Wells Fargo Stock (NYSE:WFC), Trade Ideas

Wells Fargo

Wells Fargo is one of the largest banks in the United States, with approximately $1.9 trillion in balance sheet assets. The company has four primary segments: consumer banking, commercial banking, corporate and investment banking, and wealth and investment management. It is almost entirely focused on the U.S.

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U.S. Bancorp&#39;s (NYSE: USB) first-quarter 2024 adjusted earnings per share (excluding the impact of notable items) of 90 cents beat the Zacks Consensus Estimate by a penny. However, the bottom line declined 22.4% from the prior-year quarter&#39;s level.

U.S. Bancorp&#39;s Q1 Earnings Beat Estimates, Provisions Rise

Analyst Color

Earnings

Sector ETFs

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FITB

Banks are coming out of a challenging quarter. Analysts project a further decline in net interest income by approximately 3.6%.

Market Reaction To Bank Earnings Is Mixed, JPMorgan Analysts Project Further Decline In Net Interest Income

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Equities

iShares Dow Jones US Financial Sector Index Fund

Big bank earnings may be best qualified as mixed, and Cramer took the side of those reporting higher fee income.

Jim Cramer Says He Likes Earnings From These Big Banks &#39;So Much&#39; — Here&#39;s Why

Wells Fargo & Co

Where Food Comes From, Inc. - Common Stock

Where Food Comes From Inc

1867 WESTN FINL CORP by 1867 Western Financial Corp

1867 Western Financial Corp

WELLS FARGO & CO D/E PFD by Wells Fargo & Co.

Wells Fargo & Company Depositary Shares, each representing a 1/1,000th interest in a share of Non-Cumulative Perpetual Class A Preferred Stock, Series AA

Wells Fargo & Company Depositary Shares, each representing a 1/1,000th interest in a share of Non-Cumulative Perpetual Class A Preferred Stock, Series CC

Wells Fargo & Company Depositary Shares, each representing a 1/1,000th interest in a share of Non-Cumulative Perpetual Class A Preferred Stock, Series DD

Wells Fargo & Company 7.50% Non-Cumulative Perpetual Convertible Class A Preferred Stock, Series L

Wells Fargo & Company Depositary Shares, each representing a 1/1,000th interest in a share of Non-Cumulative Perpetual Class A Preferred Stock, Series Y

Wells Fargo & Company Depositary Shares, each representing a 1/1,000th interest in a share of Non-Cumulative Perpetual Class A Preferred Stock, Series Z

WIIM

Shares of bank stocks are trading higher. Positive earnings from Ally and Discover Financial Services may be lifting some stocks in the sector.

High-rolling investors have positioned themselves bullish on Wells Fargo (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/WFC#NYSE">WFC</a>), and it's important for retail traders to take note. 
\This activity came to our attention today through Benzinga's tracking of publicly available options data. The identities of these investors are uncertain, but such a significant move in WFC often signals that someone has privileged information.
Today, Benzinga's options scanner spotted 11 options trades for Wells Fargo. This is not a typical pattern.
The sentiment among these major traders is split, with 54% bullish and 45% bearish. Among all the options we identified, there was one put, amounting to $47,595, and 10 calls, totaling $979,495.
<h3>What's The Price Target?</h3>
After evaluating the trading volumes and Open Interest, it's evident that the major market movers are focusing on a price band between $37.5 and $66.0 for Wells Fargo, spanning the last three months.
<h3>Volume &amp; Open Interest Development</h3>
Looking at the volume and open interest is an insightful way to conduct due diligence on a stock.
This data can help you track the liquidity and interest for Wells Fargo's options for a given strike price.
Below, we can observe the evolution of the volume and open interest of calls and puts, respectively, for all of Wells Fargo's whale activity within a strike price range from $37.5 to $66.0 in the last 30 days. 
<h3>Wells Fargo 30-Day Option Volume &amp; Interest Snapshot</h3>
<img src="https://www.benzinga.com/files/images/story/2024/1713449793_0.png" alt="Options Call Chart" />
<h3>Biggest Options Spotted:</h3>

<table>
<thead>
<tr>
<th>Symbol</th>
<th>PUT/CALL</th>
<th>Trade Type</th>
<th>Sentiment</th>
<th>Exp. Date</th>
<th>Ask</th>
<th>Bid</th>
<th>Price</th>
<th>Strike Price</th>
<th>Total Trade Price</th>
<th>Open Interest</th>
<th style="text-align: right;">Volume</th>
</tr>
</thead>
<tbody>
<tr>
<td>WFC</td>
<td>CALL</td>
<td>TRADE</td>
<td>BULLISH</td>
<td>01/17/25</td>
<td>$21.3</td>
<td>$21.15</td>
<td>$21.3</td>
<td>$37.50</td>
<td>$213.0K</td>
<td>7.2K</td>
<td style="text-align: right;">100</td>
</tr>
<tr>
<td>WFC</td>
<td>CALL</td>
<td>SWEEP</td>
<td>BULLISH</td>
<td>01/17/25</td>
<td>$3.0</td>
<td>$2.99</td>
<td>$3.0</td>
<td>$65.00</td>
<td>$208.2K</td>
<td>12.5K</td>
<td style="text-align: right;">912</td>
</tr>
<tr>
<td>WFC</td>
<td>CALL</td>
<td>TRADE</td>
<td>BULLISH</td>
<td>09/20/24</td>
<td>$15.8</td>
<td>$15.65</td>
<td>$15.8</td>
<td>$42.50</td>
<td>$158.0K</td>
<td>2.3K</td>
<td style="text-align: right;">0</td>
</tr>
<tr>
<td>WFC</td>
<td>CALL</td>
<td>TRADE</td>
<td>BULLISH</td>
<td>06/21/24</td>
<td>$12.8</td>
<td>$12.75</td>
<td>$12.8</td>
<td>$45.00</td>
<td>$128.0K</td>
<td>12.4K</td>
<td style="text-align: right;">0</td>
</tr>
<tr>
<td>WFC</td>
<td>CALL</td>
<td>SWEEP</td>
<td>BEARISH</td>
<td>01/16/26</td>
<td>$13.5</td>
<td>$13.4</td>
<td>$13.4</td>
<td>$50.00</td>
<td>$69.6K</td>
<td>3.7K</td>
<td style="text-align: right;">0</td>
</tr>
</tbody>
</table>

<h3>About Wells Fargo</h3>
Wells Fargo is one of the largest banks in the United States, with approximately $1.9 trillion in balance sheet assets. The company has four primary segments: consumer banking, commercial banking, corporate and investment banking, and wealth and investment management. It is almost entirely focused on the U.S.
<h3>Where Is Wells Fargo Standing Right Now?</h3>
<ul>
<li>Trading volume stands at 1,737,066, with WFC's price up by 1.25%, positioned at $57.9.</li>
<li>RSI indicators show the stock to be may be approaching overbought.</li>
<li>Earnings announcement expected in 85 days.</li>
</ul>
<h3>What The Experts Say On Wells Fargo</h3>
5 market experts have recently issued ratings for this stock, with a consensus target price of $65.0.
<ul>
<li>Consistent in their evaluation, an analyst from Goldman Sachs keeps a Buy rating on Wells Fargo with a target price of $65. </li>
<li>In a cautious move, an analyst from Citigroup downgraded its rating to Neutral, setting a price target of $63. </li>
<li>An analyst from Argus Research persists with their Buy rating on Wells Fargo, maintaining a target price of $66. </li>
<li>An analyst from Compass Point has revised its rating downward to Neutral, adjusting the price target to $64. </li>
<li>Maintaining their stance, an analyst from Evercore ISI Group continues to hold a Outperform rating for Wells Fargo, targeting a price of $67. </li>
</ul>
Trading options involves greater risks but also offers the potential for higher profits. Savvy traders mitigate these risks through ongoing education, strategic trade adjustments, utilizing various indicators, and staying attuned to market dynamics. Keep up with the latest options trades for Wells Fargo with <a href="https://benzinga.grsm.io/register174">Benzinga Pro</a> for real-time alerts.

