State Street Stock (NYSE:STT), Trade Ideas

State Street

State Street is a leading provider of financial services, including investment servicing, investment management, and investment research and trading. With approximately $42 trillion in assets under custody and administration and $4.1 trillion assets under management as of Dec. 31, 2023, State Street operates globally in more than 100 geographic markets and employs more than 46,000 worldwide.

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In a week already ablaze with market fervor sparked by inflation data surpassing expectations and prompting a jolting reassessment of Federal Reserve rate cut projections, Friday witnesses heightened volatility, fueled by escalating geopolitical tensions in the Middle East.

VIX Rockets 25% On Most Volatile Session In 2 Years; Oil Rises As Israel Braces For Iranian Attack: What&#39;s Driving Markets Friday?

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The relief rally sparked by Thursday’s producer price index report is teetering on the edge.

Wall Street Wobbles: Stock Futures Point To Slide As JPMorgan Tumbles 3% While Gold Surges Past $2,400 — Analyst Sees This As &#39;Worst-Case&#39; Scenario For S&amp;P 500 Pullback

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Analyst Ratings

State Street Corporation  (NYSE: STT) is set to release earnings results for its first quarter before the opening bell on April 12, 2024.

State Street Gears Up For Q1 Print; Here Are The Recent Forecast Changes From Wall Street&#39;s Most Accurate Analysts

State Street Corporation

StarTerra

STANDARD URANIUM LTD by Standard Uranium Ltd.

Standard Uranium Ltd

SMARTONE TELECOMM HLDGS by SmarTone Telecommunications Holdings Ltd.

SmarTone Telecommunications Holdings Ltd

Shattuck Labs Inc

STRUCTURAL MONITORING SYS by Structural Monitoring Systems PLC

SITO Mobile Ltd

SCHOTT PHARMA AG&CO KGAA by SCHOTT PHARMA AG & CO KGAA

Schott Pharma AG & CO KGaA

STRAITS TRADING UNSP/ADR by Straits Trading Company Ltd. (The)

Straits Trading Co Ltd

Splitit Payments Ltd

STRATEX OIL & GAS HLDG by Stratex Oil & Gas Holdings, Inc.

Stratex Oil & Gas Holdings Inc

State Street Corporation Depositary shares, each representing a 1/4,000th ownership interest in a share of Fixed-to-Floating Rate Non-Cumulative

<a href="https://www.bloomberg.com/news/articles/2024-04-17/state-street-said-to-explore-acquisition-of-socgen-s-custody-arm" title="https://www.bloomberg.com/news/articles/2024-04-17/state-street-said-to-explore-acquisition-of-socgen-s-custody-arm">https://www.bloomberg.com/news/articles/2024-04-17/state-street-said-to-explore-acquisition-of-socgen-s-custody-arm</a>

SCGLY

Bloomberg Reported State Street Said To Explore Acquisition Of Socgen's Custody Arm; Socgen Said To Be Seeking More Than €1B For The Uni

Morgan Stanley analyst Connor Lynagh maintains State Street (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/STT#NYSE">STT</a>) with a Equal-Weight and raises the price target from $89 to $90.

Morgan Stanley Maintains Equal-Weight on State Street, Raises Price Target to $90

Argus Research analyst Stephen Biggar maintains State Street (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/STT#NYSE">STT</a>) with a Buy and raises the price target from $84 to $86.

Argus Research Maintains Buy on State Street, Raises Price Target to $86

In a week already ablaze with market fervor sparked by inflation data surpassing expectations and prompting a jolting reassessment of Federal Reserve rate cut projections, Friday witnesses heightened volatility, fueled by escalating geopolitical tensions<a href="https://www.benzinga.com/topic/middle-east"> in the Middle East.</a>
Israel is bracing for an attack from Iran, which could occur within the next 48 hours or even earlier, according to various media sources. 
White House National Security Council spokesperson John Kirby stated that an Iranian attack on Israel poses a "real" and "viable" threat. 
According to the Times of Israel, Hezbollah has launched a rocket barrage into Northern Israel. Meanwhile, the USS Dwight Eisenhower aircraft carrier has sailed north through the Red Sea toward Israel in a show of deterrence from the Biden administration, as an attempt to intercept missiles and drones fired by Iran.
Market volatility, as indicated by the CBOE VIX Index, experienced a sharp spike, with the fear gauge surging by 23%, marking the most significant daily increase since late April 2022 and surpassing the uptick observed during the Silicon Valley Bank collapse in March 2023.
Stock indices plunged deeply into the red, with the S&amp;P 500 declining by 1.4% and the Nasdaq 100 by 1.7%. Notably, no sectors managed to evade losses on Friday.
Amid escalating threats in the Middle East, oil prices surged, with West Texas Intermediate (WTI) light crude climbing by 1.2% to reach $87 per barrel.
Investors flocked to safe-haven Treasuries in search of a liquidity shelter, with the iShares 20+ Year Treasury Bond ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TLT#NASDAQ">TLT</a>) up 1%. 
Gold faced a wild session, with the yellow metal spiking to a new-record high to $2,400 per ounce, before falling to $2,370. Bitcoin (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/btc/usd">BTC</a>) was down 1.7%, amid a worsening risk sentiment. 
<h3 class="wp-block-heading">Chart Of The Day: VIX Spikes Over 20%, In The Most Volatile Day For Markets Since Late April 2022</h3>
<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="1024" height="495" src="https://editorial-assets.benzinga.com/wp-content/uploads/2024/04/12130750/image-38-1024x495.png" alt="" class="wp-image-290059" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2024/04/12130750/image-38-1024x495.png 1024w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/04/12130750/image-38-300x145.png 300w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/04/12130750/image-38-768x372.png 768w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/04/12130750/image-38-1536x743.png 1536w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/04/12130750/image-38.png 1920w" sizes="(max-width: 1024px) 100vw, 1024px" /></figure>
<h3 class="wp-block-heading">Friday&#8217;s Performance In Major US Indices, ETFs</h3>
<figure class="wp-block-table is-style-stripes"> 
<table>
<tbody>
<tr>
<td>Major Indices &amp; ETFs</td>
<td>Price</td>
<td>1-day %chg</td>
</tr>
<tr>
<td>Dow Jones</td>
<td>37,950.16</td>
<td>-1.3%</td>
</tr>
<tr>
<td>Russell 2000</td>
<td>199.18</td>
<td>-1.5%</td>
</tr>
<tr>
<td>S&amp;P 500</td>
<td>5,118.62</td>
<td>-1.5%</td>
</tr>
<tr>
<td>Nasdaq 100</td>
<td>17,982.40</td>
<td>-1.8%</td>
</tr>
<tr>
<td>СВОЕ VIX</td>
<td>18.72</td>
<td>25.6%</td>
</tr>
</tbody>
</table>
<figcaption class="wp-element-caption">Updated at 1:10 p.m. ET </figcaption></figure>
The&nbsp;SPDR S&amp;P 500 ETF Trust&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>) tumbled 1.5% to $510.49, the&nbsp;SPDR Dow Jones Industrial Average (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DIA#NYSE">DIA</a>) fell 1.3% to $379.75 and the tech-heavy&nbsp;Invesco QQQ Trust&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QQQ#NASDAQ">QQQ</a>) plummeted 1.6% to $438.00, according to&nbsp;<a href="https://pro.benzinga.com/dashboard">Benzinga Pro data</a>.&nbsp;
Sector-wise, the Technology Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLK#NYSE">XLK</a>) felt the heaviest losses, down 1.8%, followed by the Materials Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLB#NYSE">XLB</a>), down 1.7%. 
<h3 class="wp-block-heading">Friday&#8217;s Stock Movers</h3>
<ul>
<li>JPMorgan Chase &amp; Co. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/JPM#NYSE">JPM</a>) tumbled nearly 6%, despite reporting better-than-expected results last quarter, as the net interest income fell below expectations. </li>
<li>Other financial companies reacting to earnings were Citigroup Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/C#NYSE">C</a>), down 2%, Wells Fargo Co. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/WFC#NYSE">WFC</a>), down 0.5%, BlackRock Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BLK#NYSE">BLK</a>), down 2.3%, and State Street Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/STT#NYSE">STT</a>), flat for the day. </li>
<li>Intel Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/INTC#NASDAQ">INTC</a>) dropped 4.5% following reports that China is urging national telecom companies to curb reliance on foreign chips. Peer Advanced Micro Devices Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMD#NASDAQ">AMD</a>) fell 4%. </li>
<li>Arista Network Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ANET#NYSE">ANET</a>) plummeted 9% on a double downgrade by Rosenblatt Securities.</li>
</ul>
Read now: <a href="https://www.benzinga.com/markets/equities/24/04/38223912/us-energy-stocks-eye-9th-week-of-gains-as-iran-israel-tensions-escalate-oil-prices-spike-above-9">Oil Prices Spike Above $90 A Barrel As Iran-Israel Tensions Escalate: US Energy Stocks Eye 9th Week Of Gains</a>
Photo: Shutterstock

