Bank of America (BAC) doesn't seem to have any desire to kick it up this afternoon: it neither wants to rally nor plunge. With about one hour to go before the market closes up for the day, the stock is down a nickel to $12.29. Volume, though, is well above average, so there's been a lot of interest in the name after the release of the company's Q3 report.

Since about the middle of April, the stock has not been a good performer. As the chart shows, it's been downhill since then. The 52-week low for the shares is $11.74, while the 52-week high is $19.86. Judging by the proximity to the yearly low, Wall Street is apparently a bit bearish on Bank of America.

Continue reading Bank of America Flat After Earnings Release

Bank of America Flat After Earnings Release originally appeared on BloggingStocks on Tue, 19 Oct 2010 15:00:00 EST. Please see our terms for use of feeds.

Continue reading Citigroup Sees a Bid After Q3 Report

Citigroup Sees a Bid After Q3 Report originally appeared on BloggingStocks on Mon, 18 Oct 2010 17:00:00 EST. Please see our terms for use of feeds.

Continue reading Citigroup Upgrades Royal Bank of Scotland, Downgrades Barclays

Citigroup Upgrades Royal Bank of Scotland, Downgrades Barclays originally appeared on BloggingStocks on Fri, 10 Sep 2010 10:20:00 EST. Please see our terms for use of feeds.

Wells Fargo (WFC) announced Wednesday that it will lay off 3,800 employees during the next year as the bank attempts to restructure its consumer finance unit. Wells Fargo Financial will be integrated into the company's community banking network -- closing 638 independent consumer finance offices in the process. The firm added that it is no longer going to deal with non-prime mortgage loans.

Reportedly, roughly 27% of the financial firm's Wells Fargo Financial employees will be laid off. In the next two months, 2,800 employees will be sent packing, while 1,000 more will be jettisoned in the next year. According to WFC, these changes will not affect WFC and Wachovia banks across the United States.

Continue reading Wells Fargo to Cut 3,800 Jobs in Restructuring

Wells Fargo to Cut 3,800 Jobs in Restructuring originally appeared on BloggingStocks on Thu, 08 Jul 2010 09:30:00 EST. Please see our terms for use of feeds.

The financial sector has been a strange double-edged sword in portfolios over the past two years or so. In the wake of the Lehman Brothers bankruptcy, billions of wealth was erased in what were long thought of as conservative stocks. Then the resurgence of some banks since the lows of last year made other investors a fortune, with Citigroup (C) and Bank of America (BAC) both soaring about 300% since historic lows on March 9, 2009.

The drama continues in the financial sector even now with the endless see-saw of mortgage default news and the continued worries over sovereign debt in the eurozone. Any investor jumping into financial stocks right now is really taking the tiger by the tail -- but if you do your homework, there a number of opportunities in the sector become clear -- particularly among financials in Latin America.

Continue reading Three Booming Latin America Banks

Three Booming Latin America Banks originally appeared on BloggingStocks on Tue, 01 Jun 2010 13:40:00 EST. Please see our terms for use of feeds.

JPMorgan Chase (JPM) is a financial stock, and as such, you've got a right to be cautious about it, considering what's happened to the economy over the last couple years. Today, however, the equity, whose colleagues include Bank of America (BAC) and Citigroup (C), appears pretty appealing. Wall Street enjoyed the results of the bank's first quarter, expressing its opinion by sending in the buy order.

As of this writing, shares of the company are up well over 3%, on robust volume. The stock has been strong since its last downturn, which ended back in February, according to the one-year chart.

Continue reading JPMorgan Chase Up on Q1 News

JPMorgan Chase Up on Q1 News originally appeared on BloggingStocks on Wed, 14 Apr 2010 15:20:00 EST. Please see our terms for use of feeds.

One of the true icons of finance, Goldman Sachs Group (GS), issued its Q4 report this morning. The stock has been weak off the numbers; at the time of this writing, shares were down well over 5%, and volume was very active. Looking through the press release, I didn't come away as bearish as the market. Then again, the session as a whole was rather choppy, so perhaps overall sentiment was exerting an influence. Still, a 5% sell-off is notable.

Let's look at some highlights. For the fourth quarter, Goldman, whose colleagues include JPMorgan Chase (JPM) and Morgan Stanley (MS), made $8.20 per share. Last year at this time, the company reported a loss of $4.97 per share. Besides improving year-over-year, per-share profit increased over 50% on a sequential basis as well. According to Earnings.com, $5.20 was the number to beat.

