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Stock Market & Financial Investment News

News Breaks
April 4, 2014
10:39 EDTAMTD, ETFCE-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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December 12, 2014
08:09 EDTAMTDBofA/Merrill financial analysts hold an analyst/industry conference call
Banks Analyst Najarian, along with Capital Markets Analyst Carrier, Specialty Finance Analyst Bruce discuss the year ahead in Financials, covering the Banks, Capital Markets, Life and P/C Insurance, REIT, Specialty Finance and Canadian Banks/Life Insurance sectors on an Analyst/Industry conference call to be held on December 16 at 10 am.
December 10, 2014
08:06 EDTETFCE-Trade announces November DARTs flat with year-ago period
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December 9, 2014
07:45 EDTAMTDGoldman to hold a conference
U.S. Financial Services Conference is being held in New York on December 9-10.
07:33 EDTAMTDTD Ameritrade reports average of 428,000 client trades per day in November
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