Monday, January 18

investment

Wells Fargo (WFC) earnings Q4 2020 beat estimates but revenue falls short

Wells Fargo (WFC) earnings Q4 2020 beat estimates but revenue falls short

investment
A man walks past a Wells Fargo Bank branch on a rainy morning in Washington.Gary Cameron | ReutersWells Fargo on Friday released mixed results for the fourth quarter, sending the bank's stock lower.Here's how the numbers compared with Wall Street expectations:Earnings: 64 cents per share vs. Refinitiv estimate of 60 cents per shareRevenue: $17.93 billion vs. $18.127 billion forecastNet interest income: $9.275 billion vs. $9.34 billion FactSet estimateShares of Wells Fargo dipped 4.7% before the opening bell.The bank's earnings include a $781 million restructuring charge, a $757 million reserve release due to the sale of its student-loan portfolio and a $321 million hit due to the "impact of customer remediation accruals.""Although our financial performance improved and we earned $3.0 bill...
Why top market analysts back stocks like Intel, BioMarin

Why top market analysts back stocks like Intel, BioMarin

investment
Intel logo exhibited during the Mobile World Congress, on February 28, 2019 in Barcelona, Spain.Joan Cros | NurPhoto | Getty ImagesEarnings season is here, and Wall Street analysts are calling for another decline amid the pandemic. However, some pros are more optimistic about the fourth quarter earnings season, with Ignacio Cantos, investment director at ATL Capital in Madrid, noting the "next catalyst will be the upcoming earnings season."Against this backdrop, Wall Street experts argue that there are exciting plays to be made. But how are investors supposed to spot the most compelling opportunities out there? By looking to the analysts that consistently get it right. TipRanks analyst forecasting service attempts to identify the Street's best-performing analysts, or the analysts with the...
A new activist takes on Exxon to reverse the oil giant’s underperformance

A new activist takes on Exxon to reverse the oil giant’s underperformance

investment
Fuel prices are displayed at an Exxon Mobil Corp. gas station in Arlington, Virginia, U.S., on Wednesday, April 29, 2020.Andrew Harrer | Bloomberg | Getty ImagesCompany: Exxon Mobil Corp. (XOM)Business: Engaged in the exploration, production, transportation and sale of crude oil and natural gas, and the manufacture, transportation and sale of petroleum products. Exxon also manufactures and markets commodity petrochemicals, including olefins, aromatics, polyethylene and polypropylene plastics, and a range of specialty products. The company's segments include upstream, downstream, chemical, and corporate and financing. The upstream segment operates to explore for and produce crude oil and natural gas. The downstream operates to manufacture and sell petroleum products. The chemical segment o
Jeff Bezos’ Blue Origin aims to fly people on New Shepard by April

Jeff Bezos’ Blue Origin aims to fly people on New Shepard by April

investment
After years in development, Jeff Bezos' private space company Blue Origin aims to carry its first passengers on a ride to the edge of space in a few months.Blue Origin on Thursday completed the fourteenth test flight of its New Shepard rocket booster and capsule. Called NS-14, the successful test flight featured the debut of a new booster and an upgraded capsule.Beyond the upgrades, CNBC has learned that NS-14 also marked one of the last remaining steps before Blue Origin flies its first crew to space.The flight was the first of two "stable configuration" test flights, people familiar with Blue Origin's plans told CNBC. Stable configuration means that the company plans to avoid making major changes between this flight and the next.Additionally, those people said that Blue Origin aims to l
JPMorgan earnings Q4 2020 beat profit and revenue estimates

JPMorgan earnings Q4 2020 beat profit and revenue estimates

investment
Jamie Dimon, CEO of JP Morgan Chase, appears on CNBC's Squawk Box at the 2020 World Economic Forum in Davos, Switzerland on Jan. 22nd, 2020.Adam Galica | CNBCJPMorgan Chase on Friday beat analysts' estimates for fourth-quarter profit on record trading results and a boost from releasing money previously set aside for loan losses.The bank posted earnings of $3.79 a share, exceeding the $2.62 per share estimate of analysts surveyed by Refinitiv. It would have beaten estimates even without the 72 cent per share boost from credit-reserve releases. The firm generated $30.16 billion in revenue, exceeding the $28.7 billion estimate.JPMorgan shares slipped 1.6% in Friday's premarket after the earnings report.JPMorgan CEO Jamie Dimon cited the two major developments that happened in late 2020 – new
Grayscale sees 900% jump in inflows as Wall Street flocks to bitcoin