Options

Smart Money Is Betting Big In WFC Options

U.S. Bancorp&#39;s (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/usb#NYSE">USB</a>) first-quarter 2024 adjusted earnings per share (excluding the impact of notable items) of 90 cents beat the Zacks Consensus Estimate by a penny. However, the bottom line declined 22.4% from the prior-year quarter&#39;s level.
Shares of USB have declined 3.90% in the pre-market trading despite better-than-anticipated earnings. A full day&#39;s trading will depict a better picture.
Results have benefited from higher fee income. Moreover, lower expenses during the quarter were commendable. However, a decline in net interest income (NII) and a rise in provision for credit losses were major headwinds.
Net income (GAAP basis) attributable to U.S. Bancorp was $1.32 billion, down 22.3% from the prior-year quarter&#39;s level.
<h3>Revenues &amp; Expenses Fall</h3>
Total revenues in the reported quarter were $6.69 billion, down 6.4% year over year. The top line also missed the Zacks Consensus Estimate by a whisker.
The tax-equivalent NII totaled $4.02 billion, down 14% from the year-ago quarter&#39;s level. The decrease was primarily due to the impact of higher interest rates on deposit mix and pricing, partially offset by higher rates on earning assets.
The net interest margin of 2.70% shrunk 40 basis points year over year.
Non-interest income grew 7.7% year over year to $2.7 billion. The uptick was driven by an increase in almost all fee income components except corporate payment products revenue, service charges and other income.
Non-interest expenses declined 2.1% year over year to $4.46 billion. The fall was due to a decrease in almost all cost components except for costs related to compensation and employee benefits, marketing and business development, technology and communications and notable items.
The efficiency ratio was 66.4%, higher than the year-ago quarter&#39;s figure of 63.2%. A rise in the ratio indicates a deterioration in profitability.
Average total loans declined marginally to $371.07 billion from the previous quarter. Average total deposits increased marginally from the previous quarter&#39;s level to $503.06 billion.
<h3>Credit Quality Worsens</h3>
Total allowance for credit losses was $7.9 billion, up 5.1% year over year. As of Mar 31, 2024, U.S. Bancorp&#39;s non-performing assets amounted to $1.79 billion, up 51.2% from the year-ago period&#39;s level.
Moreover, net charge-offs were $488 million, up from $373 million in the year-ago quarter. The provision for credit losses in the reported quarter was $553 million, up 29.5% from the prior-year quarter&#39;s level.
<h3>Capital Ratios Improve</h3>
The Tier 1 capital ratio was 11.6% as of Mar 31, 2024, up from 10% in the prior-year quarter. The Common Equity Tier 1 capital ratio under the Basel III standardized approach was 10% as of Mar 31, 2024, up from 8.5% in the year-ago quarter.
The tangible common equity to tangible assets ratio was 5.2%, up from the prior-year quarter&#39;s 4.8%.
<h3>Our Take</h3>
U.S. Bancorp&#39;s solid business model and diverse revenue streams are likely to keep aiding its financials in the upcoming period. Further, the company has been growing through strategic acquisitions. However, any further rise in expenses and provisions may weigh on its bottom line in the near term.
<div class="chart_embed">
<h3>U.S. Bancorp Price, Consensus and EPS Surprise</h3>
<a href="https://www.zacks.com/stock/chart/USB/price-consensus-eps-surprise-chart?icid=chart-USB-price-consensus-eps-surprise-chart"><img alt="U.S. Bancorp Price, Consensus and EPS Surprise" src="https://staticx-tuner.zacks.com/images/charts/34/1713362132.png" style="height:265px; width:577px" title="" /> </a>
U.S. Bancorp price-consensus-eps-surprise-chart | U.S. Bancorp Quote
</div>
U.S. Bancorp currently carries a Zacks Rank #3 (Hold).
<h3>Performance of Other Major Banks</h3>
Wells Fargo &amp; Company&#39;s (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/wfc#NYSE">WFC</a>) first-quarter 2024 adjusted earnings per share of $1.26 surpassed the Zacks Consensus Estimate of $1.10. The adjusted figure excludes the impacts of expenses from the FDIC special assessment. In the prior-year quarter, the company reported earnings per share of $1.23.
Results have benefited from higher non-interest income. An improvement in capital ratios and a decline in provisions were other positives. However, the decrease in NII and loan balances and an increase in expenses were the undermining factors for WFC.
Citigroup Inc.&#39;s (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/c#NYSE">C</a>) first-quarter 2024 net income from continuing operations per share of $1.58 surpassed the Zacks Consensus Estimate of $1.13. However, the metric declined 28% from the year-ago quarter.
However, C witnessed declines in total loans and deposits in the quarter. Also, a decline in revenues and deteriorating credit quality are near-term woes.
<a href="https://www.zacks.com/stock/news/2257042/u-s-bancorp-s-usb-q1-earnings-beat-estimates-provisions-rise?cid=CS-BENZ-FT-analyst_blog|earnings_article-2257042">To read this article on Zacks.com click here.</a>

U.S. Bancorp's Q1 Earnings Beat Estimates, Provisions Rise

As the U.S. financial sector grapples with recent earnings releases, investor <a href="https://www.benzinga.com/calendars/earnings">reactions have been mixed</a>. 
Some stocks are witnessing declines. Others are posting gains. See below.
<h3 class="wp-block-heading">Banks Q1 Earnings Reports And Market Reactions, So Far</h3>
<figure class="wp-block-table is-style-stripes"> 
<table>
<tbody>
<tr>
<td>Company</td>
<td>Ticker</td>
<td>Mkt Cap ($ mn)</td>
<td>Price ($)</td>
<td>Rating</td>
<td>JPMorgan Price Target </td>
<td>End Date</td>
<td>Q1 Earnings Date</td>
<td>EPS</td>
<td>Revenue</td>
<td>Stock Reaction (since earnings) as of April 18, 2:40 PM ET</td>
</tr>
<tr>
<td>Citigroup Inc.</td>
<td>C</td>
<td>119,590.80</td>
<td>62.84</td>
<td>N</td>
<td>64</td>
<td>Dec-24</td>
<td>Apr 12</td>
<td>Beat</td>
<td>Beat</td>
<td>-4.46%</td>
</tr>
<tr>
<td>Wells Fargo</td>
<td>WFC</td>
<td>206,396.90</td>
<td>57.35</td>
<td>N</td>
<td>59</td>
<td>Dec-24</td>
<td>Apr 12</td>
<td>Beat</td>
<td>Beat</td>
<td>-0.11%</td>
</tr>
<tr>
<td>Bank of America</td>
<td>BAC</td>
<td>294,502.20</td>
<td>37.3</td>
<td>OW</td>
<td>39.5</td>
<td>Dec-24</td>
<td>Apr 16</td>
<td>Beat</td>
<td>Beat</td>
<td>2.43%</td>
</tr>
<tr>
<td>PNC Financial</td>
<td>PNC</td>
<td>63,173.54</td>
<td>157.54</td>
<td>OW</td>
<td>163.5</td>
<td>Dec-24</td>
<td>Apr 16</td>
<td>Beat</td>
<td>Miss</td>
<td>-0.79%</td>
</tr>
<tr>
<td>Citizens Financial Group</td>
<td>CFG</td>
<td>16,343.29</td>
<td>35.04</td>
<td>N</td>
<td>36.5</td>
<td>Dec-24</td>
<td>Apr 17</td>
<td>Beat</td>
<td>Miss</td>
<td>2.76%</td>
</tr>
<tr>
<td>U.S. Bancorp</td>
<td>USB</td>
<td>67,352.34</td>
<td>43.23</td>
<td>OW</td>
<td>45</td>
<td>Dec-24</td>
<td>Apr 17</td>
<td>Beat</td>
<td>Miss</td>
<td>-3%</td>
</tr>
<tr>
<td>Fifth Third Bancorp</td>
<td>FITB</td>
<td>24,506.88</td>
<td>35.98</td>
<td>N</td>
<td>37.5</td>
<td>Dec-24</td>
<td>Apr 19</td>
<td></td>
<td></td>
<td></td>
</tr>
<tr>
<td>Regions Financial</td>
<td>RF</td>
<td>18,812.64</td>
<td>20.36</td>
<td>N</td>
<td>21</td>
<td>Dec-24</td>
<td>Apr 19</td>
<td></td>
<td></td>
<td></td>
</tr>
<tr>
<td>Truist Financial Corp</td>
<td>TFC</td>
<td>50,535.52</td>
<td>37.89</td>
<td>N</td>
<td>39.5</td>
<td>Dec-24</td>
<td>Apr 22</td>
<td></td>
<td></td>
<td></td>
</tr>
</tbody>
</table>
<figcaption class="wp-element-caption">US Banks Q1 2024 Earnings</figcaption></figure>
Citigroup Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/C#NYSE">C</a>) and Wells Fargo (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/WFC#NYSE">WFC</a>) reported earnings on April 12. Both firms beat EPS and revenue estimates. 
Citi stock is down 4.46% while Wells Fargo&#8217;s stock is down 0.11% since April 12.
Bank of America (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BAC#NYSE">BAC</a>) reported a beat on both metrics; PNC Financial (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PNC#NYSE">PNC</a>) fell short of consensus estimates on revenue. BAC stock is up 2.43% since then, but PNC is down 0.79%.
Then there&#8217;s Citizens Financial Group (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CFG#NYSE">CFG</a>). The firm reported a beat on EPS but a miss on revenue on Wednesday. Citizens stock was trading up 2.76% during day trading on Wednesday by 2.40 PM ET. 
U.S. Bancorp (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/USB#NYSE">USB</a>) reported a beat on EPS, but a miss on revenue. The firm&#8217;s stock was trading down by more than 3.3% at last check Wednesday, trading at $39.62 a share.
<h2 class="wp-block-heading">Macroeconomic Concerns </h2>
With the Fed delaying the rate cut decision, market sentiment towards banks and bank stocks appears muted, despite earnings beats. 
The SPDR Financial Select Sector ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLF#NYSE">XLF</a>) has experienced a 1.17% decline since then (April 12), reflecting the market&#8217;s subdued sentiment. 
Regional banks, represented by the SPDR S&amp;P Regional Banking ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/KRE#NYSE">KRE</a>), have also dipped by 1.66% over these past 5 days. 
Upcoming earnings reports include:
<ul>
<li>Fifth Third Bancorp (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FITB#NYSE">FITB</a>), Friday, April 19.</li>
<li>Regions Financial (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/RF#NYSE">RF</a>) also April 19</li>
<li>Truist Financial Corp (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TFC#NYSE">TFC</a>), Monday, April 22</li>
</ul>
<h2 class="wp-block-heading">What Lies Ahead For Banks In 2024?</h2>
JPMorgan Chase anticipates a challenging quarter for banks. The firm&#8217;s analysts project a further decline in net interest income by approximately 3.6%; weak loan performance is expected to decrease by 0.8% quarter-over-quarter.
Moving forward, banks&#8217; ability to reduce deposit costs in response to potential rate cuts by the Federal Reserve, will be critical, notes JPMorgan, drawing attention to the ongoing competition posed by U.S. money market mutual funds.
Particularly during periods of rate adjustments, these tend to influence banks&#8217; deposit pricing strategies. 
Moreover, JPMorgan notes that retail segment deposits are expected to exhibit lower betas to rate cuts, with retail deposits comprising a significant portion of banks&#8217; total deposits. 
Notably, Citizens, Regions, Wells Fargo, and Truist have relatively higher shares of retail deposits, albeit with nuances in their compositions. 
Citi stands out with a smaller proportion of U.S. retail deposits but holds a larger volume of overseas deposits, characterized by lower deposit betas compared to the US market.
More on this aspect, covered here: <a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/04/38074736/big-banks-to-report-q1-earnings-analyst-prefers-bank-of-america-citi-likely-to-lag?utm_source=InvestingUK&amp;utm_campaign=partner_feed&amp;utm_medium=partner_feed&amp;utm_content=TopStories">Big Banks To Report Q1 Earnings: Analyst Prefers Bank Of America, &#8216;Citi Likely To Lag&#8217;</a>
For investors, the key lies in selective stock picking, favoring well-capitalized banks with robust reserves and reduced exposure to commercial real estate. The upcoming reports will provide valuable cues for investors navigating the financial landscape in the months ahead.
Read Next: <a href="https://www.benzinga.com/news/earnings/24/04/38280369/financial-stocks-fall-after-earnings-major-banks-notch-4-day-losing-streak-regional-banks-hit-lowes">Financial Stocks Fall After Earnings, Major Banks Notch 4-Day Losing Streak: Regional Banks Hit Lowest Level Since Late 2023</a>
Image: Midjourney

