Stocks rose this week as the market shrugged off concerns that a Federal Reserve rare hike would cause stocks to fall.
The S&P 500 gained 2.3% to2,099.06 this week after rising 0.4% today, while the Dow Jones Industrial Average advanced 2.1% to 17,873.22 this week after gaining 0.3%, 0r 44.93 points, today. The Nasdaq Composite climbed 3.4% to 4,933.50 this week after gaining 0.6% today.
Wellington Shields’ Frank Gretz compares Fed watching to a “spectator sport”:
The Fed and rates a spectator sport. In the immortal last words of Gary Gilmore when facing the firing squad, Lets do it. You probably thought that was Nike (NKE). Meanwhile, you would think the market had come to embrace higher rates. Ever in need of an explanation, the media suggests the market suddenly feels the economy is strong enough to live with higher rates. Have they looked at those Retailers? Could it simply be that the market has a good memory when the Fed hiked in December, rates went down, not up. Or it could be that the market doesnt discount the same news over and over. Brexit seems a bigger concern. Its not discounted because no one believes it. What the rally comes down to is what we like to call the failure to fail. Release of the Fed Minutes last week had the market take a hard look at the downside. On Friday, however, it decided to pass. It was set up to go down, but failed to do so.
5 Best Mid Cap Stocks To Own Right Now: SunTrust Banks, Inc.(STI)
SunTrust Banks, Inc., incorporated on July 24, 1984, is a bank holding company and a financial holding company. Through its principal subsidiary, SunTrust Bank, the Company offers a line of financial services for consumers and businesses, including deposit, credit, mortgage banking, and trust and investment services. The Company’s other subsidiaries provide asset and wealth management, securities brokerage and capital market services. The Company operates through three segments: Consumer Banking and Private Wealth Management, Wholesale Banking and Mortgage Banking. It also operates a Corporate Other segment, which includes the management of the Company’s investment securities portfolio, long-term debt, end-user derivative instruments, short-term liquidity and funding activities, balance sheet risk management, and real estate assets. The Company operates primarily within Florida, Georgia, Maryland, North Carolina, South Carolina, Tennessee, Virginia and the District of Colu mbia.
The Company offers commercial, residential and consumer loans. The commercial and industrial (C&I) loans include loans to fund business operations or activities, loans secured by owner-occupied properties, corporate credit cards, and other wholesale lending activities. The Residential mortgages, both government-guaranteed and non-guaranteed, consist of loans secured by one- to four-family homes, primarily prime, first-lien loans. Residential home equity products consist of equity lines of credit and closed-end equity loans. Consumer loans include government-guaranteed student loans, other direct loans consisting primarily of direct auto loans, loans secured by negotiable collateral, unsecured loans, and private student loans; indirect loans consisting of loans secured by automobiles, boats and recreational vehicles, and consumer credit cards. The Company’s commercial loans amount to approximately $75.252 million. The Company’s residential loans amount to a pproximately $38.928 million. The consumer loans amount to a! pproximately $22.262 million.
The Company’s agency securities consist of debt obligations issued by the United States Department of Housing and Urban Development (HUD), Federal Home Loan Bank (FHLB), and other agencies or collateralized by loans that are guaranteed by the small business administration (SBA). The Company’s investments in the states and political subdivisions of the United States include obligations of county and municipal authorities and agency bonds, which are general obligations of the municipality or are supported by a specified revenue source. Agency mortgage-backed securities (MBS) include pass-through securities and collateralized mortgage obligations issued by Government-sponsored enterprise (GSEs) and the United States government agencies, such as Federal National Mortgage Association (Fannie Mae), Federal Home Loan Mortgage Corporation (Freddie Mac), and Government National Mortgage Association (Ginnie Mae). Private MBS includes purchase d interests in third party securitizations, as well as retained interests in Company-sponsored securitizations. The total securities, available for sale at fair value amount to approximately $27.568 million.
The deposits are the Company’s primary source of funds. The Company’s deposits amount to approximately $148.9 billion. Its non-interest-bearing deposits amount to approximately $42.102 million. Its consumer and commercial deposits amount to approximately $144.202 million. The Company’s borrowings amount to approximately $4.627 million.
