最新ニュース Invesco KBW Bank ETF (NASDAQ:KBWB)

Invesco KBW Bank ETF

Financial Services

Other

The fund generally will invest at least 90% of its total assets in the securities that comprise the underlying index. The underlying index is a modified-market capitalization-weighted index of companies primarily engaged in U.S. banking activities, as determined by the index provider. The underlying index is designed to track the performance of large national U.S. money centers, regional banks, and thrift institutions that are publicly traded in the U.S. The fund is non-diversified.

Goldman Sachs International

Jpmorgan Chase & Co.

Morgan Stanley

Bank Of America Corp.

Wells Fargo & Co.

Truist Financial Corp Common Stock Usd5.0

Pnc Financial Services Group Inc/The

M&t Bank Corp.

State Street Corp.

Fifth Third Bancorp

Citigroup Inc.

Bank Of New York Mellon Corp.

Capital One Financial Corp.

Us Bancorp

Bank of America Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BAC#NYSE">BAC</a>) shares are trading higher Tuesday after the firm disclosed plans to open over 150 new locations across 60 <a href="https://www.benzinga.com/pressreleases/25/05/n45377599/bofa-to-open-150-financial-centers-by-2027-investing-over-5-billion-in-its-network-since-2016" target="_blank" rel="noreferrer noopener">markets by the end of 2027</a>.
The bank expects 40 locations to open this year and another 70 in 2026. Four financial centers are slated for Boise, Idaho, with the first location scheduled to open in nearby Nampa on June 9, 2025.
Recently, the company inaugurated a new flagship financial center at 2 Bryant Park in New York City, which is designed to facilitate connections between clients and financial specialists, among others.
Also Read: <a href="https://www.benzinga.com/25/04/44849372/bank-of-america-analysts-cut-price-target-amid-macro-uncertainty-but-maintain-positive-outlook" target="_blank" rel="noreferrer noopener">Bank Of America Analysts Cut Price Target Amid Macro Uncertainty, But Maintain Positive Outlook</a>
Since 2016, the Charlotte, North Carolina-based bank has invested more than $5 billion in its financial center network through new openings and renovations of existing locations.
In April, Bank of America disclosed that it is ramping up its&nbsp;investment in artificial intelligence, planning to spend $4 billion on AI initiatives over the next year, nearly a third of<a target="_blank" href="https://www.benzinga.com/tech/25/04/44878856/bank-of-america-bets-big-on-ai-with-4-billion-investment-and-its-already-paying-off" rel="noreferrer noopener"> its annual $13 billion tech budget</a>.
Also, in the same month, it reported first-quarter fiscal 2025 net income of $7.4 billion (versus $6.7 billion a year ago) and EPS of $0.90, beating the analyst consensus estimate of $0.81.
Investors can gain exposure to the stock via Invesco KBW Bank ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/KBWB#NASDAQ">KBWB</a>) and First Trust Nasdaq Bank ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/FTXO#NASDAQ">FTXO</a>).
Price Action: Bank of America shares are up 1.74% at $44.12 at the last check on Tuesday.
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</ul>
Image: Shutterstock

Equities

Large Cap

News

Movers

FTXO

KBWB

Bank Of America Bets On Brick-And-Mortar, Expansion Plans Include 60 Markets Worldwide

Goldman Sachs Group Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GS#NYSE">GS</a>)&nbsp;shares are trading higher on Monday after the&nbsp;company <a target="_blank" href="https://www.benzinga.com/topic/goldman-sachs" rel="noreferrer noopener">reported its&nbsp;first-quarter&nbsp;results</a>.
Revenue of&nbsp;$15.06 billion beat the consensus <a target="_blank" href="https://www.goldmansachs.com/pressroom/press-releases/current/pdfs/2025-q1-results.pdf" rel="noreferrer noopener">of</a> $14.81 billion. Revenue increased by&nbsp;6%&nbsp;year-over-year, reflecting growth in Global Banking &amp; Markets. Net interest income rose to $2.90 billion, up from $1.37 billion a year ago quarter.
Goldman Sachs clocked&nbsp;GAAP EPS of&nbsp;$14.12,&nbsp;<a target="_blank" href="https://www.benzinga.com/earnings" rel="noreferrer noopener">beating the consensus of&nbsp;$12.35</a>.
Provision for credit losses was&nbsp;$287 million&nbsp;for the&nbsp;first quarter, lower than $318 million a year ago quarter, reflecting net provisions related to the credit card portfolio.
Segment Revenues:&nbsp;Global Banking &amp; Markets revenues were&nbsp;$10.71 billion, up&nbsp;10%&nbsp;year-over-year. Net revenues from Equity grew&nbsp;27%&nbsp;year-over-year to&nbsp;$4.19 billion, reflecting significantly higher net revenues in intermediation and financing.
Also, net revenues in Fixed Income, Currency, and Commodities (FICC) were&nbsp;$4.40 billion,&nbsp;up&nbsp;2%&nbsp;year-over-year, primarily reflecting higher net revenues in FICC financing.
On the other hand, Investment Banking fees declined 8%&nbsp;year over year to&nbsp;$1.91 billion due to a considerable decline in net revenues in the Advisory business. Investment banking fees backlog increased compared with the end of 2024.
Asset &amp; Wealth Management revenue was&nbsp;$3.68 billion,&nbsp;down 3%&nbsp;year over year. Total Wealth management client assets stood at ~$1.6 trillion.
In the&nbsp;first quarter, total Assets Under Supervision (AUS) saw a net inflow of&nbsp;$24 billion. AUS increased by&nbsp;$36 billion&nbsp;to a record&nbsp;$3.17 trillion in the quarter.
Stock Buyback:&nbsp;In the&nbsp;first quarter, Goldman Sachs repurchased stock worth&nbsp;$4.36 billion. In the quarter, the Board approved a new share buyback program of up to $40 billion.
Dividend: On April 11, 2025, the Board declared a dividend per share of $3.00, payable on June 27, 2025, to shareholders of record as of May 30, 2025.
The Standardized CET capital ratio stood at 14.8%, and the Advanced CET capital ratio increased sequentially to&nbsp;15.5%. The book value per common share increased 2.2% to $344.20.
David Solomon, Chairman and CEO of Goldman Sachs, said, "While we are entering the second quarter with a markedly different operating environment than earlier this year, we remain confident in our ability to continue to support our clients."
On the conference call, CEO Solomon said he expects significant M&amp;A activity throughout the rest of the year.
Investors can gain exposure to the Goldman Sachs stock via&nbsp;Shares U.S. Broker-Dealers &amp; Securities Exchanges ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IAI#NYSE">IAI</a>), and&nbsp;Invesco KBW Bank ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/KBWB#NYSE">KBWB</a>).
Price Action: GS shares are up 2.38% at $505.69 at the last check Monday.
Read Next:
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<li><a href="https://www.benzinga.com/general/market-summary/25/04/44784107/us-stocks-likely-to-open-higher-expert-says-the-selling-pressure-is-starting-to-be-exhausted" target="_blank" rel="noreferrer noopener">US Stocks Likely To Open Higher: Expert Says ‘The Selling Pressure Is Starting To Be Exhausted'</a></li>
</ul>
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Earnings

Buybacks

Trading Ideas

iShares Dow Jones US Broker Dealers Index Fund

Goldman Sachs CEO Sees 'Markedly Different Operating Environment' Entering Q2, Announces $40 Billion Stock Buyback

