We've got a big week for earnings this week, guys. Bank of America, Citigroup, Goldman Sachs, Morgan Stanley, and Wells Fargo all report this week. In fact, we're only a couple hours away from Citigroup's release and, the way the pre-open futures are backing off, it might not look very good.
Overall, earnings are expected to be soft across the board, with the banks adjusting to the new trading rules and lower deal flow. Those banks with retail arms are leaning heavily on them to bolster the numbers and those without, well, might get hammered. Maybe FAZ is the play this week.
We're all hoping for decent earnings, because that's what pays bonus at the end of the year. And I'm not sure I've ever seen such conflicting rumors on bonus season as I have this year. Some outlets claim it's going to be another record year for bonuses, and others claim that bonuses are going to fall off a cliff due to lower earnings.
If anyone has a (legitimately) better feel for it than I do, I'm all ears. I've heard rumors that some banks are going to increase the percentage of earnings used to pay bonuses in order to keep bonuses high even with lower earnings. How shareholders tolerate that is beyond me. But that's why I don't own any bank stocks.
What's it gonna be this week?
I agree that they will be soft across the board. I use to be bullish on the big banks, but last monday I got into FAZ, and nothing but solid gold for me lately, and looking to increase those returns this week. I love banks earnings week. Jefferies Bank was a great indication of how the earnings quarter will look fora banks, and it ain't good. The only financials i like are regional players, a la US Bank, and the consumer finance companies which are always solid going into earnings:Discover Card, Visa, Mastercard, and perhaps Cap One.
Citi booked a $2.2 billion profit for the quarter. Nice.
Who says government employees are useless?
tech is dragging everything down tomorrow it seems... apple wasnt even bad....
Well my FAZ got demolished yesterday. It was a rather good day for the banks.We will see wit BAC's earnings this morning how things are shaping up with the foreclosure crisis, as ole Moynihan should give us some guidance on the current environment. Overall, it has been a great start to earnings season. I didn't see GOOG nor, AAPL having as great of earnings.
BAML reports a $7.3 billion loss....
http://www.nytimes.com/2010/10/20/business/20bank.html?src=mv
Pretty much all due to a $10 billion write-down thanks to regulation surrounding credit card fees. Otherwise, not too shabby.
^^^ Ow. Quit it.
?
Blamed it on the new credit/debit card laws...interesting
Morgan Stanley reports 67% decline in 3Q earnings:
http://online.wsj.com/article/BT-CO-20101020-710795.html
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