VIX Rockets 25% On Most Volatile Session In 2 Years; Oil Rises As Israel Braces For Iranian Attack: What's Driving Markets Friday?

UBS analyst Brennan Hawken maintains State Street (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/STT#NYSE">STT</a>) with a Neutral and maintains $82 price target.

UBS Maintains Neutral on State Street, Maintains $82 Price Target

WIIM

State Street shares are trading higher following better-than-expected Q1 financial results.

State Street Q1 Total Fee Revenue Up 4%, Management Fees Up 12%,Investment Management AUM Increased 20%

State Street (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/STT#NYSE">STT</a>) reported quarterly earnings of $1.69 per share which beat the analyst consensus estimate of $1.50 by 12.67 percent. The company reported quarterly sales of $3.138 billion which beat the analyst consensus estimate of $3.061 billion by 2.50 percent. This is a 1.19 percent increase over sales of $3.101 billion the same period last year.

Earnings Beats

State Street Q1 2024 Adj EPS $1.69 Beats $1.50 Estimate, Total Revenue $3.138B Beat $3.061B Estimate

The relief rally sparked by Thursday&#8217;s&nbsp;<a target="_blank" href="https://www.benzinga.com/markets/cryptocurrency/24/04/38208908/stocks-bounce-back-with-tech-gold-gaining-after-modest-producer-inflation-data-whats-drivi" rel="noreferrer noopener">producer price index report</a>&nbsp;is teetering on the edge. The mood has shifted back to cautiousness, with stock futures pointing towards a potential pullback in today&#8217;s final trading session of the week. Traders are meticulously analyzing each incoming piece of economic data to gauge the Federal Reserve&#8217;s next move. Upcoming consumer confidence data and speeches by Fed officials are likely to garner significant market interest.
Big bank earnings released so far have triggered negative reactions, and this could cast a cloud on the upcoming reporting season and its impact on the market.
 Futures Performance On Friday ( as of 6:30 a.m. EDT)
<figure class="wp-block-table is-style-stripes"> 
<table>
<tbody>
<tr>
<td>Futures</td>
<td>Performance (+/-)</td>
</tr>
<tr>
<td>Nasdaq 100</td>
<td>-0.53%</td>
</tr>
<tr>
<td>S&amp;P 500</td>
<td>-0.43%</td>
</tr>
<tr>
<td>Dow</td>
<td>-0.27%</td>
</tr>
<tr>
<td>R2K</td>
<td>-0.52%</td>
</tr>
</tbody>
</table>
<figcaption class="wp-element-caption"> In <a href="https://www.benzinga.com/premarket/" target="_blank" rel="noreferrer noopener">premarket</a> trading on Friday, the SPDR S&amp;P 500 ETF Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>) fell 0.30% to $516.43, and the Invesco QQQ ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QQQ#NASDAQ">QQQ</a>) slipped 0.43% to $443.45, according to <a href="https://benzinga.grsm.io/lxquj26b2sag" target="_blank" rel="noreferrer noopener">Benzinga Pro data</a>.</figcaption></figure>
Cues From Previous Session:
Producer price data released on Thursday came in slightly lower than anticipated, initially triggering a knee-jerk negative reaction in the market. However, major averages reversed course later in the morning, steadily climbing before consolidating in late-day trading. The Nasdaq Composite and S&amp;P 500 closed solidly higher, with the Nasdaq reaching a new closing high driven by strength in IT and communication services stocks. Conversely, the Dow Jones Industrial Average closed with a slight negative bias, marking its fourth consecutive down day.
<figure class="wp-block-table is-style-stripes"> 
<table>
<tbody>
<tr>
<td>Index</td>
<td>Performance (+/-)</td>
<td>Value</td>
</tr>
<tr>
<td>Nasdaq Composite</td>
<td>+1.68%</td>
<td>16,442.20</td>
</tr>
<tr>
<td>S&amp;P 500 Index</td>
<td>+0.74%</td>
<td>5,199.06</td>
</tr>
<tr>
<td>Dow Industrials</td>
<td>-0.01%</td>
<td>38,459.08</td>
</tr>
<tr>
<td>Russell 2000</td>
<td>+0.70%</td>
<td>2,042.60</td>
</tr>
</tbody>
</table>
</figure>
Insights From Analysts:
After an insipid performance so far in April, stocks could pick up momentum, an analyst said, citing a historical trend. Carson Group&#8217;s Ryan Detrick said, &#8220;Since 2000, during the first half of April stocks don&#8217;t do much. Then as soon as you get past April 15, the second half is usually strong.&#8221;
<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"> 
<div class="wp-block-embed__wrapper">
<blockquote class="twitter-tweet" data-width="500" data-dnt="true">Since 2000, during the first half of April stocks don&#39;t do much. Then as soon as you get past April 15, the second half is usually strong. <a href="https://t.co/Vmu2MHX2iC">pic.twitter.com/Vmu2MHX2iC</a>
&mdash; Ryan Detrick, CMT (@RyanDetrick) <a href="https://twitter.com/RyanDetrick/status/1778535651958497513?ref_src=twsrc%5Etfw">April 11, 2024</a></blockquote>
<script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script></div>
<figcaption class="wp-element-caption">LPL Financial Chief Technical Strategist Adam Turnquist sees the current market pullback as only a shallow one. &#8220;The violation of the S&amp;P 500's 20-dma and corresponding breakout in 10-year Treasury yields points to a percolating risk for a deeper pullback,&#8221; the analyst said, adding, &#8220;We consider 4,800 as a worst-case scenario for a drawdown on the S&amp;P 500 but note there are several support levels to get through on the way down, including the 50-dma at 5,100 and the 5,000-point milestone.&#8221; &#8220;Confidence for a relatively shallow drawdown is primarily supported by broad market breadth, cyclical leadership trends, economic resiliency, historically narrow credit spreads, and the longer-term momentum implications of this rally,&#8221; he said.</figcaption></figure>
Upcoming Economic Data:
The Labor Department is due to release the import and export prices report for March at 8:30 a.m. EDT. Economists, on average, expect both import and export prices to increase 0.3% month-over-month, compared to 0.3% and 0.8%, respectively, in February.
The University of Michigan&#8217;s consumer sentiment index for April, due at 10 a.m. EDT, may have edged down from 79.4 in March to 79 in April. The report will also shed light on one-year and five-year inflation expectations of consumers.
Atlanta Fed President Raphael Bostic&nbsp;and San Francisco Fed President Mary Daly are scheduled to speak at 2:30 p.m. EDT and 3:30 p.m. EDT, respectively.
See also: <a href="https://www.benzinga.com/money/best-futures-trading-software">Best Futures Trading Software</a>
Stocks In Focus:
<ul>
<li>Globe Life Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GL#NYSE">GL</a>), which slumped over 55% on Thursday on a short report, rebounded by about 12% in premarket trading.</li>
<li>Intel Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/INTC#NASDAQ">INTC</a>) and Advanced Micro Devices, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMD#NASDAQ">AMD</a>) pulled back about 2% each after a Wall Street Journal report said the Chinese government has asked the biggest domestic telecom carriers to phase out U.S.-made chips.</li>
<li>BlackRock, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BLK#NYSE">BLK</a>) rose nearly 2% in premarket following an earnings beat, while JP Morgan Chase &amp; Co. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/JPM#NYSE">JPM</a>) plunged over 3% and Wells Fargo &amp; Co. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/WFC#NYSE">WFC</a>) was down a more modest 1.5%.</li>
<li>Citigroup, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/C#NYSE">C</a>), and State Street Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/STT#NYSE">STT</a>) are among the other companies due to<a href="https://www.benzinga.com/calendars/earnings"> report their quarterly results before the market opens.</a></li>
</ul>
Commodities, Bonds, and Global Equity Markets:
Crude oil futures topped $86 per barrel after Thursday&#8217;s pullback and gold futures traded at a new record, north of $2,400 an ounce. The yield on the benchmark 10-year Treasury held around the 4.55% level.
Bitcoin (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/btc/usd">BTC</a>) rose modestly and was at the $70.8k level/
Among the global equity markets, Asian stocks fell almost across the board, leading the Hong Kong and Indian markets. The Japanese and Indonesian markets bucked the downtrend and ended modestly higher. Trade data released by China underlined stuttering domestic growth as both exports and imports fell more than expected in March.
European stocks rebounded in early trading on Friday after moving to the downside in the previous session, reacting to a pause decision from the region&#8217;s central bank.
Read Next: <a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/04/38212196/inflation-upends-feds-plans-when-do-wall-street-analysts-expect-first-interest-rate">Inflation Upends Fed&#8217;s Plans: When Do Wall Street Analysts Expect First Interest Rate Cut?</a>
Photo via Shutterstock

