Morgan Stanley – TheNewsHub https://thenewshub.in Sat, 09 Nov 2024 13:00:01 +0000 en-US hourly 1 https://wordpress.org/?v=6.7 Painting the town pink and green: 'Wicked' takes over retail ahead of theatrical debut https://thenewshub.in/2024/11/09/painting-the-town-pink-and-green-wicked-takes-over-retail-ahead-of-theatrical-debut/ https://thenewshub.in/2024/11/09/painting-the-town-pink-and-green-wicked-takes-over-retail-ahead-of-theatrical-debut/?noamp=mobile#respond Sat, 09 Nov 2024 13:00:01 +0000 https://thenewshub.in/2024/11/09/painting-the-town-pink-and-green-wicked-takes-over-retail-ahead-of-theatrical-debut/

Cynthia Erivo and Ariana Grande star as Elphaba and Glinda in Universal’s “Wicked.”

Universal

“Barbie” painted the town pink in 2023, and now “Wicked” is upping the ante by adding a splash of green.

Universal‘s theatrical retelling of the famed Broadway musical is creating buzz ahead of its Nov. 22 release with hundreds of merchandise offerings from dozens of retail partners. The green-and-pink barrage is part of Universal’s marketing strategy for the film and could bring a welcome boost to the retail industry just in time for the crucial holiday period.

These “Wicked” collaborations cross the spectrum from apparel, accessories, footwear, beauty and costumes all the way to home decor, toys and even one-of-a-kind cars.

The collections range in price points as well, offering consumers affordable and luxury options to show off their love of all things “Wicked.”

Target and Walmart have a slew of products on shelves, with whole sections of the store dedicated to themed shirts, sweaters and footwear, as well as dolls, plush figures, books and nail polish.

Lego and Mattel have brick sets and Barbies tied to the film; Starbucks has a collection of new tumblers and mugs, plus limited-time drinks inspired by main characters Glinda and Elphaba; and Betty Crocker has “mix to reveal” cake mixes that turn pink or green when wet ingredients are added.

Toyota’s Lexus is even releasing two one-of-a-kind versions of its 2024 Lexus TX that have “Wicked”-themed wraps.

The Broadway show on which the film is based is one of the most popular and highest-grossing musicals of all time and already has an established and rabid fanbase.

Just at the Gershwin Theater in New York City, more than 14.5 million people have bought tickets to see the show since it launched in 2003, generating more than $1.67 billion in ticket sales, according to Broadway World. Those figures don’t include traveling national shows or international residencies.

These fans are hungry for merchandise that celebrates and enhances their fandom and they are willing to pay for it, according to Mintel’s 2024 “U.S. Superfans and Enthusiasts Consumer Report.

The report found that nearly half of “superfans,” the most enthusiastic and devoted fans, have spent money on official fandom events or merchandise in the past year. The report, which surveyed 2,000 adults in the U.S., also determined that fandom collaborations and partnered releases are most successful among niche super-fandoms.

And that’s a good thing for the retail space, which saw the consumer confidence index fall 7 points in September, the largest drop in more than three years, only to soar up 11% in October, the biggest single-month acceleration since March 2021.

Retailers that have partnered with Universal are expected to see a boost from sales of “Wicked” merchandise, which could help them stand out from other companies during the next few months.

What could also drive demand is the fact that these merchandise collaborations are limited-time only. Once the stock is gone, it’s not likely to be replenished. So, even the most price-conscious consumers may be willing to spend in order to get these products before they vanish from shelves.

Movie theaters, too, are offering up themed popcorn buckets, drink specials and other merchandise for moviegoers who head out to cinemas to see the film. These retail opportunities could help boost the “Wicked” box office.

At present, box-office analysts have a wide-ranging read on what “Wicked” could do during its domestic opening weekend. On the conservative end is an $85 million haul, predicted by leading entertainment and technology research firm NRG. Meanwhile, others speculate that the first film in a planned duology could top $100 million and capture as much as $150 million during its first three days in theaters.

The divergence of expectations comes as Hollywood has struggled to market and make a profit on movie musicals in recent years. Adaptations such as “In the Heights,” “Dear Evan Hanson” and “Mean Girls,” all based on Broadway shows, failed to drum up significant box-office revenue during their runs.