With <a href="https://www.benzinga.com/news/earnings/earnings-beats/24/04/38220176/major-us-banks-top-q1-earnings-estimates-as-high-interest-rates-offer-tailwinds-indi">big bank earnings now in the rearview mirror,</a> CNCB Mad Money host and stock picker Jim Cramer on Wednesday weighed in on which of them impressed him the most.
What Happened: Cramer was impressed with the earnings reports of Goldman Sachs Group, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GS#NYSE">GS</a>) and Morgan Stanley (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MS#NYSE">MS</a>). He added the name of Wells Fargo &amp; Co. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/WFC#NYSE">WFC</a>) in the same breath.
Cramer premised his picks based on the fee income these banks generated rather than on the net interest income. Fees include income generated from equity and debt underwriting, as well as advisory and asset &amp; wealth management fees. Net interest income, on the other hand, is the difference between the money the banking operation receives on the loans it extends and the money it owes to its depositors.
<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">When you read through all the big bank quarters so far you like GS and MS so much because of the fees, not the net interest income. Same with Wells Fargo, which had a very good quarter. Big boost in fees
&mdash; Jim Cramer (@jimcramer) <a href="https://twitter.com/jimcramer/status/1780505158616588775?ref_src=twsrc%5Etfw">April 17, 2024</a></blockquote>
<script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script></div>
</figure>
See Also: <a href="https://www.benzinga.com/money/best-bank-stocks">Best Bank Stocks</a>
Why It&#8217;s Important: The Fed funds rate, which is used as a benchmark to fix various interest rates, is now at a 22-year high of 5.25%-5.50%. This is positive for the net interest income of banks.
The net interest income&#8217;s health also hinges on the provisioning a company sets aside for credit losses. 
For Goldman, which reported a stellar quarter, non-interest revenue rose 21% year-over-year and 26% quarter-over-quarter. Net interest income, meanwhile, was down 10% year-over-year and up 20% sequentially.
JPMorgan Chase &amp; Co., Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/JPM#NYSE">JPM</a>), <a href="https://www.benzinga.com/news/earnings/24/04/38219142/whats-going-on-with-jpmorgan-shares-today">which did not appease the Street with its earnings,</a> did report a double beat. Much of the upside was from higher interest income, facilitated by higher rates and larger loan balances stemming from its First Republic Bank takeover.
After taking a dovish stance immediately after the March Federal Open Market Committee meeting, Jerome Powell has reverted to his hawkish stance. In a speech on Tuesday, he said the restrictive rates should persist as long as the inflation remained above the 2% upper ceiling set by the central bank.
The futures market, however, is pricing in a 67.3% possibility of a rate cut in the September meeting.
The iShares U.S. Financials ETF&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IYF#NYSE">IYF</a>) ended Tuesday&#8217;s session down 0.68% at $88.39, according to <a href="https://benzinga.grsm.io/lxquj26b2sag">Benzinga Pro data. </a>
Read Next: <a href="https://www.benzinga.com/news/earnings/24/04/38280369/financial-stocks-fall-after-earnings-major-banks-notch-4-day-losing-streak-regional-banks-hit-lowes">Financial Stocks Fall After Earnings, Major Banks Notch 4-Day Losing Streak: Regional Banks Hit Lowest Level Since Late 2023</a>
Image Via Shutterstock

Jim Cramer Says He Likes Earnings From These Big Banks 'So Much' — Here's Why

The commercial real estate industry continues to reel from the impacts of remote work <a href="http://benzinga.com/analyst-ratings/analyst-color/24/04/38219988/economists-warn-feds-inflation-battle-could-trigger-recession-have-to-increase-the-">and escalating inflation.</a>
Elevated interest rates and a widespread trend toward reducing office space across various industries have left the sector facing unprecedented amounts of vacant office space.
<a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/04/38273192/goldman-sachs-boasts-near-perfect-q1-results-5-analysts-zero-in-on-core-strengths">On an earnings call on Monday</a>, Goldman Sachs Group Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GS#NYSE">GS</a>) CEO David M. Solomon mentioned the poor state of commercial real estate as one of the main factors slowing U.S. growth, along with continuing concerns about inflation and escalating geopolitical tensions.
The sector has become especially sensitive to speculation around interest rates. Last month, a hint of rate cuts by the Fed <a href="https://www.benzinga.com/real-estate/reit/24/03/37882885/10-real-estate-stocks-move-on-thursday-fed-rate-cut-possibility-sparks-rally-for-troubled-sector">had several stocks and funds jump through the roof</a> in a show of volatility that's unknown to a sector normally praised for offering stability against riskier markets.
Just days later, S&amp;P Global Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPGI#NYSE">SPGI</a>) <a href="https://www.benzinga.com//node/37950136">decided to downgrade five regional banks</a> based on risks associated with the unstable commercial real estate market.
Operational shifts for big tech companies are partly fueling the commercial real estate slump. The change to remote or hybrid work, which has become the new status quo in the tech sector after the strike of COVID-19, has left many companies juggling more office space than they need.
That's added to a massive trend of layoffs which continued to be common practice in<a href="https://www.benzinga.com/markets/equities/24/01/36874447/tech-layoffs-up-over-300-month-over-month-in-january-3-companies-with-the-most-employees-laid-of"> the tech sector during the first quarter of 2024</a>, after a slight downtick during the second half of 2023.
Late last month, Amazon.com Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMZN#NASDAQ">AMZN</a>) said it plans to cut $1.3 billion <a href="https://www.benzinga.com/news/24/03/37983953/amazons-strategic-real-estate-plan-to-reduce-vacancy-rate-and-enhance-workspace-efficiency">by reducing office space and ending leases early</a>. The tech behemoth faces a 33.8% vacancy rate in its offices after laying off over 27,000 employees in 2022 and 2023.
According to a Wall Street Journal <a href="https://www.wsj.com/real-estate/commercial/big-tech-is-downsizing-work-space-in-another-blow-to-office-real-estate-67b4685c?mod=hp_featst_pos3">report</a>, Alphabet Inc Class C (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOG#NASDAQ">GOOG</a>) (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOGL#NASDAQ">GOOGL</a>) is subleasing some of its Silicon Valley office space, while Meta Platforms Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/META#NASDAQ">META</a>) has reduced leases for its own office space. The Facebook owner has been slashing office space all around the globe this year, <a href="https://www.benzinga.com//node/37024306">including in locations like Singapore</a> and <a href="https://www.benzinga.com//node/34900681">London</a>. Meanwhile, Salesforce Inc's (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CRM#NYSE">CRM</a>) SEC filings show that the company is using half the office space it was using one year ago in the San Francisco area.
Read also: <a href="https://www.benzinga.com/etfs/broad-u-s-equity-etfs/24/04/38278182/powell-delays-fed-rate-cuts-we-need-greater-confidence-in-inflation-2-year-yields-spik">Powell Delays Fed Rate Cuts—&#8217;We Need Greater Confidence In Inflation&#8217;; 2-Year Yields Spike To 5%</a>
The pullback from tech is proving especially painful for the real estate sector when it adds losses from other common office-dwelling sectors, including law firms and financial companies.
By January, a Moody's Analytics report put the average<a href="https://www.benzinga.com/markets/equities/24/01/36542862/empty-spaces-us-office-vacancies-rise-to-highest-levels-in-four-decades"> vacant office space in large cities around the country at 19.6%</a>, the highest it's been since 1979.
Several cities are showcasing extreme levels of office vacancy these days, with San Francisco at a record of 36.7%, compared to just 3.6% before the pandemic. The void is more noticeable in cities associated with the tech industry, including Seattle, New York and Austin. In Seattle, office property transactions <a href="https://www.benzinga.com/news/financing/24/02/37134484/seattles-office-space-dives-98-7-dip-reflects-tech-storm-hybrid-shifts">declined in 2023 a staggering 98.7% year-over-year</a> after almost 45,000 employees were laid off in the area.
On Wells Fargo &amp; Co&#8216;s (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/WFC#NYSE">WFC</a>)<a href="https://www.benzinga.com//node/38219378"> Q1 call last week,</a> CEO Charles W. Scharf said that commercial real estate revenue was down 7% from the previous year, impacted by lower loan demand in that sector.
Yet the executive added that the sector, which is primarily made up of office space, didn't experience significant changes when compared to the last quarter of 2023.
Vanguard Real Estate Index Fund ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VNQ#NYSE">VNQ</a>), by far the largest real estate ETF by assets under management, is down almost 11% since January, with a 5% drop in the last five days.
Schwab US REIT ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SCHH#NYSE">SCHH</a>) and Real Estate Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLRE#NYSE">XLRE</a>) present very similar trajectories.
However, it's not all bad news for investors in the space. Blackstone Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BX#NYSE">BX</a>) President Jon Gray recently said this could be the right time to<a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/03/37719939/is-it-time-to-buy-the-commercial-real-estate-dip-the-worlds-biggest-private-equity-"> "buy the dip" on the real estate plunge</a>. The asset manager is optimistic about the long term future of commercial real estate when considering that the Fed will sooner or later have to reduce rates.
Once that happens, the diminished supply of new developments following this slowdown, combined with cheaper cost of borrowing, could kickstart the industry upwards once more.
Now read: <a href="https://www.benzinga.com/markets/equities/24/04/38277243/stocks-grapple-with-geopolitical-pressures-gold-eyes-2-400-bitcoin-falls-below-62-000-whats-driv">Stocks Grapple With Geopolitical Pressures, Gold Eyes $2,400, Bitcoin Falls Below $62,000: What&#8217;s Driving Markets Tuesday?</a>
Image generated using artificial intelligence via Midjourney.