State Street Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/STT#NYSE">STT</a>) shares are trading lower premarket on Thursday. The company&#8217;s asset management division, State Street Global Advisors, disclosed a<a href="https://www.benzinga.com/pressreleases/25/04/b44623470/state-street-global-advisors-announces-strategic-partnership-and-investment-in-ethic" target="_blank" rel="noreferrer noopener"> strategic equity investment in </a><a href="https://www.benzinga.com/pressreleases/25/04/b44623470/state-street-global-advisors-announces-strategic-partnership-and-investment-in-ethic" target="_blank" rel="noreferrer noopener">Ethic Inc</a>.
In addition to the investment, SSGA and Ethic have formed a strategic partnership to offer tailored investment solutions at scale for SSGA&#8217;s institutional and financial intermediary clients.
The partnership focuses on developing and managing customized separately managed accounts, model portfolios, and unified managed accounts in collaboration with Ethic and SSGA.
It also aims to provide an interactive experience for advisors and clients, including unique proposal generation, portfolio transition plans, and reporting.
Yie-Hsin Hung, chief executive State Street Global Advisors, said, &#8220;Ethic has seen incredible growth in a short period thanks to industry-leading technology and deep expertise that help advisors deliver portfolios that reflect what matters most to clients. Ethic&#8217;s platform has become a standard-bearer for customization, and we&#8217;re excited to help them reach new audiences.&#8221;
Ethic CEO Doug Scott added, &#8220;With this new funding round and strategic partnership, we&#8217;re excited to be accelerating the adoption of personalized, values-aligned, and tax-smart investing.&#8221;
Investors can gain exposure to the stock via&nbsp;Themes Global Systemically Important Banks ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GSIB#NASDAQ">GSIB</a>) and&nbsp;Invesco KBW Bank ETF&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/KBWB#NASDAQ">KBWB</a>).
Price Action: STT shares are down 3.78% at $86.20 premarket at the last check Thursday.
Read Next:
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<li><a href="https://www.benzinga.com/markets/equities/25/04/44602765/ray-dalios-bridgewater-launches-all-weather-etf-bringing-decades-old-investment-strategy-to-the-public" target="_blank" rel="noreferrer noopener">Ray Dalio&#8217;s Bridgewater Launches &#8216;All-Weather&#8217; ETF, Bringing Decades-Old Investment Strategy To The Public</a></li>
</ul>
Photo: Shutterstock/JHVEPhoto

GSIB

State Street's Strategic Investment in Ethic Aims to Revolutionize Personalized Portfolios

The Consumer Financial Protection Bureau (CFPB) has been put on ice. Staffers have been told to halt all work, and the agency's Washington headquarters has <a href="https://www.benzinga.com/topic/cfpb">reportedly been shut down</a>. 
While this unprecedented move raises serious concerns about consumer rights, it also presents a potential opportunity for investors. ETFs with significant exposure to banks, payday lenders, and credit reporting agencies may benefit if looser regulations translate into higher profit margins.
Also Read: <a href="https://www.benzinga.com/government/regulations/25/02/43451675/bessent-freezes-consumer-financial-protection-bureau-work-leaving-lawsuits-against-jpmorgan-bank-of-america-capital-one-in-limbo">Bessent Freezes Consumer Financial Protection Bureau Work Leaving Lawsuits Against JPMorgan, Bank Of America, Capital One In Limbo</a>
Banking &amp; Financial Sector ETFs: The Biggest Beneficiaries?
Big banks have frequently clashed with the CFPB over issues ranging from overdraft fees to consumer lending practices. With the watchdog out of commission, major financial institutions could see reduced compliance costs and potentially higher profits. 
Investors looking to capitalize on this regulatory shift might consider ETFs with heavy bank exposure, such as:
<ul>
<li>Financial Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLF#NYSE">XLF</a>): This fund tracks large U.S. financial institutions, including JPMorgan Chase (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/JPM#NYSE">JPM</a>), Bank of America (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BAC#NYSE">BAC</a>), and Citigroup (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/C#NYSE">C</a>). </li>
<li>Invesco KBW Bank ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/KBWB#NASDAQ">KBWB</a>): This ETF could benefit if regulatory rollbacks allow banks to expand lending operations with fewer restrictions. Goldman Sachs (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GS#NYSE">GS</a>), JPMorgan, Morgan Stanley (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MS#NYSE">MS</a>), Bank Of America and Wells Fargo &amp; Co. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/WFC#NYSE">WFC</a>) are among the top holdings of the ETF.</li>
<li>iShares U.S. Financials ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IYF#NYSE">IYF</a>): Another broad financial sector play, IYF provides exposure to insurance firms, banks, and capital markets. Among its top holdings are S&amp;P Global (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPGI#NYSE">SPGI</a>), BlackRock Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BLK#NYSE">BLK</a>) and Wells Fargo.</li>
</ul>
Also Read: <a href="https://www.benzinga.com/government/regulations/24/12/42479974/us-lenders-file-joint-lawsuit-against-consumer-finance-watchdog-for-capping-overdraft-fees-wells-fargo-jpmorgan-citigroup-stocks-in-focus">US Lenders File Joint Lawsuit Against Consumer Finance Watchdog For Capping Overdraft Fees</a>
FinTech &amp; Alternative Lending: Risky Yet Promising
The CFPB has been a thorn in the side of payday lenders and fintech firms, often cracking down on <a href="https://www.benzinga.com/markets/equities/25/01/42836870/warren-buffetts-berkshire-hathaway-subsidiary-sued-over-unaffordable-loans-2008-style-predatory-loan-approval-tactics">predatory lending practices</a>. With enforcement on hold, companies like LendingClub (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/LC#NYSE">LC</a>) may operate with fewer regulatory headaches. That makes fintech-focused ETFs worth watching, such as:
<ul>
<li>Global X FinTech ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/FINX#NASDAQ">FINX</a>): This fund invests in innovative financial technology firms that could benefit from a more relaxed regulatory environment. Fidelity National Info (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FIS#NYSE">FIS</a>) and Fiserv (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FI#NYSE">FI</a>) sit at the top of the portfolio distribution.</li>
<li>iShares US Small Cap Value Factor ETF (BATS:<a class="ticker" href="https://www.benzinga.com/stock/SVAL#BATS">SVAL</a>): It is an equal-weighted equity index tracking the Russell 2000 Focused Value Select Index which measures the performance of small-cap U.S. companies&nbsp;including LendingClub.</li>
</ul>
<h3 class="wp-block-heading">The Background</h3>
The CFPB, created in the aftermath of the 2008 financial crisis, has been — according to advocates — a necessary watchdog keeping financial institutions in check. 
For example, the CFPB has <a href="https://www.consumerfinance.gov/about-us/blog/twelve-years-of-protecting-consumers-and-honest-businesses/#:~:text=Here%27s%20a%20look%20at%20some,CFPB%20enforcement%20and%20supervision%20work">recovered</a> over $17.5 billion for consumers affected by fraudulent or predatory practices.
It has also <a href="https://www.consumerreports.org/consumer-protection/how-cfpb-changes-could-impact-consumers-a2527371632/?utm_source=chatgpt.com">established</a> rules to limit overdraft fees and reduce credit card late fees, aiming to protect consumers from excessive charges.
Meanwhile, critics — especially from the banking industry (i.e., JPMorgan Chase CEO Jamie Dimon) — argue <a href="https://www.benzinga.com/startups/24/11/42024453/if-youre-in-a-knife-fight-you-better-damn-well-bring-a-knife-jpmorgan-ceo-jamie-dimon-calls-for-a-stand-against-regulation">it&#8217;s a regulatory burden</a>.
Now, with an abrupt directive for staff to ‘stand down' and stop all work, the agency's future is uncertain.
Read Next: 
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<li><a href="https://www.benzinga.com/etfs/sector-etfs/25/02/43632056/3-etfs-for-cybersecurity-investors-as-ai-driven-threats-grow">3 ETFs For Cybersecurity Investors As AI-Driven Threats Grow</a></li>
</ul>
Photo: Shutterstock

