Ultime notizie per iShares U.S. Financial ETF (ARCA:IYF)

iShares U.S. Financial ETF

Financial Services

Real Estate

Industrials

Technology

The fund seeks to track the investment results of the Dow Jones U.S. Financial Services Index (the Underlying Index), which measures the performance of the financial services sector of the U.S. equity market. The Underlying Index is a subset of the Dow Jones U.S. Index (Parent Index) and includes components of the following subsectors in the Parent Index banks, asset managers, consumer finance, specialty finance, investments services and mortgage finance.

Berkshire Hathaway, Inc.

Jpmorgan Chase & Co.

Bank Of America Corp.

Wells Fargo & Co.

Goldman Sachs Group Inc.

S&P Global Inc

Blackrock Inc.

Progressive Corp.

Citigroup Inc.

Morgan Stanley

iShares US Financials ETF

On CNBC's &#8220;<a href="https://www.cnbc.com/video/2024/11/08/final-trades-glacier-bancorp-cme-group-the-ibit-and-the-iyf.html">Halftime Report Final Trades</a>,&#8221; Kevin Simpson of Capital Wealth Planning picked CME Group Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CME#NASDAQ">CME</a>).
On Nov. 7, CME Group extended CEO Terry Duffy&#8216;s contract through 2026. The company appointed Lynne Fitzpatrick as President and CFO, and also named Suzanne Sprague as its new COO.
On Oct. 23, CME reported quarterly earnings of $2.68 per share which beat the analyst consensus estimate of $2.65 per share. The company reported quarterly sales of $1.584 billion which beat the analyst consensus estimate of $1.579 billion.
Don't forget to check out our <a href="https://www.benzinga.com/premarket/">premarket coverage here</a>
Brian Belski of BMO Capital named Glacier Bancorp, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GBCI#NYSE">GBCI</a>), <a href="https://www.benzinga.com/quote/GBCI/earnings">a little bank in Montana.</a>
On Oct. 24, Glacier Bancorp reported quarterly earnings of 45 cents per share which beat the analyst consensus estimate of 41 cents per share. The company reported quarterly sales of $180.231 million which missed the analyst consensus estimate of $186.939 million.
Bryn Talkington of Requisite Capital Management picked iShares Bitcoin Trust (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/IBIT#NASDAQ">IBIT</a>).
Shannon Saccocia of NB Private Wealth named iShares U.S. Financials ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IYF#NYSE">IYF</a>) as her final trade.
Price Action:
<ul>
<li>Glacier Bancorp shares gained 0.8% to close at $56.44 during Friday's session.</li>
<li>iShares U.S. Financials ETF shares rose 0.8% during Friday's session.</li>
<li>iShares Bitcoin Trust gained 0.2% during Friday's session.</li>
<li>CME Group shares gained 1.6% to close at $225.66 on Friday.</li>
</ul>
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</ul>

Long Ideas

News

Markets

Media

Trading Ideas

GBCI

IBIT

iShares Dow Jones US Financial Sector Index Fund

CME Group, Glacier Bancorp And More On CNBC's 'Final Trades'

Analyst Ratings

CNBC Halftime Report Final Trades: Glacier Bancorp, CME Group, iShares Bitcoin Trust, iShares US Financials ETF

The U.S. Justice Department's Antitrust Division and the Department of Transportation announced on Thursday they have opened a broad public inquiry into the state of competition in air travel on topics including previous airline mergers, aircraft manufacturing, airline ticket sales, <a href="https://www.benzinga.com/government/24/09/40745931/delta-southwest-and-other-airlines-in-hot-waters-with-us-transportation-department-for-unfair-reward">pricing and rewards practices</a>.
The Details: The agencies <a href="https://www.justice.gov/opa/pr/justice-department-and-department-transportation-launch-broad-public-inquiry-state">have issued</a> a Request for Information (RFI) and seek the public's input on anticompetitive conduct, consolidation and issues affecting the availability and affordability of air travel options.&nbsp;
"Competition in air travel is a vehicle for better quality, better fares and better choices for Americans," said Assistant Attorney General Jonathan Kanter of the Justice Department's Antitrust Division.
"With this inquiry, we hope to learn more from the businesses and travelers at the center of this essential industry. Their feedback will ensure the Justice Department can continue to build on its historic efforts to protect competition in air travel," Kanter added.&nbsp;
Read Next: <a href="https://www.benzinga.com/news/24/10/41546663/fridays-top-5-trending-stocks-whats-the-scoop-on-tesla-sofi-joby">Friday&#8217;s Top 5 Trending Stocks: What&#8217;s The Scoop On Tesla, SoFi, Joby?</a>
The U.S. Travel Association reacted to the DOJ's public inquiry into competition in air travel, which it sees as politically motivated.&nbsp;
"Today's announcement by the Departments of Transportation and Justice that they will launch ‘broad inquiries' into airline business practices is another in a long line of disappointing political stunts," the U.S. Travel Association said <a href="https://www.ustravel.org/press/us-travel-reacts-doj-dot-inquiry-air-travel-competition">in a statement</a>.
DOJ Cracks Down: Under the Biden administration, the DOJ has cracked down on industry consolidation and mergers and successfully blocked <a href="https://www.benzinga.com/news/24/03/37455281/jetblue-spirit-airlines-shares-are-moving-monday-whats-going-on">the merger</a> of JetBlue Airways Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/JBLU#NASDAQ">JBLU</a>) and Spirit Airlines, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SAVE#NASDAQ">SAVE</a>) earlier this year.  
Spirit Airlines continues to face financial trouble and a potential bankruptcy after the deal with JetBlue fell through. Earlier this week, it was reported the<a href="https://www.benzinga.com/m-a/24/10/41496171/whats-going-on-with-spirit-airlines-stock-wednesday"> airline had resumed</a> preliminary merger discussions with Frontier Group Holdings Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ULCC#NASDAQ">ULCC</a>). The potential merger of the two airlines would likely coincide with Spirit's restructuring of its debt and other liabilities in bankruptcy and could be affected by actions resulting from the DOJ's latest inquiry. 
Last month, the DOT launched an inquiry into whether the loyalty programs of the four largest U.S. airlines have engaged in unfair, deceptive or noncompetitive practices. Transportation Secretary Pete Buttigieg sent a letter to American Airlines, Delta Air Lines, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DAL#NYSE">DAL</a>), United Airlines and Southwest Airlines Co. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/LUV#NYSE">LUV</a>) requesting records and reports related to the airlines&#8217; loyalty programs, practices and policies.
Federal agencies did allow a merger between Hawaiian Holdings, Inc. and Alaska Air Group, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ALK#NYSE">ALK</a>) <a href="https://www.benzinga.com/government/24/08/40455513/alaska-airlines-hawaiian-airlines-1-9b-merger-gets-doj-green-light-awaits-transportation-department">to be completed</a> in September. However, the DOT required the companies to agree to a set of consumer protections before giving the deal the green light. 
Why It Matters: Other companies in the airline industry may be affected by the joint inquiry announced Thursday, including planemaker Boeing Co. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BA#NYSE">BA</a>) and parts supplier Spirit Aerosystems Holdings, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPR#NYSE">SPR</a>). Investors can monitor the effects on the industry through airline-focused ETFs, including the U.S. Global Jets ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/JETS#NYSE">JETS</a>) and the iShares Trust iShares U.S. Transportation ETF (BATS:<a class="ticker" href="https://www.benzinga.com/stock/IYT#BATS">IYT</a>). 
Read Also:&nbsp;
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<li><a href="https://www.benzinga.com/news/24/10/41551820/flying-taxis-are-almost-here-joby-archer-aviation-applaud-new-faa-regulations-for-evtol-aircraft">Flying Taxis Are Almost Here: Joby, Archer Aviation Applaud New FAA Regulations For eVTOL Aircraft</a></li>
</ul>
Image: Courtesy of&nbsp;United Airlines Holdings, Inc.

