LIVE Big Banks, BlackRock Post Strong Start to Earnings Season Last Updated: Updated 1 day ago Big Bank Profits Expected to Climb as Credit Concerns Ripple Across Wall Street By Rebecca Ungarino Analysts expect the four biggest U.S. banks to tell shareholders this week that their profit and revenue rose from a year earlier, even as investors voice concerns over credit quality and lending standards that two high-profile corporate bankruptcies highlighted this fall. JPMorgan Chase, Citigroup, and Wells Fargo ...

Core Viewpoint - The upcoming earnings season for major U.S. banks is expected to reveal insights into the financial sector's recovery and the broader economic landscape amid government shutdowns and tariff impacts [2][3]. Banking Sector Insights - Major banks including JPMorgan Chase, Wells Fargo, Citigroup, and Goldman Sachs are set to release their earnings reports, with expectations of strong performance driven by increased investment banking activity and capital market fees [3]. - Analysts predict double-digit year-over-year growth in bank earnings over the next few years, supported by improved trading activity and healthy credit conditions [3]. - The earnings reports will provide critical insights into the U.S. economy and consumer dynamics, especially in the context of the ongoing government shutdown [4]. Economic Data Delays - The government shutdown has delayed the release of key economic data, including the non-farm payroll report and the Consumer Price Index (CPI), adding uncertainty to market conditions [4]. - Analysts anticipate that the impact of the government shutdown will be reflected in the earnings calls, with more targeted questions from analysts regarding the macroeconomic environment [4]. Artificial Intelligence Focus - Analysts expect S&P 500 companies to see an 8.8% year-over-year earnings growth in Q3 2024, with technology sector leading the way at over 22% expected growth [5][6]. - The AI sector is gaining traction, with significant investments from companies like OpenAI, which plans to invest over $1 trillion in infrastructure, although the impact on quarterly earnings may not be fully realized until next year [7][8]. - Concerns are rising regarding the high valuations of tech stocks, with the S&P 500's expected P/E ratio at approximately 23, significantly above the 10-year average of 18.7 [8][9]. Market Sentiment - There is a cautious optimism in the market, with some strategists expressing concerns about high valuations and the potential for disappointment in earnings expectations [9]. - The current market conditions are reminiscent of the 1999 internet bubble, raising alarms about the sustainability of the ongoing bull market [9].

Market Overview - US stock market experienced a significant rise, with the Dow Jones increasing by 587.98 points (1.29%) to close at 46067.58 points, the Nasdaq rising by 2.21% to 22694.61 points, and the S&P 500 gaining 1.56% to 6654.72 points [2] - Broadcom's stock surged by 9.9% following the announcement of a partnership with OpenAI to produce its first self-developed AI chip, contributing to a nearly 5% increase in the Philadelphia Semiconductor Index [2] - Major tech stocks also saw gains, with Tesla up 5.4%, Google up 3.0%, Amazon up 1.7%, Meta up 1.5%, Apple up 1.0%, and Oracle up 5.1% after several brokerages raised its target price [2] Trade Tensions and Market Sentiment - President Trump's recent comments on trade tensions have eased investor concerns, stating "everything will be fine," which has positively impacted market sentiment [3] - Analysts suggest that the market is beginning to view the trade dispute as a negotiation strategy rather than a full-blown trade war, leading to a rebound in stock prices [4] Upcoming Earnings Season - The focus is shifting to the upcoming earnings season, with major banks like JPMorgan, Goldman Sachs, Citigroup, and Wells Fargo set to report quarterly results [4] - Analysts expect an 8.8% year-over-year growth in earnings for S&P 500 companies in the third quarter [4] Commodity Prices - International oil prices saw a slight increase, with WTI crude oil rising by 1.00% to $59.49 per barrel and Brent crude oil increasing by 0.94% to $63.32 per barrel [6] - Gold prices reached a new historical high, with COMEX gold futures for October delivery rising by 3.34% to $4108.60 per ounce [6]