Wall Street Wobbles: Stock Futures Point To Slide As JPMorgan Tumbles 3% While Gold Surges Past $2,400 — Analyst Sees This As 'Worst-Case' Scenario For S&P 500 Pullback

<h3>Companies Reporting Before The Bell</h3>
&bull; Progressive (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PGR#NYSE">PGR</a>) is projected to report quarterly earnings at $3.17 per share on revenue of $17.43 billion.
&bull; Citigroup (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/C#NYSE">C</a>) is likely to report quarterly earnings at $1.11 per share on revenue of $18.78 billion.
&bull; State Street (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/STT#NYSE">STT</a>) is expected to report quarterly earnings at $1.50 per share on revenue of $3.06 billion.
&bull; JPMorgan Chase (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/JPM#NYSE">JPM</a>) is estimated to report quarterly earnings at $3.82 per share on revenue of $38.53 billion.
&bull; Wells Fargo (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/WFC#NYSE">WFC</a>) is likely to report quarterly earnings at $1.00 per share on revenue of $18.60 billion.
&bull; BlackRock (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BLK#NYSE">BLK</a>) is estimated to report quarterly earnings at $9.32 per share on revenue of $4.68 billion.
&bull; Bank7 (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/BSVN#NASDAQ">BSVN</a>) is estimated to report quarterly earnings at $1.05 per share on revenue of $25.05 million.
&bull; OncoCyte (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/OCX#NASDAQ">OCX</a>) is projected to report quarterly loss at $1.14 per share on revenue of $320 thousand.
<h3>Companies Reporting After The Bell</h3>
&bull; KULR Tech Gr (AMEX:<a class="ticker" href="https://www.benzinga.com/stock/KULR#AMEX">KULR</a>) is projected to report quarterly loss at $0.04 per share on revenue of $3.81 million.
This article was generated by Benzinga&#39;s automated content engine and reviewed by an editor.

BSVN

KULR

Earnings Scheduled For April 12, 2024

State Street Corporation (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/stt#NYSE">STT</a>) is set to release earnings results for its first quarter before the <a href="https://www.benzinga.com/quote/STT/earnings">opening bell on April 12, 2024.</a>
Analysts expect the Boston, Massachusetts-based company to report quarterly earnings at $1.50 per share, down from $1.52 per share in the year-ago period. State Street is projected to report quarterly revenue of $3.06 billion, compared to $3.1 billion in the year-earlier quarter, according to data from <a href="https://pro.benzinga.com/dashboard">Benzinga Pro</a>.
On Feb. 1, State Street completed its acquisition of CF Global Trading for an undisclosed amount.
State Street shares fell 0.6% to close at $73.91 on Thursday.
Benzinga readers can access the latest analyst ratings on the <a href="https://www.benzinga.com/analyst-ratings/analyst-color/22/09/28888638/exclusive-study-finds-benzinga-analyst-ratings-data-yields-market-beating-strategie"> Analyst Stock Ratings </a> page. Readers can sort by stock ticker, company name, analyst firm, rating change or other variables.
Let&rsquo;s have a look at how Benzinga&rsquo;s most-accurate <a href="https://www.benzinga.com/quote/STT/analyst-ratings"> analysts have rated the company </a> in the recent period.
<ul>
<li>RBC Capital analyst Gerard Cassidy maintained a Sector Perform rating and boosted the price target from $75 to $85 on Jan. 22, 2024. This analyst has an accuracy rate of 72%.</li>
<li>Keefe, Bruyette &amp; Woods analyst Michael Brown maintained a Market Perform rating and cut the price target from $89 to $86 on Jan. 22, 2024. This analyst has an accuracy rate of 66%.</li>
<li>UBS analyst Brennan Hawken maintained a Neutral rating and boosted the price target of $70 to $82 on Jan. 9, 2024. This analyst has an accuracy rate of 69%.</li>
<li>B of A Securities analyst Ebrahim Poonawala downgraded the stock from Neutral to Underperform with a price target of $81 on Jan. 4, 2024. This analyst has an accuracy rate of 64%.</li>
<li>Goldman Sachs analyst Alexander Blostein upgraded the stock from Neutral to Buy with a price target of $92 on Jan. 3, 2024. This analyst has an accuracy rate of 71%.</li>
</ul>
&nbsp;
Read This Next: <a href="https://www.benzinga.com/trading-ideas/long-ideas/24/04/38200890/top-3-health-care-stocks-which-could-rescue-your-portfolio-this-quarter"> Top 3 Health Care Stocks Which Could Rescue Your Portfolio This Quarter </a>

State Street Gears Up For Q1 Print; Here Are The Recent Forecast Changes From Wall Street's Most Accurate Analysts

