Top brass from JPMorgan and BlackRock, among the firms to kick off earnings season with their results, said Tuesday that they expect more consolidation in the wealth- and asset-management industries.
Pressures on money managers have fueled a flurry of acquisitions in those areas this year, and analysts questioned executives about their own deal ambitions, albeit coming from different corners of the market.
JPMorgan boss Jamie Dimon said the bank would be “very interested” in deals in that space, and BlackRock finance chief Gary Shedlin said the firm was focused on targets that could expand its technology, global distribution, and private markets capabilities.
Last week, Morgan Stanley said it would buy investment manager Eaton Vance in a deal valued at $7 billion just days after it closed on its E-Trade acquisition.
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Top brass at the world’s largest asset manager and largest US bank told
Stock indexes were modestly lower Tuesday after a big Monday for technology shares. There was some bad news on the Covid-19 vaccine front and little progress toward a fiscal stimulus bill in Washington, but most of Tuesday’s action was on the individual stock level, as third-quarter earnings season kicks off.
On Tuesday morning, the
Dow Jones Industrial Average
fell 110 points, or 0.4%, the
also dipped 0.4%, and the
ticked down less than 0.1%.
It was a contrast to Monday, when stocks jumped on little news during a light Columbus Day holiday and the technology-heavy Nasdaq rallied 2.6% to its third-highest close in history.
Contributing to the lackluster trading on Tuesday was an announcement from
Johnson & Johnson
(ticker: JNJ) on Monday night that it paused its trial of a coronavirus vaccine after an unexplained illness in a trial participant.
Here are five things you must know for Tuesday, Oct. 13:
1. — Stock Futures Waver After J&J Vaccine Trial Pause
Stock futures fluctuated Tuesday following a setback in a coronavirus vaccine trial being conducted by Johnson & Johnson (JNJ) – Get Report and as Wall Street prepared for the start of earnings season.
Contracts linked to the Dow Jones Industrial Average fell 106 points, S&P 500 futures slipped 9 points and Nasdaq futures rose 29 points.
Johnson & Johnson paused its trial of a vaccine for Covid-19, the disease caused by the coronavirus, following an unexplained illness in a patient.
The healthcare giant said the trial participant’s illness was being reviewed and evaluated.
“We are committed to providing transparent updates throughout the clinical development process of our vaccine candidate, in compliance with regulatory standards and our own high ethical and scientific principles,” J&J said in a statement.
The inner view of Shenzhen Stock Exchange as the first batch of registration-based initial public offerings (IPOs) of 18 enterprises are about to debut on the ChiNext board on August 23, 2020 in Shenzhen, Guandong Province of China.
VCG | VCG via Getty Images)
SINGAPORE — As China continues to push toward further reforms in its financial markets, one of the changes the country made was to revamp listing rules for the ChiNext start-up board.
The move has benefited small and medium-sized businesses, as well as technology firms, according to Chaoping Zhu, a global market strategist at JPMorgan Asset Management.
“Based on the current development in the market, we find that it has been easier for companies to get listed in the stock market since the registration system was adopted,” Zhu told CNBC in an email.
“The major beneficiaries are SMEs (small and medium-sized enterprises) and innovative tech companies,” he
Chicago, IL – September 28, 2020 – Zacks.com releases the list of companies likely to issue earnings surprises. This week’s list includes JPMorgan Chase & Co. JPM, Citigroup Inc. C, PepsiCo, Inc. PEP and Micron Technology, Inc. MU.
Handicapping Q3 Earnings Season
The overall earnings picture has been steadily improving over the last three months as big parts of the U.S. economy have started coming out of the pandemic-driven lockdown. The market will be looking for this improving earnings trend to accelerate in the Q3 earnings season.
The wide majority of companies have fiscal quarters that correspond with the calendar quarters, which is September 30th for Q3. These calendar-quarter companies will start reporting Q3 results after September 30th. Back in the day when Alcoa was in all the major indexes, the aluminum producer was generally seen as kick-starting quarterly reporting cycles.
(Bloomberg) — Safe-haven assets seen as traditional hedges aren’t panning out as they once did, according to JPMorgan Chase & Co.
Easy-money policies may actually be keeping investors in cash and away from other traditional buffers, strategists led by John Normand wrote in a note Friday. That’s because such policies create a zero-yield environment where cyclical assets might be too difficult to hedge, they said.
This kind of conservative mindset may not become popular enough to affect the direction of risky markets, but it could discourage investors from deploying their cash into other asset classes, the strategists said.
“Defensive assets are delivering their weakest performance and therefore worst hedge protection of any equity sell-off in at least a decade,” Normand said. “The wall of cash some hypothesize will inevitably flow into equity, credit and EM may remain very high indefinitely.”