Sector ETFs

Broad U.S. Equity ETFs

ETFs

FINX

iShares Dow Jones US Financial Sector Index Fund

SPGI

SVAL

Regulatory Freeze At CFPB: These ETFs Could Gain As Oversight Weakens

The Federal Reserve is dialing back the regulatory burden on major U.S. banks, ending its climate stress test program and rolling out a 2025 stress test scenario that analysts see as more<a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/06/39525918/major-banks-fall-short-in-feds-2024-stress-test-results-the-market-will-view-the-re"> favorable than last year's. </a>
The shift, combined with potential adjustments to capital rules, could offer relief to big banks like Goldman Sachs Group Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GM#NYSE">GM</a>), and Morgan Stanley (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MS#NYSE">MS</a>), which stand to benefit the most from a more transparent regulatory framework.
<a href="https://www.bloomberg.com/news/articles/2025-02-06/fed-tells-banks-they-won-t-need-to-do-climate-stress-tests?srnd=homepage-americas&amp;sref=TBDibEcD">Bloomberg</a> first reported Thursday that the Fed has closed its Climate Scenario Analysis Exercise, a program that required major bank institutions and others to submit climate-related risk data. The decision marks a reversal from recent years, when regulators sought to gauge how climate risks could affect financial stability.
<h3 class="wp-block-heading">A More Favorable Stress Test Scenario</h3>
On Thursday, Bank of America analysts, including Ebrahim H. Poonawala, said the 2025 stress test scenario appears "broadly better" than last year's, reinforcing their confidence that capital relief is on the way.
The stress test, designed to assess banks' resilience under hypothetical economic downturns, plays a crucial role in setting capital requirements.
Compared to last year&#8217;s adverse scenario, the updated parameters include reduced market volatility, a milder GDP decline, and a smaller drop in commercial real estate prices.
&#8220;Banks should begin to see relief on regulatory capital requirements,&#8221; Bank of America wrote in its report. 
The Fed's latest release provided limited details on specific methodology changes but confirmed that steps will be taken to reduce volatility in stress test results and improve transparency. 
Bank of America indicates this could be a turning point, making regulatory expectations more predictable after more than a decade of post-2008 financial crisis adjustments.
Analysts at Bank of America see Goldman Sachs and Morgan Stanley as the biggest winners, given their capital markets exposure.
&#8220;While relief should be broad-based, capital markets businesses could see&nbsp;relatively greater&nbsp;relief. Buy-rated Goldman Sachs and Morgan Stanley&nbsp;stand to see the largest benefit, in our view,&#8221; analysts wrote.
<h3 class="wp-block-heading">Will Capital Relief Follow?</h3>
A crucial unanswered question is whether the Fed will implement its proposed two-year averaging of stress test results this year. 
In December, the central bank announced plans to smooth out capital requirements by averaging results over two years and allowing public comment on future test scenarios. Yet, the latest release made no mention of when these changes might take effect.
Adding to the momentum for regulatory easing, Federal Reserve Governor Michelle Bowman – widely considered as a potential contender for the Fed&#8217;s Vice Chair of&nbsp;Supervision – said Wednesday that key capital rules should be reconsidered. 
Bowman highlighted the need to review the supplementary leverage ratio and Global Systemically Important Bank surcharges, both of which impact large banks' capital buffers.
"In its current structure, [the stress test] is an opaque test hidden from public scrutiny that is used to establish variable binding capital requirements," Bowman said. 
She called for greater transparency and technical improvements to enhance the test's reliability and credibility.
<h3 class="wp-block-heading">Market Reactions</h3>
Shares of major U.S. banks soared on Thursday, with both the Financial Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLF#NYSE">XLF</a>) and the Invesco KBW Bank ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/KBWB#NASDAQ">KBWB</a>) reaching fresh record highs. 
Within the big six banks, Citigroup Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/C#NYSE">C</a>), outperformed, up 3.7%, followed by JPMorgan Chase &amp; Co. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/JPM#NYSE">JPM</a>), up 2.2%. 
Read Next: 
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<li><a href="https://www.benzinga.com/25/02/43534297/january-jobs-report-preview-speculators-bet-on-strong-payroll-surge-yet-economists-predict-a-different-picture">January Jobs Report Preview: Speculators Bet On Strong Payroll Surge, Yet Economists Predict A Different Picture</a></li>
</ul>
Image created using artificial intelligence via Midjourney.

Government

Regulations

Econ #s

Federal Reserve

Fed Eases Bank Stress Tests, Drops Climate Risks: Financial Stocks Hit Record Highs

JP Morgan analyst Kian Abouhossein shared views on Morgan Stanley&#8216;s (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MS#NYSE">MS</a>) fourth-quarter <a target="_blank" href="https://www.benzinga.com/news/large-cap/25/01/43029150/morgan-stanley-q4-earnings-profit-doubles-ceo-calls-it-one-of-strongest-years-aims-for-prudent-dividend-growth" rel="noreferrer noopener">results reported today.</a>
The bank reported an adjusted EPS of $2.22, up from $0.85 a year ago and beating the consensus of $1.70. Revenue of $16.22 billion, up 26% year over year, beat the&nbsp;consensus of $15.03 billion.
The analyst writes that Morgan Stanley&#8217;s Investment Banking performance is strong, with Equity S&amp;T rising 51% year-over-year (JPM estimate +18%) to $3.3 billion, outperforming the U.S. peers.
The analyst also adds that FICC performed well, growing 35% year over year (JPM estimates +19%) versus an average of 25% among its U.S. peers.
With a <a target="_blank" href="https://www.benzinga.com/quote/MS/analyst-ratings" rel="noreferrer noopener">Neutral rating </a>on the stock, the analyst expects Morgan Stanley&#8217;s shares to outperform peers today.
Abouhossein expects mid-to-high single-digit % EPS upgrades to 2025 consensus but this would be partly dependent on earnings conference call.
During the conference call, the analyst anticipates questions regarding Wealth Management NII, the outlook for IB fee growth following optimistic comments from peers.
Also, the analyst expects the bank to provide outlook for share buybacks, which were in line with JP Morgan estimates expectations at $0.75 billion for the fourth quarter.
Investors can gain exposure to the stock via iShares U.S. Broker-Dealers &amp; Securities Exchanges ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IAI#NYSE">IAI</a>) and Invesco KBW Bank ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/KBWB#NASDAQ">KBWB</a>).
Price Action: MS shares are up 2.57% at $133.90 at the last check Thursday.
Read Next:
<ul>
<li><a href="https://www.benzinga.com/analyst-ratings/analyst-color/25/01/43031980/big-banks-continue-to-beat-q4-earnings-financial-etf-takes-breather" target="_blank" rel="noreferrer noopener">Big Banks Continue To Beat Q4 Earnings As Financial ETF Takes A Breather</a></li>
</ul>
Image via Shutterstock.

Analyst Color

Analyst Ratings

JP Morgan Analyst Sees Earnings Upside For Morgan Stanley Post-Q4 Beat: Details

Major indices rallied on Wednesday after December inflation data showed underlying price pressures slowing, reducing fears of a prolonged pause in interest rate cuts <a href="https://www.benzinga.com/economics/macro-economic-events/25/01/43001512/inflation-rises-to-29-in-december-core-slows-yet-rising-energy-costs-put-feds-target-at-risk">by the Federal Reserve. </a>
The headline Consumer Price Index rose 2.9% year-over-year in December, up from November's 2.7%, matching economist forecasts. On a monthly basis, headline inflation increased 0.4%, accelerating from the 0.3% surge in November and marking the largest monthly rise since March 2024.
Core inflation, which excludes volatile food and energy prices, rose 3.2% year-over-year, slightly below the expected 3.3%. Month-over-month, core prices gained 0.2%, in line with forecasts.
The inflation data boosted expectations for Fed rate cuts in 2025. The probability of a rate cut by June rose to 68% from 55% the previous day, with December futures now indicating a 58% chance of two cuts by year-end.
<h3 class="wp-block-heading">Wall Street Gains As Bond Yields Retreat, Financial Stocks Soar</h3>
The S&amp;P 500 index – as tracked by the SPDR S&amp;P 500 ETF Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>) – surged 1.5% in early New York trading, led by financial stocks after major banks reported strong fourth-quarter earnings.
JPMorgan Chase &amp; Co. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/JPM#NYSE">JPM</a>), Citigroup Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/C#NYSE">C</a>), Goldman Sachs Group Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GS#NYSE">GS</a>), Wells Fargo &amp; Co. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/WFC#NYSE">WFC</a>), Bank of New York Mellon Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BK#NYSE">BK</a>) and BlackRock Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BLK#NYSE">BLK</a>) all topped earnings forecasts for the fourth quarter and released upbeat guidance, reiterating that the financial sector thrived heading to the end of last year.
The Financial Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLF#NYSE">XLF</a>) rose 2.2%, leading all S&amp;P 500 sectors, while the SPDR S&amp;P Regional Banking ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/KRE#NYSE">KRE</a>) jumped 3.4%, reflecting strong performance among regional banks.
The Dow rose 1.6%, while the Russell 2000 index outperformed, climbing 2.6%. Tech stocks, tracked by the Invesco QQQ Trust, Series 1 (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QQQ#NASDAQ">QQQ</a>), gained 1.7%, boosted by falling Treasury yields.
Yields on the policy-sensitive 2-year Treasury note fell 9 basis points to 4.27%, while 30-year yields dropped 9 basis points to 4.88%. The iShares 20+ Year Treasury Bond ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TLT#NASDAQ">TLT</a>) gained 1.6% as bond prices rallied.
Bitcoin (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/btc/usd">BTC</a>) rose 2% to over $99,000, supported by rising hopes for Fed rate cuts. Gold, tracked by the SPDR Gold Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GLD#NYSE">GLD</a>), added 0.5%.
<h3 class="wp-block-heading">Top Movers</h3>
S&amp;P 500 Gainers:
<ul>
<li>Texas Pacific Land Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TPL#NYSE">TPL</a>): +5.85%</li>
<li>BlackRock Inc.: +5.54%</li>
<li>Assurant Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/AIZ#NYSE">AIZ</a>): +5.49%</li>
<li>Bio-Techne Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TECH#NASDAQ">TECH</a>): +5.36%</li>
<li>Citigroup Inc.: +5.16%</li>
</ul>
Nasdaq 100 Movers:
<ul>
<li>Copart Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CPRT#NASDAQ">CPRT</a>): +4.62%</li>
<li>Intuitive Surgical Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ISRG#NASDAQ">ISRG</a>): +4.60%</li>
<li>AppLovin Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/APP#NASDAQ">APP</a>): +4.43%</li>
<li>Palantir Technologies Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/PLTR#NASDAQ">PLTR</a>): +4.30%</li>
<li>The Trade Desk Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TTD#NASDAQ">TTD</a>): +3.39%</li>
</ul>
Top Gainers In The Invesco KBW Bank ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/KBWB#NYSE">KBWB</a>):
<ul>
<li>Citigroup Inc.: +5.27%</li>
<li>Wells Fargo &amp; Co.: +4.80%</li>
<li>Bank of New York Mellon Corp.: +4.35%</li>
<li>Western Alliance Bancorp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/WAL#NYSE">WAL</a>): +4.13%</li>
<li>Goldman Sachs Group Inc.: +4.02%</li>
</ul>
Read now: 
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<li><a href="https://www.benzinga.com/25/01/43000684/jpmorgan-q4-earnings-shine-investment-banking-revenue-jumps-46-yy-jamie-dimon-says-inflation-may-persist-for-some-time">JPMorgan Chase Q4 Earnings: Investment Banking Revenue Jumps 46%, CEO Jamie Dimon Says &#8216;Inflation May Persist For Some Time&#8217;</a></li>
</ul>
Image created using artificial intelligence via Midjourney.

