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Investment Banks Goldman Sachs And Morgan Stanley Round Out Big Banks Reporting Season Tomorrow
(Photo Credit: Fortune Live Media) Investment banks Goldman Sachs and Morgan Stanley will be reporting their quarterly earnings tomorrow morning. Here’s a look at how they are predicted to fare for Q3. Goldman Sachs (GS) Financials – Capital Markets | Reports October 17, BMO After a steady end to 2016 and first quarter of 2017, Goldman Sachs’ EPS fell significantly quarter-over-quarter in Q2, but still increased 6% on a year-over-year basis. Third quarter expectations are predicting the first decline in YoY profits since Q3 2015, with Estimize data showing a fall of 11%, despite recovering 10% since last quarter. Estimize and Wall... -
Finance 0
Iraq-Kurd Tensions Push Oil Prices Higher
Crude oil extended gains on Monday after Iraqi forces captured a military base, oil fields and an airport outside Kirkuk in the Northern part of Iraq. Brent crude oil rose 1.5 percent to $58.02 a barrel on Monday as at 1:45 p.m. Nigerian time. While, West Texas Intermediate gained 1.2 percent to $52.06 a barrel. The tension between the Iraqi and the semi-autonomous Kurdistan Regional Government started following an independence referendum by the Kurdistan Regional Government on September 25. Iraqi government alongside it allies, Turkey and Iran, have denounced the referendum saying it is illegal, with Turkey threatening to shut down Kurdista... -
Finance 0
Can We Have An ETF Meltdown?
What is the magic that allows us to have intraday liquidity through an ETF on a market that itself trades more or less by appointment? Case in point: the high yield bond market. Or emerging markets. Or just about any bond market short of sovereigns and maybe agencies. Suppose there is a sudden rush for the exits in the high yield bond market. Those in the cash bonds know the drill. They will put in orders with the bank/dealer market makers. For a while, those high yield bond trading desks will buy the bonds and hold them in inventory. But it won’t take long for the trading desks to reach their capacity. After that point, they won’... -
Finance 0
A Long-Term Look At Inflation – Monday, October 16
The Consumer Price Index for Urban Consumers (CPI-U) released Friday puts the year-over-year inflation rate at 2.23%. It is substantially below the 3.76% average since the end of the Second World War and above its 10-year moving average, now at 1.74%. For a comparison of headline inflation with core inflation, which is based on the CPI excluding food and energy, see this monthly update. For a better understanding of how CPI is measured and how it impacts your household, see our Inside Look at CPI components. For an even closer look at how the components are behaving, see this X-Ray View of the data for the past six months. The Bureau of ... -
Finance 0
4 Construction Stocks Poised For A Q3 Earnings Beat
The positive momentum witnessed in the U.S. construction sector at the beginning of 2017 is looking somewhat shabby now. Tepid housing sales data owing to inventory shortage along with two devastating hurricanes (Harvey & Irma) has been causing damage to the industry’s sales pace in recent times. The recent data reflects weakening sales figure with existing home sales (which make up a larger part of all the U.S. real estate activity) which fell to a one-year low in August (down 1.7%), per the latest report by National Association of Realtors (NAR). This marked the fourth decline in five months, bringing down the annual rate to the lowes... -
Finance 0
Buyback Stats
Buybacks are surprisingly controversial. You wouldn’t think buybacks would be such a big deal because they are just an alternative way to give excess cash back to shareholders. However, they are blamed for the lack of productivity in the economy and juicing EPS numbers. If firms buyback stock instead of investing in capex, then it can hurt the productivity of the economy. However, the issue is not having a place to put the money; it’s not the place the money goes afterwards. Buybacks can increase EPS numbers if the share count is reduced. It’s not necessary to discuss how the EPS numbers are fake, because everyone on Wall Street knows h... -
Finance 0
Lithium Vs. Oil: An Unstoppable Divergence In The Energy Market
Lithium continues to torch oil in 2017. The Global X Lithium & Battery Tech ETF (NYSE: LIT) has been hyperbolic all year — up 57% to date. Meanwhile, the iPath S&P GSCI Crude Oil TR ETN (NYSE: OIL) is down 16%. The divergence between these two key energy commodities is shocking. See for yourself… So there are two schools of thought here… Old School: Divergences among two assets operating in the same sector — in this case energy — never last. So a profit opportunity exists as lithium and oil race back toward equilibrium. New School: The demand dynamics inherent to lithium are so powerful that they’ve decoupled from every ot... -
Finance 0
E Why The Market Might Be Underpriced
Market Outlook As confirmed in the updated graph below, the overall equity market has been in a bullish uptrend since the third quarter began. Basically all the major indices have seen across-the-board gains over the second half of the year, which historically is supposed to be the worst for market performance. The majority of market pundits voice no reason to believe it will end anytime soon and the next big trading catalyst should be a positive one for equity markets. Of course, market crashes usually happen when few people expect it and the next one probably won’t be any different. The third-quarter earnings season is scheduled to ramp u... -
Finance 0
Macro Mondays: Social Security
Welcome to another edition of Macro Mondays! Today I think we would address a topic that is of great importance to millions of Americans, yet many might not fully understand the implications behind it. I’m talking, of course, about Social Security — the program that helps keep millions of seniors funded in retirement as well as providing them with survivor and medical benefits. It is NOT an entitlement program, as we have mentioned on GradMoney many times before, but acts a national ‘insurance’ measure if you will. This article is meant to provide you with the bare bones basics of the Social Security program. For mo...
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