Travel

Legal

Movers

General

iShares Dow Jones Transportation Average Index Fund

JBLU

JETS

SAVE

ULCC

DOJ, DOT Open Inquiry Into Airline Competition Amid Rising Concerns

CPNG

CNBC Halftime Report Final Trades: American Express, Coupang, Vertiv, iShares U.S. Financial ETF

Did one comment just send JPMorgan Chase &amp; Co. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/JPM#NYSE">JPM</a>) shares <a href="https://www.benzinga.com/markets/equities/24/09/40797360/jpmorgan-hires-new-managing-directors-for-mid-cap-investment-banking-division-report">to fall by 7.5%</a>?
It appears so. JPMorgan Chief Operating Officer Daniel Pinto tempered analyst forecasts on next year&#8217;s expenses and net interest income (NII) at an industry event Tuesday.
The current NII consensus of $89.5 billion is &#8220;not very reasonable&#8221; in the light of interest-rate forecasts, he <a href="https://www.bloomberg.com/news/articles/2024-09-10/jpmorgan-shares-slide-as-pinto-says-analysts-are-too-optimistic?srnd=homepage-americas&amp;sref=TBDibEcD">said</a> according to Bloomberg. NII &#8220;will be lower,&#8221; he added.
As a result, the stock took its biggest tumble since June 2020.
But Pinto wasn&#8217;t the only bank executive who sounded pessimistic this week.
Read Also: <a href="https://www.benzinga.com/top-stories/24/09/40691590/m-t-bank-to-outperform-peers-analyst-says-overhang-fears-could-erode-over-next-several-quarters">M&amp;T Bank To Outperform Peers, Analyst Says: &#8216;Overhang Fears Could Erode Over Next Several Quarters&#8217;</a>
Goldman Sach Group Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GS#NYSE">GS</a>) CEO David Solomon said Monday the firm&#8217;s trading revenue is on track to drop 10% in the third quarter. At last check Tuesday, the firm&#8217;s stock is down more than 4.3%.
Ally Financial Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ALLY#NYSE">ALLY</a>) is also down over 17.6% at last check. 
The firm confirmed that auto delinquencies and net charge-offs were higher than forecast, sending the stock to its biggest decline since March 2020 while taking consumer lenders Capital One Financial Corp. and Synchrony Financial down with it. 
The 24-firm KBW Bank Index fell 3.5%, even though the Federal Reserve said that it would cut higher proposed capital requirements for the biggest firms in half after industry pushback.
JPMorgan reported NII that missed analysts' estimates for the second quarter as well as higher-than-expected costs. 
Pinto also said Tuesday that expectations for 2025 costs were too balmy, and that third-quarter investment-banking fees could rise 15% while markets revenue increases just 2% to come in below analyst forecasts.
Price Action: JPMorgan fell 5.25% to $205.40 into Tuesday&#8217;s late-afternoon trading.
<ul>
<li>IShares U.S. Financial Services ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IYG#NYSE">IYG</a>) slipped 1.21%</li>
<li>Financial Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLF#NYSE">XLF</a>) fell 1.06%</li>
<li>iShares U.S. Financials ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IYF#NYSE">IYF</a>) slid 1.13%</li>
</ul>
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</ul>
Image: Shutterstock

ETFs

ALLY

iShares Trust Dow Jones US Financial Services Index Fund

JPMorgan Shares Tumble After COO Throws Cold Water On Analyst Outlook

On CNBC's &#8220;<a href="https://www.cnbc.com/video/2024/09/09/final-trades-shares-us-financials-etf-exxon-mobil-alphabet-class-a-and-palantir.html">Halftime Report Final Trades</a>,&#8221; Shannon Saccocia of NB Private Wealth named iShares U.S. Financials ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IYF#NYSE">IYF</a>) as <a href="https://www.benzinga.com/quote/IYF">her final trade.</a>
Jim Lebenthal of Cerity Partners said Exxon Mobil Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XOM#NYSE">XOM</a>) is off just 5% from the recent high level.
The oil major has reportedly withdrawn from the competition to acquire half of Galp Energia‘s (OTC:<a class="ticker" href="https://www.benzinga.com/stock/GLPEY#OTC">GLPEY</a>) stake in a significant oil discovery in Namibia.
Don't forget to check out our <a href="https://www.benzinga.com/premarket/">premarket coverage here</a>
Stephen L. Weiss of Short Hills Capital Partners said Alphabet Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOGL#NASDAQ">GOOGL</a>) (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOG#NASDAQ">GOOG</a>) is very, very cheap.
In a recent development, the UK's competition watchdog, the Competition and Markets Authority (CMA), has raised objections to the ad tech practices of Google by Alphabet Inc. The tech giant's dominance in the online display advertising market has come under scrutiny.
Joseph M. Terranova of Virtus Investment Partners said Palantir Technologies Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PLTR#NYSE">PLTR</a>) has been added to the S&amp;P 500 index.
S&amp;P Dow Jones Indices said Palantir would be added to the S&amp;P 500 Index, ahead of the start of trading on Sept. 23. Despite widespread anticipation, the S&amp;P had snubbed Palantir in its two previous quarterly rebalancing.
Price Action:
<ul>
<li>iShares U.S. Financials ETF gained 1.2% during Monday's session.</li>
<li>Exxon Mobil shares rose 2.1% to settle at $115.01 on Monday.</li>
<li>Alphabet shares fell 1.3% to close at $148.71.</li>
<li>Palantir Technologies shares jumped 14.1% to close at $34.60/</li>
</ul>
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</ul>
Image via Shutterstock