Macro Economic Events

Bonds

Small Cap

Economics

Tech

$BTC

CPRT

ISRG

PLTR

TECH

iShares Trust Barclays 20+ Year Treasury Bond Fund

Stocks Rise On Core Inflation Slowdown, Banks Rally After Strong Q4 Earnings, Treasury Yields Plummet

On Wednesday, Goldman Sachs Group Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GS#NYSE">GS</a>)&nbsp;shares traded higher after the <a target="_blank" href="https://www.goldmansachs.com/pressroom/press-releases/2025/2025-01-15-q4-results" rel="noreferrer noopener">company reported its fourth-quarter</a> and full-year 2024 financial results.
Goldman Sachs reported fourth-quarter revenue of $13.87 billion, beating the consensus of $12.39 billion. Revenue increased by 23% year-over-year, reflecting growth across all segments, with significant growth in Global Banking &amp; Markets.
Full-year revenue was $53.51 billion, up 16% YoY, beating the consensus of $51.98 billion.
Net interest income for 4Q24 was $2.35 billion, 75% higher YoY, reflecting a shift towards higher-yielding assets, and was essentially unchanged QoQ. Average interest-earning assets were $1.59 trillion.
Also read: <a target="_blank" href="https://www.benzinga.com//node/42960000" rel="noreferrer noopener">Goldman Sachs Restructures Business for Financing Growth</a>
Segment Revenues: Global Banking &amp; Markets revenues were&nbsp;$8.48 billion, up&nbsp;33% Y/Y. This was boosted by a&nbsp;24% Y/Y increase in investment banking fees to&nbsp;$2.05 billion, led by higher revenues in Debt and Equity underwriting. Investment banking fees backlog increased QoQ, primarily driven by Equity underwriting.
Net revenues in Fixed Income, Currency, and Commodities (FICC) were&nbsp;$2.74 billion,&nbsp;up 35% year over year, primarily reflecting higher net revenues in FICC intermediation and financing.
Net revenues from Equity grew 32% YoY to $3.45 billion, reflecting significantly higher net revenues in intermediation and financing.
Asset &amp; Wealth Management revenue was&nbsp;$4.72 billion,&nbsp;8% higher than last year. Total Wealth management client assets soared to ~$1.6 trillion.
Goldman Sachs clocked fourth-quarter GAAP EPS of&nbsp;$11.95,&nbsp;<a target="_blank" href="https://www.benzinga.com/earnings" rel="noreferrer noopener">beating the consensus of&nbsp;$8.30</a>. Full-year GAAP EPS was $40.54, beating the consensus of $36.55.
Provision for credit losses was&nbsp;$351 million for the&nbsp;fourth quarter, down 39% year over year, reflecting net provisions related to the credit card portfolio (primarily driven by net charge-offs).
In the fourth quarter, total Assets Under Supervision (AUS) saw a net inflow of $92 billion. Total AUS for 2024 increased by $325 billion to a record $3.14 trillion.
Stock Buyback: In the fourth quarter, Goldman Sachs repurchased stock worth $2 billion, bringing the yearly stock buyback to $8 billion.
The Standardized CET capital ratio increased to 15%, and the Advanced CET capital ratio increased to 15.4%. The book value per common share increased to $336.77 YoY, compared to $313.56.
In the last 12 months, Goldman Sachs stock has gained 50%, outperforming the S&amp;P500 and the Dow by a huge margin.
Analyst Ratings: In the last 15 days, Oppenheimer lowered Goldman Sachs stock <a href="https://www.benzinga.com/quote/GS/analyst-ratings" target="_blank" rel="noreferrer noopener">price forecast</a> from $677 to $639, UBS downgraded the stock to a Neutral rating with a price forecast of $610, and Barclays raised the price forecast from $588 to $713.
Investors can gain exposure to the Goldman Sachs stock via Shares U.S. Broker-Dealers &amp; Securities Exchanges ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IAI#NYSE">IAI</a>), SPDR Dow Jones Industrial Average ETF Trust (NYSE:<a href="https://www.benzinga.com/stock/DJIA#NYSE" target="_blank" rel="noreferrer noopener"> </a>DIA), and Invesco KBW Bank ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/KBWB#NYSE">KBWB</a>).
Price Action:&nbsp;GS shares are up 2.54% at $586.05 premarket at the last check on Wednesday.
Read Next:
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<li><a href="https://www.benzinga.com//node/42429413" target="_blank" rel="noreferrer noopener">Goldman Sachs CEO Says Bank Can Consider Bitcoin, Ethereum Spot Trading If Regulations Allow</a></li>
</ul>
Photo via Shutterstock

Goldman Sachs Q4 Earnings: Underwriting Boosts Revenue, Assets Reach Record $3.14 Trillion