However, other fan-favorite intellectual property-driven titles — including “Dune: Part Two,” “Deadpool & Wolverine” and “Inside Out 2” — have overperformed estimates. With “Wicked” already being a household name but existing in the musical space, box-office analysts are finding it tricky to predict where it will land.

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Goldman Sachs to report third-quarter earnings https://thenewshub.in/2024/10/15/goldman-sachs-to-report-third-quarter-earnings/ https://thenewshub.in/2024/10/15/goldman-sachs-to-report-third-quarter-earnings/?noamp=mobile#respond Tue, 15 Oct 2024 04:01:01 +0000 https://thenewshub.in/2024/10/15/goldman-sachs-to-report-third-quarter-earnings/

David Solomon, Chairman & CEO Goldman Sachs, speaking on CNBC’s Squawk Box at the World Economic Forum Annual Meeting in Davos, Switzerland on Jan. 17th, 2024.

Adam Galici | CNBC

Goldman Sachs is scheduled to report third-quarter earnings before the opening bell Tuesday.

Here’s what Wall Street expects:

  • Earnings: $6.89 per share, according to LSEG
  • Revenue: $11.8 billion, according to LSEG
  • Trading Revenue: Fixed Income of $2.91 billion, Equities of $2.96 billion, per StreetAccount
  • Investing Banking Revenue: $1.62 billion, per StreetAccount
  • Asset & Wealth Management: $3.58 billion, per StreetAccount

How much will falling interest rates help Goldman Sachs?

Over the past two years, the Federal Reserve’s tightening campaign has made for a less-than-ideal environment for investment banks like Goldman.

Now that the Fed is easing rates, that positions Goldman to benefit as corporations that have waited on the sidelines to acquire competitors or raise funds begin to take action.

Goldman’s asset and wealth management division is also positioned to benefit from rising asset values across markets as rates decline.

Last week, rival JPMorgan Chase set expectations high with better-than-anticipated results from trading and investment banking, factors that helped the bank top earnings estimates.

Wells Fargo also exceeded estimates on Friday on the back of its investment banking division.

This story is developing. Please check back for updates.

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JPMorgan Chase shares pop 5% after topping estimates on better-than-expected interest income https://thenewshub.in/2024/10/11/jpmorgan-chase-shares-pop-5-after-topping-estimates-on-better-than-expected-interest-income/ https://thenewshub.in/2024/10/11/jpmorgan-chase-shares-pop-5-after-topping-estimates-on-better-than-expected-interest-income/?noamp=mobile#respond Fri, 11 Oct 2024 15:27:04 +0000 https://thenewshub.in/2024/10/11/jpmorgan-chase-shares-pop-5-after-topping-estimates-on-better-than-expected-interest-income/

JPMorgan Chase posted third-quarter results that topped estimates for profit and revenue as the company generated more interest income than expected.

Here’s what the company reported:

  • Earnings: $4.37 a share vs. $4.01 a share LSEG estimate
  • Revenue: $43.32 billion, vs. $41.63 billion estimate

JPMorgan said profit fell 2% from a year earlier to $12.9 billion, while revenue climbed 6% to $43.32 billion. Net interest income rose 3% to $23.5 billion, exceeding the $22.73 billion StreetAccount estimate, on gains from investments in securities and loan growth in its credit card business.

CEO Jamie Dimon touted the firm’s quarterly results in a statement, while also addressing regulators’ sweeping efforts to force banks to hold more capital and expressing concern about rising geopolitical risks, saying that conditions are “treacherous and getting worse.”

“We believe rules can be written that promote a strong financial system without causing undue consequences for the economy,” Dimon said, addressing the pending regulatory changes. “Now is an excellent time to step back and review the extensive set of existing rules – which were put in place for a good reason – to understand their impact on economic growth” and the health of markets, he said.

The bank’s results were also helped by its Wall Street division. Investment banking fees climbed 31% to $2.27 billion in the quarter, exceeding the $2.02 billion estimate.

Fixed income trading generated $4.5 billion in revenue, unchanged from a year earlier but topping the $4.38 billion StreetAccount estimate. Equities trading jumped 27% to $2.6 billion, edging out the $2.41 billion estimate, according to StreetAccount.

The company also raised its full-year 2024 guidance for net interest income from the previous quarter, saying that NII would hit roughly $92.5 billion this year, up from the previous $91 billion guidance. Annual expenses are projected at about $91.5 billion, down from the earlier $92 billion guidance.

Shares rose 5% in midday trading.

