Banksy

[The beef 675] [I'm an image] “It could be worse … you could be Deutsche Bank.” - Jason, on Wells Fargo Hey there carnivores, Markets were mixed for, what seems like, the first time since the Bush administration. And we’re diving deep on bank earnings. Keep raging, Jeff & Jason [Image] [I'm an image] Banksy Two out of three ain’t bad… JPMorgan, CitiGroup, and Wells all reported earnings yesterday. And one of these things is not like the other. Let’s start at the top, shall we? JPMorgan just posted the best year for any US bank EVER, as annual earnings hit a record $36.4B. No wonder Jamie Dimon is looking to [stay]( another five years... JP’s profit, at $8.52B, jumped 21% in the fourth quarter, [fueled largely by]( fixed-income trading revenue, which came in roughly $1B higher than projected. Somebody took [advice]( from Wu-Tang Financial, I see... We built this Citi Citigroup had a nice little quarter of its own, with profits rising 15% to $4.98B. Trading [revenue rose 31%]( and its equity underwriting biz was up 33% thanks to the bank’s work on big public offerings such as Alibaba Group’s Hong Kong listing and Saudi Aramco’s record-breaking IPO. Mike Corbat's consumer bank also made it rain, thanks to the success of its card offerings and a 7% increase in consumer deposits. Wells, Wells, Wells… And then there’s Wells, the financial institution equivalent of "that deadbeat cousin of yours"... WF reported a 53% drop in Q4 profit after setting aside another $1.5B to cover … you guessed it... (more) costs linked to the infamous fake-account scandal of 2016. Deposit costs rose, even with interest rates [dropping](, indicating that potential savers are looking to keep their money elsewhere… like anywhere except Wells Fargo. Charles Scharf got his first (real) taste of being the head honcho at Wells when earnings drop, having taken over in October. Spoiler: it sucks. He admitted that the company made some serious mistakes in a statement... to which the world collectively replied: "duh." The bottom line… The healthy US economy boosted profits for banks. Consumers continued to borrow and spend last year, while companies held back due to fears that the global economy might not continue to grow as quickly. It’s likely, however, that the elusive US-China trade deal that’s definitely, totally, 100% happening, and a rosy US economic outlook could help alleviate those fears, which would be a boon for banks that service corporate clients. JPMorgan and CitiGroup stocks rose 1.17% and 1.56% respectively on the day, while Wells fell 5.39%. [I'm an image] Jeff is hosting a week of live training sessions FOR FREE. He’ll teach you the fundamentals of options trading, portfolio allocation, how to choose the right contract … and provide his top strategies. [RESERVE YOUR SPOT FOR FREE]( [I'm an image] ☑️ Tree hugger. Larry Fink is channeling his inner Greta Thunberg. Fink, the CEO of BlackRock, the asset manager with some $7T under management [dropped]( his annual letter to CEOs on Tuesday... conveniently ahead of Davos. The theme? Climate change. Fink voiced his opinion that climate change will reshape finance "sooner than most think." Presumably, from inside a Chevy Volt, the BlackRock chief, indicated that this ain't your run of the mill financial crisis (think: dot-com-bubble, Great Recession etc.) and it can't be fixed with run of the mill solutions. Define hypocrite: BlackRock funds [hold]( a 6.7% stake in Exxon Mobil and a 6.9% stake in Chevron. ☑️ Indirect. SmileDirectClub is now going direct... to dentists. The maker of those clear teeth aligners, that give users an unmistakeable lisp, [will begin selling to orthodontists and dentists]( directly now that its partnership with Align Technology (read: Invisalign) has ended. Previously SDC was bound by its contract with Align Technology to only sell direct-to-consumer. The power move sent SDC’s stock up 15%, while Align’s dropped 3% as the two companies are now in… direct… competition. ☑️ Back with your (Fed)Ex. Amazon is [lifting]( its ban on third-party sellers using FedEx to deliver goods. The ban initially came in December after FedEx "failed to meet on-time shipping windows for Prime shipments." It was simply a coincidence that Jeffrey Commerce pulled the rug out from under FedEx during the busiest time of the year. There has been no love lost between the two competitors, who let a $900M shipping contract expire last year. FedEx expects to maintain acceptable shipping times now that things have cooled down. ☑️ 'Casting director. Comcast is [creating a new startup accelerator]( that plans to connect media, technology, and marketing companies with its media properties and sports league partners. If the name is any sign of the innovation to come, the incubator dubbed "SportsTech" doesn’t stand a chance. Comcast is planning to invest $15M across eight categories that range from fantasy sports and betting, to player and fan engagement. Companies that focus on streaming, advertising, ticketing, and in-game analytics are the types of ventures getting Comcast all hot and bothered. SportsTech will choose 10 companies to begin the three-month program by August. Each company will get $50k, plus financial and business services in exchange for a minimum of 6% of the company. ☑️ Flying high. Delta reported that it will see its [10th straight year of profitability]( thanks to lower fuel prices and high demand over the holiday season. And probably that free wi-fi announcement if we're being totally honest. Chief Exec Ed Bastian noted that business travel was up in Q4, and those travelers were opting for the pricier seats, with demand climbing at 9%, compared to 6% for the cheap seats. Delta is one of only four airlines that never operated the Boeing 737 Max. It's better to be lucky than good sometimes. RagingBull, LLC 62 Calef Hwy. #233, Lee, NH 03861 Neither Raging Bull nor RagingBull.com, LLC (publisher of Raging Bull) is registered as an investment adviser nor a broker/dealer with either the U. S. Securities & Exchange Commission or any state securities regulatory authority. Users of this website are advised that all information presented on this website is solely for informational purposes, is not intended to be used as a personalized investment recommendation, and is not attuned to any specific portfolio or to any user's particular investment needs or objectives. Past performance is NOT indicative of future results. Furthermore, such information is not to be construed as an offer to sell or the solicitation of an offer to buy, nor is it to be construed as a recommendation to buy, hold or sell (short or otherwise) any security. 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