A bustling week of key economic events with two inflation reports will culminate in a flurry of earnings releases from top U.S. banks, offering crucial insights into the state of the economy and the health of<a href="https://www.benzinga.com/topic/economics"> U.S. consumers and firms.</a>
On Friday, investors will scrutinize the first-quarter financial results from major financial institutions such as JPMorgan Chase &amp; Co. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/JPM#NYSE">JPM</a>), Wells Fargo &amp; Co. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/WFC#NYSE">WFC</a>), BlackRock Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BLK#NYSE">BLK</a>), Citigroup Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/C#NYSE">C</a>) and State Street Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/STT#NYSE">STT</a>).
These earnings releases will pave the way for next week&#8217;s reports from Goldman Sachs Group Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GS#NYSE">GS</a>) and Charles Schwab Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SCHW#NYSE">SCHW</a>) on Monday, followed by Bank of America Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BAC#NYSE">BAC</a>) and Morgan Stanley (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MS#NYSE">MS</a>) on Tuesday.
What are the key expectations for first-quarter 2024 earnings reports from major U.S. banks?
<h1 class="wp-block-heading">Q1 2024 Bank Earnings: What Market Consensus Expects</h1>
According to the <a href="https://pro.benzinga.com/dashboard">Benzinga Pro platform</a>, the consensus among median Wall Street analysts are the following estimates for earnings-per-share (EPS) and revenues from U.S. banks reporting first-quarter 2024 results in the upcoming days.
<figure class="wp-block-table is-style-stripes"> 
<table>
<thead>
<tr>
<th>Bank</th>
<th>Q1 2024 EPS Est.</th>
<th>Q1 2023 EPS</th>
<th>Q1 2024 Revenue Est.</th>
<th>Q1 2023 Revenue</th>
</tr>
</thead>
<tbody>
<tr>
<td>JPMorgan Chase &amp; Co.</td>
<td>4.15</td>
<td>4.32</td>
<td>$41.836B</td>
<td>$38.35B</td>
</tr>
<tr>
<td>Wells Fargo &amp; Co</td>
<td>1.09</td>
<td>1.07</td>
<td>$20.203B</td>
<td>$20.73B</td>
</tr>
<tr>
<td>BlackRock Inc.</td>
<td>9.32</td>
<td>7.93</td>
<td>$4.676B</td>
<td>$4.24B</td>
</tr>
<tr>
<td>Citigroup Inc. </td>
<td>1.20</td>
<td>1.86</td>
<td>$20.393B</td>
<td>$21.45B</td>
</tr>
<tr>
<td>State Street Corp.</td>
<td>1.50</td>
<td>1.52</td>
<td>$3.061B</td>
<td>$3.10B</td>
</tr>
<tr>
<td>Goldman Sachs Inc.</td>
<td>8.56</td>
<td>9.87</td>
<td>$12.917B</td>
<td>$25.38B</td>
</tr>
<tr>
<td>Charles Schwab Corp</td>
<td>0.73</td>
<td>0.93</td>
<td>$4.718B</td>
<td>$6.36B</td>
</tr>
<tr>
<td>Bank of America Corp</td>
<td>0.77</td>
<td>0.94</td>
<td>$25.464B</td>
<td>$26.26B</td>
</tr>
<tr>
<td>Morgan Stanley</td>
<td>1.66</td>
<td>1.70</td>
<td>$14.412B</td>
<td>$23.04B</td>
</tr>
</tbody>
</table>
</figure>
<h1 class="wp-block-heading">Analyst Takes</h1>
According to Ebrahim H. Poonawala, a bank equity analyst at Bank of America, major U.S. banks were &#8220;well positioned to navigate an uncertain macro backdrop&#8221; characterized by higher-for-longer interest rates.
The analyst emphasized banks with a focus on Main Street have outperformed those more closely linked to Wall Street.
As an example, he showed that money center banks, such as Citigroup, have risen more with respect to Wall Street peers, such as Morgan Stanley, &#8220;as markets bake-in&nbsp;the more certain&nbsp;upside from higher for longer interest rates&nbsp;for the money centers&#8221; versus a &#8220;still nascent rebound in&nbsp;capital markets activity.&#8221;
Citigroup still offers&nbsp;a compelling&nbsp;risk/reward, according to Poonawala, who reiterated the Buy rating and raised the price target from $65 to $75. 
According to the expert, fewer rate cuts should also drive positive EPS revisions in JPMorgan Chase &amp; Co., a stock investors are engaged in a valid discussion about whether management&#8217;s ambitious 17%+ Return on Tangible Common Equity (ROTCE) target could potentially be reset higher, at least for the foreseeable future.
&#8220;Relative to the beginning of the year, the outlook for the large cap banks appears clearer, which leads us to be cautiously optimistic on the group,&#8221; said Richard Ramsden, analyst at Goldman Sachs. 
Catalysts providing an optimistic outlook for banks include the prospect of improved Net Interest Income (NII) in the short term due to fewer anticipated rate cuts in 2024, the possibility of increased excess capital if significant changes occur to the Basel 3 Endgame (B3E), reduced apprehension regarding the evolution of credit reserves, and a rebound in investment banking activities.
Ramsden maintains a positive outlook on JPMorgan Chase &amp; Co. and Wells Fargo &amp; Co., both of which are Buy-rated by Goldman Sachs. &#8220;There is potential for both to exceed expectations in terms of fee revenue, leveraging the ongoing secular recovery and capturing market share in capital markets,&#8221; he stated.
Read Now: <a href="https://www.benzinga.com/economics/macro-economic-events/24/04/38206965/mild-producer-price-data-follows-consumer-price-shock-yet-economists-raise-doubts">Mild Producer Price Data Follows Consumer Price Shock, Yet Economists Raise Doubts On Rate Cuts: &#8216;Fed Pivot Is Quickly Disappearing&#8217;</a>
Photo: This image was created by using artificial intelligence MidJourney

Analyst Color

Large Cap

SCHW

Will Main Street Banks Outshine Wall Street In Q1 2024 Earnings?

Wall Street expects a year-over-year decline in earnings on lower revenues when M&amp;T Bank Corporation (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/mtb#NYSE">MTB</a>) reports results for the quarter ended March 2024. While this widely-known consensus outlook is important in gauging the company&#39;s earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates.
The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on April 15. On the other hand, if they miss, the stock may move lower.
While the sustainability of the immediate price change and future earnings expectations will mostly depend on management&#39;s discussion of business conditions on the earnings call, it&#39;s worth handicapping the probability of a positive EPS surprise.
Zacks Consensus Estimate
This company is expected to post quarterly earnings of $3.13 per share in its upcoming report, which represents a year-over-year change of -23.5%.
Revenues are expected to be $2.26 billion, down 6.2% from the year-ago quarter.
Estimate Revisions Trend
The consensus EPS estimate for the quarter has been revised 0.63% lower over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.
Investors should keep in mind that an aggregate change may not always reflect the direction of estimate revisions by each of the covering analysts.
Earnings Whisper
Estimate revisions ahead of a company&#39;s earnings release offer clues to the business conditions for the period whose results are coming out. This insight is at the core of our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction).
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model&#39;s predictive power is significant for positive ESP readings only.
A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.
Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).
How Have the Numbers Shaped Up for M&amp;T Bank?
For M&amp;T Bank, the Most Accurate Estimate is lower than the Zacks Consensus Estimate, suggesting that analysts have recently become bearish on the company&#39;s earnings prospects. This has resulted in an Earnings ESP of -0.31%.
On the other hand, the stock currently carries a Zacks Rank of #3.
So, this combination makes it difficult to conclusively predict that M&amp;T Bank will beat the consensus EPS estimate.
Does Earnings Surprise History Hold Any Clue?
While calculating estimates for a company&#39;s future earnings, analysts often consider to what extent it has been able to match past consensus estimates. So, it&#39;s worth taking a look at the surprise history for gauging its influence on the upcoming number.
For the last reported quarter, it was expected that M&amp;T Bank would post earnings of $3.67 per share when it actually produced earnings of $2.81, delivering a surprise of -23.43%.
Over the last four quarters, the company has beaten consensus EPS estimates three times.
Bottom Line
An earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.
That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it&#39;s worth checking a company&#39;s Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they&#39;ve reported.
M&amp;T Bank doesn&#39;t appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.
Expected Results of an Industry Player
Another stock from the Zacks Banks - Major Regional industry, State Street Corporation (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/stt#NYSE">STT</a>), is soon expected to post earnings of $1.52 per share for the quarter ended March 2024. This estimate indicates no change from the year-ago quarter. Revenues for the quarter are expected to be $3.06 billion, down 1.4% from the year-ago quarter.
The consensus EPS estimate for State Street has been revised 0.7% higher over the last 30 days to the current level. However, a lower Most Accurate Estimate has resulted in an Earnings ESP of -1.93%.
When combined with a Zacks Rank of #3 (Hold), this Earnings ESP makes it difficult to conclusively predict that State Street will beat the consensus EPS estimate. Over the last four quarters, the company surpassed consensus EPS estimates three times.
<a href="https://www.zacks.com/stock/news/2251984/analysts-estimate-m-t-bank-corporation-mtb-to-report-a-decline-in-earnings-what-to-look-out-for?cid=CS-BENZ-FT-tale_of_the_tape|yseop_template_9-2251984">To read this article on Zacks.com click here.</a>