Specialty ETFs

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AMZN

GOOG

GOOGL

SCHH

SPGI

XLRE

Tech Layoffs, Remote Work Push Office Vacancies To 19.6%, Highest Since 1979

The Goldman Sachs Group, Inc.&#39;s (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/gs#NYSE">GS</a>) first-quarter 2024 earnings per share of $11.58 surpassed the Zacks Consensus Estimate of $8.54. Also, the bottom line increased 16.3% from the year-earlier quarter. 
Shares of the company gained 4.02% in the pre-market trading on an earnings beat. Investors seem to be bullish on the stock because of higher revenues reported in the quarter. 
Goldman&#39;s results have benefited from the strength in the consumer banking and investment banking business, along with improved fee income. However, increased expenses and provisions were the undermining factors. 
Net earnings of $4.13 billion rose 27.8% from the prior-year quarter. Our estimate for the metric was pegged at $2.96 billion.
<h3>Quarterly Revenues Increase</h3>
Net revenues for the quarter of $14.21 billion increased 16.3% from the year-ago quarter. Also, the top line surpassed the Zacks Consensus Estimate of $12.89 billion. 
Total operating expenses increased 3% year over year to $8.66 billion. Our estimate for the metric was pinned at $9.12 billion. The year-over-year rise in expenses was mainly due to increased compensation and benefit costs, along with higher transaction-related costs, as well as incremental expenses for the FDIC special assessment fee. This was partially offset by lower impairments related to consolidated real estate investments. 
Provision for credit losses was $318 million against a net provision benefit of $171 million in the first quarter of 2023.
<h3>Quarterly Segmental Performance Improves</h3>
The Asset &amp; Wealth Management division generated revenues of $3.79 billion in the reported quarter, up 17.8% year over year. Our estimate for the metric was pegged at $4.04 billion. The improvement was driven by higher management and incentive fees, equity investments and a rise in revenues from private banking and lending. 
Firmwide assets under supervision were a record $2.85 trillion, up from $2.67 trillion reported in the prior quarter. 
The Global Banking &amp; Markets division has recorded revenues of $9.73 billion, which increased 15.2% year over year. Our estimate for the metric was $7.83 billion. The improvement was due to an increase in the investment banking business (up 12%), higher revenues in FICC (up 10%), along with a rise in equities revenues (up 10%). 
The Platform Solutions division&#39;s revenues were $698 million, up 23.8% year over year. Our estimate for the metric was $1.13 billion. The jump was driven by higher revenues from consumer platforms.
<h3>Capital Ratios: Mixed Bag</h3>
As of Mar 31, 2024, the standardized Common Equity Tier 1 capital ratio was 14.7%, up 14.4% on a sequential basis. The company&#39;s supplementary leverage ratio was 5.4%, down from the previous quarter&#39;s 5.8%.
<h3>Capital Deployment Update</h3>
In the first quarter of 2024, Goldman returned $2.43 billion of capital to common shareholders. This included $1.50 billion in share repurchases and common stock dividends of $929 million.
<h3>Our View</h3>
While Goldman&#39;s well-diversified business will ensure earnings stability going forward, macroeconomic uncertainty and recessionary fears will likely weigh on its financial performance. Strength in the consumer banking and investment banking business is a tailwind. Active client engagement, and a solid position in announced and completed mergers and acquisitions globally are likely to act as tailwinds. However, increased expenses and provisions remain a concern.
<div class="chart_embed">
<h3>The Goldman Sachs Group, Inc. Price, Consensus and EPS Surprise</h3>
&nbsp;
<a href="https://www.zacks.com/stock/chart/GS/price-consensus-eps-surprise-chart?icid=chart-GS-price-consensus-eps-surprise-chart"><img alt="The Goldman Sachs Group, Inc. Price, Consensus and EPS Surprise" src="https://staticx-tuner.zacks.com/images/charts/19/1713191659.png" style="height:265px; width:589px" title="" /> </a>
The Goldman Sachs Group, Inc. price-consensus-eps-surprise-chart | The Goldman Sachs Group, Inc. Quote
</div>
Currently, Goldman carries a Zacks Rank #3 (Hold).
<h3>Performance of Other Big Banks</h3>
Citigroup Inc.&#39;s (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/c#NYSE">C</a>) first-quarter 2024 net income from continuing operations per share of $1.58 surpassed the Zacks Consensus Estimate of $1.13. However, the metric declined 28% from the year-ago quarter. 
Citigroup witnessed declines in total loans and deposits in the quarter. Also, a decline in revenues and deteriorating credit quality are near-term woes. 
Wells Fargo &amp; Company&#39;s (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/wfc#NYSE">WFC</a>) first-quarter 2024 adjusted earnings per share of $1.26 surpassed the Zacks Consensus Estimate of $1.10. The adjusted figure excludes the impacts of expenses from the FDIC special assessment. In the prior-year quarter, the company reported earnings per share of $1.23. 
WFC&#39;s results benefited from higher non-interest income. An improvement in capital ratios and a decline in provisions were other positives. However, the decrease in net interest income and loan balances and an increase in expenses were the undermining factors.
<a href="https://www.zacks.com/stock/news/2255584/goldman-gs-q1-earnings-beat-estimates-revenues-rise-y-y?cid=CS-BENZ-FT-analyst_blog|earnings_article-2255584">To read this article on Zacks.com click here.</a>

Goldman Q1 Earnings Beat Estimates, Revenues Rise Y/Y

Financing

General

TradeSun And Wells Fargo Sign Agreement For Trade Finance And Compliance Digitization Solution

This whale alert can help traders discover the next big trading opportunities.
Whales are entities with large sums of money and we track their transactions here at Benzinga on our options activity scanner.
Traders will search for circumstances when the market estimation of an option diverges heavily from its normal worth. High amounts of trading activity could push option prices to exaggerated or underestimated levels. 
Here's the list of options activity happening in today's session: 
<table>
<thead>
<tr>
<th>Symbol</th>
<th>PUT/CALL</th>
<th>Trade Type</th>
<th>Sentiment</th>
<th>Exp. Date</th>
<th>Strike Price</th>
<th>Total Trade Price</th>
<th>Open Interest</th>
<th>Volume</th>
</tr>
</thead>
<tbody>
<tr>
<td>HOOD</td>
<td>CALL</td>
<td>TRADE</td>
<td>BULLISH</td>
<td>05/17/24</td>
<td>$15.00</td>
<td>$431.2K</td>
<td>13.9K</td>
<td>8.8K</td>
</tr>
<tr>
<td>WFC</td>
<td>PUT</td>
<td>SWEEP</td>
<td>BULLISH</td>
<td>07/19/24</td>
<td>$60.00</td>
<td>$55.0K</td>
<td>159</td>
<td>1.6K</td>
</tr>
<tr>
<td>GL</td>
<td>PUT</td>
<td>SWEEP</td>
<td>BULLISH</td>
<td>04/19/24</td>
<td>$55.00</td>
<td>$30.9K</td>
<td>394</td>
<td>1.4K</td>
</tr>
<tr>
<td>BAC</td>
<td>CALL</td>
<td>SWEEP</td>
<td>BULLISH</td>
<td>01/17/25</td>
<td>$37.00</td>
<td>$68.4K</td>
<td>41.3K</td>
<td>1.3K</td>
</tr>
<tr>
<td>GS</td>
<td>PUT</td>
<td>TRADE</td>
<td>NEUTRAL</td>
<td>04/26/24</td>
<td>$395.00</td>
<td>$41.5K</td>
<td>98</td>
<td>776</td>
</tr>
<tr>
<td>BX</td>
<td>PUT</td>
<td>TRADE</td>
<td>BULLISH</td>
<td>05/17/24</td>
<td>$125.00</td>
<td>$1.5 million</td>
<td>5.4K</td>
<td>552</td>
</tr>
<tr>
<td>CMA</td>
<td>PUT</td>
<td>SWEEP</td>
<td>BEARISH</td>
<td>04/19/24</td>
<td>$50.00</td>
<td>$69.5K</td>
<td>1.2K</td>
<td>64</td>
</tr>
<tr>
<td>COIN</td>
<td>CALL</td>
<td>TRADE</td>
<td>BEARISH</td>
<td>01/17/25</td>
<td>$200.00</td>
<td>$39.5K</td>
<td>2.3K</td>
<td>9</td>
</tr>
</tbody>
</table>

