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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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August 14, 2014
10:57 EDTETFC, AMTDCharles Schwab DARTs momentum continued in July, says UBS
UBS noted that Charles Schwab's (SCHW) daily average revenue trades, or DARTS, increased 3% sequentially in July, adding that if the acceleration can continue deeper into the quarter that the firm sees upside potential relative to estimates. However, UBS also pointed out that Schwab's 3% sequential pickup is below what peers TD Ameritrade (AMTD) and E-Trade (ETFC) reported in recent days. UBS maintain its Buy rating and $32 price target on shares of Charles Schwab.
10:05 EDTAMTD, ETFCOn The Fly: Analyst Initiation Summary
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08:06 EDTETFCE-Trade reports July DARTs of 153,671, up 5% from June
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07:47 EDTAMTD, ETFCDeutsche Bank hosts an analyst Online Brokers/Industry conference call
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06:40 EDTETFCE-Trade initiated with a Hold at Deutsche Bank
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06:40 EDTAMTDTD Ameritrade initiated with a Buy at Deutsche Bank
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August 11, 2014
08:32 EDTAMTDTD Ameritrade reports July client trades up 9% from a year ago
Monthly activities for July 2014 included: An average of 405,000 client trades per day in July 2014, up 9% from July 2013 and up 8% from June 2014. $644.4B in total client assets as of July 31, 2014, up 18% from July 2013 and down 1% from June 2014. Average spread-based balances of $91.7B, up 4% from July 2013 and essentially flat from June 2014. Average fee-based balances of $143.5B, up 19% from July 2013 and up 1% from June 2014.
06:58 EDTAMTDUBS to hold a conference
UBS Financials 1:1 Conference to be held in Chicago on August 11.

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