A stronger lending environment, stable credit and renewed confidence in valuations could set the stage for a multiyear rally on U.S. regional banks, with some analysts predicting up to <a href="https://www.benzinga.com/topic/regional-banks">20% upside in 2025.</a>
Three major investment banks — JPMorgan Chase &amp; Co., Bank of America and Goldman Sachs — released fresh outlooks on regional banks Tuesday, issuing rating changes, top stock picks and sector recommendations for 2025.
Overall, analysts at all three firms are optimistic. Goldman Sachs analyst Ryan Nash, for example, highlighted several factors likely to improve sector fundamentals in 2025:
<ul>
<li>Loan Growth Recovery: While still slow, loan growth is expected to accelerate to 6%-7% by the second half of 2025 as corporations resume borrowing.</li>
<li>Net Interest Income Growth: A steeper yield curve and the repricing of fixed-rate assets are anticipated to boost NII. Nash expects margins to expand from the current 3.03% to 3.31% in 2025.</li>
<li>Fee Income Rebound: Treasury management, payments, and capital markets are set to improve, helping banks diversify revenue streams.</li>
<li>Stable Credit Conditions: Credit losses, measured by net charge-offs, are projected to remain flat or decline, while reserves could decrease as economic clarity improves.</li>
</ul>
<ol>
<li></li>
</ol>
According to Nash, the stocks of regional banks are trading at approximately 11.5 times estimated 2025 earnings—near their historical averages but with room for valuation expansion. 
The sector could generate returns on tangible common equity of 14%-15%, compared to 16% pre-2023.
This suggests the group could rise as much as 20% next year, according to Goldman Sachs, assuming the market gains confidence in forward earnings.
<h3 class="wp-block-heading">Goldman Sachs: Upgrades Zions, Downgrades Comerica</h3>
Goldman Sachs upgraded Zions Bancorp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ZION#NASDAQ">ZION</a>) from Neutral to Buy. The firm predicts a significant upside for the stock, with shares potentially reaching $70 in 2025.
Goldman downgraded Comerica Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CMA#NYSE">CMA</a>) from Buy to Neutral, citing challenges in deposit management, fee income pressure, and elevated expense growth. Comerica's margins are expected to improve in 2025. But Nash sees limited upside, with shares already trading near their fair value of $70.
Goldman's top picks for 2025 include Truist Financial Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TFC#NYSE">TFC</a>), Regions Financial Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/RF#NYSE">RF</a>), KeyCorp (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/KEY#NYSE">KEY</a>) and Citizens Financial Group Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CFG#NYSE">CFG</a>).
Analysts remain positive on Fifth Third Bancorp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/FITB#NASDAQ">FITB</a>), Huntington Bancshares Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/HBAN#NASDAQ">HBAN</a>) and First Citizens BancShares Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/FCNCA#NASDAQ">FCNCA</a>).
<h3 class="wp-block-heading">The Case For Valuation Upside</h3>
JPMorgan Chase analysts are similarly bullish, indicating that regional banks are trading at just 1.4x their projected 2025 tangible book value, below the 1.8-2x historical range.
Anthony Elian, a JPMorgan analyst, said regional banks&#8217; valuations appear favorable relative to the broader market.
&#8220;While inflation remains above target, the steeper yield curve coupled with gradual rate cuts should serve as a favorable backdrop for regional banks,&#8221; Elian said. 
He expects the sector to attract more interest from generalist investors in 2025, further supporting valuations.
JPMorgan identified several regional banks with strong upside potential, including First Horizon Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FHN#NYSE">FHN</a>), Synovus Financial Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SNV#NYSE">SNV</a>) and Pinnacle Financial Partners Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/PNFP#NASDAQ">PNFP</a>). These names are expected to benefit from rebounding loan demand, robust deposit bases, and favorable capital return dynamics.
<h3 class="wp-block-heading">Improving Regulatory Environment </h3>
Bank of America analyst Ebrahim H. Poonawala also indicated that regional banks are poised to outperform the broader market in 2025, citing stronger earnings growth, discounted valuations, and a more predictable regulatory environment.
While Wells Fargo &amp; Co. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/WFC#NYSE">WFC</a>) remains BofA's top pick, the bank also flagged KeyCorp and Huntington Bancshares Inc. as preferred names within regional banks.
The analyst highlighted a favorable backdrop for small- and mid-cap regional banks, particularly those with exposure to rebounding loan demand and capital return opportunities. 
Among these, BofA sees First Horizon Corp. and Synovus as potentially strong performers.
Bank of America highlights that looser regulation is a positive tailwind for the sector.
&#8220;Headlines tied to regulatory&nbsp;changes&nbsp;(once Trump appointees take charge)&nbsp;could kick-in as a positive catalyst&nbsp;for stocks,&#8221; Poonawala said. 
&#8220;We see Fed Vice Chair Michael Barr&#8216;s decision to step down from his position as vice chair of supervision as the opening act.&nbsp;End to Fed&#8217;s QT&nbsp;program&nbsp;could also&nbsp;serve&nbsp;as a positive for deposit growth/pricing,&#8221; he added. 
<h3 class="wp-block-heading">Market Reactions</h3>
The SPDR S&amp;P Regional Banking ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/KRE#NYSE">KRE</a>) was 0.4% lower on Tuesday, while the Invesco KBW Bank ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/KBWB#NASDAQ">KBWB</a>) rose by 0.5%. 
Read Now: 
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<li><a href="https://www.benzinga.com/analyst-ratings/analyst-color/25/01/42822291/2025-industry-shake-up-goldman-highlights-kkr-raymond-james-hamilton-lane">2025 Industry Shake-Up: Goldman Highlights KKR, Raymond James, Hamilton Lane</a></li>
</ul>
Image: Shutterstock

Upgrades

Downgrades

Price Target

Reiteration

FCNCA

FITB

HBAN

PNFP

ZION

Are Regional Banks The Next Big Opportunity? Why Wall Street Analysts Expect Multiyear Rally

Wells Fargo &amp; Company (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/WFC#NYSE">WFC</a>) shares are trading <a target="_blank" href="https://www.benzinga.com/movers" rel="noreferrer noopener">mostly flat on Friday.</a>
According to&nbsp;<a target="_blank" href="https://pro.benzinga.com/?gspk=YWRhbWVja2VydDUzMzY&amp;gsxid=zBMR4PKmcgBw" rel="noreferrer noopener">Benzinga Pro</a>, WFC stock has gained 71% in the past year. Investors can gain exposure to the stock via&nbsp;Invesco KBW Bank ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/KBWB#NASDAQ">KBWB</a>) and&nbsp;First Trust Nasdaq Bank ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/FTXO#NASDAQ">FTXO</a>).
Recently, the stock has seen marked strength following&nbsp;Donald Trump&#8217;s&nbsp;<a target="_blank" href="https://www.benzinga.com/economics/macro-economic-events/24/11/41772701/trumps-historic-return-7-ways-his-second-term-could-impact-the-us-economy" rel="noreferrer noopener">presidential election win</a>, as investors anticipate that his administration&#8217;s economic policies could create a<a target="_blank" href="https://www.benzinga.com/news/24/11/41977586/whats-going-on-with-wells-fargo-wfc-shares" rel="noreferrer noopener"> favorable climate for major banks.</a>
Trump&#8217;s tax agenda, which includes potential expansions to the&nbsp;2017 Tax Cuts and Jobs Act, could lower corporate tax rates further, directly boosting Wells Fargo&#8217;s earnings.
Today, Wells Fargo declared quarterly dividends on several of its preferred stock series,<a target="_blank" href="https://www.benzinga.com/pressreleases/24/11/b42006575/wells-fargo-company-declares-cash-dividends-on-preferred-stock" rel="noreferrer noopener"> payable on December 16, 2024.</a>
The company declared a quarterly dividend of $18.75 per share on its 7.50% noncumulative perpetual convertible Class A preferred stock, Series L. The stock has a liquidation preference of $1,000 per share. It trades on the New York Stock Exchange under the symbol &#8220;WFCPrL&#8221;. The dividend will be paid on December 16, 2024.
Also Read: <a target="_blank" href="https://www.benzinga.com/news/24/11/42006982/activist-investor-nelson-peltz-says-he-was-a-matchmaker-for-elon-musk-with-donald-trump" rel="noreferrer noopener">Activist Investor Nelson Peltz Says He Was &#8216;A Matchmaker&#8217; For Elon Musk With Donald Trump</a>
For Series Y, the dividend is $0.35156 per depositary share, with a liquidation preference of $25,000 per share.
For Series Z, the dividend is $0.29688 per depositary share, with a liquidation preference of $25,000 per share.
For Series AA, the dividend is $0.29375 per depositary share, with a liquidation preference of $25,000 per share.
For Series CC, the dividend is $0.27344 per depositary share, and for Series DD, it&#8217;s $0.26563 per depositary share, both with a liquidation preference of $25,000 per share.
Wells Fargo said shareholders must be on record by the close of business on November 29, 2024, to qualify for the dividend.
Price Action: WFC shares are trading higher by 0.81% to $73.39 at last check Friday.
Image via Shutterstock
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<li><a href="https://www.benzinga.com/news/24/11/41961033/gene-munster-says-elon-musks-doge-efficiency-plans-should-not-be-underestimated-but-warns-itll-likely-take-many-years-to-achieve-2-trillion-in-government-spending?itm_source=parsely-api" target="_blank" rel="noreferrer noopener">Gene Munster Says Elon Musk&#8217;s DOGE Efficiency Plans Should Not Be Underestimated, But Warns &#8216;It&#8217;ll Likely Take Many Years&#8217; To Achieve $2 Trillion In Government Spending Cuts</a></li>
</ul>