GLPEY

GOOG

GOOGL

PLTR

Alphabet, Exxon Mobil, Palantir Technologies And More On CNBC's 'Final Trades'

CNBC Halftime Report Final Trades: Exxon Mobil, Alphabet Inc. - Class A, Palantir Technologies, iShares U.S. Financial ETF

JPMorgan Chase &amp; Co. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/JPM#NYSE">JPM</a>) has provided an <a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/08/40289608/soundhound-ai-posts-q2-beat-but-analysts-focus-on-amelia-acquisition">artificial-intelligence assistant </a>to more than 60,000 employees, with plans to eventually make the technology available throughout the company.
The program, called LLM Suite, is designed to help employees with tasks such as writing emails and reports, CNBC <a href="https://www.cnbc.com/2024/08/09/jpmorgan-chase-ai-artificial-intelligence-assistant-chatgpt-openai.html">reported</a>.
The bank launched the system with ChatGPT maker OpenAI's large language model, but LLM Suite will allow employees to use other LLMs depending on use cases.
Competitor Morgan Stanley (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MS#NYSE">MS</a>) has given a pair of OpenAI-powered tools to its financial advisors, and Apple Inc. said in June that it was equipping the operating system of hundreds of millions of its consumer devices with OpenAI models.
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 The bank has introduced LLM Suite so far to its consumer division, investment bank, and asset and wealth management business to give them a hand with writing, summarizing long documents, solving problems with Excel and coming up with ideas.
JPMorgan is already using generative AI to create marketing content for social media channels, create itineraries for a travel agency it acquired in 2022 and summarize meetings for financial advisors, said Chief Data and Analytics Officer Teresa Heitsenrether, as reported by CNBC.
The firm also uses AI to determine where to put new bank branches and ATMs through satellite images, help call center personnel quickly find answers and prevent fraud in its global-payments business, she told CNBC.
The bank plans to eventually use AI to provide autonomous AI agents&nbsp;to carry out complex multistep tasks, a move that may empower some workers but displace others.
Price Action: Shares of JPMorgan were up 0.97% to $206.04 at the time of publication Friday.
<ul>
<li>iShares U.S. Financial Services ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IYG#NYSE">IYG</a>) ticked up 0.45%</li>
<li>Financial Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLF#NYSE">XLF</a>) gained 0.26%</li>
<li>iShares U.S. Financials ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IYF#NYSE">IYF</a>) rose 0.32%</li>
<li>Vanguard Financials ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VFH#NYSE">VFH</a>) went up 0.27%</li>
<li>Fidelity MSCI Financials Index ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FNCL#NYSE">FNCL</a>) was up 0.42%</li>
</ul>
Read Next:
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<li><a href="https://www.benzinga.com/top-stories/24/08/40284758/benzingas-stock-whisper-index-5-stocks-investors-secretly-monitor-but-dont-talk-about-yet" target="_blank" rel="noreferrer noopener">Benzinga&#8217;s ‘Stock Whisper&#8217; Index: 5 Stocks Investors Secretly Monitor But Don&#8217;t Talk About Yet</a></li>
</ul>
Image created using artificial intelligence via Midjourney.

Fintech news covering the emerging Financial Technology services sector

Fintech

Tech

FNCL

JPMorgan Rolls Out AI Assistant To 60,000 Employees For Enhanced Productivity

The Vanguard Financials ETF (ARCA:VFH) was launched on 01/26/2004, and is a passively managed exchange traded fund designed to offer broad exposure to the Financials - Broad segment of the equity market.
Retail and institutional investors increasingly turn to passively managed ETFs because they offer low costs, transparency, flexibility, and tax efficiency; these kind of funds are also excellent vehicles for long term investors.
Investor-friendly, sector ETFs provide many options to gain low risk and diversified exposure to a broad group of companies in particular sectors. Financials - Broad is one of the 16 broad Zacks sectors within the Zacks Industry classification. It is currently ranked 2, placing it in top 13%.
<h2>Index Details</h2>
The fund is sponsored by Vanguard. It has amassed assets over $9.39 billion, making it one of the largest ETFs attempting to match the performance of the Financials - Broad segment of the equity market. VFH seeks to match the performance of the MSCI US Investable Market Financials 25/50 Index before fees and expenses.
The MSCI US Investable Market Index/Financials 25/50 measures the investment return of stocks in the financial sector.
<h2>Costs</h2>
Since cheaper funds tend to produce better results than more expensive funds, assuming all other factors remain equal, it is important for investors to pay attention to an ETF&#39;s expense ratio.
Annual operating expenses for this ETF are 0.10%, making it one of the least expensive products in the space.
It has a 12-month trailing dividend yield of 1.89%.
<h2>Sector Exposure and Top Holdings</h2>
Even though ETFs offer diversified exposure that minimizes single stock risk, investors should also look at the actual holdings inside the fund. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation in the Financials sector--about 100% of the portfolio.
Looking at individual holdings, JPMorgan Chase &amp; Co (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/jpm#NYSE">JPM</a>) accounts for about 8.77% of total assets, followed by Berkshire Hathaway Inc and Mastercard Inc.
The top 10 holdings account for about 42.55% of total assets under management.
<h2>Performance and Risk</h2>
The ETF has gained about 9.98% and is up about 19.07% so far this year and in the past one year (as of 08/08/2024), respectively. VFH has traded between $75.97 and $107.02 during this last 52-week period.
The ETF has a beta of 1.09 and standard deviation of 19.50% for the trailing three-year period, making it a medium risk choice in the space. With about 407 holdings, it effectively diversifies company-specific risk.
<h2>Alternatives</h2>
Vanguard Financials ETF holds a Zacks ETF Rank of 1 (Strong Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. Because of this, VFH is an excellent option for investors seeking exposure to the Financials ETFs segment of the market. There are other additional ETFs in the space that investors could consider as well.
IShares U.S. Financials ETF (ARCA:IYF) tracks Dow Jones U.S. Financials Index and the Financial Select Sector SPDR ETF (ARCA:XLF) tracks Financial Select Sector Index. IShares U.S. Financials ETF has $2.94 billion in assets, Financial Select Sector SPDR ETF has $40.75 billion. IYF has an expense ratio of 0.40% and XLF charges 0.09%.
<a href="https://www.zacks.com/stock/news/2318765/should-you-invest-in-the-vanguard-financials-etf-vfh?cid=CS-BENZ-FT-sector_etf-2318765">To read this article on Zacks.com click here.</a>

Large Cap

Sector ETFs

Should You Invest in the Vanguard Financials ETF?