Continue reading Goldman Sachs Not In Demand After Q4 Report

Goldman Sachs Not In Demand After Q4 Report originally appeared on BloggingStocks on Thu, 21 Jan 2010 15:40:00 EST. Please see our terms for use of feeds.

Continue reading Bank of America Fourth Quarter Earnings Preview

Bank of America Fourth Quarter Earnings Preview originally appeared on BloggingStocks on Tue, 19 Jan 2010 18:20:00 EST. Please see our terms for use of feeds.

On the final trading session before Christmas, Apple, Inc. (AAPL) shares hit an all-time high thanks to a published report hinting that another product announcement may be rolling in. On December 23, the Financial Times reported on its Tech Blog that Apple "has something big up its sleeve for next month."

The main reason for this speculation is that the tech company has booked a stage at the Yerba Buena Center for the Arts (YBCA) in San Francisco for "several days in late January." Apple has used this venue to make major announcements in the past, and the speculation is that Apple is going to make a major product announcement at the end of January. The blog quoted Piper Jaffray analyst Gene Munster as saying, "We believe there is a 75 per cent likelihood that Apple will have an event in January and a 50 per cent chance that it will be held to launch the Apple Tablet."

Continue reading Apple Stock Higher Amid Rumors of a New Product

Apple Stock Higher Amid Rumors of a New Product originally appeared on BloggingStocks on Mon, 28 Dec 2009 16:30:00 EST. Please see our terms for use of feeds.

E*Trade (NASDAQ: ETFC) is a well-known brand in the broker space. It competes vigorously with the other giants, TD Ameritrade (NASDAQ: AMTD) and Charles Schwab (NASDAQ: SCHW). To be honest, if I were looking for investment ideas in this sector, I would probably begin my search with the latter two. It's difficult to put E*Trade on the list. The company got in trouble during the financial crisis because it was exposed to the mortgage industry. It has now become, in my opinion, a speculative play on a return to glory.

The latest earnings report shows what I'm talking about. For the third quarter, E*Trade lost, on a GAAP basis, 66 cents per share from continuing operations, wider than the year-ago loss of 60 cents per share from continuing operations. After adjusting for an item related to debt extinguishment, the current red ink is equal to 5 cents per share.

Continue reading E*Trade loses less than expected in third quarter -- is this a victory?

E*Trade loses less than expected in third quarter -- is this a victory? originally appeared on BloggingStocks on Wed, 28 Oct 2009 15:45:00 EST. Please see our terms for use of feeds.

Interesting article from the Associated Press this morning, taking a look at how fast banks expanded during the past five years. The article states that banks added more than 10,000 full-service branches in the past five years, with nary a bank in the inner city (actually, one of every 10 was in a minority neighborhood).

The banks were "racing" to plant themselves in various parts of the country deemed exclusive or growing. The problem that the article looks at is the dearth of banks located in inner-city locations, which could lead to more charges for customers. This is a very real problem, and warrants the discussion; however, I want to take a look at the problem of overexpansion for the banking industry.

Continue reading Can banks resist the urge to overexpand?

Can banks resist the urge to overexpand? originally appeared on BloggingStocks on Mon, 17 Aug 2009 12:00:00 EST. Please see our terms for use of feeds.

Late yesterday, MetLife (NYSE: MET) announced a second-quarter net loss of $1.74 per share, compared to earnings of $1.26 per share a year ago. The company blamed the loss on derivative losses of $1.8 billion, $1 billion of which was related to an increase in the company's own debt in the second quarter. Excluding charges, MET earned 88 cents per share for the quarter, topping the consensus estimate by 20 cents. The insurer's premiums, fees, and other revenue increased 4% to $8.38 billion thanks to a record amount of money spent in variable annuity products.

Variable annuities can be described as a contract between the purchaser and the insurance company. The insurer agrees to make payments to the purchaser either immediately or at a future date. Investment options for variable annuities are usually a mutual fund that invests in stocks, bonds, money market instruments, or a combination of the three.

Continue reading MetLife's second-quarter earnings top the Street's expectations

MetLife's second-quarter earnings top the Street's expectations originally appeared on BloggingStocks on Fri, 31 Jul 2009 10:30:00 EST. Please see our terms for use of feeds.

The brokerage reported a Q1 loss that was wider than the year-ago number. E*Trade lost 41 cents per share versus a loss of 20 cents per share in 2008. According to this source, that was a penny worse than what Wall Street was bracing itself for.