Consumer Banking and Private Wealth Management
The Company’s Consumer Banking and Private Wealth Management segment is made up of approximately two primary businesses: Consumer Banking and Private Wealth Management (PWM). Consumer Banking provides services to consumers and branch-managed small business clients, through a network of traditional and in-store branches, automated teller machines (ATMs), t he Internet (www.suntrust.com), mobile banking and telephone! (1-800-S! UNTRUST).. Financial products and services offered to consumers and small business clients include deposits, home equity lines and loans, credit lines, indirect auto, student lending, bank card, other lending products, and various fee-based services. Consumer Banking also serves as an entry point for clients and provides services for other lines of business.
The PWM business provides a range of wealth management products and professional services to both individual and institutional clients, including loans, deposits, brokerage, professional investment management and trust services to clients seeking management of their financial resources. Institutional clients are served by the Institutional Investment Solutions business. Discount/online and full-service brokerage products are offered to individual clients through SunTrust Investment Services, Inc. (STIS). PWM also includes the operations of GenSpring Family Offices, LLC. (GenSpring), which provides family off ice solutions to ultra-high net worth individuals and their families.
The Company’s Wholesale Banking segment includes approximately four businesses: corporate and investment banking (CIB), commercial and business banking, commercial real estate and treasury and payment solutions. CIB delivers capital markets solutions, including advisory, capital raising and financial risk management. Investment Banking and Corporate Banking teams within CIB serve clients, offering a suite of traditional banking and investment banking products and services to companies. Investment Banking serves industry segments, including consumer and retail, energy, financial services, healthcare, industrials, and technology, media and communications. Corporate Banking serves clients across diversified industry sectors based on size, complexity and frequency of capital markets issuance. CIB also manages the Equipment Finance Group, which provides lease-financin g solutions (through SunTrust Equipment Finance & Leasing). ! The commer! cial and business banking business offers a range of traditional banking products, including lending, cash management services and investment banking solutions to commercial clients, not-for-profit organizations and government entities, as well as auto dealer financing (floor plan inventory financing). Also managed within the commercial and business banking business is the Premium Assignment Corporation, which provides corporate insurance premium financing solutions.
The commercial real estate business provides a range of financial solutions for commercial real estate developers, owners, and investors, including construction, mini-perm, and permanent real estate financing, as well as tailored financing and equity investment solutions. Commercial Real Estate also offers financing and equity investment solutions for community development and affordable housing projects through SunTrust Community Capital. The treasury and payment solutions business provides the Com pany’s business clients with services required to manage their payments and receipts. The treasury and payment solutions business operates electronic and paper payment types, including card, wire transfer, automated clearing house (ACH), check, and cash. It also provides clients the means to manage their accounts electronically online, both domestically and internationally.
The Company’s Mortgage Banking segment offers residential mortgage products through its retail and correspondent channels, as well as through the Internet (www.suntrust.com) and by telephone (1-800-SUNTRUST). These products are either sold in the secondary market, primarily with servicing rights retained, or held in the Company’s loan portfolio. Mortgage Banking services loans for itself and for other investors.
- [By Ben Levisohn]
Bank of America (BAC) is our top bank idea – expectations are lower with shares at ~0.9x TBV, its balance sheet is highly asset sensitive (~100 bps parallel increase in rates adds ~$6B to NII or ~$0.35 to EPS), and Bank of America should be a relative winner in CCAR (total payout ratio should rise closer to ~60% vs. ~40% in 2015 planning period). We continue to like Comerica (CMA) given its M&A optionality over the intermediate term (takeout price likely closer to ~$60) but would use market volatility to add on weakness. It is harder to find value in the regional banks (examples: Citizens Financial Group (CFG), Regions Financial (RF), SunTrust Banks (STI), Zions Bancorp (ZION)), and the asset-sensitive regionals look more vulnerable if sentiment weakens. We remain comfortable with the Underperform on M&T Bank (MTB) which trades at ~13.5x 2017E EPS vs. the ~11x peer median.
- [By Jose Pagliery]
This issue was brought up in court papers filed in January by headphone maker Sleek Audio, SunTrust Bank (STI) and 50 Cent’s ex-girlfriend Lastonia Leviston, three claimants in the bankruptcy case who say they’re owed a combined $29 million.