<h2>Explanation</h2>
These bullet-by-bullet explanations have been constructed using the accompanying table. 
• Regarding HOOD (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/HOOD#NASDAQ">HOOD</a>), we observe a call option trade with bullish sentiment. It expires in 32 day(s) on May 17, 2024. Parties traded 1540 contract(s) at a $15.00 strike. The total cost received by the writing party (or parties) was $431.2K, with a price of $280.0 per contract. There were 13906 open contracts at this strike prior to today, and today 8814 contract(s) were bought and sold. 
• For WFC (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/WFC#NYSE">WFC</a>), we notice a put option sweep that happens to be bullish, expiring in 95 day(s) on July 19, 2024. This event was a transfer of 125 contract(s) at a $60.00 strike. This particular put needed to be split into 13 different trades to become filled. The total cost received by the writing party (or parties) was $55.0K, with a price of $440.0 per contract. There were 159 open contracts at this strike prior to today, and today 1611 contract(s) were bought and sold. 
• Regarding GL (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GL#NYSE">GL</a>), we observe a put option sweep with bullish sentiment. It expires in 4 day(s) on April 19, 2024. Parties traded 103 contract(s) at a $55.00 strike. This particular put needed to be split into 6 different trades to become filled. The total cost received by the writing party (or parties) was $30.9K, with a price of $300.0 per contract. There were 394 open contracts at this strike prior to today, and today 1482 contract(s) were bought and sold. 
• For BAC (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BAC#NYSE">BAC</a>), we notice a call option sweep that happens to be bullish, expiring in 277 day(s) on January 17, 2025. This event was a transfer of 218 contract(s) at a $37.00 strike. This particular call needed to be split into 18 different trades to become filled. The total cost received by the writing party (or parties) was $68.4K, with a price of $314.0 per contract. There were 41370 open contracts at this strike prior to today, and today 1385 contract(s) were bought and sold. 
• Regarding GS (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GS#NYSE">GS</a>), we observe a put option trade with neutral sentiment. It expires in 11 day(s) on April 26, 2024. Parties traded 90 contract(s) at a $395.00 strike. The total cost received by the writing party (or parties) was $41.5K, with a price of $462.0 per contract. There were 98 open contracts at this strike prior to today, and today 776 contract(s) were bought and sold. 
• For BX (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BX#NYSE">BX</a>), we notice a put option trade that happens to be bullish, expiring in 32 day(s) on May 17, 2024. This event was a transfer of 2000 contract(s) at a $125.00 strike. The total cost received by the writing party (or parties) was $1.5 million, with a price of $770.0 per contract. There were 5460 open contracts at this strike prior to today, and today 552 contract(s) were bought and sold. 
• Regarding CMA (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CMA#NYSE">CMA</a>), we observe a put option sweep with bearish sentiment. It expires in 4 day(s) on April 19, 2024. Parties traded 500 contract(s) at a $50.00 strike. This particular put needed to be split into 4 different trades to become filled. The total cost received by the writing party (or parties) was $69.5K, with a price of $140.0 per contract. There were 1254 open contracts at this strike prior to today, and today 64 contract(s) were bought and sold. 
• Regarding COIN (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/COIN#NASDAQ">COIN</a>), we observe a call option trade with bearish sentiment. It expires in 277 day(s) on January 17, 2025. Parties traded 5 contract(s) at a $200.00 strike. The total cost received by the writing party (or parties) was $39.5K, with a price of $7905.0 per contract. There were 2321 open contracts at this strike prior to today, and today 9 contract(s) were bought and sold. 
Options Alert Terminology 
 - Call Contracts: The right to buy shares as indicated in the contract. 
 - Put Contracts: The right to sell shares as indicated in the contract. 
 - Expiration Date: When the contract expires. One must act on the contract by this date if one wants to use it. 
 - Premium/Option Price: The price of the contract. 
For more information, visit our <a href="https://pro.benzinga.com/blog/how-to-understand-option-alerts/">Guide to Understanding Options Alerts</a> or read <a href="https://www.benzinga.com/markets/options">more news on unusual options activity</a>. 
This article was generated by Benzinga's automated content engine and reviewed by an editor.

COIN

HOOD

8 Financials Stocks With Whale Alerts In Today's Session

Morgan Stanley analyst Betsy Graseck maintains Wells Fargo (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/WFC#NYSE">WFC</a>) with a Overweight and raises the price target from $63 to $64.

Price Target

Morgan Stanley Maintains Overweight on Wells Fargo, Raises Price Target to $64

The first quarter reports officially kicked off with bank earnings, as usual. On Friday, Wells Fargo &amp; Company (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/wfc#NYSE">WFC</a>), JPMorgan Chase &amp; Co (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/jpm#NYSE">JPM</a>) and Citigroup Inc (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/c#NYSE">C</a>) opened the season, reporting strong results. On Monday, they were joined by The Goldman Sachs Group Inc (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/gs#NYSE">GS</a>) who also posted better than expected earnings due to a rebound in global M&amp;A activity that fueled revenue for its biggest division.
Wells Fargo topped estimates with first quarter profit.
Wells Fargo reported revenue rose less than 1% YoY to $20.86 billion, but still topped FactSet&rsquo;s estimates of $20.2 billion. On the other hand, its net income declined 7% YoY to $4.62 billion or $1.20 per share, but also still surpassed analyst estimates of&nbsp;$1.06.&nbsp;Adjusted profit of $1.26 per share&nbsp;also surpassed LSEG&rsquo;s estimate of&nbsp;$1.11. However, Wells Fargo&rsquo;s legal problem is still pending as at the end of February, the bank that&nbsp;spent years trying to extricate itself from its fake accounts scandal, got sued for not doing enough to help harmed customers.
JPMorgan Chase surpassed earnings estimates, but one of its key profit metrics declined on a sequential basis.
For the first quarter,&nbsp;JPMorgan reported revenue rose&nbsp;8% to $42.55 billion, surpassing LSEG&rsquo;s estimate of&nbsp;$41.85 billion&nbsp;as interest income&nbsp;rose on the back of&nbsp;higher rates and larger loan balances.
Thanks to its&nbsp;takeover of First Republic, JPMorgan recorded a&nbsp;profit rise of&nbsp;6%&nbsp;as earnings amounted to&nbsp;$13.42 billion, or $4.44 per share, surpassing LSEG&rsquo;s estimate of&nbsp;$4.11.&nbsp;Although&nbsp;JPMorgan Chase reported&nbsp;net interest income rose 11% to $23.2 billion,&nbsp;it also contracted&nbsp;4% on a sequential basis&nbsp;due to margin compression and lower deposit balances.
Citigroup wrapped up its organizational simplification&nbsp;and started 2024 on a good note.
For the first quarter, Citigroup posted revenue dropped 2% YoY to&nbsp;$21.1 billion,&nbsp;surpassing&nbsp;Fact Set&rsquo;s estimate of $20.4 billion. Revenue contracted mostly as the result of last year&rsquo;s sale of the overseas division. Due to higher expenses and credit costs,&nbsp;profit&nbsp;also contracted&nbsp;27%&nbsp;YoY&nbsp;$3.37 billion, or $1.58 a share. Excluding restructuring costs and other one-time items, adjusted earnings amounted to&nbsp;$1.86 per share,&nbsp;also surpassing LSEG&rsquo;s estimate of&nbsp;$1.23. Most importantly, Citiroup finalized its organizational simplification last month and is now operating under a&nbsp;cleaner management structure.
Goldman Sachs delivered better-than expected results after a challenging year.
For the first quarter, Goldman Sachs reported revenues rose 16.3% to $14.21 billion, surpassing Wall Street&rsquo;s forecasts of&nbsp;$12.92 billion&nbsp;as investment banking fees rose&nbsp;32%. The&nbsp;Global Banking &amp; Markets division&nbsp;that covers&nbsp;fixed-income&nbsp;trading and M&amp;A activity,&nbsp;reported a&nbsp;revenue rise&nbsp;of&nbsp;15%, bringing&nbsp;as much as&nbsp;$9.73 billion&nbsp;to the revenue table. According to LSEG data, overall deal volumes&nbsp;of global M&amp;A activity&nbsp;rose&nbsp;30%&nbsp;YoY during the quarter to&nbsp;just over $755 billion.&nbsp;Profits rose&nbsp;28%&nbsp;as net income&nbsp;amounted to&nbsp;$4.1 billion or $11.58 per share, also surpassing FactSet&#39;s&nbsp;expectation of&nbsp;$8.56 per share.
With the first quarter results, banks kicked off 2024 with some much-needed momentum fueled by&nbsp;a&nbsp;still-buoyant U.S. economy. But the banking giants also provided a conservative guidance with banking executives emphasizing the uncertainty that lies ahead from macroeconomic, geopolitical, structural, and regulatory challenges despite improved conditions.
DISCLAIMER: This content is for informational purposes only. It is not intended as investing advice.
This article is from an unpaid external contributor. It does not represent Benzinga&#39;s reporting and has not been edited for content or accuracy.

First Quarter Bank Earnings Brought The Revival That Wall Street Needed

Argus Research analyst Stephen Biggar maintains Wells Fargo (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/WFC#NYSE">WFC</a>) with a Buy and raises the price target from $57 to $66.