Core Viewpoint - The article discusses the positive market reaction following President Trump's easing of trade tensions, which led to significant gains in major stock indices and specific technology stocks, particularly in the semiconductor sector due to a partnership between Broadcom and OpenAI [3][5]. Market Performance - The Dow Jones Industrial Average rose by 587.98 points, or 1.29%, closing at 46,067.58 points. The Nasdaq Composite increased by 2.21% to 22,694.61 points, while the S&P 500 gained 1.56%, ending at 6,654.72 points [3]. - Broadcom's stock surged by 9.9% after announcing a collaboration with OpenAI to produce its first self-developed AI chip, contributing to a nearly 5% rise in the Philadelphia Semiconductor Index [3]. Technology Sector Highlights - Major technology stocks saw significant increases: Tesla up 5.4%, Google up 3.0%, Amazon up 1.7%, Meta up 1.5%, and Apple up 1.0%. Oracle also rose by 5.1% as several brokerages raised its target stock price [3]. - The Nasdaq China Golden Dragon Index increased by 3.2%, with Alibaba and JD.com both rising over 4%, Baidu up 3.3%, Pinduoduo up 2.6%, and NetEase up 1.7% [3]. Trade Tensions and Market Sentiment - Recent trade tensions had caused the S&P 500 and Nasdaq to experience their largest weekly declines in nearly six months. However, Trump's recent comments have alleviated some investor concerns [4][5]. - Analysts suggest that the market's reaction indicates a shift in sentiment, with expectations of a potential agreement between the U.S. and China becoming more favorable [5]. Upcoming Earnings Season - The focus is shifting to the upcoming earnings season, with major banks like JPMorgan, Goldman Sachs, Citigroup, and Wells Fargo set to report quarterly results. This earnings season is seen as a critical indicator of market trends and economic conditions [5][6]. Economic Indicators - Analysts expect a year-over-year earnings growth of 8.8% for S&P 500 companies in the third quarter [6]. - Federal Reserve officials are discussing the need for further interest rate cuts due to rising risks in the job market and the impact of trade tariffs on inflation [6]. Commodity Market - International oil prices saw slight increases, with WTI crude oil rising by 1.00% to $59.49 per barrel and Brent crude oil up by 0.94% to $63.32 per barrel [7]. - Gold prices reached a new historical high, with COMEX gold futures for October delivery rising by 3.34% to $4,108.60 per ounce [7].

Core Viewpoint - The upcoming earnings reports from major U.S. banks are expected to provide insights into the financial sector's recovery and the broader economic landscape, amid concerns over inflation and the impact of tariffs on corporate profits [3][4][6]. Banking Sector Insights - Major banks including JPMorgan Chase, Wells Fargo, Citigroup, and Goldman Sachs are set to release their earnings reports, with expectations of strong performance driven by increased investment banking activity and a healthy credit environment [5][6]. - Analysts predict that bank earnings will achieve double-digit year-over-year growth in the coming years, supported by improved trading activity and loan growth [6][11]. - The financial sector is seen as well-positioned, with a focus on capital market fees and wealth management income benefiting from a strong stock market [6][8]. Economic Indicators and Market Sentiment - The delay in key economic data releases, such as the Consumer Price Index (CPI), due to the government shutdown adds uncertainty to market expectations [7][8]. - Analysts emphasize that the upcoming bank earnings will be crucial for understanding the current economic realities, especially in the absence of recent employment data [7][8]. AI and Technology Sector Outlook - The technology sector, particularly companies involved in artificial intelligence (AI), is expected to show significant earnings growth, with forecasts indicating over 22% growth in the third quarter [8][9]. - Major tech firms are anticipated to increase their capital expenditures in AI, with OpenAI's planned investment of over $1 trillion in infrastructure being a key focus for analysts [10]. - Despite the strong performance of AI-related companies, concerns about high valuations and potential market corrections persist, with the S&P 500's expected price-to-earnings ratio at approximately 23, significantly above the 10-year average of 18.7 [10][11]. Market Valuation Concerns - There are growing worries about the sustainability of the current market rally, with some analysts drawing parallels to the dot-com bubble of 1999, suggesting that a significant market correction may be necessary to realign valuations with fundamentals [11][12].