5 Best Mid Cap Stocks To Own Right Now: Twitter, Inc.(TWTR)
Twitter, Inc. operates as a global platform for public self-expression and conversation in real time. The company offers various products and services, including Twitter that allows users to create, distribute, and discover content; and Periscope and Vine, a mobile application that enables user to broadcast and watch video live. It also provides promoted products and services, such as promoted tweets, promoted accounts, and promoted trends that enable its advertisers to promote their brands, products, and services; and subscription access to its data feed for data partners. In addition, the company offers a set of tools, public APIs, and embeddable widgets for developers to contribute their content to its platform; syndicate and distribute Twitter content across their properties; and enhance their Websites and applications with Twitter content. Twitter, Inc. was founded in 2006 and is headquartered in San Francisco, California .
- [By Manikandan Raman]
For some investors, investing in social media can be confusing, particularly when opting between giants such as Facebook Inc (NASDAQ: FB) and Twitter Inc (NYSE: TWTR).
Best Gold Stocks To Invest In Right Now: Suncor Energy Inc.(SU)
Suncor Energy Inc. operates as an integrated energy company. The company primarily focuses on developing petroleum resource basins in Canada’s Athabasca oil sands; explores, acquires, develops, produces, and markets crude oil and natural gas in Canada and internationally; transports and refines crude oil; markets petroleum and petrochemical products primarily in Canada; and markets third party petroleum products. It operates in Oil Sands; Exploration and Production; Refining and Marketing; and Corporate, Energy Trading, and Eliminations segments. The Oil Sands segment recovers bitumen from mining and in situ development in northern Alberta, and upgrades it into refinery feedstock and diesel fuel or blends the bitumen with diluent for direct sale to market. The Exploration and Production segment is involved in offshore operations off the east coast of Canada and in the North Sea; and operating onshore assets in North America, L ibya, and Syria. The Refining and Marketing segment refines crude oil and intermediate feedstock into petroleum and petrochemical products; manufactures blends; and markets refined petroleum products to retail, commercial, and industrial customers through its dealers and other retail stations. The Corporate, Energy Trading, and Eliminations segment owns interest in six wind power projects with generating capacity of 287 megawatts in Canada; and ethanol plant in Ontario, as well as engages in marketing, supply, and trading crude oil, natural gas, power, and byproducts. The company was formerly known as Suncor Inc. and changed its name to Suncor Energy Inc. in April 1997. Suncor Energy Inc. was founded in 1953 and is headquartered in Calgary, Canada.
- [By Ben Levisohn]
Barclays released its first-quarter earnings preview for oil majors like Chevron (CVX), ExxonMobil (XOM), Suncor Energy (SU) andConocoPhillips (COP), and the surprise is that they see when they list the “Biggest Potential 1Q16 Upside Surprise” they follow it with a single word: “None.” Barclays analyst Paul Cheng and team explain why:
5 Best Mid Cap Stocks To Own Right Now: Grupo Aeroportuario del Centro Norte S.A.B. de C.V.(OMAB)
Grupo Aeroportuario del Centro Norte, S.A.B. de C.V. is a holding company. The Company, through its subsidiaries, holds concessions to operate, maintain and develop over 10 airports in Mexico. The Company’s segments include Metropolitan, Tourist, Regional, Border, Hotel and Other. The Company also engages in various commercial and diversification activities conducted at its airports, such as the leasing of space to restaurants and retailers, the operation of parking facilities, and the operation of the NH Terminal 2 Hotel and the Hilton Garden Inn Hotel at the Monterrey airport. The Company’s airports serve the Monterrey metropolitan area; approximately three tourist destinations, such as Acapulco, Mazatlan and Zihuatanejo; over seven regional centers, such as Chihuahua, Culiacan, Durango, San Luis Potosi, Tampico, Torreon and Zacatecas, and approximately two border cities, such as Ciudad Juarez and Reynosa.