Analysts Estimate M&T Bank Corporation (MTB) to Report a Decline in Earnings: What to Look Out For

Throughout the last three months, 5 analysts have evaluated State Street (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/STT#NYSE">STT</a>), offering a diverse set of opinions from bullish to bearish.
The table below offers a condensed view of their recent ratings, showcasing the changing sentiments over the past 30 days and comparing them to the preceding months.
<table>
<thead>
<tr>
<th></th>
<th style="text-align: right;">Bullish</th>
<th style="text-align: right;">Somewhat Bullish</th>
<th style="text-align: right;">Indifferent</th>
<th style="text-align: right;">Somewhat Bearish</th>
<th style="text-align: right;">Bearish</th>
</tr>
</thead>
<tbody>
<tr>
<td>Total Ratings</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">1</td>
<td style="text-align: right;">4</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
</tr>
<tr>
<td>Last 30D</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">1</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
</tr>
<tr>
<td>1M Ago</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
</tr>
<tr>
<td>2M Ago</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
</tr>
<tr>
<td>3M Ago</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">4</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
</tr>
</tbody>
</table>
Analysts' evaluations of 12-month price targets offer additional insights, showcasing an average target of $85.8, with a high estimate of $88.00 and a low estimate of $82.00. Surpassing the previous average price target of $80.40, the current average has increased by 6.72%.
<img src="https://www.benzinga.com/files/images/story/2024/1712253663_0.png" alt="price target chart" />
<h2>Breaking Down Analyst Ratings: A Detailed Examination</h2>
The analysis of recent analyst actions sheds light on the perception of State Street by financial experts. The following summary presents key analysts, their recent evaluations, and adjustments to ratings and price targets.
<table>
<thead>
<tr>
<th>Analyst</th>
<th>Analyst Firm</th>
<th>Action Taken</th>
<th>Rating</th>
<th>Current Price Target</th>
<th>Prior Price Target</th>
</tr>
</thead>
<tbody>
<tr>
<td>Glenn Schorr</td>
<td>Evercore ISI Group</td>
<td>Raises</td>
<td>Outperform</td>
<td>$88.00</td>
<td>$85.00</td>
</tr>
<tr>
<td>Connor Lynagh</td>
<td>Morgan Stanley</td>
<td>Raises</td>
<td>Equal-Weight</td>
<td>$88.00</td>
<td>$83.00</td>
</tr>
<tr>
<td>Gerard Cassidy</td>
<td>RBC Capital</td>
<td>Raises</td>
<td>Sector Perform</td>
<td>$85.00</td>
<td>$75.00</td>
</tr>
<tr>
<td>Michael Brown</td>
<td>Keefe, Bruyette &amp; Woods</td>
<td>Lowers</td>
<td>Market Perform</td>
<td>$86.00</td>
<td>$89.00</td>
</tr>
<tr>
<td>Brennan Hawken</td>
<td>UBS</td>
<td>Raises</td>
<td>Neutral</td>
<td>$82.00</td>
<td>$70.00</td>
</tr>
</tbody>
</table>
<h3>Key Insights:</h3>
<ul>
<li>Action Taken: Analysts adapt their recommendations to changing market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their response to recent developments related to State Street. This information provides a snapshot of how analysts perceive the current state of the company.</li>
<li>Rating: Analysts unravel qualitative evaluations for stocks, ranging from 'Outperform' to 'Underperform'. These ratings offer insights into expectations for the relative performance of State Street compared to the broader market.</li>
<li>Price Targets: Analysts provide insights into price targets, offering estimates for the future value of State Street's stock. This comparison reveals trends in analysts' expectations over time.</li>
</ul>
Understanding these analyst evaluations alongside key financial indicators can offer valuable insights into State Street's market standing. Stay informed and make well-considered decisions with our Ratings Table.
<a href="https://www.benzinga.com/quote/STT/analyst-ratings?utm_source=Benzinga Insights">Stay up to date on State Street analyst ratings.</a>
<h2>About State Street</h2>
State Street is a leading provider of financial services, including investment servicing, investment management, and investment research and trading. With approximately $42 trillion in assets under custody and administration and $4.1 trillion assets under management as of Dec. 31, 2023, State Street operates globally in more than 100 geographic markets and employs more than 46,000 worldwide.
<h3>State Street: Delving into Financials</h3>
Market Capitalization Perspectives: The company's market capitalization falls below industry averages, signaling a relatively smaller size compared to peers. This positioning may be influenced by factors such as perceived growth potential or operational scale.
Revenue Growth: State Street's revenue growth over a period of 3 months has faced challenges. As of 31 December, 2023, the company experienced a revenue decline of approximately -2.84%. This indicates a decrease in the company's top-line earnings. As compared to its peers, the revenue growth lags behind its industry peers. The company achieved a growth rate lower than the average among peers in Financials sector.
Net Margin: State Street's net margin lags behind industry averages, suggesting challenges in maintaining strong profitability. With a net margin of 5.65%, the company may face hurdles in effective cost management.
Return on Equity (ROE): State Street's ROE is below industry standards, pointing towards difficulties in efficiently utilizing equity capital. With an ROE of 0.79%, the company may encounter challenges in delivering satisfactory returns for shareholders.
Return on Assets (ROA): State Street's ROA falls below industry averages, indicating challenges in efficiently utilizing assets. With an ROA of 0.06%, the company may face hurdles in generating optimal returns from its assets.
Debt Management: With a below-average debt-to-equity ratio of 0.99, State Street adopts a prudent financial strategy, indicating a balanced approach to debt management.
<h2>How Are Analyst Ratings Determined?</h2>
Ratings come from analysts, or specialists within banking and financial systems that report for specific stocks or defined sectors (typically once per quarter for each stock). Analysts usually derive their information from company conference calls and meetings, financial statements, and conversations with important insiders to reach their decisions.
Beyond their standard evaluations, some analysts contribute predictions for metrics like growth estimates, earnings, and revenue, furnishing investors with additional guidance. Users of analyst ratings should be mindful that this specialized advice is shaped by human perspectives and may be subject to variability.
This article was generated by Benzinga's automated content engine and reviewed by an editor.

