The latest selloff erupted on Tuesday when a tax-strategy tool rolled out by a little-known startup, Altruist Corp., sent shares of Charles Schwab Corp., It was the deepest slide for some of those stocks since the market’s trade-war meltdown in April. But it was only the most recent example of a sell-first, ask-questions-later mentality that has rapidly taken hold as new products emerge from the hundreds of billions of dollars poured into AI, sowing anxiety about how the technology may upend entire indust ...

Core Viewpoint - The launch of Altruist Corp.'s AI tool for tax strategy planning has raised concerns about the future of traditional wealth management firms, indicating a potential disruption in their core business model [1][2][4]. Group 1: Market Reaction - Following the announcement of Altruist's AI tool, shares of major wealth management firms experienced significant declines, with Charles Schwab (SCHW) dropping 9.5% intraday and closing down 7.4%, while Raymond James Financial Inc. (RJF) and LPL Financial Holdings Inc. (LPLA) saw declines of over 9% and 11% respectively [2]. - The sell-off in wealth management stocks reflects broader market anxieties regarding AI's potential to disrupt financial advisory and wealth management services, leading to fears of efficiency gains being eroded by competition and long-term fee compression [4][6]. Group 2: Broader Industry Impact - The threat posed by AI to traditional business models is spreading across various sectors, with wealth management stocks being the latest to feel the impact [5]. - Prior to the wealth management stock declines, insurance brokerage stocks had already faced significant losses, with the S&P 500 Insurance Index dropping 3.9%, marking its largest single-day decline since October 2025 [7]. - The introduction of new AI tools by companies like Insurify has raised concerns about the potential threat to the consulting business of insurance brokers, although some analysts view these tools as efficiency enhancers rather than existential threats [9]. Group 3: Market Trends and Analyst Insights - The recent sell-off in stocks across software, financial services, and asset management sectors resulted in a combined market value loss of $611 billion [10]. - Since the launch of OpenAI's ChatGPT, the potential for AI disruption has been a hot topic, with investors previously focusing on beneficiaries of AI advancements, such as semiconductor and network equipment companies [12]. - Despite the current market turmoil, analysts project a 19% growth in earnings for S&P 500 software and services constituents by 2026, indicating a potential recovery in the sector [14].

智通财经APP获悉，在华尔街，市场对人工智能(AI)的恐惧日益加剧，从小型软件公司到大型财富管理 公司，凡是可能被AI颠覆的企业，其股价都持续遭受重挫。 周二，一场新的抛售潮骤然爆发：一家名不见经传的初创公司Altruist Corp推出一款税务策略工具，直 接导致嘉信理财(SCHW.US)、瑞杰金融(RJF.US)、LPL Financial(LPLA.US)等公司股价暴跌7%以上。 这是其中一些股票自去年4月市场因贸易战暴跌以来的最大单日跌幅。但这也只是当前市场"先抛售，再 提问"心态的最新缩影。随着数千亿美元AI投资开始转化为商业产品，市场对其可能颠覆整个行业的焦 虑愈演愈烈。 Gabelli Funds经理John Belton表示："任何存在潜在颠覆风险的公司，都在遭到无差别抛售。" 过去几年，AI技术突破一直是华尔街焦点，科技股更是领涨全场。在这波涨势将股指推至历史高位的 同时，市场始终存在疑问：这究竟是即将破裂的泡沫，还是会掀起生产力革命、重塑美国企业格局的关 键力量? 但自上周初以来，一连串AI产品的落地，引发了市场态度的急剧转向。投资者不再专注挑选AI赢家， 而是火速撤离，规避任何哪怕只有一 ...

Core Insights - The launch of Altruist's AI-assisted tax planning tool, Hazel, has caused significant turmoil in the wealth management sector on Wall Street, raising fears about the disruption of traditional investment advisory business models [1] - Hazel utilizes deep learning algorithms to analyze complex financial documents in approximately three minutes, offering tailored tax-saving strategies for a monthly fee of $60, which threatens to drastically reduce the costs associated with traditional tax planning [1] - The market reacted negatively, with wealth management and brokerage stocks experiencing a sharp decline, reaching their lowest valuations since April of the previous year [1] Company Performance - LPL Financial (LPLA.US) saw its stock price drop by 8.3%, reflecting investor concerns over service commoditization [1][2] - Charles Schwab (SCHW.US) recorded a significant decline of 7.4%, becoming a highly traded stock on that day [1] - Raymond James (RJF.US) faced its largest single-day drop since the onset of the pandemic, falling by approximately 8.8% [2] - Other established firms like Ameriprise Financial (AMP.US) and Stifel Financial (SF.US) also experienced declines ranging from 4% to 7% [2] Analyst Perspectives - Some industry analysts believe the market's reaction to the "AI panic" may be an overreaction, as the core barriers in wealth management, such as the need for complex behavioral coaching and deep trust with high-net-worth clients, are not easily replicable by automation [2] - Morningstar's research indicates that if traditional firms fail to integrate similar AI capabilities quickly, their customer acquisition costs will continue to rise amid the digital asset transfer wave, leading to fundamental changes in future revenue structures [2]