The Company’s airports serve various international r outes, such as Monterrey-Houston, Monterrey-Dallas, Monterrey-Atlanta, Monterrey-Las Vegas, Mazatlan-Los Angeles, Mazatlan-Phoenix and Zihuatanejo-Los Angeles. The Company’s airports also serve other international destinations, including Dallas, Chicago, San Antonio, Los Angeles, Miami, Detroit and New York in the United States and Panama City. The Company’s airports serve various domestic routes, such as Monterrey-Mexico City, Cancun-Monterrey, Mexico City-Chihuahua and Guadalajara-Monterrey. The Company’s revenues from aeronautical services are derived from passenger charges, landing charges, aircraft parking charges, charges for the use of passenger walkways and charges for the provision of airport security services. It collects a passenger charge for each departing passenger on an aircraft (other than diplomats, infants, and transfer and transit passengers) called the Tarifa de Uso de Aeropuerto. It collects landing charges from all carriers, including cargo carriers for their use of its runways and taxiways, illumination systems! on the runways and taxiways, and other visual landing assistance services. The Company collects various charges from all carriers, including cargo carriers for the use of its facilities by their aircraft and passengers after landing.
The Company’s revenues from non-aeronautical services are principally derived from commercial activities, such as the leasing of space in its airports to retailers, restaurants and other commercial tenants, maintaining parking facilities and advertising; diversification activities, such as hotel services, air cargo logistics services, operation and lease of the industrial park and real estate services, and complementary activities, which principally include the leasing of space to airlines and the baggage-screening system. The Company leases space to financial services providers, such as currency exchange bureaus, banks and automated teller machines (ATMs), at its airports. It leases space for the OMA Premium Lounge and American Ex press-Centurion VIP Lounge, which provide their frequent flyers a luxury waiting lounge with seating, Internet service, television and free newspapers, among other amenities. The Company has bonded warehouses and provides cargo logistics services, which include handling, maneuvers, loading and unloading, x-ray screening of exports and temporary warehousing, which operate at the Monterrey, Ciudad Juarez and Chihuahua airports.
The Company’s shopping center and office plaza, located in the outside areas of Terminal A of the Monterrey airport, consists of two-story building with commercial space on the lower level and office space for rent on the upper level. The Monterrey airport is located approximately 20 kilometers from the city of Monterrey. The Monterrey airport has approximately two operating runways. The Monterrey airport occupies a total area of approximately 820.1 hectares, and has approximately three commercial passenger terminal buildings (Terminal A, B and C for domestic and international flights) with a total ! area of a! pproximately 58,850 square meters. The Monterrey airport has approximately three platforms for commercial aviation operations, a platform for general aviation operations, a platform for air freight operations and over 10 taxiways. The Acapulco airport is located approximately 20 kilometers from the city of Acapulco in the state of Guerrero. The Acapulco airport occupies a total area of approximately 448.7 hectares with a total terminal space of over 13,530 square meters. The Acapulco airport has approximately two operating runways and over six taxiways.
The Mazatlan airport is located approximately 20 kilometers from the city of Mazatlan. The Mazatlan airport occupies approximately 460 hectares of land. The Zihuatanejo airport is located approximately 10 kilometers from the city of Zihuatanejo. The Chihuahua airport is located approximately 20 kilometers from the city of Chihuahua, the capital of the state of Chihuahua. The Chihuahua airport has approximately th ree runways. The Chihuahua airport occupies a total area of approximately 921.4 hectares. The Culiacan airport is located approximately 10 kilometers from the city of Culiacan. The Culiacan airport occupies a total area of approximately 294.3 hectares. The Durango airport is located approximately 20 kilometers from the City of Durango. The Durango airport’s total area is approximately 552.2 hectares. The San Luis Potosi airport is located approximately 20 kilometers from the city of San Luis Potosi. The San Luis Potosi airport has a total area of approximately 519.8 hectares.
The Tampico airport serves the industrial zone of Tampico, Ciudad Madero and Altamira. The Torreon airport is located in the city of Torreon, which is part of the La Laguna region. The Torreon airport has approximately two runways, and covers a total area of over 364.2 hectares. The Zacatecas airport covers a total area of approximately 220 hectares. The Ciudad Juarez International Airport is located in the city of Ciudad Juarez. The Ciudad Juarez a! irport ha! s approximately two runways, and covers a total area of over 380 hectares. The Reynosa airport is located in Reynosa, and covers a total area of approximately 420 hectares.
The Company competes with the Mexican Airport and Auxiliary Services agency.
- [By Paul R. La Monica]
It even owns shares of several airport stocks — including Mexico’s Grupo Aeroportuario del Centro Norte (OMAB) and Grupo Aeroportuario del Sureste (ASR).
