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Blackstone to Acquire American Campus for $13 Billion

Barry Adams
19 Apr, 2022
New York City

Blackstone agreed to acquire American Campus Communities for $12.8 billion. The cash offer of $65.47 a share is 14% higher than the last close price of ACC.

The company has been looking for ways to return capital to shareholders after the activist investor controlled Land & Buildings has been urging the Board to sell its assets and buy back stock.

M&A activities in the REIT sector have been fueled by low interest rates and cheap REIT stocks.

In December, Blackstone also acquired Bluerock Residential Growth REIT for $3.6 billion.

JB Hunt Transport Quarterly Revenues Up 33%, Net Income Soars 67%

Scott Peters
18 Apr, 2022
New York City

J.B. Hunt Transport Services, Inc said first quarter 2022 revenues rose 33% to $3.49 billion, net income increased 67% to $243.3 million, and diluted earnings per share increased to $2.29 from $1.47 a year ago. Revenues for Intermodal division rose 36% to $16 billion, Dedicated Contract Services increased 28% to $741 million, Integrated Capacity Solutions increased 29%, Truckload division soared 77%, and Final Mile Services increased 8% to $218 million.

Investor Look Ahead to Earnings, Rising Yields and Commodities Offer Headwinds

Barry Adams
18 Apr, 2022
New York City

U.S. stocks lacked direction after 10-year Treasury bond yield inched up to 2.86%, crude oil added a dollar to $107.90 a barrel, and gold inched up 0.3%. Investors focused on a busy week of earnings ahead and are looking for clues how corporations are facing rising costs. Several leading companies including American Express, Travelers, J&J and Verizon are scheduled to release earnings. American Airlines, United Airlines, Alaska Air, CSX, and Union Pacific will provide deeper insights in freight and passenger travel costs.

China GDP Expands at 4.8%, Jobless Rate Rises to 5.8%

Brian Turner
18 Apr, 2022
New York City

China's economy expanded at 4.8% in the first quarter from a year ago and rose 1.3% sequentially, according to the National Bureau of Statistics. Fixed assets investment increased 9.3% from a year ago and Shanghai lockdown in March most likely shaved off 0.4% to 0.5% from the GDP growth data. Industrial production growth slowed to 5% from 7.5% increase in two months to February. Retail sales declined 3.5% reversing 6.7% gain in the prior two-month period. National urban unemployment rate increased to 5.8% in March from 5.5% in February.

Synchrony Lifts Dividend and Expands Share Repurchase Plan

Scott Peters
18 Apr, 2022
New York City

Synchrony Financial said first quarter 2022 revenues increased 2.3% to $2.16 billion, net income 9% to $932 million, and diluted earnings per share rose 2.3% to $1.77 from a year ago. The company's Board approved a 5% increase in quarterly dividend to 23 cents a share from the third quarter and the incremental share repurchase of $2.8 billion. Average active accounts increased 6% to 70.1 million and new accounts rose 10% to 5.5 million. The credit card lender said purchase volume rose 17% to $40.5 billion and net interest margin increased 182 basis points to 15.8%.

Charles Schwab Trading Revenues Fall 21%

Scott Peters
18 Apr, 2022
New York City

The Charles Schwab Corporation said first quarter 2022 revenues declined 1% to $4.67 billion, net income fell 6% to $1.4 billion, and diluted earnings per share decreased 8% to 67 cents from 73 cents a year ago. Net interest income, about 50% of total revenues, increased 14% and brokerage trading revenues, about 30% of total, fell 21%. Bank deposit account fees dropped 16%.

Bank of New York Reports Flat Revenues, Net Falls 19%

Scott Peters
18 Apr, 2022
New York City

Bank of New York Mellon said quarterly revenues was flat at $3.9 billion and net income declined 19% to $699 million. Earnings per share in the quarter fell 11% to 86 cents from 97 cents a year ago. Net interest revenues increased 7% and assets under management increased 2% to $2.3 trillion. Revenues were flat in Securities Services and Market Wealth Services but declined 3% in Investment and Wealth Management.