JPMorgan’s provision for credit losses in the quarter was $3.1 billion, worse than the $2.91 billion estimate, as the company had $2.1 billion in charge-offs and built reserves for future losses by $1 billion.

Consumers are “fine and on strong footing” and the increase in reserves was because the bank is growing its book of credit card loans, not because the consumer is weakening, CFO Jeremy Barnum told reporters Friday.

The biggest American bank has thrived in a rising rate environment, posting record net income figures since the Fed started hiking rates in 2022.

Now, with the Fed cutting rates, there are questions as to how JPMorgan will navigate the change. Like other big banks, its margins may be squeezed as yields on interest-generating assets like loans fall faster than its funding costs.

Last month, JPMorgan dialed back expectations for 2025 net interest income and expenses. On Friday, Barnum reiterated the bank’s view that NII was headed lower before rebounding “in the future.”

The third-quarter outperformance in NII was “a bit of a blip” that was the result of “intersecting trends that happen to net out” to an increase, not a sustainable trend, he said.

Shares of JPMorgan have climbed about 25% this year before Friday, exceeding the 20% gain of the KBW Bank Index.

Wells Fargo also released quarterly results Friday, while Bank of America, Goldman Sachs, Citigroup and Morgan Stanley report next week.

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The Fed is finally cutting rates, but banks aren't in the clear just yet https://thenewshub.in/2024/10/10/the-fed-is-finally-cutting-rates-but-banks-arent-in-the-clear-just-yet/ https://thenewshub.in/2024/10/10/the-fed-is-finally-cutting-rates-but-banks-arent-in-the-clear-just-yet/?noamp=mobile#respond Thu, 10 Oct 2024 18:57:42 +0000 https://thenewshub.in/2024/10/10/the-fed-is-finally-cutting-rates-but-banks-arent-in-the-clear-just-yet/

Federal Reserve Board Chairman Jerome Powell holds a press conference following a two-day meeting of the Federal Open Market Committee on interest rate policy in Washington, U.S., September 18, 2024. REUTERS/Tom Brenner

Tom Brenner | Reuters

Falling interest rates are usually good news for banks, especially when the cuts aren’t a harbinger of recession.

That’s because lower rates will slow the migration of money that’s happened over the past two years as customers shifted cash out of checking accounts and into higher-yielding options like CDs and money market funds.

When the Federal Reserve cut its benchmark rate by half a percentage point last month, it signaled a turning point in its stewardship of the economy and telegraphed its intention to reduce rates by another 2 full percentage points, according to the Fed’s projections, boosting prospects for banks.

But the ride probably won’t be a smooth one: Persistent concerns over inflation could mean the Fed doesn’t cut rates as much as expected and Wall Street’s projections for improvements in net interest income — the difference in what a bank earns by lending money or investing in securities and what it pays depositors — may need to be dialed back.

“The market is bouncing around based on the fact that inflation seems to be reaccelerating, and you wonder if we will see the Fed pause,” said Chris Marinac, research director at Janney Montgomery Scott, in an interview. “That’s my struggle.”

So when JPMorgan Chase kicks off bank earnings on Friday, analysts will be seeking any guidance that managers can give on net interest income in the fourth quarter and beyond. The bank is expected to report $4.01 per share in earnings, a 7.4% drop from the year-earlier period.

president said that expectations for NII next year were too high, without giving further details. It’s a warning that other banks may be forced to give, according to analysts.

“Clearly, as rates go lower, you have less pressure on repricing of deposits,” JPMorgan President Daniel Pinto told investors. “But as you know, we are quite asset sensitive.”

There are offsets, however. Lower rates are expected to help the Wall Street operations of big banks because they tend to see greater deal volumes when rates are falling. Morgan Stanley analysts recommend owning Goldman Sachs, Bank of America and Citigroup for that reason, according to a Sept. 30 research note.

Morgan Stanley analysts upgraded their ratings on US Bank and Zions last month, while cutting their recommendation on JPMorgan to neutral from overweight.  

Bank of America and Wells Fargo have been dialing back expectations for NII throughout this year, according to Portales Partners analyst Charles Peabody. That, in conjunction with the risk of higher-than-expected loan losses next year, could make for a disappointing 2025, he said.

“I’ve been questioning the pace of the ramp up in NII that people have built into their models,” Peabody said. “These are dynamics that are difficult to predict, even if you are the management team.”

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