As the November election approaches, President Joe Biden and former President Donald Trump are offering two very <a href="https://www.benzinga.com/markets/cryptocurrency/24/06/39556388/joe-biden-to-be-replaced-in-2024-election-newsom-tops-democrat-wish-list-betting-odds-but-">different tax policies</a> for the American people when one of them steps into the Oval Office in late January 2025.
If elected, Trump would uphold his 2017 Tax Cuts and Jobs Act, which features a corporate tax rate of 21% and lower taxes for individuals that dropped the tax rate for top earners from 39.6% to 37%.
The policy, which will expire in 2025, also nearly doubled standard deductions to $14,600 for single filers to $29,200 for married filers, FOX Business <a href="https://www.foxbusiness.com/politics/trump-vs-biden-where-presidential-candidates-stand-taxes">reported</a>. 
If Biden stays in office for a second term, he said he would let Trump&#8217;s tax cuts for the wealthy expire, while holding onto reductions for those making less than $400,000. 
Also Read: <a href="http://Joe Biden's Debate Performance Triggers Democratic Panic: 'Biden Sounds Hoarse, Looks Tired And Is Babbling'">Joe Biden&#8217;s Debate Performance Triggers Democratic Panic: &#8216;Biden Sounds Hoarse, Looks Tired And Is Babbling&#8217;</a>
Biden also proposes returning the top individual income tax rate from 37% to 39.6%, implementing a 25% minimum tax rate on households worth more than $100 million and increasing the capital gains tax rate. 
His policy also includes quadrupling the corporate stock buyback tax to 4%, raising the corporate tax rate to 28% and boosting the Medicare tax paid by wealthy Americans.
During Thursday&#8217;s presidential debate, Trump heralded his tax plan as creating the greatest economy the U.S. has ever seen before the COVID-19 pandemic, while Biden criticized it as a $2 trillion tax policy that benefited the very wealthy.
&#8220;What I'm going to do is fix the tax system,&#8221; Biden said during the debate, <a href="https://www.cnn.com/2024/06/27/politics/read-biden-trump-debate-rush-transcript/index.html">according</a> to a CNN transcript.
Biden also knocked Trump&#8217;s proposed 10% tariff on all imports, saying it would cost the average American at least $2,500 a year as a result in higher prices for food and other goods.
Price Action: Stocks and exchange-traded funds in the tax-preparation and financial sectors, both of which can be sensitive to tax-policy changes, gave mixed reactions on Friday to the proposals being offered by Biden and Trump. 
H&amp;R Block Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/HRB#NYSE">HRB</a>) gained 0.67% to reach $53.89 by late-afternoon trading on Friday, while Intuit Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/INTU#NASDAQ">INTU</a>) edged up 0.90% to $567.30 and Morgan Stanley (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MS#NYSE">MS</a>) improved 0.77% to $96.51.
Shares U.S. Financials ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IYF#NYSE">IYF</a>) ticked up 0.27%, but Vanguard Consumer Staples ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VDC#NYSE">VDC</a>) fell 0.55% in the late afternoon and Utilities Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLU#NYSE">XLU</a>) dipped 1.28%.
Read Now: <a href="https://www.benzinga.com/news/24/06/39540074/joe-biden-shares-his-performance-enhancer-drink-ahead-of-2024-us-presidential-debate-i-dont-know-wha">Joe Biden Shares His Performance Enhancer Drink Ahead Of 2024 US Presidential Debate: &#8216;I Don&#8217;t Know What They&#8217;ve Got In These</a>&#8216;
Photo: Shutterstock

Government

Politics

Economics

Personal Finance

INTU

Who Wins, Who Loses? Biden and Trump's Tax Policies Are Very Different

A year after sparking speculation with its trademark application for &#8220;IndexGPT,&#8221; JPMorgan Chase &amp; Co (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/JPM#NYSE">JPM</a>) reportedly revealed the product&#8217;s details.
IndexGPT&nbsp;is a novel suite of thematic investment baskets developed using&nbsp;OpenAI&#8217;s&nbsp;GPT-4 model.&nbsp;
The tool utilizes keywords to identify companies associated with emerging&nbsp;themes,&nbsp;gleaned from news articles.
In essence, it automates the creation of thematic indexes, shifting from traditional sectors to trends like cloud computing and e-sports, tapping into Wall Street&#8217;s AI frenzy, according to a&nbsp;report from&nbsp;<a target="_blank" href="https://www.bloomberg.com/news/articles/2024-05-03/jpmorgan-unveils-indexgpt-in-next-wall-street-bid-to-tap-ai-boom?srnd=homepage-americas&amp;sref=TBDibEcD" rel="noreferrer noopener">Bloomberg</a>.
The launch echoes the growing interest in AI-driven investment strategies amid optimism for economic growth.
The report cited Rui Fernandes, JPMorgan&#8217;s head of markets trading structuring, who&nbsp;views IndexGPT as a first step in integrating AI across its index offerings.
Morgan Stanley&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MS#NYSE">MS</a>),&nbsp;Goldman Sachs&nbsp;Group Inc&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GS#NYSE">GS</a>), and&nbsp;Citigroup&nbsp;Inc&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/C#NYSE">C</a>) are among those exploring AI applications.
Also See:&nbsp;<a target="_blank" href="https://www.benzinga.com//node/38220176" rel="noreferrer noopener">Major US Banks Top Q1 Earnings Estimates As&nbsp;High Interest&nbsp;Rates Offer Tailwinds: &#8216;Indicators Continue To Be Favorable,&#8217; Jamie Dimon Says</a>
Interest in thematic funds surged but waned due to performance and rising interest rates, with thematic ETFs seeing significant outflows last year.
IndexGPT generates more keywords than prior software, enhancing thematic representation. The tool targets institutional clients for structured products but&nbsp;also&nbsp;offers&nbsp;potential&nbsp;for trend-following strategies.
JPMorgan Chase had ~$4.1 trillion in&nbsp;<a target="_blank" href="https://www.jpmorganchase.com/content/dam/jpmc/jpmorgan-chase-and-co/investor-relations/documents/quarterly-earnings/2024/1st-quarter/9387d4e9-a7dc-4613-822d-6848965485ee.pdf" rel="noreferrer noopener">assets&nbsp;</a>and ~$337 billion in stockholders&#8217; equity as of March-end.
JPMorgan stock has gained more than 40% in the last 12 months. Investors can gain exposure to the stock via&nbsp;Financial&nbsp;Select Sector SPDR Fund&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLF#NYSE">XLF</a>) and&nbsp;IShares U.S. Financials ETF&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IYF#NYSE">IYF</a>).
Price Action: JPM shares are trading lower by 0.57% at $190.57&nbsp;at the last check Friday.
Disclaimer:&nbsp;This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Read Next: <a href="https://www.benzinga.com/news/earnings/24/04/38247147/goldman-sachs-sees-resurgence-in-debt-underwriting-and-deal-activity-q1-profit-jumps-28" target="_blank" rel="noreferrer noopener">Goldman Sachs Sees Resurgence In Debt Underwriting And Deal Activity, Q1 Profit Jumps 28%</a>
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Equities