Dividends

Markets

General

Wells Fargo Declares Dividends On Six Series Of Preferred Stock: Details

Morgan Stanley (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MS#NYSE">MS</a>) shares are trading slightly lower in the morning session on Tuesday after gaining over 3% yesterday. In fact, shares of banks and financial services stocks are trading higher amid the 2024 U.S. presidential election results.
According to&nbsp;<a target="_blank" href="https://pro.benzinga.com/?gspk=YWRhbWVja2VydDUzMzY&amp;gsxid=zBMR4PKmcgBw" rel="noreferrer noopener">Benzinga Pro</a>, MS stock has gained over 76% in in the past year. Investors can gain exposure to the stock via&nbsp;iShares U.S. Broker-Dealers &amp; Securities Exchanges ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IAI#NYSE">IAI</a>) and Invesco KBW Bank ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/KBWB#NASDAQ">KBWB</a>).
Today, Morgan Stanley Expansion Capital disclosed an investment of $20 million in NovoPayment. The funding will help NovoPayment accelerate product and commercial growth. It will also strengthen NovoPayment&#8217;s <a target="_blank" href="https://www.benzinga.com//node/41901267" rel="noreferrer noopener">position in the banking and payment vertical SaaS market.</a>
Also Read: <a target="_blank" href="https://www.benzinga.com/markets/cryptocurrency/24/11/41784504/trumps-win-sends-indices-to-record-highs-financials-small-caps-surge-bitcoin-tops-75-000-w" rel="noreferrer noopener">Trump&#8217;s Win Sends Indices To Record Highs; Financials, Small Caps Surge, Bitcoin Tops $75,000: What&#8217;s Driving Markets Wednesday?</a>
Yesterday, investment funds managed by Morgan Stanley Capital Partners (MSCP) entered into an agreement to sell Sila Services to Goldman Sachs Alternatives. Financial details of the <a href="https://www.benzinga.com//node/41878999">deal were not disclosed.</a>
The transaction will see Sila&#8217;s management continue to lead the company, retaining a significant minority stake. Sila, headquartered in King of Prussia, Pennsylvania, provides residential HVAC, plumbing, and electrical services across the U.S. Northeast, Midwest, and Mid-Atlantic regions.
Sila Services was MSCP&#8217;s first investment and now its first exit in the growing distributed field services sector, a key part of its Business Services vertical.
Since investing in Sila, MSCP has expanded its portfolio with other distributed field services companies, including Fairway Services, Allstar Services, RowCal, and American Restoration.
Price Action: MS shares are trading lower by 0.99% to $132.20 at last check Tuesday.
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<li><a href="https://www.benzinga.com/news/earnings/24/11/41895937/wall-street-futures-show-weakness-as-investors-look-to-lock-in-gains-after-strong-post-election-rally-bull-market-sentiment-remains-intact-says-wharton-economist" target="_blank" rel="noreferrer noopener">Wall Street Futures Show Weakness As Investors Look To Lock In Gains After Strong Post-Election Rally: &#8216;Bull Market Sentiment Remains Intact,&#8217; Says Wharton Economist</a></li>
</ul>

What's Going On With Morgan Stanley Stock Today?

Bank Of America Securities analyst Ebrahim H. Poonawala raised the price target on Wells Fargo &amp; Company (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/WFC#NYSE">WFC</a>) from $75 to $84 <a href="https://www.benzinga.com/quote/wfc/analyst-ratings" target="_blank" rel="noreferrer noopener">while reiterating a Buy rating</a>.
A meeting with CEO Charlie Scharf and CFO Mike Santomassimo strengthened analysts&#8217; belief that the bank is on track to achieve high-teens return on average tangible common equity (ROTCE).
Poonawala says that, in the discussion, it was clear that management is now prioritizing franchise efficiency, focusing on areas like cost control, client wallet share, and market share expansion, after dedicating a significant portion of their attention to regulatory issues in recent years.
The management is confident that each of their four business segments can achieve top-tier returns, targeting a ROTCE between 16% and 19%, adds the analyst.
Additionally, management emphasized substantial growth prospects throughout the franchise, not just in capital markets, wealth management, and cards, writes the analyst.
Despite the stock&#8217;s strong performance so far this quarter, the analyst believes the removal of the 2018 asset cap will serve as a catalyst, attracting a new group of investors and potentially driving a re-rating of the stock's valuation.
Poonawala anticipates the asset cap removal to occur in early 2025, following the significant efforts made by management to address regulatory issues, most notably the earlier removal of the 2016 OCC consent order.
Overall, the analyst raised the FY25/26 EPS estimates by 4% to $5.64 and $7, respectively, implying a ROTCE of 15%+ and 16%+ by 2026.
The analyst expect more upside potential, as consensus overestimates credit costs and underestimates fee growth.
Investors can gain access to the stock via&nbsp;First Trust Nasdaq Bank ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/FTXO#NASDAQ">FTXO</a>)&nbsp;and&nbsp;Invesco KBW Bank ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/KBWB#NASDAQ">KBWB</a>).
Price Action: WFC shares are up 4.28% at $73.04 at the last check Monday.
Read Next:
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<li><a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/11/41883820/trump-trade-sparks-biggest-financial-stock-inflows-in-2-years" target="_blank" rel="noreferrer noopener">Trump Trade Sparks Biggest Financial Stock Inflows In 2 Years</a></li>
</ul>
Image: Shutterstock

Bank Of America Predicts Positive Stock Re-Rating For Wells Fargo After Asset Cap Removal

Bank of America Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BAC#NYSE">BAC</a>) shares are trading lower premarket on Monday after the firm stated that it is streamlining foreign exchange (FX) risk management for <a href="https://www.benzinga.com/markets/forex">cross-currency payments and receipts</a>.
The bank introduced Guaranteed FX Rates of up to one year. That&#8217;s the <a href="https://www.benzinga.com/pressreleases/24/10/n41419853/bofa-extends-guaranteed-fx-rates-up-to-1-year" target="_blank" rel="noreferrer noopener">longest tenor in the industry</a>, Bank of America says. This solution will help companies reduce exposure to currency fluctuations and simplifies treasury management tasks like forecasting and reconciliation.
This year marks the eighth anniversary of Bank of America&#8217;s introduction of Guaranteed FX Rates beyond a 24-hour tenor.
The solution has evolved to support over 200 currency pairings and multiple tenors, with demand driving an increase in eligible currencies.
The one-year tenor is now available for 37 currency pairs, including high-volume pairs like USD/MXN, EUR/USD, USD/CAD, GBP/USD, EUR/CZK, and AUD/USD.
&#8220;For corporate treasurers, volatile FX markets exacerbate the challenge of cash flow forecasting,&#8221;&nbsp;said&nbsp;Daniel Stanton, head of Transactional FX in Global Payments Solutions at Bank of America said,&nbsp;&#8220;Securing guaranteed FX rates of longer tenors can help them improve forecasting, which will lead to better informed decision-making.&#8221;
Notably, clients who adopted the Guaranteed FX Rates in 2024 have contributed over 20% to year-to-date volume growth.
Recently, Bank of America reported a third-quarter net income of $6.9 billion, beating estimates with EPS of $0.81, though <a target="_blank" href="https://www.benzinga.com/news/earnings/24/10/41330174/bank-of-america-q3-earnings-profit-drops-12-on-loan-loss-provisions-investment-banking-fees-soar-18" rel="noreferrer noopener">down 12% YoY due to rising expenses</a>.
Investors can gain access to the stock via&nbsp;First Trust Nasdaq Bank ETF&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/FTXO#NASDAQ">FTXO</a>)&nbsp;and&nbsp;Invesco KBW Bank ETF&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/KBWB#NASDAQ">KBWB</a>).
Price Action: Bank of America shares are down 0.21% at $42.23 premarket at the last check Monday.
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Image: Shutterstock