Deep Dive Into State Street Stock: Analyst Perspectives (5 Ratings)

Evercore ISI Group analyst Glenn Schorr maintains State Street (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/STT#NYSE">STT</a>) with a Outperform and raises the price target from $85 to $88.

Evercore ISI Group Maintains Outperform on State Street, Raises Price Target to $88

Banking regulators are investigating whether index-fund giants&nbsp;BlackRock Inc&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BLK#NYSE">BLK</a>),&nbsp;Vanguard, and&nbsp;State Street Corporation&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/STT#NYSE">STT</a>) adhere strictly to their passive roles in U.S. bank investments.&nbsp;
These firms manage over $23 trillion, much of it in funds mirroring indexes like the S&amp;P 500.&nbsp;
BlackRock and Vanguard possess over 10% of shares in numerous banks, a threshold usually indicating a controlling interest, while State Street holds substantial stakes. Regulators are vigilant due to banks&#8217; vital economic role.
Currently, major asset managers enjoy exemptions from stringent banking rules as long as they maintain passive roles, refraining from influencing management or boards.&nbsp;
However, the Wall Street Journal&nbsp;<a target="_blank" href="https://www.wsj.com/finance/regulation/regulator-probes-blackrock-and-vanguard-over-huge-stakes-in-u-s-banks-b9f58619?mod=latest_headlines" rel="noreferrer noopener">noted</a>&nbsp;that this leniency may change soon, driven by Federal Deposit Insurance Corp (FDIC) members. Jonathan McKernan, an FDIC board member, is advocating for enhanced monitoring and a potential pause in investments above the 10% threshold.
The bipartisan support within the FDIC board is evident as McKernan, a Republican, and Rohit Chopra, a Democrat, engage with officials from Vanguard and BlackRock to discuss their holdings.&nbsp;
McKernan emphasizes the need to ensure the Big Three don&#8217;t exert undue influence over FDIC-regulated banks.
A shift towards tighter oversight of asset managers&#8217; stakes reflects broader concerns in Washington about index-fund managers&#8217; sway over corporate America.&nbsp;
Republicans voice concerns that investment firms may exploit voting power to promote liberal agendas, while progressive Democrats worry about concentrated economic influence.&nbsp;
Vanguard and BlackRock maintain passive commitments with the Federal Reserve and FDIC, self-certifying compliance. BlackRock privately contends that current arrangements suffice, opposing additional regulations.&nbsp;
The Securities Industry and Financial Markets Association echoes this sentiment, advocating against redundant oversight.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Photo by Michael Vi on Shutterstock

Fintech news covering the emerging Financial Technology services sector

Fintech

General

Regulators Eye Big Three: Tighter Oversight of BlackRock, Vanguard, State Street On Passive-Investing Mandate

The big three fund managers that jointly manage more than $23 trillion in assets are coming under the scrutiny of federal regulators over their large holdings in many <a href="https://www.benzinga.com/topic/banks">U.S. banks</a>.
BlackRock Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BLK#NYSE">BLK</a>), State Street Corp (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/STT#NYSE">STT</a>) and Vanguard run funds that passively track the performances of equity indexes such as the S&amp;P 500. To achieve this, they attempt to match the weightings of stocks held in these funds, to the index weightings.
But in doing so, BlackRock and Vanguard have each built holdings of more than 10% of the shares at several banks, and this is worrying the Federal Deposit Insurance Corp (FDIC), one of the government institutions responsible for banking supervision.
<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="750" height="650" src="https://editorial-assets.benzinga.com/wp-content/uploads/2024/04/02103557/newplot-2024-04-02T153538.964.png" alt="" class="wp-image-274036" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2024/04/02103557/newplot-2024-04-02T153538.964.png 750w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/04/02103557/newplot-2024-04-02T153538.964-300x260.png 300w" sizes="(max-width: 750px) 100vw, 750px" /></figure>
Also Read: <a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/04/38047230/historic-s-p-500-rally-in-q1-flashes-bullish-signals-for-2024-only-the-ninth-time-s">Historic S&amp;P 500 Rally In Q1 Flashes Bullish Signals For 2024: &#8216;Only The Ninth Time Since 1940&#8217;</a>
<h2 class="wp-block-heading">Ten Percent Rule</h2>
At present, 10% ownership of shares is considered a threshold at which point an investor is considered to have a controlling interest in a bank. Investors must then seek regulatory permission to acquire shares beyond this threshold.
But fund managers are largely exempt from this requirement given their passive investment roles, although they can still use their share ownership to vote in shareholder meetings.
Some board members of the FDIC, are becoming concerned that the big fund managers could overlook their commitment to passive investment and exert greater influence over banks, given the size of their stakes.
Board member Jonathan McKernan <a href="https://www.wsj.com/finance/regulation/regulator-probes-blackrock-and-vanguard-over-huge-stakes-in-u-s-banks-b9f58619?mod=latest_headlines">told</a> the Wall Street Journal of his concerns and is seeking a curb on BlackRock and Vanguard from acquiring further shares above the 10% threshold while the FDIC investigates.
&#8220;We need to be doing more to actually confirm that the Big Three are not leveraging their large stakes to exert influence over FDIC-regulated banks,&#8221; he told the WSJ.
BlackRock owns the iShares series of exchange-traded funds. Its flagship ETF that follows the S&amp;P 500 is the iShares Core S&amp;P 500 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IVV#NYSE">IVV</a>). Vanguard, meanwhile, manages the Vanguard S&amp;P 500 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VOO#NYSE">VOO</a>), while State Street runs the SPDR series and the SPDR S&amp;P 500 ETF Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>) is its big index tracker.
<h2 class="wp-block-heading">&#8216;Problem Of Twelve&#8217;</h2>
It&#8217;s not only regulators who have concerns over the influence of the big funds. In his 2023 book &#8220;The Problem of Twelve,&#8221; Harvard law professor John Coates asserts that roughly 12 people will have effectively seized power over the majority of U.S. public companies in the future.
He issued similar <a href="https://globalreports.columbia.edu/books/the-problem-of-twelve/">warnings</a> about &#8220;a small number of institutions [that] acquire the means to exert outsized influence over the politics and economy of a nation.&#8221;
He says in the book: &#8220;The Big Four index funds of Vanguard, State Street, Fidelity, and BlackRock control more than 20% of the votes of S&amp;P 500 companies — a concentration of power that's unprecedented in America.&#8221;
In its iShares US Financials ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IYF#NYSE">IYF</a>) BlackRock&#8217;s biggest banking holdings are in JPMorgan Chase &amp; Co (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/JPM#NYSE">JPM</a>), Bank of America Corp (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BAC#NYSE">BAC</a>) and Wells Fargo &amp; Company (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/WFC#NYSE">WFC</a>). The Vanguard Financials ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VFH#NYSE">VFH</a>) holds the same three stocks but with differing weightings.
Benzinga reached out to the FDIC for further details, but the agency said it was not commenting.
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Walt Disney Company (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DIS#NYSE">DIS</a>) gains traction in a proxy battle against&nbsp;Trian Partners&nbsp;as major investors&nbsp;<a target="_blank" href="https://www.benzinga.com/general/entertainment/24/03/37943193/disney-is-focused-on-the-future-while-nelson-peltz-is-looking-backwards-says-morgan-stanley" rel="noreferrer noopener">back the entertainment giant</a>.&nbsp;
BlackRock Inc&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BLK#NYSE">BLK</a>), Disney&#8217;s second-largest shareholder, with approximately 78 million shares, supports Disney in the battle for board seats.&nbsp;T. Rowe Price, holding around 9.3 million Disney shares, also pledges its support.
The support from major investors like BlackRock and T. Rowe Price is seen as a significant win for Disney CEO&nbsp;Bob Iger&nbsp;amidst efforts to resist Trian&#8217;s push for board representation amid a crucial turnaround phase.
Despite Disney&#8217;s current lead in the proxy battle, the outcome remains uncertain as shareholders continue to cast votes ahead of the annual meeting on Wednesday, the Wall Street Journal&nbsp;<a target="_blank" href="https://www.wsj.com/finance/disney-winning-proxy-fight-against-trian-with-more-than-half-of-votes-cast-bf1874a1?st=arybzf42zslw1f2&amp;reflink=article_copyURL_share" rel="noreferrer noopener">reported</a>.
Trian Partners, led by&nbsp;Nelson Peltz, seeks board seats for Peltz and former Disney CFO&nbsp;Jay Rasulo, claiming Disney&#8217;s board needs restructuring for better shareholder returns&nbsp;<a target="_blank" href="https://www.benzinga.com/news/24/02/37136578/nelson-peltz-throws-cold-water-on-disney-as-proxy-battle-heats-up-very-little-meat-on-the-bones" rel="noreferrer noopener">and succession planning</a>.
The proxy battle between Disney and Trian is anticipated to become the most expensive in history, with millions spent by both sides to&nbsp;<a target="_blank" href="https://www.benzinga.com/general/entertainment/24/03/37498908/disney-activist-battle-rages-on-with-stock-at-52-week-highs-can-nelson-peltz-restore-the-ma" rel="noreferrer noopener">sway shareholder votes</a>.
Iger and Disney&#8217;s team argue that Peltz&#8217;s inclusion on the board would disrupt operations, while Trian contends that Disney&#8217;s board has failed to deliver adequate returns and needs restructuring.
Trian, with about 32.3 million shares, collaborates with former Marvel chairman Ike Perlmutter, owning significant Disney shares, in its push for board seats.
The battle garners attention as major shareholder-advisory firms split their recommendations, adding to the uncertainty surrounding the outcome.
Disney receives support from prominent figures like George Lucas and Laurene Powell Jobs, while the outcome heavily depends on a handful of large institutional investors like&nbsp;Vanguard, BlackRock, and&nbsp;State Street Corporation&nbsp;(NTSE: STT).
Price Action:&nbsp;DIS shares are down 1.54% at $119.66 during the premarket session on the last check Tuesday.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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Media