Market Performance - The Dow gained 587 points (+1.29%), the S&P 500 added 102 points (+1.56%), the Nasdaq rose 490 points (+2.21%), and the Russell 2000 increased by 66 points (+2.79%) following a significant sell-off on Friday [1] AI and Quantum Computing Stocks - Investors looking for entry points into AI and Big Tech drove quantum computing stocks higher, with Rigetti (RGTI) up 25% and D-Wave (QBTS) up 23% [2] - Shares of U.S. Antimony (UAMY) and Critical Metals (CRML) surged by 36.8% and 55.4%, respectively, due to ongoing discussions about rare earth minerals [2] Broadcom and OpenAI Partnership - Broadcom (AVGO) entered a deal with OpenAI to produce approximately 10 gigawatts of custom chips valued at around $10 billion, resulting in a 9.9% increase in Broadcom's shares [3] Upcoming Earnings Reports - Major banks are set to report Q3 earnings, with JPMorgan expected to see a 10.5% growth in earnings and 5.2% in revenues, Citigroup anticipated to post 21.2% earnings growth and 3.7% revenue growth, and Wells Fargo projecting 2% earnings growth and 4% revenue growth [4] - Goldman Sachs (GS) and BlackRock (BLK) will also release their quarterly earnings reports, along with Johnson & Johnson (JNJ) and Domino's Pizza (DPZ) [5]

This post originally appeared in the Business Insider Today newsletter. You can sign up for Business Insider's daily newsletter here. Welcome back! Sora has at least one big fan: Mark Cuban. He gave users on the app permission to use his likeness. He spoke to BI about why he did it, and why it's good for business. In today's big story, earnings season is upon us, with big banks up first. But can earnings reports fill the gap left from the lack of data due to the government shutdown? What's on deck Ma ...

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Core Points - Citigroup Inc. declared a quarterly dividend of $0.60 per share on its common stock, payable on November 26, 2025, to stockholders of record on November 3, 2025 [1] - The company also announced dividends on various series of preferred stock, with specific payment dates and amounts detailed for each series [2][3][4][5][6][7][8][9][10][11] Preferred Stock Dividends - Series W: 4.000% Fixed Rate Reset Noncumulative, payable $10.00 per depositary receipt on December 10, 2025 [2] - Series X: 3.875% Fixed Rate Reset Noncumulative, payable $9.6875 per depositary receipt on November 18, 2025 [3] - Series Y: 4.150% Fixed Rate Reset Noncumulative, payable $10.375 per depositary receipt on November 17, 2025 [4] - Series Z: 7.375% Fixed Rate Reset Noncumulative, payable $18.4375 per depositary receipt on November 17, 2025 [5] - Series AA: 7.625% Fixed Rate Reset Noncumulative, payable $19.0625 per depositary receipt on November 17, 2025 [6] - Series BB: 7.200% Fixed Rate Reset Noncumulative, payable $18.00 per depositary receipt on November 17, 2025 [7] - Series CC: 7.125% Fixed Rate Reset Noncumulative, payable $17.8125 per depositary receipt on November 17, 2025 [8] - Series DD: 7.000% Fixed Rate Reset Noncumulative, payable $17.50 per depositary receipt on November 17, 2025 [9] - Series EE: 6.750% Fixed Rate Reset Noncumulative, payable $16.875 per depositary receipt on November 17, 2025 [10] - Series FF: 6.950% Fixed Rate Reset Noncumulative, payable $17.375 per depositary receipt on November 17, 2025 [11] - Series GG: 6.875% Fixed Rate Reset Noncumulative, payable $21.38888889 per depositary receipt on November 17, 2025 [12]

Core Insights - Citi is set to launch a crypto custody service in 2026, reflecting the increasing involvement of mainstream financial institutions in the digital asset sector [1][2] - The custody service will allow Citi to hold digital coins and tokens for clients, targeting asset managers and other financial entities [2] - Major U.S. banks are showing heightened interest in digital assets, particularly after the SEC approved Bitcoin and Ethereum ETFs managed by prominent firms [3] Group 1 - Citi has been developing its custody service for digital assets over the past two to three years [1][2] - The upcoming service aims to provide a credible custody solution for asset managers and other clients [2] - Traditional banks are increasingly entering the digital asset space, indicating a shift in the financial landscape [2][3] Group 2 - Several major banks, including Citi, are exploring a stablecoin backed by a 1:1 reserve, signaling a collective interest in digital currencies [4] - The regulatory environment for crypto has seen fluctuations, with previous administrations being more cautious and sometimes hostile towards the industry [5]