Continue reading E*Trade loses more money -- why would I want to own this stock?

E*Trade loses more money -- why would I want to own this stock? originally appeared on BloggingStocks on Wed, 29 Apr 2009 08:00:00 EST. Please see our terms for use of feeds.

Minyanville Professor Quint Tatro dares to share the kind of keen insight and actionable information you won't find in any prospectus. For more original thought, visit www.minyanville.com.

There are a few things I am watching for today to give me better clues as to the internal character of the market.

Wal-Mart (NYSE: WMT): It's off on retail numbers after the stock broke out of a four-month consolidation pattern on good volume. If the stock catches a bid, it is an indication that institutional investors are back stalking retail plays and would be bullish for the general market.

Energy ETF (AMEX: XLE): Energy has recently broken a longer term trend going back to mid-2006. It is bouncing off recent lows on very light volume. If money continues to rotate out of this sector, finding a home in the likes of retail, housing and financials, again a bullish sign. I initiated a short position in XLE this morning.

Financial ETF (AMEX: XLF): Financials have been and will continue to be the key to the market's future. After recapturing the 50-day moving average, this ETF is being brought down by AIG (AIG) and needs to regain its footing. Some consolidation is fine, but anything back below $20 would have me heading back towards the bunker.

Homebuilders ETF (AMEX: XHB): The homebuilders continue to perk up and also remain a key to the future of the tape. They are probing green today above their 50-day moving average on decent early volume. A break here above yesterday's high going on to attack the $19.00 level is also a bullish sign.

These are things I am watching for which will give me my clues to start wading back into the market with real capital.

(Prof. Tatro has positions in WMT, XLE, XLF, XHB).

Clues can be found in WMT, ETFs originally appeared on BloggingStocks on Thu, 07 Aug 2008 15:01:00 EST. Please see our terms for use of feeds.

When it comes to the banking industry, the good news just keeps coming. The head of the FDIC says that only about 13% of the banks on its watch list of troubled institutions actually fail. Except for the banks that go out of business, how could it get any better?

"We work with the primary regulator to give them extra care and attention, to nurse them back to health or to sell them off to another institution," said FDIC Chairman Sheila Bair, according to Reuters.

The comments side-step the issue that the credit crisis is getting worse. The IMF recently said that it could not see a bottom for the housing market and that financial companies would end up with $1 trillion in write-offs before the troubles pass. Bill Gross, the head of huge bond house Pimco, has essentially said the same thing.

The comment from the FDIC chief may be accurate based on a snapshot of the market today. It fails to acknowledge that the current watch list is only the tip of the iceberg.

Douglas A. McIntyre is an editor at 247wallst.com.

Cold comfort: only 13% of banks on FDIC watch list fail originally appeared on BloggingStocks on Tue, 29 Jul 2008 08:51:00 EST. Please see our terms for use of feeds.

American Express (NYSE: AXP) saw a big sell-off in its shares during the after-hours session on Monday following the release of its second-quarter earnings numbers. The shares already closed down over 11%.

It isn't difficult to comprehend this one. According to Earnings.com, Wall Street was hoping for the credit company to make 83 cents per share. American Express only delivered 57 cents per share from continuing operations. Not only did the company disappoint the Street by a very wide margin, but it disappointed itself, since that 57 cents per share represents a 35% drop compared to the bottom-line results achieved a year ago.

Yep, the financial crisis is still with us. American Express needed to significantly add to its credit reserves. Management stated that the economy is having a negative effect on its cardmembers, and that previous guidance can no longer be relied on. Translation: don't buy this stock! At least, that's my opinion.

I simply can't see allocating investment funds to American Express at this point. If investors wanted to get some exposure to plastic, all they would need to do is consider Visa (NYSE: V) or MasterCard (NYSE: MA). Both of these businesses are based primarily on transactions, not on credit risk. Whenever a card is used, these businesses get a little cut. And that adds up, my friends. Granted, both of these companies sold off on Monday and have been weak lately, and they have litigation risk, but I'd at least look at them for the long-term. Over time they should do well.

American Express, however, is way off my list of potential investment ideas. Not even going near this one. Name a timeframe (e.g. year-to-date, one-year, five-year, etc.), and you'll find that the stock is down. The economy is going to have to turn sharply before I even remotely consider it.

Disclosure: I don't own any company mentioned; positions can change at any time.

Not a good time to buy American Express originally appeared on BloggingStocks on Tue, 22 Jul 2008 08:15:00 EST. Please see our terms for use of feeds.