From Speculation To Revelation: JPMorgan Reportedly Unveils IndexGPT AI Tool

With <a href="https://www.benzinga.com/news/earnings/earnings-beats/24/04/38220176/major-us-banks-top-q1-earnings-estimates-as-high-interest-rates-offer-tailwinds-indi">big bank earnings now in the rearview mirror,</a> CNCB Mad Money host and stock picker Jim Cramer on Wednesday weighed in on which of them impressed him the most.
What Happened: Cramer was impressed with the earnings reports of Goldman Sachs Group, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GS#NYSE">GS</a>) and Morgan Stanley (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MS#NYSE">MS</a>). He added the name of Wells Fargo &amp; Co. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/WFC#NYSE">WFC</a>) in the same breath.
Cramer premised his picks based on the fee income these banks generated rather than on the net interest income. Fees include income generated from equity and debt underwriting, as well as advisory and asset &amp; wealth management fees. Net interest income, on the other hand, is the difference between the money the banking operation receives on the loans it extends and the money it owes to its depositors.
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<blockquote class="twitter-tweet" data-width="500" data-dnt="true">When you read through all the big bank quarters so far you like GS and MS so much because of the fees, not the net interest income. Same with Wells Fargo, which had a very good quarter. Big boost in fees
&mdash; Jim Cramer (@jimcramer) <a href="https://twitter.com/jimcramer/status/1780505158616588775?ref_src=twsrc%5Etfw">April 17, 2024</a></blockquote>
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See Also: <a href="https://www.benzinga.com/money/best-bank-stocks">Best Bank Stocks</a>
Why It&#8217;s Important: The Fed funds rate, which is used as a benchmark to fix various interest rates, is now at a 22-year high of 5.25%-5.50%. This is positive for the net interest income of banks.
The net interest income&#8217;s health also hinges on the provisioning a company sets aside for credit losses. 
For Goldman, which reported a stellar quarter, non-interest revenue rose 21% year-over-year and 26% quarter-over-quarter. Net interest income, meanwhile, was down 10% year-over-year and up 20% sequentially.
JPMorgan Chase &amp; Co., Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/JPM#NYSE">JPM</a>), <a href="https://www.benzinga.com/news/earnings/24/04/38219142/whats-going-on-with-jpmorgan-shares-today">which did not appease the Street with its earnings,</a> did report a double beat. Much of the upside was from higher interest income, facilitated by higher rates and larger loan balances stemming from its First Republic Bank takeover.
After taking a dovish stance immediately after the March Federal Open Market Committee meeting, Jerome Powell has reverted to his hawkish stance. In a speech on Tuesday, he said the restrictive rates should persist as long as the inflation remained above the 2% upper ceiling set by the central bank.
The futures market, however, is pricing in a 67.3% possibility of a rate cut in the September meeting.
The iShares U.S. Financials ETF&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IYF#NYSE">IYF</a>) ended Tuesday&#8217;s session down 0.68% at $88.39, according to <a href="https://benzinga.grsm.io/lxquj26b2sag">Benzinga Pro data. </a>
Read Next: <a href="https://www.benzinga.com/news/earnings/24/04/38280369/financial-stocks-fall-after-earnings-major-banks-notch-4-day-losing-streak-regional-banks-hit-lowes">Financial Stocks Fall After Earnings, Major Banks Notch 4-Day Losing Streak: Regional Banks Hit Lowest Level Since Late 2023</a>
Image Via Shutterstock

