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Financial Sector ETFs Kick Off a Big Earnings Week for Banks

Financial Sector ETFs Kick Off a Big Earnings Week for Banks

It’s going to be a big week for financial sector exchange traded funds as Wall Street banks kick off the third quarter earnings season.

JPMorgan Chase & Co (NYSE: JPM) will report earnings on Tuesday before the open bell along with Citigroup (NYSE: C). Other banks to reveal their third quarter results this week include Bank of America (NYSE: BAC), Wells Fargo (NYSE: WFC) and Goldman Sachs (NYSE: GS).

The Financial Select Sector SPDR (NYSEArca: XLF) includes a 10.9% position in JPM, 6.8% in BAC, 3.7% in WFC, 3.3% in C and 2.5% in GS.

“We’re keeping our eye on JPMorgan. I think that’s going to be the bellwether that we’re really going to want to watch here in earnings,” Piper Sandler chief market technician Craig Johnson told CNBC. “We’ve been making this kind of nice symmetrical sort of setup in the price action here recently, and that really suggests that perhaps a lot of the bad news might be priced in.”

The financial sector has been underperforming the broader market while the S&P 500 has been reaching toward new 52-week highs. However, bargain hunters are looking at banks as a value play, which typically outperforms during the beginning stages of a broad economic recovery.

“Then secondly, I like Wells Fargo right here. It’s the ultimate value play. In my opinion, it trades at too steep of a discount to book value. And if management can just stay out of the media and they can execute on their cost-cutting plan, I think the stock is a good buy at these levels,” Michael Binger, president of Gradient Investments, told CNBC.

However, some warn of potential risks. For instance, traders are concerned about potential political risk following the election. Banks have enjoyed a rollback of regulations, but November’s vote could mean a

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Instant analysis: Three impressions from the Seahawks’ Week 5 win vs. the Vikings

Instant analysis: Three impressions from the Seahawks’ Week 5 win vs. the Vikings

Three immediate impressions from the Seahawks’ 27-26 victory over the Minnesota Vikings on Sunday night at CenturyLink Field:

They’re 5-0

Just another Seahawks Sunday, eh?

There is a lot to dissect from this one, certainly. Russell Wilson threw a fourth-quarter interception … and when was the last time he didn’t come through in the clutch?

Let us cook up an answer for that: Never!

Wilson and the Seahawks appeared done after he was intercepted by Vikings linebacker Eric Wilson with 5:56 left. The Vikings offense then drove to the Seattle 6-yard line and had a chance to put the game away, only for Bobby Wagner and Benson Mayowa to combine on a fourth-and-1 tackle of Alexander Mattison.

That gave Wilson one last chance to go for the win with 1:57 left and 94 yards to go.

The Seahawks got there. Because of course they did.

DK Metcalf came up with a ridiculous 39 yard, jump-ball catch on fourth-and-10 to keep the drive alive. The second-year sensation then dropped a sure touchdown catch in the right front corner of the end zone, only to come back two plays later and make a diving catch across the middle on fourth down — on the winning 6-yard throw from Wilson with 15 seconds left.

At this point, this team has conditioned us to expect this kind of drama every week. How much longer can your heart take this?

Keep away from Russ

Seattle’s offense was spotty, at best, on Sunday night. Chris Carson had just eight carries (for 52 yards and, it should be noted, brilliant 29-yard touchdown run during a dizzying third quarter). DK Metcalf and Tyler Lockett each had three catches. Sure, the offense didn’t have the ball long enough to get into much of a rhythm, but it also didn’t

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125 Live gets creative for ‘Active Aging Week’

125 Live gets creative for ‘Active Aging Week’

ROCHESTER, Minn. (KTTC) — Aging is a reality for everyone, and it’s impossible to stop the hands of time. That’s why taking care of health is important through all phases of life.

“Active Aging Week” at 125 Live began on Monday. There were activities every day to celebrate. Members enjoyed special outdoor and indoor group exercise classes, extended pool hours and ceramic painting.

125 Live has gotten creative during the pandemic. The organization adapted to help their older adult members, which included curbside work outs and working with insurance companies to help offset membership costs.

Operations Director Ken Baerg said their strategy seems to be working.

“On the normal weekday in January, before the pandemic, we would see roughly about 600 people coming in and out of the building everyday,” Baerg said. “Then after we reopened, after the closure, we had low numbers. Maybe 150, 200 people in day. Now, we are starting to get back to 300 to 400 people in a day. We are starting to regain a lot of confidence from our members.”