• DJIA 11,381.77 (+31.51)
• S&P500 1284.89 (+4.89)
• NASDAQ 2304.97 (+11.99)
• 10YR T-Note 3.992% (+0.013%)
• 52-WEEK LOWS

Continue reading Closing Bell: Bulls drive autos, yes autos, to win the day

Closing Bell: Bulls drive autos, yes autos, to win the day originally appeared on BloggingStocks on Tue, 01 Jul 2008 16:23:00 EST. Please see our terms for use of feeds.

Bloomberg News reports a blizzard of bad news about Citigroup (NYSE: C). Its management team does not know what's going on with its Collateralized Debt Obligation (CDO) portfolio, and loan losses on the consumer side of its business are climbing fast.

I am most concerned about Citi's inability to quantify the CDO damage. According to DealBreaker, the conference call did not go well, with Citi's CFO "having to admit many times that he either wouldn't comment or didn't know the answer to detailed questions about credit market exposure. Merrill's Gary Moskowitz asked about what the original par value of the CDO portfolio. Crittenden said he didn't know. How about specifics on modeling versus market tests? Nope, just more hand-waving!"

Another analyst, Jon Fisher, who helps manage $22 billion at Minneapolis-based Fifth Third Asset Management said, "There are probably issues on their balance sheet that the management team, who's only really been running the company for about a month, doesn't even know about."

Continue reading Citigroup's bad news: Banks' worst period since Great Depression?

Citigroup's bad news: Banks' worst period since Great Depression? originally appeared on BloggingStocks on Tue, 15 Jan 2008 14:10:00 EST. Please see our terms for use of feeds.

As investors throughout the world get ready to usher in 2008, here is a stock pick that looks like it will be a big winner.

TD Ameritrade (NASDAQ: AMTD), the online broker, looks like it will be the big winner in the E*Trade (NASDAQ: ETFC) fiasco. TD Ameritrade looks to pick up a whole bunch of accounts from the shamed online broker. In addition, after some clarity is shined on just how bad E*Trade's financial situation is, I would expect TD Ameritrade to swoop in and gobble up the retail brokerage business of E*Trade. They are sure to acquire it on the cheap, which makes TD Ameritrade all the more attractive.

With a PE under 19, and the stock trading just off the 52-week high, the stock has been hanging in during a period when the rest of the financials have gotten clobbered. Look for TD Ameritrade stock to be a strong performer in '08.

Aaron Katsman is the lead Portfolio Manager and Managing Director of America Israel Investment Associates, LLC. and Senior Editor of IsraelNewsletter.com. DISCLOSURE: Writer has no position in any stock mentioned as of 12/30/07.

Hot stocks for '08: TD Ameritrade (AMTD) originally appeared on BloggingStocks on Sun, 30 Dec 2007 17:10:00 EST. Please see our terms for use of feeds.

It's no secret that financial and consumer stocks have been slammed this year. Since January, the S&P financial sector has shed 21.3% while the S&P consumer discretionary sector has lost 14.2%. That compares to a 2.2% gain in the S&P 500 index.

While it is likely far too early to call for a bottom in either group, a quick read of the technical relationship between the two sectors going back several years suggests it might nonetheless be time to bet on banks, brokers, and other financials while wagering on further weakness in the shares of companies that are most exposed to a slowdown in personal spending.

Arguably, this particular pairs-trade probably jibes with how traders are positioned and the near-term fundamental outlook. Right now, many people are afraid of what bombshell might hit the financial sector next. Yet as far as the economy goes, the majority of central bankers, analysts, and various Polyannas still seem to be expecting -- hoping -- that any slowdown we see will be mild, at worst.

In sentiment terms, at least, that suggests the former group has a decent amount of bad news priced in. In contrast, shares in the latter group could be vulnerable to downside surprises, especially given that we are now in the midst of the crucial holiday selling season.

One way to play it (depending on risk): buy the Financial Select Sector SPDR Fund (AMEX: XLF) and sell (sell-short) the Consumer Discretionary Select Sector SPDR Fund ETF (AMEX: XLY).

Michael Panzner is a 25-year veteran of the global stock, bond, and currency markets and the author of Financial Armageddon: Protecting Your Future from Four Impending Catastrophes and The New Laws of the Stock Market Jungle.

The lesser-of-two-evils pairs trade? originally appeared on BloggingStocks on Mon, 17 Dec 2007 18:15:00 EST. Please see our terms for use of feeds.