Bank Of America Unveils Longest Foreign Exchange Rate Guarantee

Bank of America Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BAC#NYSE">BAC</a>) shares are trading higher on Thursday. The company launched SafeBalance <a target="_blank" href="https://www.benzinga.com/pressreleases/24/09/n41044248/from-piggy-bank-to-family-banking-bofa-launches-new-solution-to-help-parents-raise-financially-sav" rel="noreferrer noopener">Banking for Family Banking</a>.
This is a new account that equips parents with tools and resources to help their children develop healthy financial habits and manage their money through a secure digital experience.
This solution allows parents to open accounts for their children under 16 and will include additional enhancements next year.
The bank launched Family Banking in Connecticut, Maine, and Rhode Island, with plans for nationwide availability by December.
Also Read: <a target="_blank" href="https://www.benzinga.com/news/large-cap/24/09/40902762/bank-of-america-appoints-executives-to-lead-new-venture-report" rel="noreferrer noopener">Bank Of America Appoints Executives To Lead New Venture: Report</a>
Mary Hines Droesch, Head of Product for Consumer, Business and Wealth Management Banking and Lending at Bank of America, said, &#8220;For many parents, it can be hard to find the right financial tools and resources that can also instill positive financial habits in their children.&#8221;&nbsp;
&#8220;Family Banking offers the foundation young people need for managing money, with support for parents seeking to help their children on the path to financial health and independence.&#8221;
This week, Bank of America disclosed that it is on track to launch over 165 new centers in 63 markets by the end of 2026,&nbsp;including <a target="_blank" href="https://www.benzinga.com//node/40983831" rel="noreferrer noopener">nearly 40 centers this year</a>.
Investors can gain access to the stock via&nbsp;First Trust Nasdaq Bank ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/FTXO#NASDAQ">FTXO</a>)&nbsp;and&nbsp;Invesco KBW Bank ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/KBWB#NASDAQ">KBWB</a>).
Price Action: BAC shares are up 0.46% at $39.43 at the last check Thursday.
Photo via Shutterstock
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</ul>

Bank Of America's New Banking Account Helps Parents Teach Kids Money Management: Details

Bank of America Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BAC#NYSE">BAC</a>) said it is on track to launch over 165 new centers in 63 markets by the end of 2026,<a href="https://www.benzinga.com/pressreleases/24/09/n40977123/bofa-to-open-more-than-165-financial-centers-by-end-of-2026" target="_blank" rel="noreferrer noopener"> including nearly 40 centers this year</a>.
This expansion follows the opening of more than 100 centers in the last two years.
Bank of America is expanding its retail banking presence in Kentucky with the opening of its first financial center in the Louisville area today, followed by a second center set to open on October 7.
The bank plans to establish a total of five financial centers in the Louisville market by the end of 2025.
This latest expansion will increase Bank of America&#8217;s total number of financial centers in Kentucky to 10 by the end of 2027.
Since 2014, Bank of America has invested over $5 billion in growing its financial center network by opening locations in new and existing markets nationwide.
This month, Bank of America appointed Jim Rourke and Michael Liu to lead a new initiative integrating <a target="_blank" href="https://www.benzinga.com/news/large-cap/24/09/40902762/bank-of-america-appoints-executives-to-lead-new-venture-report" rel="noreferrer noopener">investment banking and wealth management</a>.
The Private Client Partnership Development aims to boost asset growth and deal opportunities, focusing on sell-side M&amp;A.
Investors can gain access to the stock via&nbsp;First Trust Nasdaq Bank ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/FTXO#NASDAQ">FTXO</a>)&nbsp;and&nbsp;Invesco KBW Bank ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/KBWB#NASDAQ">KBWB</a>).
Price Action: BAC shares are down 0.53% at $40.06 at the last check Monday.
Image via Shutterstock
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</ul>

Bank Of America Ramps Up Expansion: Over 165 New Financial Centers Set To Open Across 63 US Markets By 2026

Wells Fargo &amp; Company (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/WFC#NYSE">WFC</a>) shares are trading higher on Tuesday. The company launched specialized Application Programming Interfaces (APIs) for its Commercial <a href="https://www.benzinga.com/pressreleases/24/09/b40899845/wells-fargo-expands-api-capabilities-for-its-commercial-banking-business" target="_blank" rel="noreferrer noopener">Banking clients, expanding its API portfolio</a>.
These APIs offer real-time data access aimed at boosting sales, improving liquidity, reducing credit risk, and cutting expenses for floorplan and channel finance clients across several industries.
Wells Fargo&#8217;s API platform allows manufacturers, distributors, and dealers to seamlessly connect through their preferred systems. Automatic updates flow between trading partners, eliminating the need for manual data entry or file transfers, providing clients with instant access to crucial business insights.
Daniel Pfeiffer, head of Wells Fargo Global Receivables, Trade, and Inventory Finance, said, &#8220;By expanding our API technology, we took a step forward in taking out the complexity of navigating various systems allowing clients to embed the functionality they need to manage their inventory and processes in their system of choice.&#8221;
Reetika Grewal, Wells Fargo&#8217;s head of Digital for Commercial Banking and Corporate &amp; Investment Banking stated, &#8220;This expansion of our portfolio will allow our clients to be even more connected to the platforms they are using and ensure they have an end-to-end view that can streamline their business operations and provide information at a faster speed.&#8221;
This month, the U.S. Office of the Comptroller of the Currency (OCC) entered into a formal agreement with the company as related to its anti-money laundering (AML) and&nbsp;<a target="_blank" href="https://www.benzinga.com/government/24/09/40842814/wells-fargo-reaches-agreement-with-us-bank-regulatory-agency-about-anti-money-laundering-financial-c" rel="noreferrer noopener">sanctions risk management practices</a>.&nbsp;
Investors can gain access to the stock via&nbsp;First Trust Nasdaq Bank ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/FTXO#NASDAQ">FTXO</a>)&nbsp;and&nbsp;Invesco KBW Bank ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/KBWB#NASDAQ">KBWB</a>).
Price Action: WFC shares are up 2.26% at $55.01 at the last check Tuesday.
Image via Shutterstock
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</ul>

Wells Fargo Launches New APIs To Boost Efficiency And Productivity: Details

Bank of America Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BAC#NYSE">BAC</a>) shares are trading higher on Tuesday. The bank appointed two executives to spearhead a new initiative aimed at integrating its investment banking and <a href="https://www.benzinga.com/topic/wealth-management">wealth management divisions</a>.
The bank targets increased asset growth and deal opportunities, as <a target="_blank" href="https://www.bloomberg.com/news/articles/2024-09-16/bofa-names-leaders-to-better-align-investment-bank-wealth-units?sref=TBDibEcD" rel="noreferrer noopener">reported </a>Bloomberg.
Jim Rourke and Michael Liu have been appointed to&nbsp;lead the newly named Private Client Partnership Development.
Read: <a href="https://www.benzinga.com/markets/equities/24/09/40729471/bank-of-america-makes-largest-ever-investments-in-carbon-capture-bets-205m-on-a-cleaner-planet-r" target="_blank" rel="noreferrer noopener">Bank Of America Makes Largest-Ever Investments In Carbon Capture, Bets $205M On A Cleaner Planet</a>
Brendan Hanley&nbsp;and&nbsp;Sam Kumar, co-heads of emerging growth and regional coverage, stated that Rourke and Liu will focus on sell-side M&amp;A opportunities to "increase the quality of actionable mandates and growth of managed assets,".
This month, the bank announced a bold wage hike, driving its minimum hourly rate&nbsp;to $24 and<a target="_blank" href="https://www.benzinga.com/markets/equities/24/09/40792082/whats-going-on-with-bank-of-america-stock-on-tuesday" rel="noreferrer noopener"> edging closer to a $25 goal by 2025</a>.
This increase will raise the minimum annual salary for full-time U.S. employees to almost $50,000 and applies to all full-time and part-time hourly roles.
Investors can gain access to the stock via&nbsp;First Trust Nasdaq Bank ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/FTXO#NASDAQ">FTXO</a>)&nbsp;and&nbsp;Invesco KBW Bank ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/KBWB#NASDAQ">KBWB</a>).
Price Action: BAC shares are up 0.30% at $39.22 premarket at the last check Tuesday.
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</ul>

