Connect with us

Markets & Finance

Financial market slips ahead of a speech from Federal Reserve President

The financial stocks slipped on Wednesday, moments before the speech of James Bullard, the president of St Louis Federal Reserve.  The SPDR Fund of the Financial Select Sector, used in the tracking of stocks in the Standard and Poor’s 500 (S&P 500), experienced a slip of 0.1%. During this slip, the Bank of America experienced a gain of almost 1.2%, which became the biggest gain in the DJIA (Dow Jones Industrial Average). J.P. Morgan Chase & Co was also among the top gainers in the Dow after it experienced a gain of 0.5%.

Financial marketMeanwhile, the United States government charged two people, formerly employees of the J.P. Morgan, over the a trading debacle known as London Whale which led to the bank loosing over $6 billion. The two employees, Julien Grout and Javier Martin-Artajo, who worked at the banks London offices, have been under investigation by the Justice Department on whether they tried to hide the losses in trading. Due to this huge loss, there was increased scrutiny from the investors and government and the salary of Jamie Dimon, the Chief Executive, was reduced by half. The government however declined to prosecute Bruno Iksil, another J.P. Morgan employee, according to reports in the media.

Elsewhere during the Wednesday slip of the stock market, Goldman Sachs Group Inc fell by 0.1% and Morgan Stanley fell by 0.3%, Citigroup Inc rose by 0.3% in the early period of trading. Subsequently after their 2nd quarter earnings, analysts of the Morgan Stanley Bank made public their ideas for top investments with their top 2 picks being Bank of America and J.P. Morgan. Bank of America experienced a growth in the top-line with the costs experiencing a great reduction. The earnings-per-share estimates for J.P. Morgan were raised by 2 percent for the year 2013 and by 3% for the year 2014 by the analysts on a lower net charge based on the good credit that is shooting from the housing market that is improving.

The financial market experienced a strong 2nd quarter and according to the Morgan Stanley Report, 91% of all the firms came in or were above the estimates of the earnings. Positive comments on the improvements in the commercial real estate, housing and the slow though with a better potential loan growth were received from the analysts.  The analysts were also optimistic on many sectors of the financial market including the mid-cap banks, large-cap banks, specialty finance, alternative asset managers and life insurance. Among the top picks for investments by the analysts were Prudential Financial Inc, First Republic Bank and Blackstone Group L.P.

Elsewhere in other news, Carl Icahn, an activist investors posted tweets saying he held a big position in leading Smartphone Company Apple Inc. The investor also claimed that Apple had been undervalued extremely. The billionaire investor, well known for his corporate raids during the 1980s said that he wanted a bigger share of the iPhone maker’s buyback. The investor spoke to Tim Cook, the Chief Executive Officer, saying that he planned to make another statement soon.

Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Recent Posts

Tech13 hours ago

Top mCommerce Development Company in India

The current pandemic of COVID-19 has made us realize the need for mobile applications for our business. In today’s time,...

Why Localization Testing Is Becoming Necessary For Applications Why Localization Testing Is Becoming Necessary For Applications
Tech4 days ago

Why Localization Testing Is Becoming Necessary For Applications

Many organizations are trying to expand beyond the local boundaries and move towards globalization. Finding relevant customer base, setting up...

Online Job Ideas to Earn Money As A Student or Unemployed Person beyond COVID19 Online Job Ideas to Earn Money As A Student or Unemployed Person beyond COVID19
Business5 days ago

Online Job Ideas to Earn Money As A Student or Unemployed Person beyond COVID19

Many students and unemployed people are searching online about the ways to make money online in various countries.  After the...

Health Informatics – The Strong Future of Healthcare Health Informatics – The Strong Future of Healthcare
Health3 weeks ago

Health Informatics – The Strong Future of Healthcare

“The art of medicine consists of amusing the patient while nature cures the disease.” – Voltaire Check across any industry...

Big Things A Digital Marketing Business Conducts Big Things A Digital Marketing Business Conducts
Entrepreneur3 weeks ago

Is Your Small Business Ready For Its 2020 Budget?

A small business may not be able to take on large corporations in terms of figures on the paper, but...

Garden Shed Buying Guide Garden Shed Buying Guide
Home Improvement3 weeks ago

Garden Shed Buying Guide

Are you searching for the best and attractive solution for storing the extra items of the house? Do you also...

6 Most Common Gynaecology Surgeries and Procedures 6 Most Common Gynaecology Surgeries and Procedures
Health3 weeks ago

6 Most Common Gynaecology Surgeries and Procedures

Have you been advised by your Singapore gynaecologist that to further examine a GYN problem, you need a procedure?  You...

3 Keys if You Want to Look Better 3 Keys if You Want to Look Better
Health4 weeks ago

3 Keys If You Want to Look Better

Are you generally happy with your look these days? In the event you said no, what steps can you take...

What Can You Do to Strengthen Your Business What Can You Do to Strengthen Your Business
Business4 weeks ago

What Can You Do to Strengthen Your Business?

Operating a business means you have a lot of weight on your shoulders to say the least. With that in...

Should You Buy Real Estate At The End Of 2020 Should You Buy Real Estate At The End Of 2020
Investments4 weeks ago

Should You Buy Real Estate At The End Of 2020

Experts analyzed the prospects and possible scenarios for the development of events. Residents of the US are warned about the...

How To Be A Confident Person How To Be A Confident Person
Life Hacks4 weeks ago

How To Be A Confident Person

Attractive, confident, funny, charismatic. These are some characteristics that define an alpha individual. While we all know what the goal...

Why Do Cats Get Diarrhea? Why Do Cats Get Diarrhea?
Pets1 month ago

Why Do Cats Get Diarrhea?

If you’re a pet owner, then you’ll know that one of the most common problems you need to deal with...

Common Reasons For Visiting An Orthopaedic Surgeon Common Reasons For Visiting An Orthopaedic Surgeon
Health1 month ago

Common Reasons For Visiting An Orthopaedic Surgeon

Have you suffered regular knee or back pain? Do you feel tired or stiff for a long time after resting...

Best Wholesale Beauty Product Suppliers In 2020 Best Wholesale Beauty Product Suppliers In 2020
Business1 month ago

Best Wholesale Beauty Product Suppliers In 2020

Beauty products include a range of goods that are used to care and enhance the appearance of your face, hair,...

Understanding The Benefits and Uses Of Reusable, Washable Breast Pads Understanding The Benefits and Uses Of Reusable, Washable Breast Pads
General1 month ago

Understanding The Benefits and Uses Of Reusable, Washable Breast Pads

Breast pads are every mother’s best friend post the delivery. They’ve been a lifeline for various reasons and from numerous...

Categories

Archives

Trending