The numbers from J.P. Morgan is important because it is a significant indicator of the fundamental performance by the key banking sector. J.P Morgan has exposure in many banking businesses. J.P Morgan reported an earnings per share of $1,30. That`s below the consensus of $1,31.
Wells Fargo was also better than expected. They earned $1 per share i Q4 last year. That`s also a little bit above consensus of $0,98. Total loan and deposits grew and a strong capital position and returns on assets and equity was positive reports. Great!
Yesterdays reports was not that surprising. J.P Morgan and Wells Fargo are the strongest banking institutions. All the positive readings about the retail points out all the positive revisions to Q4 GDP estimates. That`s why the news about non-farm payrolls gave some people headache.
Tesla shares rose 15,7% yesterday after a strong report. The same company is up 384,9% last 12 months. Vice president of sales, Jerome Guillen, said they delivered 6,900 Model S electric sedans in Q4 last year, and that is up 20% since Q3 last year. Wow! Detroit is back!
General Motors Co will start to pay quarterly dividend this March and this is the first time they have paid a dividend to shareholders since May 2008. The payout will cost GM about $1,67 billion a year. Dividend per share will be 30 cents on its common stocks.
The January effect this year have been two different asset classes. In December last year, investors wrote off long-term treasury bonds and gold bullion as lost. You all know about the declining gold prices in 2013. Falling gold prices and improving economic data led to more money into the stock market.
The iShares 20+ Year Treasury Bond ETF (TLT) was down -13,91% last year, while the SPDR Gold shares ETF (GLD) was down -28,33% in 2013. Both seems to have moved up so far in 2014. One of the key factors that the Fed members are watching to determine how fast they will start to taper is the Treasury bonds that have disappointed in the last payrolls data we all got. It is in conflict with the case for a better job outlook.
Bank of America Corporation (BAC) will release its Q4 reports today. The consensus earnings per share forecast is $0,27. That is up 800% since Q4 last year!
News today: PPI & Empire State Manufacturing at 8:30am, Crude Oil Inventories at 10:30am, Beige Book at 2:00pm.
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