The Federal Reserve has kept its key interest rate steady this month but has acknowledged that prices of essential commodities are inching up to desired range, paving the way for gradual rate hikes in the coming months. The comeback of inflation, by the way, is very evident, with business houses paying more for labor, steel, oil and other supplies.
Fed officials also noted that economic activity continues to rise at a steady pace, while the labor market is expected to remain strong. This calls for investing in banks, insurance and brokerage houses as such institutions will see a ramp up in profits on steady interest rate hikes and stable economic conditions.
Inflation Crawls Higher
As widely expected, the Fed has kept its benchmark short-term interest rate at a range of 1.5-1.75% this month. The central bank had lifted interest rate by a quarter percentage point in March for the sixth time since late 2015.
The Fed, however, reiterated that it is committed to raising rates gradually. After all, core inflation is expected to run near the central bank's 2% benchmark over the medium term, the FOMC statement said.
After being low for quite some time, consumer prices are picking up. The Fed's preferred PCE price index rose to a 12-month rate of 2% for the first time this year. If the volatile food and energy items are excluded, annual inflation went up to 1.9%.
Top 10 Bank Stocks For 2018: Wells Fargo & Company(WFC)
- [By Garrett Baldwin]
Shares of General Electric Co. (NYSE: GE) are in focus after the company reported earnings before the bell. GE stock popped 5.6% after the firm topped earnings per share (EPS) estimates by $0.05 and backed its 2018 outlook. The firm reported EPS of $0.16 on top of $28.66 billion in revenue. GE stock had been off nearly 18% from its last earnings report on January 24 due to ongoing financial and legal problems.
Crude oil prices dipped Friday after U.S. President Donald Trump took aim at OPEC. Trump accused the cartel of keeping oil prices “artificially high” despite “record amounts of oil all over the place.” Brent crude and WTI crude oil both hit three-year highs this week after Saudi Arabia suggested that it was working to press oil prices back above $100 per barrel.
Three Stocks to Watch Today: PM, MO, WFC
Shares of Philip Morris International Inc.(NYSE: PM) fell this morning after the firm experienced its worst trading day since its spin-off from Altria Group Inc. (NYSE: MO). Shares of PM fell as much as 16% after the firm fell short of revenue expectations after the bell. MO stock fell roughly 6% on the day.
Shares of Wells Fargo & Co. (NYSE: WFC) are under pressure after The New York Times reported that the firm may be facing a $1 billion fine. The fines would cover a variety of “alleged” misdeeds that include the firm’s push on customers to purchase auto insurance they didn’t need and charging mortgage customers fees for services that they were not using. The Consumer Financial Protection Bureau and the Office of the Comptroller of the Currency will most likely announce the fine today. Money MorningCapital Wave StrategistShah Gilani weighed in on the topic this week, and he offers a scorching indictment.
Qualcomm Inc. (Nasdaq: QCOM) is on the move today after the semiconductor giant announced plans to lay off 1,500 employees. The cuts are expected to hit employees in California and cities around the globe. The cuts are part of the fi
- [By Garrett Baldwin]
The price of Bitcoin faced more pressure over the weekend. The downturn came on news that several major banks have banned the purchasing of Bitcoin with credit cards. Bank of America Corp. (NYSE: BAC), JPMorgan Chase & Co. (NYSE: JPM), and Citigroup Inc. (NYSE: C) have all banned cryptocurrency purchases since Friday. This means that the top five credit card issuers have now halted the practice. Bitcoin sat at $7,773 this morning.
Janet Yellen is officially out of the Federal Reserve and will be heading to the Brookings Institution. Today, Jerome Powell will begin his first term at the helm of the U.S. central bank. Powell takes over at an interesting time for the U.S. economy. The central bank is expected to raise interest rates three times in 2017. In addition, Powell must manage a $4.5 trillion balance sheet that the Fed built up in the wake of last decade’s financial crisis.
Gold prices saw a slight gain in pre-market hours. But those gains could surge as markets continue to face questions about inflation and a weaker U.S. dollar. Gold prices saw one of their biggest one-day declines in two months on Friday. Investors are looking at this as a solid entry point given price expectations from Money Morning Resource Specialist Peter Krauth. Peter expects that gold prices will reach $1,400 by the end of June and rise to as high as $1,500 by December.
