The stock market showed slight gains today as banks prepared to release their third-quarter earnings reports. Let's take a closer look at what to expect from some of the largest U.S. banks.
JPMorgan Chase (JPM)
JPMorgan Chase is set to announce its third-quarter earnings, which are expected to reach $3.95 per share, up from $3.12 per share in the same period last year. Analysts predict that a significant portion of the profit increase will be attributed to a 27% rise in net interest income, reaching $22.3 billion.
Wells Fargo (WFC)
Investors have their eyes on Wells Fargo as they anticipate the release of its quarterly earnings. The bank is projected to report earnings of $1.24 per share on revenue of $20.09 billion. Market watchers will be closely monitoring how interest rates and rising Treasury yields have influenced the San Francisco-based bank.
Citigroup is also scheduled to unveil its third-quarter numbers today. Forecasts suggest earnings of $1.23 per share, a decrease from $1.63 per share recorded last year. This report provides an opportunity for Citigroup to showcase the positive outcomes of its ongoing turnaround efforts.
Managed care company UnitedHealth is expected to announce third-quarter earnings of $6.32 per share, an improvement from $5.79 per share in the same quarter of the previous year. Analysts remain optimistic about the company's performance.
Additional earning reports are anticipated from BlackRock (BLK) and PNC Financial (PNC).
Microsoft's Acquisition of Activision Blizzard Approved by U.K. Regulators
Stay tuned for more updates as earnings season begins to unfold.
Dollar General Appoints Former CEO to Lead Discount Retailer
Dollar General (DG) has announced that Todd Vasos, the former chief executive, will be coming out of retirement to lead the discount retailer once again. Vasos previously served as CEO from June 2015 to November 2022 before stepping down and handing over the reins to Jeff Owen. In addition to this leadership change, Dollar General has adjusted its fiscal-year sales growth forecast to a range of 1.5% to 2.5%, compared to the previous range of 1.3% to 3.3%. As a result, the company's stock has seen a significant increase of 7.9%.
Smart Global Holdings Reports Decline in Fourth-Quarter Sales
Smart Global Holdings (SGH), a prominent computing and memory company, has revealed that its fiscal fourth-quarter sales have experienced a decline of 12.6%, amounting to $316.7 million. This figure falls short of analysts' expectations, which had forecasted sales of around $375 million for the quarter. Looking ahead, Smart Global Holdings expects sales from continuing operations in its fiscal first quarter to be around $275 million, with a margin of $25 million. Consequently, shares of Smart Global have witnessed a considerable drop of 27% in premarket trading.
Cassava Sciences Faces Setback Following Allegations of Scientific Misconduct
Cassava Sciences (SAVA) has encountered a significant setback as its stock plummeted by 24% in premarket trading. This decline comes after an investigation conducted by the City University of New York revealed accusations of scientific misconduct against neuroscientist Hoau-Yan Wang, who is both a faculty member and long-time Cassava collaborator. The allegations involve 20 research papers, many of which provided crucial support for Cassava's experimental Alzheimer's drug known as simufilam, according to a report published in Science.
LendingClub Implements Workforce Reductions
Amid ongoing macroeconomic headwinds, online lending and financial services platform LendingClub (LC) has announced plans to reduce its workforce by approximately 14%, affecting a total of 172 employees. This strategic action is being taken to address the challenges posed by higher interest rates and the resulting pressure in LendingClub's marketplace. Despite this news, shares of LendingClub have experienced a slight increase of 0.2% in premarket trading.
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