors earlier today. WHAT'S NEW: According to Reuters, the decline in the brokerage firms was triggered by concerns that regulators will end a highly profitable business they conduct known as "payment-for-order-flow." The term refers to payments that E-Trade and TD Ameritrade receive from professional trading firms, in exchange for hundreds of thousands of orders that the brokerages send to the trading firms. A controversial and widely discussed new book mentions payment for order flows, which is also known as PFO. Meanwhile, an SEC commissioner on Wednesday said the agency should consider temporarily banning a similar type of payment, the news service reported. ANALYST REACTION: In a note to investors before the market opened today, Wells Fargo wrote that the weakness in the stocks is being caused by concerns over payment for order flows. The payments could account for 15% of TD Ameritrade's profits and 21% of E-Trade profits, Wells stated. Nevertheless, the firm thinks the decline in the stocks seem excessive. Before banning the payments, regulators will need to study data and determine that retail investors are being significantly harmed by the practice, the firm contended. It kept an Outperform rating on TD Ameritrade and a Market Perform rating on E-Trade. Also taking an upbeat view of the stocks was research firm Sterne Agee. Both stocks already reflect a "fairly high likelihood" that PFO will be banned, but such a ban is far from certain, the firm contended in a note to investors before the market opened. Meanwhile, both companies' earnings would be boosted if interest rates rise, the firm contended. Sterne Agee keeps a Buy rating on E-Trade and a Neutral rating on TD Ameritrade. PRICE ACTION: In early trading, E-Trade fell 3% to $21.50, while TD Ameritrade dropped 2.3% to $31.30.
News For ETFC;AMTD From The Last 14 Days
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July 28, 2015
15:06 EDTAMTDTD Ameritrade fined $300K by Texas for customer notification violations
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July 24, 2015
06:49 EDTETFCE-Trade says NY Fed eases company oversight, Reuters says
E-Trade said that the New York Federal Reserve has relaxed its oversight of the company during the second quarter, giving the company more latitude to make strategic decisions about its future, Reuters reports. "It moves us to a different footing with regulators on how quickly we can move to do things," CEO Paul Idzik said on an analysts' call Thursday evening after the company reported Q2 earnings. "The dialogue has shifted." Reference Link
July 23, 2015
18:01 EDTETFCE-Trade reports Q2 DARTs of 149K
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16:22 EDTETFCE-Trade reports Q EPS 25c, consensus 27c
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July 22, 2015
10:01 EDTAMTDOn The Fly: Analyst Downgrade Summary
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07:37 EDTAMTDTD Ameritrade downgraded to Sell from Neutral at Citi
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July 21, 2015
07:33 EDTAMTDTD Ameritrade CEO: Company 'upbeat' about growth, prospects
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07:32 EDTAMTDTD Ameritrade reports Q3 EPS 36c, consensus 36c
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July 20, 2015
15:01 EDTAMTDNotable companies reporting before tomorrow's open
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