Bank Earnings Help Market Back From Overnight Dip, With Amazon Prime Day, Apple Event Next

Key Takeaways:

  • Earnings season gets started with strong results from two major banks
  • JP Morgan and Citigroup
    C
    both beat analysts’ estimates, helped by trading revenue
  • Apple
    AAPL
    and Amazon
    AMZN
    keep focus on FAANGs as Prime Day, iPhone event ahead

Wave the green flag. Earnings season is underway.

It all got started today with JP Morgan Chase (JPM) and Citigroup (C) delivering fresh sets of results hot off the press. The overall market has a mixed tone, with Nasdaq 100
NDAQ
(NDX) futures higher but other indices trending lower overnight after yesterday’s incredible rally.

It’s the start of Amazon’s (AMZN) Prime Day, and Apple (AAPL) has an event later where it’s expected to reveal its new iPhones.

Major indices took a bump down early last night after Johnson & Johnson
JNJ
(JNJ) paused its Covid-19 vaccine trial due to an “unexplained illness,” but now it looks like JPM is helping bring us back.

Bank Earnings Solid Across the Board

JPM beat Wall Street’s average top- and bottom-line estimates and saw shares rise slightly in pre-market trading.

On the earnings side, JPM’s Q3 tally of $2.92 came in way above the average estimate of $2.23, while revenue of $29.94 billion was about $1 billion more than analysts had expected. To double profits from the previous quarter is amazing. Revenue was down year over year, but not by much.

One thing many had expected was strong results from JPM’s trading business, and those didn’t disappoint. Fixed income trading revenue rose 29% and stock trading revenue rose 32%. Not bad at all, and a reflection of continued volatility in the market that’s likely to help all the big investment banks.

The most surprising news was JPM setting aside just $611 million for possible loan losses, down from about

Snowflake Rated Buy at Deutsche Bank, Piper Sandler on Growth Prospects

Snowflake  (SNOW) – Get Report Monday received positive recommendations from analysts at Deutsche Bank and Piper Sandler, who are impressed with the cloud service company’s growth prospects.

Snowflake shares recently traded at $245.51, up 3.15%, but have slipped 4% since the company’s initial public offering in September.

Deutsche Bank analyst Patrick Colville initiated coverage with a buy rating and a $305 price target.

“Data is the coal of the digital economy,” he wrote in a commentary. Production of the commodity “spurned the Industrial Revolution,” he said.

Now, “we find that capturing and analyzing data is becoming paramount to business success in the 21st century,” Colville said. “We see a world where the use of data is democratizing, many more roles and functions are becoming data consumers. … Our estimates call for data warehouse (analytical processing) spending to grow to $45.2bn in 2024, a 13% CAGR from 2019.”

Brent Bracelin of Piper Sandler began coverage of Snowflake with an overweight rating and a $264 price target.

“SNOW has built a new cloud-native software layer that has the potential to redefine and modernize the enterprise data stack,” he wrote in a commentary.

“Despite high valuation risks that could spark elevated stock volatility over the next six months,” Bracelin issued the strong rating “based on a unique cloud product and proven leadership team capable of executing on a compelling 10-year growth trajectory,” he said.

“A premium valuation is warranted for longer-term oriented investors looking out 3-5 years based on” several factors, he said.

That includes “triple-digit growth last quarter at $0.5 billion revenue scale, a proven leadership team stacked with A-plus talent and a clear path to multi-billion dollar revenue run-rate within two years.”

Killer Mike’s majority Black and Latin-American owned online bank already has ‘tens of thousands’ on the waiting list



a man looking at the camera: Rapper Killer Mike. Jim Watson/AFP via Getty Images


© Jim Watson/AFP via Getty Images
Rapper Killer Mike. Jim Watson/AFP via Getty Images

  • A majority Black and Latin-American owned and operated digital bank already has “tens of thousands” of people on its waiting list ahead of its January opening, CNN Business reported. 
  • The new bank, founded by Bounce TV founder Ryan Glover, rapper “Killer Mike,” and former Atlanta Mayor and US Ambassador to the UN Andrew Young, aims to support Black and Latin-American communities, Black-owned businesses, and Black entrepreneurs. 
  • Over the past few months, companies including Square and Netflix have announced support initiatives for Black-owned financial institutions to address racial inequality. 
  • Visit Insider’s homepage for more stories.