Grayscale sees 900% jump in inflows as Wall Street flocks to bitcoin

investment
Mykola Tys/ | LightRocket | Getty ImagesGrayscale saw its assets under management skyrocket as Wall Street used it as a proxy to invest in bitcoin.The New York-based investment firm kicked off last year with $2 billion in assets and ended with more than $20.2 billion. That 900% increase was driven by demand from institutional investors such as hedge funds, endowments and pension funds, the company said in a quarterly report Thursday.Grayscale's Bitcoin Trust became a popular, publicly traded way for investors to get exposure to cryptocurrency without owning the coins themselves. The investment product ballooned from $1.8 billion to $17.5 billion in assets year over year."We saw a meaningful acceleration of institutional participation," Michael Sonnenshein, who recently took over as CEO of...
Aerojet Rocketdyne completes AR1 rocket engine, won’t fire until ‘late 2022’

Aerojet Rocketdyne completes AR1 rocket engine, won’t fire until ‘late 2022’

investment
The first AR1 rocket engineAerojet RocketdyneAerojet Rocketdyne finished building the first in its next-generation AR1 engine series, despite lacking both a customer and plans to test-fire it for about two years.The AR1 rocket engine is located at the company's facility at NASA's Stennis Space Center in Mississippi – and its completion comes as an additional piece that Lockheed Martin would get when its planned $4.6 billion acquisition of Aerojet Rocketdyne closes in the second half of this year.While Aerojet Rocketdyne has finished building the engine, it will be a couple of years before any possible testing begins."Aerojet Rocketdyne could be in a position to hot fire the AR1 engine in late 2022," the company said in a statement to CNBC on Tuesday.The company does not yet have a custome
How concerned investors should be about Biden’s tax proposals

How concerned investors should be about Biden’s tax proposals

investment
US President-Elect Joe Biden delivers remarks before the holiday at The Queen in Wilmington, Delaware on December 22, 2020.Alex Edelman | AFP | Getty ImagesStocks and taxes: What's going to happen? The Democrats' control of Congress is shining a new spotlight on Biden's tax proposals, particularly those that would affect stocks and bonds. While Biden has repeatedly said he would not raise taxes on Americans earning less than $400,000 a year, he has proposed:1) raising the marginal income tax rate from 37% to 39.6% for those making more than $400,000;2) raising corporate taxes from 21% to 28%, and a 15% minimum book tax;3) taxing long-term capital gains and qualified dividends at the ordinary income tax rate of 39.6 percent on income above $1 million.Biden's other proposals also have the p
Investor activism was down overall in 2020, but big companies faced scrutiny

Investor activism was down overall in 2020, but big companies faced scrutiny

investment
Daniel Loeb, chief executive officer of Third Point LLC, speaks at the Skybridge Alternatives conference in Las Vegas, May 18, 2017.David Paul Morris | Bloomberg | Getty ImagesIn light of the global pandemic, it comes as no surprise that activism in 2020 was down.There was less 13D activism, less UTT-activism and less capital invested in new campaigns. ("UTT" activism, or under-the-threshold activism, are activist campaigns by shareholders owning less than 5% of the common stock and not required to make a 13D filing.)However, it is remarkable that the average market capitalization for total activism was at its highest in the past four years at $21.04 billion (compared to $9.87 billion in 2019, $20.47 billion in 2018 and $13.05 billion in 2017).Since 2017, the number of 13D filings has dec...
Bitcoin’s price action is nearing bubble territory

Bitcoin’s price action is nearing bubble territory

investment
DoubleLine Capital CEO Jeffrey Gundlach on Monday warned that bitcoin could be getting overheated after its massive run in recent months."I don't like bitcoin here. I don't like things that are up on a stilt like that," the so-called Bond King said on CNBC's "Halftime Report." "Bitcoin, to me, is now sort of in bubble territory in terms of the way it's been acting."Gundlach's comments Monday come as the price of bitcoin was down sharply to under $33,000 per digital coin. The cryptocurrency on Friday hit a new record high of nearly $42,000 before it began to pull back. Bitcoin, however, is still up over 75% in the last month and more than 380% since April 1.The major rally in bitcoin has come against the backdrop of the coronavirus pandemic, with governments across the globe unleashing mas...