Jim Cramer Says He Likes Earnings From These Big Banks 'So Much' — Here's Why

JPMorgan Chase &amp; Co.&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/JPM#NYSE">JPM</a>) shares are trading lower after it reported&nbsp;<a target="_blank" href="https://www.benzinga.com//node/38217534" rel="noreferrer noopener">first-quarter FY24 results.</a>
Net revenue (managed) of $42.5 billion (+8% Y/Y), beating the consensus of $41.8 billion.
Reported revenue was $41.9 billion in the quarter, up 9% Y/Y. Consumer &amp; Community Banking (CCB) revenue increased 7% Y/Y to $17.7 billion, Corporate &amp; Investment Banking was $13.6 billion (flat Y/Y), and Commercial Banking was $4.0 billion (+13% Y/Y).&nbsp;
Investment Banking fees were up 21% Y/Y, led by higher debt and equity underwriting fees. Asset and Wealth Management revenue was $5.1 billion (+7% Y/Y), and Corporate revenue stood at $2.2 billion in the quarter.
Net interest income increased by 11% Y/Y to $23.2 billion and +5% Y/Y, excluding First Republic.&nbsp;
Noninterest revenue was $19.3 billion, up 5% Y/Y, or up 3% Y/Y excluding First Republic, driven by higher asset management and Investment Banking fees.
Noninterest expense was $22.8 billion, up 13% Y/Y, or +9% Y/Y, excluding First Republic.
Excluding an item resulted in an increase of $550 million (after tax) to reported net income from $13.4 billion to $14.0 billion and an increase of $0.19 per share to reported EPS from $4.44 to $4.63. EPS was $4.44,&nbsp;<a target="_blank" href="https://www.benzinga.com/calendars/earnings" rel="noreferrer noopener">beating the consensus of $4.15.&nbsp;</a>
Average loans were up 16%, or up 3%, excluding First Republic; average deposits were up 2%, or flat excluding First Republic.
In CCB, Debit and credit card sales volume increased by 9% Y/Y, and Active mobile customers were up 7% Y/Y.&nbsp;
Also Read:&nbsp;<a target="_blank" href="https://www.benzinga.com/news/earnings/24/04/38187129/jpmorgan-earnings-are-imminent-these-most-accurate-analysts-revise-forecasts-ahead-of-earnings-call" rel="noreferrer noopener">JPMorgan Earnings Are Imminent; These Most Accurate Analysts Revise Forecasts Ahead Of Earnings Call</a>
JPM&#8217;s provision for credit losses was $1.9 billion (-17% Y/Y), including net charge-offs of $2.0 billion and a net reserve release of $72 million.&nbsp;
In AWM,&nbsp;Assets under management (AUM) stood at $3.6 trillion (+19% Y/Y), and client assets stood at $5.2 trillion (+20% Y/Y), driven by higher market levels and continued net inflows.
CET1 capital ratio stood at 15.0%, and the advanced CET1 capital ratio was 15.3%, with a total loss-absorbing capacity of $520 billion.
<a target="_blank" href="https://www.jpmorganchase.com/content/dam/jpmc/jpmorgan-chase-and-co/investor-relations/documents/quarterly-earnings/2024/1st-quarter/fa4917a5-ae5c-4b97-a30d-f07e726e1021.pdf" rel="noreferrer noopener">Outlook</a>&nbsp;FY24:&nbsp;JPMorgan now expects net interest income, excluding Markets, of ~$89 billion (vs.&nbsp;<a target="_blank" href="https://www.benzinga.com//node/36610393" rel="noreferrer noopener">$88 billion earlier</a>).
The bank anticipates card&nbsp;<a target="_blank" href="https://www.benzinga.com/calendars/guidance" rel="noreferrer noopener">services NCO rate of &lt;3.50%.</a>
Jamie Dimon, Chairman and CEO, said, &#8220;Many economic indicators continue to be favorable.&nbsp;However, looking ahead, we remain alert to a number of significant uncertain forces. First, the global landscape is unsettling – terrible wars and violence continue to cause suffering, and geopolitical tensions are growing. Second, there seems to be a large number of persistent inflationary pressures, which may likely continue.&#8221;&nbsp;
&#8220;And finally, we have never truly experienced the full effect of quantitative tightening on this scale. We do not know how these factors will play out, but we must prepare the Firm for a wide range of potential environments to ensure that we can consistently be there for clients.&#8221;
Also Read:&nbsp;<a target="_blank" href="https://www.benzinga.com/news/24/04/38149277/jamie-dimon-equates-ai-to-printing-press-steam-engine-consequences-will-be-extraordinary" rel="noreferrer noopener">Jamie Dimon Equates AI To Printing Press, Steam Engine: &#8216;Consequences Will Be Extraordinary&#8217;</a>
Investors can gain exposure to the stock via&nbsp;IShares U.S. Financial Services ETF&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IYG#NYSE">IYG</a>) and&nbsp;IShares U.S. Financial ETF&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IYF#NYSE">IYF</a>).
Price Action: JPM shares are down 2.83% at $189.89 premarket on the last check Friday.
Photo by Katherine Welles on Shutterstock

Earnings

Guidance

What's Going On With JPMorgan Shares Today?

JPMorgan Chase &amp; Co.&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/JPM#NYSE">JPM</a>) reportedly reorganized the leadership in its global banking division, seating new leaders in capital markets and investment banking.
The new structure merges the commercial, corporate and investment banking groups under executives Filippo Gori and Doug Petno, who were chosen to lead the broader unit in February this year, reported Reuters.
Related:<a target="_blank" href="https://www.benzinga.com/markets/equities/24/01/36800536/jpmorgan-ceo-shuffles-top-managers-details" rel="noreferrer noopener">&nbsp;JPMorgan CEO Shuffles Top Managers: Details</a>
As per the memo seen by Reuters, the bank appointed Kevin Foley as the global head of capital markets, and Achintya Mangla, previously Global head of ECM, will leave the bank to pursue other opportunities.
Moreover, as per the report, Dorothee Blessing and Jay Horine will become global co-heads of investment banking coverage, and Anu Aiyengar will get extra responsibilities as head of advisory.
Also, JP Morgan said that John Simmons will lead commercial banking, while Bregje de Best and James Roddy will jointly lead global corporate banking.
Also Read:&nbsp;<a target="_blank" href="https://www.benzinga.com/markets/equities/24/04/38073515/chase-launches-new-media-platform-for-direct-consumer-connection-details" rel="noreferrer noopener">Chase Launches New Media Platform For Direct Consumer Connection: Details</a>
Investors can gain exposure to the stock via&nbsp;&nbsp;IShares U.S. Financial Services ETF&nbsp;(ARCA:&nbsp;IYG)&nbsp;and&nbsp;IShares U.S. Financial ETF&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IYF#NYSE">IYF</a>).
Price Action: JPM shares are up 0.19% at $196.02 premarket on the last check Friday.
Photo via Shutterstock

Management

JPMorgan Appoints New Leaders To Steer Global Banking Unit: Report

JPMorgan Chase &amp; Co. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/JPM#NYSE">JPM</a>) Chase launched a new digital media business, Chase Media Solution, which will aid the brands in connecting directly with the financial institution&#8217;s <a href="https://www.benzinga.com/pressreleases/24/04/b38064346/chase-launches-chase-media-solutions-a-new-digital-media-business-connecting-80-million-u-s-consum" target="_blank" rel="noreferrer noopener">80 million customers</a>.
Chase Media Solutions serves as a key conduit for brands, connecting them with consumers&#8217; personal passions and interests.&nbsp;
The new platform will combine the scale of a retail media network with Chase-owned transaction data to help brands target customers precisely.
Chase Media Solutions follows the integration of Figg, which was acquired in 2022.
Rich Muhlstock, President of Chase Media Solutions, said, &#8220;Like retailers, we have first-party data and a dedicated audience. But what sets us apart is the unrivaled scale and insights from our customers – having long-served as a trusted guide for their financial decisions.&#8221;
&#8220;Chase reaches across brands, merchants and shopping verticals, providing a comprehensive view of purchase behavior; this strengthens the degree of personalization, helping brands deliver offers that stoke consumer interests.&#8221;
Also Read:&nbsp;<a target="_blank" href="https://www.benzinga.com/news/24/03/37464248/jpmorgan-aims-for-1-5b-in-ai-value-by-2023-boosting-efficiency-in-corporate-finance" rel="noreferrer noopener">JPMorgan Uses AI To Cut Down On Manual Labor: How Dimon&#8217;s Bank Leverages Tech</a>
Investors can gain exposure to the stock via&nbsp;IShares U.S. Financial Services ETF&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IYG#NYSE">IYG</a>) and&nbsp;IShares U.S. Financial ETF&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IYF#NYSE">IYF</a>).
Price Action: JPM shares are down 0.12% at $198.62 on the last check Wednesday.
Photo via Shutterstock