Argus Research Maintains Buy on Wells Fargo, Raises Price Target to $66

Oppenheimer analyst Chris Kotowski maintains Wells Fargo (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/WFC#NYSE">WFC</a>) from Perform to Perform.

Oppenheimer Maintains Perform on Wells Fargoto Perform

The CNN Money Fear and Greed index remained in the &quot;Greed&quot; zone on Friday.
U.S. stocks closed lower on Friday amid geopolitical concerns, with the Dow Jones dipping around 475 points during the session.
On the economic data front, U.S. export prices increased 0.3% from the prior month in March following a revised 0.7% gain in the prior month. Import prices in the U.S. gained 0.4% month-over-month in March compared to a 0.3% increase in February. The University of Michigan consumer sentiment declined to 77.9 in April compared to March&rsquo;s reading of 79.4.
JPMorgan Chase &amp; Co. (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/jpm#NYSE">JPM</a>) shares tumbled more than 6% on Friday following first-quarter earnings. Wells Fargo (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/wfc#NYSE">WFC</a>) reported first-quarter earnings per share of $1.20, beating the analyst consensus of $1.09. Citigroup Inc (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/c#NYSE">C</a>) posted better-than-expected earnings for its first quarter.
All sectors on the S&amp;P 500 closed on a negative note, with information technology, materials and consumer discretionary stocks recording the biggest losses on Friday.
The Dow Jones closed lower by around 475 points to 37,983.24 on Friday. The S&amp;P 500 fell 1.46% at 5,123.41, while the Nasdaq Composite dipped 1.62% at 16,175.09 during Friday&rsquo;s session.
Investors are awaiting earnings results from M&amp;T Bank Corporation (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/mtb#NYSE">MTB</a>), The Charles Schwab Corporation (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/schw#NYSE">SCHW</a>) and The Goldman Sachs Group, Inc.. (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/gs#NYSE">GS</a>) today.
At a current reading of 46, the index remained in the &quot;Neutral&quot; zone on Friday, versus a prior reading of 46.
What is CNN Business Fear &amp; Greed Index?
The Fear &amp; Greed Index is a measure of the current market sentiment. It is based on the premise that higher fear exerts pressure on stock prices, while higher greed has the opposite effect. The index is calculated based on seven equal-weighted indicators. The index ranges from 0 to 100, where 0 represents maximum fear and 100 signals maximum greediness.
Read Next: <a href="https://www.benzinga.com/news/earnings/24/04/38215878/how-to-earn-500-a-month-from-goldman-sachs-stock-ahead-of-q1-earnings-report"> How To Earn $500 A Month From Goldman Sachs Stock Ahead Of Q1 Earnings Report</a>

Pre-Market Outlook

SCHW

Fear & Greed Index In 'Neutral' Zone; Dow Tumbles 475 Points

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

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SPDR Dow Jones Industrial Average ETF Trust

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iShares Trust Barclays 20+ Year Treasury Bond Fund

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

To gain an edge, this is what you need to know today.
<img alt="" src="https://thearorareport.com/wp-content/uploads/2024/04/2024-04-12_08h31_12.png" style="height:382px; width:624px" />
<h3>High Expectations</h3>
Please <a href="https://thearorareport.com/stock-market-chart-analysis-bank-earnings-season-kickoff-jpm-mc-04122024">click here </a>for an enlarged chart of JPMorgan Chase &amp; Co (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/jpm#NYSE">JPM</a>).
Note the following:
<ul>
<li>This article is about the big picture, not an individual stock.&nbsp;The chart of JPM stock is being used to illustrate the point.</li>
<li>JP Morgan has kicked off earnings season.</li>
<li>The chart shows that immediately after earnings release, JPM stock fell about 5%.</li>
<li>The chart shows that the dip buyers immediately stepped in with aggressive buying.</li>
<li>The chart shows the rising trendline after JPM reported earnings in January.</li>
<li>The chart shows that after today&rsquo;s earnings release the trendline is broken, at least temporarily.</li>
<li>JPM reported EPS of $4.63 vs. $3.82 consensus.&nbsp;JPM reported revenues of $42.5B vs. $38.53B consensus.</li>
<li>Even though JPM reported better than consensus, whisper numbers have been jacked up going into earnings.&nbsp;Whisper numbers are the numbers analysts privately share with their best clients.&nbsp;These numbers are often different from the numbers the same analysts publish.&nbsp;This is a technique used by analysts to generate business.</li>
<li>The foregoing illustrates why you need to be very careful following Wall Street analysts unless you are one of their best clients.&nbsp;Prudent investors depend on independent, objective sources such as The Arora Report for analysis.</li>
<li>Bank earnings are very complex.&nbsp;Here is a plain English analysis from The Arora Report of JPM earnings:
<ul>
<li>The quarter was fine.</li>
<li>The guidance was slightly less than expected.</li>
<li>Going forward, expenses will be higher than expected.</li>
<li>Going forward, NII will be slightly less than expected. NII is the difference in the interest income between what the bank charges borrowers and what the bank pays to depositors.</li>
</ul>
</li>
<li>As full disclosure, JPM is in The Arora Report&nbsp;ZYX Buy Model Portfolio. It is long from $34.14.&nbsp;</li>
<li>Citigroup Inc (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/c#NYSE">C</a>) reported earnings better than the consensus and better than whisper numbers.&nbsp;Citigroup is a restructuring story.&nbsp;So far, restructuring appears to be working.</li>
<li>Citigroup is the most lucrative stock among major banks, but consider buying it only in the buy zone.&nbsp;As full disclosure, Citigroup is in the portfolio that surrounds The Arora Report&nbsp;Core Model Portfolio.</li>
<li>Wells Fargo &amp; Co (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/wfc#NYSE">WFC</a>) reported earnings better than the consensus but less than the whisper numbers.</li>
<li>The take home message for investors is two fold:
<ul>
<li>Do not trust published estimates from Wall Street analysts.&nbsp;If you are their best client, focus on their whisper numbers or rely on independent sources such as The Arora Report.</li>
<li>The bar this earnings season is very high.&nbsp; Since the economy has stayed strong, many companies will be able to meet the bar.&nbsp; However, if the economy weakens, companies will start missing whisper numbers in future quarters.&nbsp; It is important for investors to stay tuned to the macro data.</li>
</ul>
</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>) have a new China problem.&nbsp;China is instructing its telecom carriers to stop using AMD and INTC chips.</li>
<li><a href="https://blog.thearorareport.com/israel-040224/">We have previously written</a> that prudent investors should stay alert to a potential Iranian attack on Israel.&nbsp;Wall Street has become complacent and the momo crowd is oblivious.&nbsp;However, you need to know that there are intelligence reports indicating that Iran is preparing an attack.</li>
</ul>
<h3>Magnificent Seven Money Flows</h3>
In the early trade, money flows are neutral in Amazon.com, Inc. (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/amzn#NASDAQ">AMZN</a>).
In the early trade, money flows are negative in Apple Inc (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/aapl#NASDAQ">AAPL</a>), Alphabet Inc Class C (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/goog#NASDAQ">GOOG</a>), Meta Platforms Inc (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/meta#NASDAQ">META</a>), Microsoft Corp (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/msft#NASDAQ">MSFT</a>), NVIDIA Corp (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/nvda#NASDAQ">NVDA</a>), and Tesla Inc (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/tsla#NASDAQ">TSLA</a>).
In the early trade, money flows are negative in SPDR S&amp;P 500 ETF Trust (ARCA:SPY) and Invesco QQQ Trust Series 1 (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/qqq#NASDAQ">QQQ</a>).
<h3>Momo Crowd And Smart Money In Stocks</h3>
The momo crowd is buying stocks in the early trade.&nbsp;Smart money is selling stocks in the early trade.
<h3>Gold</h3>
Gold futures have crossed $2400 on intelligence reports of a potential Iranian attack.&nbsp;&nbsp;
The momo crowd is buying gold in the early trade.&nbsp;Smart money is inactive in the early trade.
For longer-term, please see gold and silver ratings.
The most popular ETF for gold is SPDR Gold Trust (ARCA:GLD). The most popular ETF for silver is iShares Silver Trust (ARCA:SLV).&nbsp;
<h3>Oil</h3>
Oil futures are jumping on intelligence reports of a potential Iranian attack.&nbsp;&nbsp;
The momo crowd is buying oil in the early trade.&nbsp;Smart money is inactive in the early trade.
For longer-term, please see oil ratings.
The most popular ETF for oil is United States Oil ETF (ARCA:USO).
<h3>Bitcoin</h3>
Bitcoin (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/btc/usd">BTC</a>) is range bound.
<h3>Protection Band And What To Do Now</h3>
It is important for investors to look ahead and not in the rearview mirror.
Based on individual risk preference, consider a protection band consisting of cash or Treasury bills or short-term tactical trades as well as short to medium term hedges and short term hedges. This is a good way to protect yourself and participate in the upside at the same time.
You can determine your protection bands by adding cash to hedges.&nbsp;The high band of the protection is appropriate for those who are older or conservative. The low band of the protection is appropriate for those who are younger or aggressive.&nbsp;If you do not hedge, the total cash level should be more than stated above but significantly less than cash plus hedges.
It is worth reminding that you cannot take advantage of new upcoming opportunities if you are not holding enough cash.&nbsp;When adjusting hedge levels, consider adjusting partial stop quantities for stock positions (non ETF); consider using wider stops on remaining quantities and also allowing more room for high beta stocks.&nbsp;High beta stocks are the ones that move more than the market.
<h3>Traditional 60/40 Portfolio</h3>
Probability based risk reward adjusted for inflation does not favor long duration strategic bond allocation at this time.
Those who want to stick to traditional 60% allocation to stocks and 40% to bonds may consider focusing on only high quality bonds and bonds of seven year duration or less.&nbsp;Those willing to bring sophistication to their investing may consider using bond ETFs as tactical positions and not strategic positions at this time.
The Arora Report is known for its accurate calls. The Arora Report correctly called the big artificial intelligence rally before anyone else, the new bull market of 2023, the bear market of 2022, new stock market highs right after the virus low in 2020, the virus drop in 2020, the DJIA rally to 30,000 when it was trading at 16,000, the start of a mega bull market in 2009, and the financial crash of 2008. Please click here to sign up for a free forever <a href="https://thearorareport.com/generate-wealth-newsletter">Generate Wealth Newsletter</a>.
This article is from an unpaid external contributor. It does not represent Benzinga&#39;s reporting and has not been edited for content or accuracy.