A majority Black and Latin-American owned and operated online bank set to open in January already has “tens of thousands” on the waiting list seeking an account, CNN Business reported.

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Greenwood is a digital bank that was founded by Bounce TV founder Ryan Glover, rapper “Killer Mike,” and former Atlanta Mayor and US Ambassador to the UN Andrew Young that was “inspired by the early 1900’s Greenwood District, where recirculation of Black wealth occurred all day, every day, and where Black businesses thrived,” according to its website. 

Its mission statement describes how the platform is aiming to supplement “the current financial system, [which] has failed Black and Latinx communities.”

Glover told CNN Business that although Greenwood has been in the works since early last year, the killing of George Floyd that sparked nationwide movements against systemic racism also increased interest in the company. 

Gallery: The top 10 metro areas where Black and Latinx founders are securing the most funding to build their companies (Business Insider)

‘Tens of thousands’ waiting for Killer Mike’s new Black-owned bank

  • A majority Black and Latin-American owned and operated digital bank already has “tens of thousands” of people on its waiting list ahead of its January opening, CNN Business reported. 
  • The new bank, founded by Bounce TV founder Ryan Glover, rapper “Killer Mike,” and former Atlanta Mayor and US Ambassador to the UN Andrew Young, aims to support Black and Latin-American communities, Black-owned businesses, and Black entrepreneurs. 
  • Over the past few months, companies including Square and Netflix have announced support initiatives for Black-owned financial institutions to address racial inequality. 
  • Visit Insider’s homepage for more stories.

A majority Black and Latin-American owned and operated online bank set to open in January already has “tens of thousands” on the waiting list seeking an account, CNN Business reported.

Greenwood is a digital bank that was founded by Bounce TV founder Ryan Glover, rapper “Killer Mike,” and former Atlanta Mayor and US Ambassador to the UN Andrew Young that was “inspired by the early 1900’s Greenwood District, where recirculation of Black wealth occurred all day, every day, and where Black businesses thrived,” according to its website. 

Its mission statement describes how the platform is aiming to supplement “the current financial system, [which] has failed Black and Latinx communities.”

Glover told CNN Business that although Greenwood has been in the works since early last year, the killing of George Floyd that sparked nationwide movements against systemic racism also increased interest in the company. 

Some of the biggest companies in the US have announced support programs for Black-owned financial institutions in recent months.

In September, Square, founded by Twitter CEO Jack Dorsey, invested $100 million to address racial inequality in the financial industry. Square donated millions to funding for Black and minority-owned financial institutions and banks. In July, Netflix moved $100 million of cash reserves to minority-led

Bank rules force staff to turn off NHS COVID-19 tracing app at work

By Iain Withers and Sinead Cruise

LONDON (Reuters) – Branch staff at some of Britain’s biggest banks say rules that require them to store phones in lockers while at work are putting them at undue risk of COVID-19 from colleagues and customers, as they cannot use the country’s tracing app.

Lloyds Banking Group <LLOY.L>, along with rival TSB, are among those advising employees to deactivate the NHS Track & Trace app during office hours, when they are not allowed to keep phones on their person.

Some banks ask staff and cashiers to store phones away to prevent leaks of sensitive customer data, although this is not formally required by regulator the Financial Conduct Authority.

Under current government guidelines, users of the NHS app are advised to disable bluetooth or pause the app when away from their phones to avoid false notifications.

Other companies have told staff to pause the app at work, including pharmaceuticals firm GSK <GSK.L>, which said its other safety measures were sufficient, the Guardian newspaper reported.

The BTU union, which represents staff working for Lloyds but is not recognised by the bank, said it had been contacted by dozens of staff unable to use the app, which has been downloaded by more than 14 million people.

One unnamed Lloyds employee who contacted the BTU said: “I live and work in a high-risk area so I am very concerned at being told that while I’m at work I have to suspend the NHS test and trace app… This defeats the object of track and trace.” 

Another said they were at risk as they had to conduct face-to-face meetings and due to the “blatant transgression of the social distancing rules by many customers”.

“Customers and staff have a right to know if they have come into contact with someone