Movers: Bank of America, Bank of New York, Didi, Progressive, Nektar Therapeutics, Twitter

Barry Adams
18 Apr, 2022
New York City

Bank of America edged lower after reporting better-than-expected 80 cents a share and lower than expected loan loss provisions.

Bank of New York Mellon said quarterly earnings declined 19% on flat revenues and reported 86 cents a share.

Didi Global reported 13% decline in quarterly revenues and schedule a board meeting on May 23 to discuss New York delisting.

Progressive, Wendy's, and Sirius fell on negative comments from brokers.

Nektar plunged 25% after the cancer drug maker held all trials.

Bank of America Net Falls 12%

Scott Peters
18 Apr, 2022
New York City

Bank of America said first quarter revenues increased 1.7% to 23.2 billion and net income declined 12.3% to $7.1 billion. Earnings per share fell to 80 cents a share from 86 cents. The bank also repurchased $4 billion of its shares. Earnings were ahead of expectations on rising consumer loans and market trading revenues. Consumer balances rose 14% to $1 trillion and net loan loss charge declined 52% to $392 million.

Stock Futures Point to Mixed Opening On Bond Yields Above 2.87%

Barry Adams
18 Apr, 2022
New York City

U.S. stock futures point to a mixed opening after a 3-day holiday as the U.S. Treasury yields continue to climb. The 10-year bond yield is trading above 2.87%. The yield has jumped from 1.71% about 45 days ago. Investors remained worried that the rising inflation and elevated crude oil prices are exacerbating consumer price increase and overwhelming corporate earnings growth. About 300 companies are scheduled to release earnings this week.

Twitter Erects Barriers to Musk's Takeover Storm

Barry Adams
15 Apr, 2022
New York City

Twitter board took defensive steps after Musk's $43 billion bid is likely to attract competing offers from private-equity firms.

The board approved a shareholder rights plan for a year that will allow the company to sell shares to other shareholders at a discount, if anyone acquires more than 15% stake.

However, Musk can make a direct tender offer to shareholders, an expensive and a drawn out process.

PNC Lifts Dividend 20% on Stable Net Interest Margin of 2.28%

Scott Peters
15 Apr, 2022
New York City

The PNC Financial Services Group said first quarter revenues increased 11% to $4.7 billion from a year ago reflecting the acquisition of BBVA USA. Revenues declined 8% from the previous quarter. Net interest margin in the first quarter was 2.28% compared to 2.27% a year ago. Net income declined 22% to $1.43 billion on lower capital markets activities. Earnings per share fell to $3.29 from $4.10 a year ago and provision for loan losses fell to 1.76% from 2.2%.

Nasdaq 2% Drop Drags S&P 500 Down 1%, Bond Yields Climb

Barry Adams
14 Apr, 2022
New York City

Tech stocks led the losers after inflation worries dominated trading and investors reviewed a barrage of earnings from large banks. Though there were signs of hope, all major banks reported a sharp decline in earnings. Crude oil price spiked up again and surpassed $105 a barrel in New York and $110 in international trading. 10-year Treasury yield inches to a new 3-year high of 2.83%.

Movers: Ally Financial, Citigroup, Goldman Sachs, Morgan Stanley, Twitter, Wells Fargo

Barry Adams
14 Apr, 2022
New York City

All Financial dropped after reporting larger than expected loan loss provisions. Citigroup quarterly net declined but was ahead of expectations. Morgan Stanley and Goldman Sachs traded higher after reporting strong trading revenues. Twitter was in focus after the board said it will review the $43 billion offer from Elon Musk. Wells Fargo net drops on lower than expected mortgage lending.

Morgan Stanley Net Falls 11%, Trading and Advisory Fees Ahead of Expectations

Scott Peters
14 Apr, 2022
New York City

Morgan Stanley said March quarter revenues declined 6% to $14.8 billion and net income fell 11% to $3.5 billion from a year ago. Earnings per share fell 8% to $2.02 on 6% decline in outstanding shares. Wealth management revenues were flat at $5.9 billion and institutional Securities unit revenues fell 10% to $7.7 billion but were supported by higher trading revenues and advisory fees.

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