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Crude oil prices slid in pre-market hours to a one-month low. TheWTI crude oil price todayfell 0.6%. Brent crude dropped 1.1%. Markets are growing increasingly fearful that rising U.S. production could spur an oversupply of the markets.
Four Stocks to Watch Today: WFC, AVGO, QCOM, BMY
Shares of Wells Fargo & Co. (NYSE: WFC) are off more than 8% this morning because the Fed has forced new sanctions on the bank that will limit its growth. The Fed’s consent order will see the bank change four members of its board of directors and
- [By Ben Levisohn]
Big banks like JPMorgan Chase (JPM), Wells Fargo (WFC), and Bank of America (BAC) have surged more than 20% during the past three months–causing many investors to doubt the possibility for further gains. I’m note one of them–after my disastrous financials call last year, I’m bullish on them in 2017–and neither is Morgan Stanley’s Betsy Graseck, who remains Overweight the big banks, despite their big gains. She explains why:
- [By Matthew Frankel]
Wells Fargo (NYSE:WFC) has had an eventful couple of years, and not in a good way. The bank’s public perception has been rocked by three major scandals, including the infamous fake-accounts scandal, which has not only resulted in sub-par business performance, but has resulted in a string of penalties, fines, and consumer refunds as well.
- [By ]
Here Are 3 Hot Things to Know About Stocks Right Now Futures point to the Dow and S&P 500 continuing to edge higher, while the Nasdaq is expected to fall at opening. Earnings from the U.S.’s big banks kick off Friday with Action Alerts PLUS holding JPMorgan Chase & Co. JPM, Wells Fargo & Co. (WFC) and Citigroup Inc. (C) European markets were mixed with France’s Cac 40 and Germany’s Dax up and London’s FTSE 100 on the back foot as the pound edged higher. Markets Overview
Global markets struggled to stay in positive territory on Friday, April 13, and U.S. futures were under pressure at President Donald Trump and allies weighed action in Syria.
- [By ]
San Francisco-based Wells Fargo & Co. (WFC) , struggling to recover from a series of regulatory penalties over allegedly aggressive sales practices, posted a 5.5% profit increase on a preliminary basis, noting that legal costs might have to be revised higher pending discussions with regulators over as much as $1 billion of new penalties related to auto insurance and mortgage-related violations.
Top 10 Bank Stocks For 2018: Ampco-Pittsburgh Corporation(AP)
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London (AP) — The British government said Sunday it is scrapping a promise to reconsider the ban on fox hunting, a centuries-old rural tradition contentiously outlawed more than a decade ago.
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New York (AP) — The bitter cold that followed a massive East Coast snowstorm should begin to lessen as temperatures inch up and climb past freezing next week, weather forecasters said.
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Vatican City (AP) — Pope Francis has recognized as martyrs 19 people who were slain in Algeria in the 1990s, including a bishop killed by a car bomb and beheaded monks.
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Tehran, Iran (AP) — An Iranian commercial plane crashed on Sunday in a foggy, mountainous region of southern Iran, killing all 66 people on board, state media reported.
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Anchorage, Alaska (AP) — A magnitude 8.2 earthquake off Alaska's Kodiak Island prompted a tsunami warning for a large swath of coastal Alaska and Canada's British Columbia while the remainder of the U.S. West Coast was under a watch.
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Cayce, S.C. (AP) — A crash between an Amtrak passenger train and a CSX freight train in South Carolina has left at least two people dead and more than 50 injured
Top 10 Bank Stocks For 2018: First Commonwealth Financial Corporation(FCF)
- [By SEEKINGALPHA.COM]
The last year Netflix generated positive free cash flow (FCF), was 2010, which happens to coincide with the year it began significantly increasing its content library, per Figure 2 above. Since then, Netflix has burned through cumulative $3.6 billion in cash, per Figure 3, and the cash burn is only accelerating. In 2015, NFLX’s FCF sat at -$1.6 billion, and over the last twelve months, FCF has worsened to -$1.9 billion.
Top 10 Bank Stocks For 2018: Canadian Imperial Bank of Commerce(CM)
- [By Logan Wallace]
Canadian Imperial Bank of Commerce (TSE:CM) (NYSE:CM) – Analysts at Desjardins reduced their Q2 2018 earnings per share estimates for Canadian Imperial Bank of Commerce in a research report issued to clients and investors on Wednesday, May 2nd. Desjardins analyst D. Young now forecasts that the company will post earnings of $2.85 per share for the quarter, down from their prior estimate of $2.86.