Business and Finance News - 7.17.24

Author

Skool Projekt Staff
July 17, 2024

 

Good Morning, Students!

 

Amortization is the process of gradually paying off a debt over a specified period through regular, scheduled payments. Each installment typically includes both interest and a portion of the principal amount, ensuring that the debt decreases progressively over time. This structured repayment method allows borrowers to manage their debt efficiently and predictably, ultimately leading to the full repayment of the loan by the end of the term.

 

Accelerate your amortization schedule to pay off debt faster and save on interest.

 

-Mr. W

 

TOP STORIES

Bank of America Q2 Profit Beats Estimates: Investment Banking, Trading Drive 4% Stock Surge Amid Higher Deposit Costs

  • Bank of America second-quarter profit dropped due to higher deposit costs lowering interest income.

  • Results beat analysts' estimates, driven by investment banking and trading.

  • Shares rose over 4% after better-than-expected net interest income forecast.

  • CEO Brian Moynihan cited growth in new consumer checking accounts for 22 consecutive quarters.

  • Investment banking fees increased 29% to $1.6 billion in the second quarter.

  • Underwriting income surged 32%, and syndication fees jumped 77% in Q2.

  • Sales and trading revenue grew 7% to $4.7 billion, increasing for the ninth consecutive quarter.

*Bank of America (BA) - Bank of America is a multinational financial institution that provides a wide range of banking and financial services to individuals, businesses, and institutions.

 

Charles Schwab Shares Drop 9% as Q2 Earnings Miss Key Metrics Despite Slight EPS Beat and Revenue in Line

  • Shares of Charles Schwab dropped 9% after quarterly earnings missed key metrics.

  • Schwab reported Q2 earnings per share of 73 cents, slightly above analysts’ estimates.

  • Revenue matched estimates at $4.7 billion for the second quarter.

  • Bank deposits fell 17% year over year to $252.4 billion.

  • Net interest revenue dropped 6% to $2.16 billion, below expectations.

  • New brokerage accounts decreased 10% from the first quarter to 985,000.

  • Schwab's supplemental funding increased to $73.7 billion due to redirected client cash.

*Charles Schwab (SCHW) - Charles Schwab is a financial services company that offers a broad range of investment and banking services, including brokerage accounts, financial advisory, retirement planning, wealth management, and trading platforms for individual investors and institutions.

 

Hugo Boss Shares Plunge 10% After Sales Outlook Cut Amid Macroeconomic Challenges in China and UK

  • Hugo Boss shares fell up to 10% after cutting its sales outlook.

  • Full-year sales expected to be up to 4.35 billion euros, down from 4.45 billion euros.

  • Revised outlook due to macroeconomic and geopolitical challenges, especially in China and the UK.

  • Second-quarter group sales fell 1% to 1.02 billion euros, mainly in Asia and Europe.

  • Second-quarter operating profit dropped 42% year-on-year to 70 million euros.

  • Hugo Boss expects a return to profitable growth in the second half of the year.

  • Other luxury brands like Burberry and LVMH also reported slowdowns in sales.

*Hugo Boss (BOSS) - Hugo Boss is a luxury fashion and lifestyle brand that designs, manufactures, and markets a wide range of high-quality apparel, accessories, and fragrances for men and women.

 

Morgan Stanley Surpasses Q2 Estimates with 41% Profit Surge, Despite Mixed Wealth Management Performance

  • Morgan Stanley reported earnings of $1.82 per share, surpassing the $1.65 estimate.

  • Revenues of $15.02 billion exceeded the $14.3 billion estimate.

  • The bank's profit surged 41% to $3.08 billion, bolstered by a rebound in Wall Street activity.

  • Second-quarter revenue increased by 12% to $15.02 billion, reflecting strong performance.

  • Wealth management revenue rose by 2% to $6.79 billion, falling short of the $6.88 billion estimate.

  • Interest income in the wealth management division dropped 17% to $1.79 billion due to clients shifting assets to higher-yielding options.

  • Investment banking revenue surged 51% to $1.62 billion, driven by increased fixed income underwriting activities.

*Morgan Stanley (MS) - Morgan Stanley is a leading global financial services firm that offers a wide range of investment banking, securities, wealth management, and investment management services.

 

June Retail Sales Flat Due to Gas Price Drop and Auto Cyberattack; Excluding Autos and Gas, Sales Up 0.8%

  • Retail sales were flat in June due to declines in gasoline prices and a cyberattack in the auto sector.

  • Stripping out autos and gas, retail sales rose by a strong 0.8%.

  • Last month's retail sales did not increase from May, which had a revised 0.5% rise.

  • Gas station sales fell 3% in June due to plunging energy prices.

  • Vehicle and auto parts sales dropped 2% due to a cyberattack on auto dealers.

  • Retail sales at online retailers jumped nearly 2%, and homebuilding supply stores saw a 1.4% rise.

  • Sporting goods stores were the only other category with a slight sales decline of 0.1%.

 

THE MARKETS

Here’s how the markets closed yesterday:

 

Here’s how leading market ETFs did yesterday:

 

Here’s how the THE SUPER SIX STOCKS did yesterday:

Disclaimer: This content is not intended as financial guidance. The purpose of this newsletter is purely educational, and it should not be interpreted as an encouragement to engage in buying, selling, or making any financial decisions regarding assets. Exercise caution and conduct your own research before making any investment choices.