Wells Fargo

BofA Beats Despite 14% Slump In FICC Revenue; Interest Income Unexpectedly Declines

Echoing the trend set by JPM and Wells Fargo last Friday, moments ago Bank of America reported revenue and earnings that modestly beat expectations, with Q2 revenue of $22.8bn, above the $21.8bn expected, generating net income of $5.3 billion up 10% Y/Y, and EPS of $0.46, above the $0.43 estimate, and 12% higher than Q2 2016.

Frontrunning: July 17

  • Americans Feel Good About the Economy, Not So Good About Trump (BBG)
  • GOP Leaders Brace for CBO Estimate on Revised Health-Care Bill (BBG)
  • From $2 Billion to Zero: A Private-Equity Fund Goes Bust in the Oil Patch (WSJ)
  • Turkey Building Up Army Base in Qatar, Erdogan Adviser Says (BBG)
  • U.S. Companies Have a New 401(k) Fix: Spend More (WSJ)

Sleepy Overnight Session Interrupted By Chinese Market Turmoil

While it was indeed a generally quiet session (with Japan markets closed), US equity futures continued their run into record territory (ES up 0.1% to 2,458.50), and Europe fractionally lower, the early Monday focus was on the previously discussed turmoil for Chinese markets where despite a solid set of Chinese data small caps tumbled, selling off into the close after further warnings of regulatory scrutiny and deleveraging,

More Bad News For Autos: Wells' Auto Loan Originations Crash To An All Time Low

While Wells Fargo's overall earnings report was passable despite another decline in overall loan growth, it contained another flashing red light: in an unexpected twist, Wells reported that auto loan originations crashed 45% Y/Y to only $4.5 billion, the lowest print since the bank started disclosing this item back in 2013.

Global Shares Hit Another Record High In Lethargic Session Ahead Of US Data Deluge

It was another painfully low-volume overnight session, which however did not prevent global stocks from hitting another record highs, capping their best week in over two months as the dollar stayed close to nine-month lows following Yellen's dovish retreat in which she noted caution on persistently low inflation as odds of future rate hikes in 2017 and 2018 dropped.

Frontrunning: July 13

  • Feuding U.S. Senate Republicans to get revised healthcare bill (Reuters)
  • Draghi May Address Future of ECB Stimulus at Jackson Hole (WSJ)
  • BOJ seeks to tamp down speculation on tapering (Nikkei)
  • Iran’s Stature Grows as Rivals Quarrel (WSJ)
  • China June Trade Data Buoyed by Robust Demand at Home and Abroad (BBG)

Global Stocks Rise Amid Strong Economic Data; Yen Drops To 2 Month Low As Oil Resumes Slide

In a quiet overnight session, S&P 500 futures are fractionally in the green (2,426, +0.2%) with European and Asian stocks as oil drops second day after an initial ramp higher amid speculation that LIbya and Nigeria may be asked to cap their production. Nasdaq 100 Index are again higher, following the biggest daily advance in more than a week, up 0.4% as of 6:20 a.m. in New York.

The Flint Water Disaster Shows Why We Need Markets

"The fact that officials are not held to similar standards as those in the private sector is why government grows. Perhaps the Michigan arrests will spur others. Lord knows, when it comes to government malfeasance and unaccountability, Flint, Michigan, is a small tip of the iceberg."