Disney's Proxy Battle Enters Critical Phase, Gains Ground Against Trian as Major Investors Back CEO Iger

On CNBC&rsquo;s &quot;Mad Money Lightning Round,&quot; Jim Cramer said he likes Visa Inc. (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/v#NYSE">V</a>) very much here and also likes that settlement that was announced on Tuesday. &quot;The stock is too close to it&rsquo;s all time high. If it comes in a little, I <a href="https://www.benzinga.com/markets/equities/24/03/37939460/visa-and-mastercard-settle-historic-antitrust-suit-with-us-merchants-whats-on-the-cards">would be a buyer,&quot; he added.</a>
Visa and Mastercard Incorporated (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/ma#NYSE">MA</a>) reached a landmark antitrust class action settlement with U.S. merchants. Subject to approval by the U.S. District Court for the Eastern District of New York, the settlement is one of the largest in U.S. antitrust history, according to a statement.
Cramer said no to State Street Corporation (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/stt#NYSE">STT</a>) and said he likes Wells Fargo &amp; Company (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/wfc#NYSE">WFC</a>) and Morgan Stanley (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/ms#NYSE">MS</a>).
State Street is expected to release financial results for its first quarter on Friday, April 12, 2024.
The &quot;Mad Money&quot; host said Chart Industries, Inc. (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/gtls#NYSE">GTLS</a>) is &quot;absolutely terrific.&quot;
On March 20, Chart Industries entered into collaboration with GasLog LNG Services on large scale liquid hydrogen deployment.
When asked about AECOM (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/acm#NYSE">ACM</a>), he said, &quot;We&rsquo;re not going to buy stocks that close to their high when the market looks soggy like it does now, we want it to come in a little before we buy AECOM.&quot;
On March 21, AECOM announced that its Board of Directors has declared a quarterly cash dividend of 22 CENTS per share as part of its ongoing quarterly dividend program.
Huntington Ingalls Industries, Inc. (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/hii#NYSE">HII</a>) is a &quot;very good navy contractor that I&rsquo;ve liked ever since the spin off, &quot; Cramer said. &quot;It&rsquo;s had a very big run, but I think it can go higher. It&rsquo;s a winner, not a loser.&quot;
On March 21, JPMorgan analyst Seth Seifman maintained Huntington Ingalls Industries with an Overweight and raised the price target from $288 to $295.
<h3>Price Action:</h3>
<ul>
<li>Shares of State Street gained 0.7% to close at $76.18 on Tuesday.</li>
<li>Visa shares fell 0.2% to close at $280.60.</li>
<li>Huntington Ingalls shares fell 0.3% to settle at $289.87 on Tuesday.</li>
<li>Chart Industries shares gained 2.2% to close at $163.05.</li>
<li>AECOM shares gained 1.1% to settle at $96.86 on Tuesday.</li>
</ul>
&nbsp;
&nbsp;
Read Next: <a href="https://www.benzinga.com/news/24/03/37932649/wall-streets-most-accurate-analysts-say-hold-these-3-financial-stocks-delivering-high-dividend-yield"> Wall Street&#39;s Most Accurate Analysts Say Hold These 3 Financial Stocks Delivering High-Dividend Yields </a>

Long Ideas

GTLS

Jim Cramer: Visa Is 'Too Close To All-Time High,' Chart Industries Is 'Absolutely Terrific'

<ul>
<li>This offering reinforces State Street's commitment to inclusion and diversity in the financial services industry</li>
</ul>
State Street Corporation ("State Street") (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/STT#NYSE">STT</a>) announced today that it has issued an aggregate principal amount of $1 billion of senior debt. The offering, which closed today, was structured in keeping with State Street's ongoing inclusion, diversity, and equity efforts, with Blaylock Van, LLC acting as a joint book-running manager, and Cabrera Capital Markets LLC, CAVU Securities LLC, Mischler Financial Group, Inc. and Tigress Financial Partners LLC each acting as co-managers. All five broker-dealers are owned by underrepresented groups and, collectively, have underwritten 40% of the securities in the issuance. The underwriting syndicate also included Morgan Stanley &amp; Co. LLC, Scotia Capital (USA) Inc. and UBS Securities LLC each acting as joint book-running managers.
"We are once again pleased to partner with a diverse group of firms on our debt offerings, and proud to announce the successful execution of this latest transaction," said Kimberly DeTrask, executive vice president and treasurer for State Street. "These debt issuances successfully execute on State Street's financial plans, increase industry representation, and support our firm's mission to create better outcomes for the world's investors and the people they serve."
This marks State Street's twelfth consecutive offering engagement where the underwriting syndicate has been structured in a manner consistent with State Street's inclusion, diversity, and equity strategy, reflecting the firm's ongoing efforts to amplify its sustainability and impact initiatives.
"Blaylock Van is thrilled to have participated as one of four joint book runners in State Street's $1 billion, 3-year fixed rate senior notes offering. The multifaceted nature of State Street's relationship with diverse firms, like Blaylock Van, is a testament to its commitment to institution building and creating a lasting legacy in the financial markets. We are honored to be partners with State Street in this transformative journey," said Founder and Chief Executive Officer of Blaylock Van, LLC, Eric Standifer.