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Coverage of Bitcoin, Etherum, Ripple and all the latest digital currencies.

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AAPL

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JP Morgan Kicks Off Earnings Season, Intel And AMD China Problem, Potential Iranian Attack

Guidance

Wells Fargo CFO Says We Have Outstanding Litigation, Regulatory And Customer Remediation Matters That Could Impact Operating Losses During The Remainder Of The Year

Wells Fargo Ceo Says We Continue To See Strength In The U.S Economy; Our Views On Commercial Real Estate Have Not Changed Since Last Quarter; Consumer Credit Is Performing As We Expect, Wholesale Credit Continues To Perform Well; Markets And Rates Will Likely Remain Volatile

Wells Fargo CEO Says We Continue To Execute On Our Efficiency Initiatives, Including Reducing Headcounts; We Expect To Repurchase More Common Stock This Year Than We Did In 2023

Benzinga Opening Bell Update: Bank Earnings Mixed, Gold Rises, AMD And Intel Drop On Reports China Seeks to Ban Foreign Chips

Companies in the Financial sector have received a lot of coverage today as analysts weigh in on Progressive (PGR – Research Report), Unum Group (UN...

Analysts Offer Insights on Financial Companies: Progressive (PGR), Unum Group (UNM) and Wells Fargo (WFC)

Wells Fargo (WFC – Research Report), the Financial sector company, was revisited by a Wall Street analyst on April 14. Analyst Lim Rui Wen from DBS...

Wells Fargo: A Cautious Hold Amid Regulatory Challenges and Growth Constraints

Wells Fargo, TradeSun enter pact on trade finance, compliance digitization

Top 10 best-performing bank stocks of 2024 as earnings results roll in

Bank of America: Signs Of The Recession

NNN REIT bank credit facility increased by $100M to $1.2B

Companies in the Financial sector have received a lot of coverage today as analysts weigh in on Citigroup (C – Research Report), Bank of New York M...

Analysts' Opinions Are Mixed on These Financial Stocks: Citigroup (C), Bank of New York Mellon Corporation (BK) and Wells Fargo (WFC)

<a href="https://investorplace.com">InvestorPlace - Stock Market News, Stock Advice &amp; Trading Tips</a>
Oil prices have been very volatile in recent days following Iran&rsquo;s attack on Israel over the weekend. Although the escalation was less severe than feared, commodity investors are still likely to price in concerns over potential disruptions in oil supply. Along these lines, we look at three <a href="https://investorplace.com/industries/energy/oil/">oil stocks</a> to buy amid rising Middle East tensions.&nbsp;



The initial fears of an escalation had caused a spike in oil prices on Friday, but these fears were mitigated when Israel successfully intercepted the attack, involving over 300 missiles and drones.



In response to the increasing risks, Citi (NYSE:<a href="https://investorplace.com/stock-quotes/c-stock-quote/">C</a>) raised its short-term forecast for oil prices from $80 to $88 per barrel, citing a higher risk premium. The bank also noted that while the current market hasn&rsquo;t fully priced in the possibility of an ongoing conflict between Iran and Israel, such a scenario could potentially push oil prices above $100 per barrel.&nbsp;



However, Citi cautioned that any signs of de-escalation could quickly reverse this trend, potentially dropping prices to the high $70s or low $80s. Similarly, Societe Generale (OTCMKTS:<a href="https://investorplace.com/stock-quotes/scgly-stock-quote/">SCGLY</a>) also adjusted its forecasts, now expecting Brent crude to reach $91 per barrel in the second quarter and West Texas Intermediate to hit $87.5 per barrel.&nbsp;



For 2024, Socgen anticipates Brent to average $86.8 and WTI $83.3 per barrel. The bank highlighted that the probability of direct military conflict between the United States and Iran, while still considered a tail risk, has risen from 5% to 15%, which could lead to a significant spike in crude prices, potentially exceeding $140 per barrel.



&ldquo;Beyond the short-term spike induced by geopolitics, our base case for oil remains a $90 Brent through May,&rdquo; J.P. Morgan (NYSE:<a href="https://investorplace.com/stock-quotes/jpm-stock-quote/">JPM</a>) <a href="https://www.reuters.com/markets/commodities/iran-attack-israel-spurs-banks-hike-oil-price-forecasts-2024-04-15/" target="_blank">said in</a> its report to clients.



<h2>ConocoPhillips (COP)</h2>



<a href="https://investorplace.com/wp-content/uploads/2024/04/concophillips.png"><img width="300" height="199" src="https://investorplace.com/wp-content/uploads/2024/04/concophillips-300x199.png" alt="Oil Stocks ConocoPhillips (COP)"></a>ConocoPhillips (NYSE:<a href="https://investorplace.com/stock-quotes/cop-stock-quote/">COP</a>), one of the top three oil stocks, and a major global energy corporation, benefits significantly from higher oil prices due to its extensive upstream operations, which focus on oil and gas exploration and production. Oil prices have surged to their <a href="https://tokenist.com/oil-prices-soar-amid-middle-east-tensions-and-supply-disruptions/" target="_blank">highest levels since October</a>, increasing crude prices which boost the company&rsquo;s revenue and profitability, enhancing shareholder value in favorable market conditions.



Back in February, ConocoPhillips <a href="https://finance.yahoo.com/news/conocophillips-cop-posts-3-0-135448903.html" target="_blank">reported</a> robust fourth quarter results, surpassing analyst expectations. The company&rsquo;s adjusted earnings per share reached $2.40, significantly higher than the consensus of $2.07.



Adjusted net income also exceeded forecasts, coming in at $2.86 billion against an expected $2.5 billion. Additionally, their cash flow from operations was $5.26 billion, slightly above the estimate of $5.21 billion.



In their commentary, management focused on several key areas including upstream production outlook and strategies for capital allocation in 2024. They emphasized plans to enhance capital returns and provided updates on strategic priorities like inorganic growth and ongoing organic growth projects, which makes COP one of the top oil stocks to buy.



Analysts remain optimistic about ConocoPhillips&rsquo; future amid expectations of the capital returns yield of about 7% for 2024/2025 and an average return on capital employed (ROCE) of approximately 18% for 2024-2026.



<h2>Baker Hughes (BKR)</h2>



<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2022/09/bkr-stock-1-300x169.jpg" alt="The Baker Hughes (BKR) sign and office building in Houston, Texas."><div>Source: JHVEPhoto / Shutterstock.com</div></div>Baker Hughes (NYSE:<a href="https://investorplace.com/stock-quotes/bkr-stock-quote/">BKR</a>) benefits from higher oil prices as they typically increase drilling and production activities, boosting demand for the company&rsquo;s oilfield services and equipment. In layman&rsquo;s terms, this heightened activity can lead to greater utilization of Baker Hughes&rsquo; services.



Baker Hughes recently <a href="https://www.bloomberg.com/news/videos/2024-01-24/baker-hughes-on-q4-earnings-and-2024-oil-estimates-video" target="_blank">provided</a> its financial outlook for the first quarter and full year of 2024, revealing expectations of sustained growth across its various segments. For the first quarter, the company anticipates revenues ranging from $6.10 billion to $6.6 billion, with a midpoint slightly below the estimated $6.49 billion.&nbsp;



Looking ahead to the full year of 2024, Baker Hughes expects total revenues to range from $26.50 billion to $28.50 billion, with the consensus estimate positioned at $28.07 billion.&nbsp;



BKR stock is modestly down year-to-date given the investor focus on AI and <a href="https://investorplace.com/industries/technology/">tech stocks</a>, which makes a solid candidate for outperformance if oil prices continue to grind higher.



<h2>Devon Energy (DVN)</h2>



<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2021/12/devon-dvn-1600-300x169.jpg" alt="The logo for Devon Energy (DVN) is displayed on a sign outside an office."><div>Source: Jeff Whyte / Shutterstock.com</div></div>Devon Energy (NYSE:<a href="https://investorplace.com/stock-quotes/dvn-stock-quote/">DVN</a>) is one of the companies that benefit notably from higher oil prices. This exposure enhances profitability as it boosts cash flow from its operations, particularly in its key shale production areas.&nbsp;



This oil stock recently received a boost after Wells Fargo (NYSE:<a href="https://investorplace.com/stock-quotes/wfc-stock-quote/">WFC</a>) commodity analysts upgraded the rating from Equal Weight to Overweight, while also boosting the price target from $46.00 to $59.00.&nbsp;



This was the 4th analyst upgrade Devon stock received since November with Wall Street analysts <a href="https://www.streetinsider.com/Analyst+Comments/Wells+Fargo+Upgrades+Devon+Energy+%28DVN%29+to+Overweight%2C+attractive+entry+point/23002921.html" target="_blank">seeing</a> a combination of strong fundamentals and attractive valuation, which finally seems favorable when compared to peers.&nbsp;



Initially, Devon&rsquo;s premium valuation deterred higher ratings, but its current position, showing strong forward free cash flow (FCF) yields, presents a compelling entry point, Wells Fargo said.&nbsp;



&ldquo;We now believe the stock offers an attractive entry point across most valuation metrics,&rdquo; they said in a note.