5 Best Mid Cap Stocks To Own Right Now: Lions Gate Entertainment Corporation(LGF)
Lions Gate Entertainment Corp., incorporated on April 28, 1997, is engaged in motion picture production and distribution, television programming and syndication, home entertainment, international distribution and sales, branded channel platforms, interactive ventures and games and location-based entertainment. The Company operates through two segments: Motion Pictures and Television Production. The Company’s Motion Pictures segment consists of the development and production of feature films, acquisition of North American and around the world distribution rights, North American theatrical, home entertainment and television distribution of feature films produced and acquired, and around the world licensing of distribution rights to feature films produced and acquired. The Company’s Television Production segment consists of the development, production and around the world distribution of television productions, including television series, television movies, and mini-series a nd non-fiction programming.
The Company’s Motion Pictures segment is engaged in the domestic theatrical release of motion pictures licensed to theatrical exhibitors on a picture-by-picture basis (directly distributed by it in the United States and through a sub-distributor in Canada). It is engaged in the sale and rental of its film productions and acquired or licensed films and certain television programs (including theatrical and direct-to-video releases) to retail stores and through digital media platforms. The Company distributes a library of approximately 16,000 motion picture titles and television episodes and programs. It licenses its theatrical productions and acquired films to the linear pay, basic cable and free television markets. It is engaged in the licensing of productions, acquired films, catalog product and libraries of acquired titles from its international subsidiaries and distribution to international distributors, on a territory-by-territory basis. It has an interactive ve! ntures and games division and global franchise management and strategic partnerships division. It is also engaged in the sale and licensing of music from the theatrical exhibition of its films and the television broadcasts of its productions, and licensing of its films and television programs to ancillary markets.
The Company’s Television Production segment is engaged in the licensing and syndication of approximately one-hour and approximately half-hour scripted and unscripted series, television movies, mini-series and non-fiction programming. The Company is engaged in the sale or rental of television production movies or series on packaged media and through digital media platforms.
- [By Monica Gerson]
Lions Gate Entertainment Corp. (USA) (NYSE: LGF) is projected to post a quarterly loss at $0.01 per share on revenue of $740.67 million.
Eaton Vance Corp (NYSE: EV) is estimated to report its quarterly earnings at $0.48 per share on revenue of $321.42 million.
- [By Ben Levisohn]
Starz (STRZA) has jumped 14% to$32.16 after agreeing to be purchased by Lions Gate Entertainment (LGF) in a deal that values Starz at about $4.4 billion. Lions Gate has climbed 9.4% to $22.90.
- [By Monica Gerson]
Benzinga's newsdesk monitors options activity to notice unusual patterns. These large volume (and often out of the money) trades were initially published intraday in Benzinga Professional . These trades were placed during Friday's regular session.
GrubHub Inc (NYSE: GRUB) Sep16 35.0 Calls Sweep: 1054 @ ASK $1.40: 2690 traded vs 178 OI: Earnings 7/26 $30.03 Ref Macy's, Inc. (NYSE: M) Jul16 34.0 Calls Sweep: 1000 @ ASK $0.90: 13k traded vs 16k OI: Earnings 8/10 $33.14 Ref Lions Gate Entertainment Corp. (USA) (NYSE: LGF) Jul16 21.0 Calls Sweep: 714 @ ASK $1.30: 778 traded vs 53 OI: Earnings 8/4 $21.64 Ref SunPower Corporation (NASDAQ: SPWR) Sep16 19.0 Calls Sweep: 1500 @ ASK $0.66: 1967 traded vs 12k OI: Earnings 7/26 $15.05 Ref Advanced Micro Devices, Inc. (NASDAQ: AMD) Oct16 5.0 Calls Sweep: 4790 @ ASK $0.78: 9909 traded vs 4435 OI: Earnings 7/21 $5.01 Ref Symantec Corporation (NASDAQ: SYMC) Jul16 21.0 Calls Sweep: 2000 @ ASK $0.22: 5794 traded vs 1474 OI: Earnings 8/9 $19.98 Ref Mobileye NV (NYSE: MBLY) Fri 7/22 40.0 Calls (Wkly) Sweep: 2331 @ ASK $1.30: 2481 traded vs 36 OI: Earnings 8/4 $38.08 Ref
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