Chase Launches New Media Platform For Direct Consumer Connection: Details

The big three fund managers that jointly manage more than $23 trillion in assets are coming under the scrutiny of federal regulators over their large holdings in many <a href="https://www.benzinga.com/topic/banks">U.S. banks</a>.
BlackRock Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BLK#NYSE">BLK</a>), State Street Corp (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/STT#NYSE">STT</a>) and Vanguard run funds that passively track the performances of equity indexes such as the S&amp;P 500. To achieve this, they attempt to match the weightings of stocks held in these funds, to the index weightings.
But in doing so, BlackRock and Vanguard have each built holdings of more than 10% of the shares at several banks, and this is worrying the Federal Deposit Insurance Corp (FDIC), one of the government institutions responsible for banking supervision.
<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="750" height="650" src="https://editorial-assets.benzinga.com/wp-content/uploads/2024/04/02103557/newplot-2024-04-02T153538.964.png" alt="" class="wp-image-274036" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2024/04/02103557/newplot-2024-04-02T153538.964.png 750w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/04/02103557/newplot-2024-04-02T153538.964-300x260.png 300w" sizes="(max-width: 750px) 100vw, 750px" /></figure>
Also Read: <a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/04/38047230/historic-s-p-500-rally-in-q1-flashes-bullish-signals-for-2024-only-the-ninth-time-s">Historic S&amp;P 500 Rally In Q1 Flashes Bullish Signals For 2024: &#8216;Only The Ninth Time Since 1940&#8217;</a>
<h2 class="wp-block-heading">Ten Percent Rule</h2>
At present, 10% ownership of shares is considered a threshold at which point an investor is considered to have a controlling interest in a bank. Investors must then seek regulatory permission to acquire shares beyond this threshold.
But fund managers are largely exempt from this requirement given their passive investment roles, although they can still use their share ownership to vote in shareholder meetings.
Some board members of the FDIC, are becoming concerned that the big fund managers could overlook their commitment to passive investment and exert greater influence over banks, given the size of their stakes.
Board member Jonathan McKernan <a href="https://www.wsj.com/finance/regulation/regulator-probes-blackrock-and-vanguard-over-huge-stakes-in-u-s-banks-b9f58619?mod=latest_headlines">told</a> the Wall Street Journal of his concerns and is seeking a curb on BlackRock and Vanguard from acquiring further shares above the 10% threshold while the FDIC investigates.
&#8220;We need to be doing more to actually confirm that the Big Three are not leveraging their large stakes to exert influence over FDIC-regulated banks,&#8221; he told the WSJ.
BlackRock owns the iShares series of exchange-traded funds. Its flagship ETF that follows the S&amp;P 500 is the iShares Core S&amp;P 500 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IVV#NYSE">IVV</a>). Vanguard, meanwhile, manages the Vanguard S&amp;P 500 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VOO#NYSE">VOO</a>), while State Street runs the SPDR series and the SPDR S&amp;P 500 ETF Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>) is its big index tracker.
<h2 class="wp-block-heading">&#8216;Problem Of Twelve&#8217;</h2>
It&#8217;s not only regulators who have concerns over the influence of the big funds. In his 2023 book &#8220;The Problem of Twelve,&#8221; Harvard law professor John Coates asserts that roughly 12 people will have effectively seized power over the majority of U.S. public companies in the future.
He issued similar <a href="https://globalreports.columbia.edu/books/the-problem-of-twelve/">warnings</a> about &#8220;a small number of institutions [that] acquire the means to exert outsized influence over the politics and economy of a nation.&#8221;
He says in the book: &#8220;The Big Four index funds of Vanguard, State Street, Fidelity, and BlackRock control more than 20% of the votes of S&amp;P 500 companies — a concentration of power that's unprecedented in America.&#8221;
In its iShares US Financials ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IYF#NYSE">IYF</a>) BlackRock&#8217;s biggest banking holdings are in JPMorgan Chase &amp; Co (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/JPM#NYSE">JPM</a>), Bank of America Corp (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BAC#NYSE">BAC</a>) and Wells Fargo &amp; Company (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/WFC#NYSE">WFC</a>). The Vanguard Financials ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VFH#NYSE">VFH</a>) holds the same three stocks but with differing weightings.
Benzinga reached out to the FDIC for further details, but the agency said it was not commenting.
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Image by Shutterstock.

Analyst Color

Regulations

Broad U.S. Equity ETFs

Could 3 Powerful Fund Managers Take Control Of US Banks?

On CNBC&#39;s &quot;Halftime Report,&quot; the investment committee gave their final trades.
BNY Mellon Investment Management&#39;s Liz Young likes iSHARES DOW JONES US FINANCIAL (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/iyf#NYSE">IYF</a>) and notes this is the cheapest sector in the S&amp;P on a P/E basis, and said the yield curve continues to steepen, which will benefit the sector in 2021.
Virtus Investment Partners&#39; Joe Terranova likes T. Rowe Price Group, Inc. (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/trow#NASDAQ">TROW</a>).
<a href="https://www.benzinga.com/money/how-to-buy-apple-stock/">See also:&nbsp;How To Buy Apple Stock</a>
Market Rebellion Co-Founder Jon Najarian likes Dropbox, Inc. (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/dbx#NASDAQ">DBX</a>) and believes the company is going to beat on their upcoming earnings. He noted he purchased call options.&nbsp;
Cerity Partners&#39; Jim Lebenthal likes Apple Inc. (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/aapl#NASDAQ">AAPL</a>).