On the date of publication, Shane Neagle did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com&nbsp;<a href="https://protect-us.mimecast.com/s/XtC3C1wq33iErOvYSGOsXg?domain=investorplace.com/">Publishing Guidelines</a>.
<div>Shane Neagle is fascinated by the ways in which technology is poised to disrupt investing. He specializes in fundamental analysis and growth investing.</div><h3>More From InvestorPlace</h3>
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The post <a href="https://investorplace.com/2024/04/riding-the-oil-wave-3-stocks-to-buy-amid-middle-east-tensions/">Riding the Oil Wave: 3 Stocks to Buy Amid Middle East Tensions</a> appeared first on <a href="https://investorplace.com">InvestorPlace</a>.

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CEO Uncertainty Spikes After Improving Last Quarter

<a href="https://investorplace.com">InvestorPlace - Stock Market News, Stock Advice &amp; Trading Tips</a>
First quarter <a href="https://www.barrons.com/articles/goldman-sachs-morgan-stanley-chase-bank-stocks-earnings-6a4f6ebb?mod=hp_columnists">earnings from the big banks</a> are out, and the results, while mixed, were overall positive. The consensus view coming out of the Q1 prints is that the big U.S. banks are in good shape after two difficult years. The large investment banks are seeing their financial results improve as deals return to Wall Street. Initial public offerings (IPO), in particular, have rebounded after slowing to a trickle during the 2022 bear market. Revenue from trading activity also picked up during the first quarter with stock markets hovering at all-time highs. 



The large commercial lenders are also performing well as retail-banking units remain strong with consumers continuing to spend at a healthy pace, including on their credit cards. Additionally, all the big banks set aside less money in Q1 of this year to cover potentially bad loans, which <a href="https://finance.yahoo.com/video/bank-earnings-reveal-capital-markets-155230233.html">gave their earnings a boost</a>. With the economy showing resilience and talk of a recession having faded, the outlook for banks remains very positive. Here are the three best <a href="https://investorplace.com/industries/financial/bank/">bank stocks</a> to buy on Q1 earnings results.



<h2>JPMorgan Chase (JPM)</h2>



<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2019/08/jpm-stock-3-300x169.jpg" alt="A sign for JP Morgan Chase &amp; Co (JPM)."><div>Source: Bjorn Bakstad / Shutterstock.com</div></div>JPMorgan Chase&rsquo;s (NYSE:<a href="https://investorplace.com/stock-quotes/jpm-stock-quote/">JPM</a>) first quarter 2024 financial results beat Wall Street forecasts across the board. The stock fell on <a href="https://www.cnbc.com/2024/04/12/jpmorgan-chase-jpm-earnings-q1-2024.html#:~:text=Earnings%3A%20%244.44%20per%20share%2C%20vs,billion%2C%20vs.%20%2441.85%20billion%20expected">downbeat forward guidance</a>, but the Q1 print itself was very strong. The world&rsquo;s largest lender reported earnings per share (EPS) of $4.44 compared to $4.11 that was expected among analysts. JPMorgan earned $42.55 billion in revenue, exceeding Wall Street expectations of $41.85 billion. The bank&rsquo;s sales were up 8% from a year earlier.



JPMorgan posted a $1.88 billion provision for credit losses in Q1. That was well below the $2.7 billion that analysts had anticipated. Trading revenue at the bank was down 5% from a year earlier. However, fixed income and equities results topped analysts&rsquo; expectations by more than $100 million each, coming in at $5.3 billion and $2.7 billion respectively. As he often does, JPMorgan Chase CEO Jamie Dimon gave a downbeat outlook for the economy and <a href="https://www.bbc.com/news/business-68769561">interest rates</a> during his earnings call with analysts and media. 



Regardless of the economic outlook, JPMorgan Chase continues to fire on all cylinders. JPM stock has increased 30% over the last 12 months. 



<h2>Goldman Sachs (GS)</h2>



<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2022/09/gs1600-300x169.png" alt="In this photo illustration the Goldman Sachs Group (GS) logo displayed on a smartphone screen and a stock market graph in the background"><div>Source: rafapress / Shutterstock.com</div></div>Goldman Sachs (NYSE:<a href="https://investorplace.com/stock-quotes/gs-stock-quote/">GS</a>) arguably had the best <a href="https://www.cnbc.com/2024/04/15/goldman-sachs-gs-earnings-q1-2024.html">first quarter print </a>among the major U.S. banks. The investment bank beat analysts&rsquo; forecasts as its trading and investment banking revenue bounced back during the January through March quarter. Goldman reported Q1 EPS of $11.58 compared to $8.56 that was the consensus expectation of analysts. Revenue totaled $14.21 billion versus $12.92 billion that had been forecast. Profits at the bank increased 28% from a year earlier.



Goldman Sachs said its Q1 print got a lift from a recovery in investment banking activities that include IPOs and mergers and acquisitions (M&amp;A). Since last fall, there have been several high-profile IPOs from companies such as Birkenstock (NYSE:<a href="https://investorplace.com/stock-quotes/birk-stock-quote/">BIRK</a>) and Astera Labs (NASDAQ:<a href="https://investorplace.com/stock-quotes/alab-stock-quote/">ALAB</a>). The strong first quarter marked a <a href="https://www.barrons.com/articles/goldman-sachs-earnings-stock-price-b1872d21">reversal for Goldman Sachs</a>, whose financial performance suffered over the last 18 months as Wall Street deals declined amid a bear market and high interest rates.



GS stock is up nearly 20% over the past 12 months. 



<h2>Wells Fargo (WFC)</h2>



<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2019/08/wfc-stock-3-300x169.jpg" alt="Wells Fargo (WFC) bank sign in yellow and red with wagon logo. The sign is flanked by tall grass"><div>Source: Ken Wolter / Shutterstock.com</div></div>Wells Fargo (NYSE:<a href="https://investorplace.com/stock-quotes/wfc-stock-quote/">WFC</a>) also had an impressive <a href="https://www.cnbc.com/2024/04/12/wells-fargo-wfc-earnings-q1-2024.html#:~:text=Revenue%20of%20%2420.86%20billion%20came,Scharf%20said%20in%20a%20statement.">first quarter earnings report</a>, announcing its profit rose 14% from a year earlier. The full service lender reported EPS of $1.26 compared to $1.11 that was forecast among analysts. Revenue totaled $20.86 billion versus $20.20 billion that was expected on Wall Street. Q1 net interest income, a key measure of bank earnings from loans, fell 8% due to higher interest rate impacts.



During Q1, Wells Fargo set aside $938 million as <a href="https://www.barrons.com/livecoverage/bank-earnings-jpmorgan-chase-citigroup-wells-fargo-stock/card/wells-fargo-beats-earnings-and-revenue-estimates-IboGwJpQZVgQIaBpoykr">provisions for credit losses</a>. The bank said the provision included a decrease in the allowance for credit losses that was driven by real estate and motor vehicle loans. The bank also disclosed that it repurchased $6.1 billion of its own common stock during the quarter. Analysts and investors received the earnings print positively, sending WFC stock higher. In the last year, Wells Fargo&rsquo;s share price has gained 38%. 



On the date of publication, Joel Baglole did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
<div>Joel Baglole has been a business journalist for 20 years. He spent five years as a staff reporter at The Wall Street Journal, and has also written for The Washington Post and Toronto Star newspapers, as well as financial websites such as The Motley Fool and Investopedia.</div><h3>More From InvestorPlace</h3>
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The post <a href="https://investorplace.com/2024/04/the-3-best-bank-stocks-to-buy-on-q1-earnings-results/">The 3 Best Bank Stocks to Buy on Q1 Earnings Results</a> appeared first on <a href="https://investorplace.com">InvestorPlace</a>.

The 3 Best Bank Stocks to Buy on Q1 Earnings Results

ALAB

BIRK

FCNCA

FTXO

HBAN

HMST

INBK

KBWB

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NFLX

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WTFC

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CHPT

Bank of America

Banco Bradesco Sa American Depositary Shares

Bank Bradesco

Banco Bradesco Sa American Depositary Shares (each representing one Common Share)

Banco Bilbao Vizcaya Argentaria S.A. Common Stock

BBVA

Barclays

Banco Santander Brasil SA American Depositary Shares, each representing one unit

Banco Santander

Citigroup

First Citizens BancShares, Inc. - Class A Common Stock

First Citizens BancShares

Fifth Third Bancorp

HDFC Bank

HSBC Holdings

ICICI Bank

ING Groep

Itau Unibanco Banco Holding SA American Depositary Shares (Each repstg 500 Preferred shares)

Itau Unibanco Holding

JPMorgan Chase

KB Financial Group

Lloyds Banking Group Plc American Depositary Shares

Lloyds Banking Group

Mizuho Financial Group, Inc. Sponosred ADR (Japan)

Mizuho Financial Gr

Mitsubishi UFJ Financial Group, Inc. Common Stock

Mitsubishi UFJ Finl Gr

Nu Holdings

NatWest Group plc American Depositary Shares, (each representing two (2) Ordinary Shares)

NatWest Group

PNC Financial Services Group, Inc. (The) Common Stock

PNC Finl Servs Gr

Banco Santander, S.A. Sponsored ADR (Spain)

Sumitomo Mitsui Financial Group Inc Unsponsored American Depositary Shares (Japan)