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State Street (STT) Gets a Buy from Seaport Global

<a href="https://investorplace.com">InvestorPlace - Stock Market News, Stock Advice &amp; Trading Tips</a>
These three best <a href="https://investorplace.com/industries/industrial/space/">space stocks</a> to buy don&rsquo;t just provide revolutionary space exploration technology. They also focus on other complementary industries, including the defense space and commercial flights.



Boeing (NYSE:<a href="https://investorplace.com/stock-quotes/ba-stock-quote/">BA</a>), for example, is known for making planes for commercial flights. However, the company also offers various defense solutions, such as missile defense systems, satellites and more, catering to the needs of governments and militaries globally. Similarly, Northrop Grumman (NYSE:<a href="https://investorplace.com/stock-quotes/noc-stock-quote/">NOC</a>) is a defense contractor providing a comprehensive range of aerospace and defense solutions. Finally, Virgin Galactic (NYSE:<a href="https://investorplace.com/stock-quotes/spce-stock-quote/">SPCE</a>) is on the cutting edge of the nascent commercial space flight industry.



Importantly, many hedge funds and institutional investors &mdash; including Millennium Management and Fisher Asset Management &mdash; have significant positions in these companies. Here&rsquo;s why investors should consider a stake in these best space stocks to buy, too.



<h2>Best Space Stocks to Buy: Boeing (BA)</h2>



<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2023/02/shutterstock_1212299986-300x169.jpg" alt="BA stock: a blue and white Boeing 787 flying in the sky above the clouds"><div>Source: vaalaa / Shutterstock</div></div>Right now, Boeing stock trades at around $168 per share, marking its new 52-week low. However, that also means that BA stock has room to grow once the <a href="https://www.nytimes.com/2024/03/11/us/politics/faa-audit-boeing-737-max.html">recent bad press</a> subsides.&nbsp;



In particular, BA is currently one of the best space stocks to buy because it has teamed up with NASA to develop the <a href="https://blogs.nasa.gov/commercialcrew/tag/cst-100-starliner/">CST-100 Starliner</a> to transport astronauts to the International Space Station (ISS).&nbsp;The Starliner utilizes United Launch Alliance&rsquo;s Atlas V rockets for launch. Since it is meant to be reusable for multiple missions, this will help reduce costs by allowing the spacecraft to be refurbished and launched again.



Boeing has a current ratio of 1.14, meaning it has &ldquo;good short-term financial strength,&rdquo; per Gurufocus. Meanwhile, its price-to-sales (P/S) ratio is 1.43. Because its P/S ratio is lower than the industry average of around 2x, BA stock could be undervalued.



Dozens of hedge funds and institutional investors <a href="https://finance.yahoo.com/quote/BA/holders">see promise</a> in this company, despite the recent chaos. One <a href="https://www.insidermonkey.com/hedge-fund/fisher+asset+management/11/">big stakeholder</a> is Ken Fisher&rsquo;s Fisher Asset Management, while Vanguard and BlackRock (NYSE:<a href="https://investorplace.com/stock-quotes/blk-stock-quote/">BLK</a>) hold some of the largest positions in Boeing.



<h2>Virgin Galactic (SPCE)</h2>



<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2020/06/spce-1600-300x169.jpg" alt="spce stock"><div>Source: rafapress / Shutterstock.com</div></div>Virgin Galactic is another one of the best space stocks to buy and now trades at under $1 per share. Its <a href="https://www.gurufocus.com/stock/SPCE/summary">current ratio is 5.12</a>, indicating a strong liquidity position with current assets exceeding current liabilities by a significant margin.



Virgin Galactic is known for offering commercial space flights for the general public at a hefty price tag of $450,000 per ticket. Right now, though, the space tourism company is working on its new spacecraft, called the Delta class, which is set to launch in 2026.



To prepare for this, Virgin is cutting costs and aiming to make its space tourism business profitable. This upcoming spacecraft is set to be a game changer for space exploration, meaning investors should keep a close eye on the firm and SPCE stock.



Top institutional investors like State Street (NYSE:<a href="https://investorplace.com/stock-quotes/stt-stock-quote/">STT</a>), Vanguard and Millennium Management <a href="https://finance.yahoo.com/quote/SPCE/holders">hold large stakes</a> in SPCE stock. While shares may be volatile in the near future, things still appear promising in the long run due to Virgin&rsquo;s institutional investments, 8.42% insider ownership and Delta class plans.



<h2>Northrop Grumman (NOC)</h2>



<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2022/03/northrop-grumman_noc_rq4_1600-300x169.png" alt="United States Air Force Northrop Grumman (NOC) RQ-4B Global Hawk unmanned surveillance aircraft."><div>Source: viper-zero / Shutterstock.com</div></div>Northrop Grumman isn&rsquo;t just one of the best space stocks to buy &mdash; it&rsquo;s also an important player in the defense contractor space. As global tensions heat up, the firm&rsquo;s products and services stand to be in high demand.



As far as the space industry goes, Northrop has also made important strides. For example, the firm was previously awarded contracts to develop the OmegA rocket program. More recently, Northrop was involved in a SpaceX <a href="https://www.cbsnews.com/news/spacex-launches-northrop-grumman-cargo-ship-to-space-station/">launch</a> this past January.



All told, Northrup is a profitable and stable company. Its revenue has grown from $35.66 billion in 2021 to $39.2 billion in 2023. Northrop also currently boasts a healthy profit margin of about 5%.



Trading at around $450 per share as of this writing, NOC stock is somewhat near its 52-week high of $496.89. Various hedge funds and <a href="https://finance.yahoo.com/quote/NOC/holders">institutional investors</a> have stakes in the company, <a href="https://www.insidermonkey.com/hedge-fund/yacktman+asset+management/434/">including</a> Yacktman Asset Management.



On the date of publication, Dalton Brewster did not hold (either directly or indirectly) and positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the&nbsp;InvestorPlace.com&nbsp;<a href="https://url.us.m.mimecastprotect.com/s/ELRfCJ6AWWTKqolBfGGt2P?domain=streaklinks.com" target="_blank">Publishing Guidelines</a>.
<div>Dalton Brewster is a freelance financial copywriter who has worked with leading financial companies over the last several years. He loves helping people learn about personal finance, investing, and making complex subjects simple. When he&rsquo;s not working, you can find him surfing, traveling, or even playing chess!</div><h3>More From InvestorPlace</h3>
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The post <a href="https://investorplace.com/2024/04/the-trillion-dollar-space-race-3-of-the-best-space-stocks-to-buy-leading-the-charge/">The Trillion-Dollar Space Race: 3 of the Best Space Stocks to Buy Leading the Charge</a> appeared first on <a href="https://investorplace.com">InvestorPlace</a>.

The Trillion-Dollar Space Race: 3 of the Best Space Stocks to Buy Leading the Charge

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Press Releases

State Street Corporation (NYSE: STT) Announces Date for Release of First-Quarter 2024 Financial Results and Conference Call Webcast

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State Street's Research Team Announces Academic Partnership with Daniel Drezner of The Fletcher School, expanding Markets Research Capabilities in Arena of Geopolitical Risk