AAPL

TROW

CNBC 'Halftime Report' Final Trades Of The Day: Apple, Dropbox, More

Exclusives

iShares Trust Dow Jones US Real Estate Fund Index

Tigress Financial's Ivan Feinseth, When Asked About Weakness In Real Estate And Financials Notes 'banks and real estate operators could potentially be hurt in an economic downturn caused by COVID-19,' Points To Cheesecake Factory Not Making Apr. Rent

<a href="https://www.benzinga.com/analyst-ratings/analyst-color/18/12/12895375/takeaways-from-mnuchins-phone-call-with-big-bank-ceos">Bank </a> earnings season is around the corner, and most banks are expected to continue their forecast-beating streak, according to Barclays.
<h3>The Analyst</h3>
Barclays analyst Jason Goldberg previewed&nbsp;<a href="https://www.benzinga.com/analyst-ratings/analyst-color/19/01/12965834/are-big-banks-a-buy-before-earnings-season">big banks</a>&#39; Q4 earnings.&nbsp;
<h3>The Thesis</h3>
Higher loan growth, higher net interest margins, the eliminations of the DIF surcharge&nbsp;and active stock buybacks are likely to more than offset weak fee income,&nbsp; market-sensitive products&nbsp;and mortgage revenue, Goldberg said in a Thursday note.
Consensus EPS estimates have come down recently, the analyst said, with most market-sensitive names such as Goldman Sachs Group Inc (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/gs#NYSE">GS</a>), State Street Corp (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/stt#NYSE">STT</a>), Morgan Stanley (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/ms#NYSE">MS</a>), Citigroup Inc (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/c#NYSE">C</a>), JPMorgan Chase &amp; Co. (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/jpm#NYSE">JPM</a>) and Northern Trust Corporation (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/ntrs#NASDAQ">NTRS</a>) seeing at least 2-percent reductions.
M&amp;T Bank Corporation (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/mtb#NYSE">MTB</a>), Comerica Incorporated (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/cma#NYSE">CMA</a>) and Wells Fargo &amp; Co (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/wfc#NYSE">WFC</a>) are the only banks to see upward adjustment in consensus estimates over the past 30 days, he said.
The increase may have been due to PaP gain, Goldberg said.&nbsp;
Barclays is 5 cents below consensus for SunTrust Banks, Inc. (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/sti#NYSE">STI</a>), PNC Financial Services Group Inc (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/pnc#NYSE">PNC</a>), Capital One Financial Corp. (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/cof#NYSE">COF</a>) and Ally Financial Inc (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/ally#NYSE">ALLY</a>).
The analyst&#39;s estimates are the furthest below consensus for Goldman and Wells Fargo.
Relative to Q3,&nbsp;Barclays expects an increase in net interest income that&#39;s reflective of&nbsp;improved loan growth, wider net interest margins, varied fee income trends, controlled expenses, and higher loan loss provisions, with benign, asset-quality metrics&nbsp;and active share repurchases.
The reduction in the&nbsp;<a href=" https://www.americanbanker.com/list/cheat-sheet-fdic-pitches-brokered-deposit-update-other-reg-reforms"> DIF surcharge</a>&nbsp;will bring down expenses for banks in Barclays&#39; coverage universe by 1.2 percent in Q4, Goldberg said.&nbsp;
On the flipside, the analyst said he expects increased marketing spending, technology investments, charges related to bank closures and losses from securities portfolio repositioning as factors impacting performance in the near-term.
This should help operating leverage in 2019, Goldberg said.&nbsp;
Despite an anticipated slowdown in GDP, Barclays expects U.S. large-cap bank stocks to rise and outperform the S&amp;P 500 Index, especially after the steep sell-off into the end of 2018.
&quot; ... We expect our coverage to benefit from continued earnings/book value growth, active capital management, &lsquo;regulatory finalization&#39;&nbsp;and an increasing benefit from leveraging technology/economies of scale,&quot; the analyst said.&nbsp;
<h3>The Price Action</h3>
The&nbsp;Financial Select Sector SPDR Fund (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/xlf#NYSE">XLF</a>) was rising 0.14 percent at $24.48 at the time of publication Friday, while the iShares Dow Jones US Financial (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/iyf#NYSE">IYF</a>) was near-flat at $109.90.&nbsp;
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Barclays Constructive On US Large-Cap Bank Stocks Ahead Of Earnings Reports

The iShares MSCI Europe Financials ETF (NASDAQ: <a class="ticker" href="/stock/eufn#NASDAQ">EUFN</a>) is down just over 1 percent year-to-date. While it&#39;s not alarming decline by any mean, it&#39;s a broad view: a more focused look at EUFN reveals the exchange traded fund resides about 11 percent below the 52-week high it set in February.
EUNF is more than 11 percent below its 200-day moving average. Several other factors point to more potential downside for EUFN, which tracks the MSCI Europe Financials Index.
<h3>
	What Happened</h3>
The $2.13-billion EUFN holds 83 stocks, with HSBC Holdings Plc (NYSE: <a class="ticker" href="/stock/hbc#NYSE">HBC</a>) accounting for more than 10 percent of the fund&#39;s weight. None of EUFN&#39;s other holdings command weights of more than 5.18 percent.
At the geographic level, EUFN is top-heavy, with the U.K. representing over 30 percent of the fund&#39;s roster. Switzerland, France and Germany combine for almost 34 percent of EUFN&#39;s geographic exposure.
<h3>
	Why It&#39;s Important</h3>
&ldquo;A key question is: why are European banks weakening, given the weakness in the euro exchange rate is a tailwind for broad European equities [and] Europe is an export region?&rdquo;&nbsp;Rareview Macro founder Neil Azous said in a Monday note.&nbsp;
Some marquee economic data points could test EUFN in the near-term, which is a point to ponder for investors, as some recent data releases out of the Eurozone have been disappointing.
&ldquo;Secondly, the Eurozone economic data surprise index closed last Friday at negative&nbsp;91.7,&rdquo; said Azous. &ldquo;The 50-day moving average, effectively duration weighting the data, is negative 73.21, also the lowest since 2011 when it bottomed at negative 80.71.&rdquo;
<h3>
	What&#39;s Next</h3>
The challenges facing EUFN may indicate the ETF will be challenged to deliver compelling risk-reward for investors. EUFN&#39;s <a href="https://www.ishares.com/us/products/239645/?referrer=tickerSearch">three-year standard deviation</a> is 18.23 percent, or more than 500 basis points above the same metric on the iShares U.S. Financials ETF (NYSE: <a class="ticker" href="/stock/iyf#NYSE">IYF</a>).
The key point here is that further weakness in the financial sector could lead to broader European equity weakness,&rdquo; said Azous. &ldquo;A second question is if the financial sector leads broader European equities lower, would other markets follow, including the U.S.?&rdquo;
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