Management

Bank Of America Appoints Executives To Lead New Venture: Report

Wells Fargo &amp; Company (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/WFC#NYSE">WFC</a>) shares are trading higher on Friday. On Thursday, the U.S. Office of the Comptroller of the Currency (OCC) entered into a formal agreement with the company as related to its anti-money laundering (AML) <a target="_blank" href="https://benzinga.com/government/24/09/40842814/wells-fargo-reaches-agreement-with-us-bank-regulatory-agency-about-anti-money-laundering-financial-c" rel="noreferrer noopener">and&nbsp;sanctions risk management practices</a>.
Wells Fargo issued a statement Thursday announcing a new agreement, which will require enhancements to the bank&#8217;s AML and sanctions risk management practices, obtaining the OCC&#8217;s acceptance of Wells Fargo&#8217;s program for assessing the AML and sanctions risks of new offerings and providing notice to the OCC before expanding certain of those offerings.&nbsp;
Goldman Sachs analysts Richard Ramsden and James Yaro write that it appears that Wells Fargo has been aware of the issues related to this enforcement action for some time, so they don&#8217;t expect it to affect their <a target="_blank" href="https://www.benzinga.com/quote/WFC/analyst-ratings" rel="noreferrer noopener">2024 expense outlook significantly</a>.
Based on past cases, if Wells Fargo resolves the control deficiencies within the OCC&#8217;s timeline, it&#8217;s unlikely to escalate to a more serious consent order, which could involve civil penalties and stricter business limitations, per the analysts.
Analysts say that while the agreement restricts WFC from expanding into products or services with medium or high BSA/AML risk without approval, they don&#8217;t foresee a material impact on their near-term growth.
RBC Capital Markets analyst Gerard Cassidy writes that although this news is unexpected and AML issues are serious, often involving fines, lengthy resolutions, and high costs, they don&#8217;t believe this agreement will affect the chances of lifting the Federal Reserve&#8217;s 2018 Cease and Desist (C&amp;D) order and asset cap.
The C&amp;D order is focused on WFC&#8217;s consumer banking issues, while today&#8217;s agreement addresses separate AML concerns, adds the analyst.
Last month, Wells Fargo planned to sell its non-agency third-party commercial mortgage servicing segment to <a target="_blank" href="https://www.benzinga.com/markets/equities/24/08/40468566/whats-going-on-with-wells-fargo-stock-tuesday" rel="noreferrer noopener">Trimont</a><a target="_blank" href="https://www.benzinga.com/markets/equities/24/08/40468566/whats-going-on-with-wells-fargo-stock-tuesday" rel="noreferrer noopener">, closing in early 2025</a>.
Investors can gain access to the stock via&nbsp;First Trust Nasdaq Bank ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/FTXO#NASDAQ">FTXO</a>)&nbsp;and&nbsp;Invesco KBW Bank ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/KBWB#NASDAQ">KBWB</a>).
Price Action: WFC shares are up 1.48% at $52.33 at the last check Friday.
Image via Shutterstock
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Legal

Wells Fargo's Anti-Money Laundering Compliance: Analysts See Minimal Impact on Growth Despite Regulatory Hurdles

Bank of America Corp (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BAC#NYSE">BAC</a>)&nbsp;CEO Brian Moynihan <a href="https://www.benzinga.com/markets/equities/24/09/40792082/whats-going-on-with-bank-of-america-stock-on-tuesday">praised Warren Buffett</a> on Tuesday as an investor in the company, but said he has not asked the legendary investor why he has lowered his position in Bank of America.
&#8220;He has been a great investor for our company, stabilized our company,&#8221; Moynihan said about Buffett during an investor conference in New York, Reuters reported. &#8220;I don&#8217;t know what exactly he is doing because frankly we can&#8217;t ask.&#8221;
Buffett&#8217;s Berkshire Hathaway (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BRK#NYSE">BRK</a>) the biggest shareholder in BofA,&nbsp;has been reducing its stake in the U.S. bank, making total share sales since mid-July of nearly $7 billion.
Berkshire&#8217;s stake in Bank of America stands at about 11.1%, according to LSEG data.
Read Also: <a href="https://www.benzinga.com/general/education/24/09/40795866/warren-buffetts-sister-lost-every-game-of-monopoly-all-my-money-was-gone-but-she-says-she-train">Warren Buffett&#8217;s Sister Lost Every Game Of Monopoly — &#8216;All My Money Was Gone,&#8217; But She Says She &#8216;Trained Him To Be A Winner&#8217;</a>
Moynihan also discussed the proposed changes in capital rules after the Federal Reserve Chairman Jerome Powell laid out a plan on Tuesday to raise big bank capital by 9%, significantly reducing an earlier proposal after intense Wall Street pushback.
Moynihan said the proposed changes are manageable for Bank of America, and it will keep buying back stock, but warned that higher capital requirements for large banks could reduce lending.
&#8220;If our capital goes up by 10%, it stops us from making $160 billion (in) loans we would otherwise make. Those loans would go to small businesses and middle-market companies at competitive rates,&#8221; he said.
Speaking about performance in the third quarter, he said investment banking revenue could be around $1.2 billion, a slight uptick from $1.18 billion in revenue posted in the same quarter a year earlier.
BAC Price Action: Bank of America fell 0.48% to close at $39.28 on Tuesday.
Exchange-traded funds that hold the stock also trended downward.
<ul>
<li>First Trust Nasdaq Bank ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/FTXO#NASDAQ">FTXO</a>) fell 1.71%</li>
<li>Invesco KBW Bank ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/KBWB#NASDAQ">KBWB</a>) slipped 1.83%</li>
<li>IShares U.S. Financial Services ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IYG#NYSE">IYG</a>) declined 1.11%</li>
</ul>
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Photo: Brian Moynihan, Bank of America at World Economic Forum (WEF), Courtesy WEF via <a href="https://www.flickr.com/photos/worldeconomicforum/52095722888/in/photolist-2nnwcqL-RdLSNL-RdLSFm-2nnw5nq-SrPEcd-RgrMo6-7z8ezp-E4BHQD-RdLSMU-RdLSyN-2nnwcc4-SrPEbw-RdLSKE-SrPEd5-2nnV7BY-RgrMka-brGbFG-Svu93D-2nnwcb2-SrPEbb-SrPE9h-2nnNBgZ-SrPEau-RdLSPC-nAFmrs-aZcfDv-R8p38P-2nnV7AL-2bXeSgX-2nnwc1h-brHePm-2nnwbW9-2bXeW4g-2nnxi6n-2bXeZA6-2kwL7x3-2nxZQGK-brKH3j-2nsCzDU-JLFmTp-2jF3WQC-aUGnoR-22CQiXy-6JF8ms-2nsDn2n-E4vGw8-2nWZRuR-bDD5W1-bDD6uo-2nX1NAZ">Flickr</a> Creative Commons

iShares Trust Dow Jones US Financial Services Index Fund

Bank Of America CEO On Buffett's Share Retreat: 'I Don't Know What Exactly He Is Doing ... We Can't Ask'

The Goldman Sachs Group, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GS#NYSE">GS</a>) shares are trading lower premarket Tuesday. On Monday, the company&#8217;s CEO, David Solomon, reportedly stated that trading revenue will likely fall by 10% in the third quarter due to sluggish conditions last month.
However, Solomon noted that investment banking is improving, although activity from financial sponsors hasn&#8217;t rebounded as expected. He remains optimistic that private equity-led deals will recover by the end of this year and into 2025, reported Reuters.
According to Solomon, Goldman Sachs is narrowing its focus on the consumer business. The CEO highlighted the bank&#8217;s sale of loans to small and medium-sized businesses and its plan to exit a credit card partnership with General Motors as examples of its retreat from retail sectors, a strategy that started in late 2022.
Solomon said, &#8220;The combination of those things this quarter will likely have an approximately $400 million pre-tax impact, largely showing up in revenues.&#8221;
In July, the bank reported sales increased&nbsp;17%&nbsp;Y/Y, reflecting higher net revenues in Global Banking and markets and Asset and wealth Management. Also, the U.S. financial services giant reported GAAP EPS of&nbsp;$8.62,&nbsp;<a target="_blank" href="https://www.benzinga.com/earnings" rel="noreferrer noopener">beating the consensus of&nbsp;$8.35</a>.
Goldman Sachs plans to cut over 1,300 employees from its global workforce in an annual review to eliminate low performers, <a target="_blank" href="https://www.wsj.com/finance/banking/goldman-sachs-to-lay-off-over-1-300-workers-f1d92b88?mod=latest_headlines" rel="noreferrer noopener">WSJ</a> reported in August.
Investors can gain exposure to the stock via&nbsp;iShares U.S. Broker-Dealers &amp; Securities Exchanges ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IAI#NYSE">IAI</a>) and&nbsp;Invesco KBW Bank ETF&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/KBWB#NASDAQ">KBWB</a>).
Also Read: <a target="_blank" href="https://www.benzinga.com/markets/cryptocurrency/24/08/40484078/goldman-sachs-warns-against-misinterpreting-wednesdays-us-jobs-data-as-crypto-markets-hold" rel="noreferrer noopener">Goldman Sachs Warns Against Misinterpreting Wednesday&#8217;s US Jobs Data As Crypto Markets Hold Their Breath</a>
Price Action: GS shares are down 0.57% at $485.80 premarket at the last check Tuesday.
Photo via Shutterstock
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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