Baerg said their safety protocols are stricter than the “Stay Safe, MN” orders. He said masks are mandatory and capacities are more restricted, even beyond state guidelines.

He said they have plans for the colder months, which include an outdoor “Polar Bear” class.

“We got a brave trainer to do it,” Baerg said. “If the temperature is no lower than 32 degrees, we will have the class outside. We are starting to see people come out of their shell and realizing they can still have social interactions with their friends while still staying as safe as possible.”

Baerg said they do have to remind people to not hug their friends because of social distancing.

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3 Things to Watch in the Stock Market This Week

3 Things to Watch in the Stock Market This Week

Stocks rose significantly last week as Wall Street tried to judge the likelihood that a new stimulus package aimed at supporting the U.S. economy would be passed. Both the Dow Jones Industrial Average and the S&P 500 gained over 3%. That put the Dow back in positive territory for the year, while the S&P is up nearly 8%.



a woman standing in a room: 3 Things to Watch in the Stock Market This Week


© Provided by The Motley Fool
3 Things to Watch in the Stock Market This Week

Several big-name companies are set to make headlines over the next few trading days, including Johnson & Johnson (NYSE: JNJ), Bank of America (NYSE: BAC), and Apple (NASDAQ: AAPL). Below, we’ll look at the key trends that might send their stocks moving this week.



a woman standing in a room: A scientist performing clinical research.


© Getty Images
A scientist performing clinical research.

Johnson & Johnson’s vaccine update

Tuesday’s earnings report by Johnson & Johnson should answer some important questions for investors. The healthcare titan is in the running (along with several other drugmakers) for securing orders to produce a coronavirus vaccine that might draw unprecedented demand over the next year. CEO Alex Gorsky told shareholders back in July that the company has dedicated some of its best assets toward that goal, and we will hear more details on its progress this week.

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In the meantime, Wall Street is expecting to see a modest sales decline for the fiscal third quarter: an improvement over the 11% sales slump it reported for Q2. Johnson & Johnson should announce sequential sales growth overall, but particularly in the medical device segment, which shrank while consumers around the world put off elective procedures during the outbreak’s initial phases. Returning stability in this division might persuade management to boost its 2020 forecast. Johnson & Johnson currently predicts roughly flat organic sales for the broader business this year.

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Bank/Financial Earnings Releases Start This Week. All Eyes On Consumer Credit

Bank/Financial Earnings Releases Start This Week. All Eyes On Consumer Credit

JPMorgan (NYSE:JPM) reports its Q3 ’20 financial results on Tuesday morning, October 13th, 2020, followed up by Bank of America (NYSE:BAC) and Wells Fargo (NYSE:WFC) on Wednesday. Goldman Sachs (NYSE:GS) also reports Wednesday morning, while Charles Schwab (NYSE:SCHW) reports Thursday morning before the opening bell.

All in, I have 15-20 banks and financial names reporting this week, which should give bank investors a good look at credit losses, net interest margin compression, and (possibly) the first look at the guidance for 2021, although without stock buybacks, there may be no willingness to give guidance to investors.

For the Schwabs, BlackRocks (NYSE:BLK) and names like Goldman and Morgan Stanley (NYSE:MS), we get to see how further credit market improvements over the third quarter aided bond issuance, and how the robust capital market activity aided the capital-market-sensitive returns for the big banks.

Ed Yardeni (cut and pasted from his blog) starts us off with his view of what’s expected for credit:

“Financials: Reality Check Coming. Financials has been one of the S&P 500’s worst-performing sectors this year, battered by a flat yield curve, surging loan losses, and a regulator that’s prohibiting the payment of dividends and stock buybacks. Next week, as banks’ Q3 earnings start rolling in, we’ll get a better feel for how well banks are reserved for loan losses. Many set aside billions of dollars for losses in Q2 as Covid-19 descended. Given the poor performance of bank stocks, investors may already have priced in banks’ need to continue building reserves in Q3.

The S&P 500 Financials sector’s stock price index has barely rebounded from the market’s March selloff, while the S&P 500 Technology and Consumer Discretionary sectors have hit new highs. Here’s the performance derby for the S&P 500 and its sectors ytd through Tuesday’s close: Information Technology

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