Economic Indicators - Nonfarm payrolls are expected to increase by +68,000 in January, with the unemployment rate remaining unchanged at 4.4% [1] - Average hourly earnings are projected to rise by +0.3% month-over-month and +3.7% year-over-year in January [1] - Initial weekly unemployment claims are anticipated to decrease by -7,000 to 224,000 [1] - Existing home sales in January are expected to decline by -4.3% month-over-month to 4.16 million [1] - January CPI is expected to rise by +2.5% year-over-year, with core CPI also expected to increase by +2.5% year-over-year [1] Retail Sales and Employment Costs - US December retail sales were unchanged month-over-month, falling short of expectations of +0.4% [2] - The employment cost index for Q4 rose by +0.7% quarter-over-quarter, which is the smallest increase in 4.5 years and below the expected +0.8% [2] Stock Market Performance - Stock indexes experienced mixed trading, with the Dow Jones reaching a new all-time high while the S&P 500 closed down -0.33% and the Nasdaq down -0.56% [6][5] - The broader market initially found support from weaker-than-expected retail sales and employment cost index reports, which lowered bond yields [5] Earnings Season Insights - Over half of the S&P 500 companies have reported earnings, with 78% beating expectations [7] - S&P earnings growth is expected to rise by +8.4% in Q4, marking the tenth consecutive quarter of year-over-year growth [7] - Excluding the Magnificent Seven tech stocks, Q4 earnings are projected to increase by +4.6% [7] Interest Rates and Bond Market - The markets are pricing in a 23% chance of a -25 basis point rate cut at the next Federal Reserve meeting [8] - The 10-year T-note yield fell to a 3.5-week low of 4.13%, supported by weaker-than-expected economic reports [9] Sector Performance - AI-infrastructure stocks faced pressure, with Western Digital down more than -7% and other tech stocks also declining [12] - Wealth-management stocks dropped significantly, with Raymond James Financial down more than -8% due to concerns over AI disruption [13] - Homebuilding stocks rose after the drop in mortgage rates, with Toll Brothers up more than +6% [14] Company-Specific Developments - Goodyear Tire & Rubber Co reported Q4 adjusted EPS of 39 cents, below the consensus of 49 cents, leading to a decline of more than -14% [15] - Incyte forecasted dull-year total net product revenue of $4.77 billion to $4.94 billion, causing a drop of more than -8% [16] - Spotify reported a record 38 million monthly active users in Q4, leading to a rise of more than +17% [17]

An artificial intelligence tool aimed at creating tax strategies sparked a selloff in wealth-management stocks Tuesday as investors fear the business could be at risk from automated advice. The innovation puts the wealth-management industry in the crosshairs of AI competition, the way it did for software stocks and private credit firms last week and insurance brokerage shares on Monday. Investors responded precisely the way they did before — by unloading the stocks. Raymond James Financial Inc. dropped 8. ...

You can find original article here WealthManagement. Subscribe to our free daily WealthManagement newsletters. A Wisconsin-based five-advisor team from Commonwealth is joining Raymond James’ independent advisor channel, marking the latest departure from the LPL Financial-acquired firm. The team operated as Financial Consulting Services, and included Russell Olson, Christopher Lamal, Raymond Krusic and daughter Nicole Krusic, Ryan Spiering and Brian Craig. Together, the team managed about $730 million from ...

Assets and Liabilities - Total assets at fair value on a recurring basis as of December 31, 2025, amount to $8,829 million, with $990 million in Level 1, $7,946 million in Level 2, and $11 million in Level 3[25] - Total liabilities at fair value on a recurring basis as of December 31, 2025, amount to $1,247 million, with $416 million in Level 1, $953 million in Level 2, and $2 million in Level 3[25] - The company reported a total of $8,950 million in assets at fair value on a recurring basis as of September 30, 2025[26] - The company’s total liabilities at fair value on a recurring basis as of September 30, 2025, amount to $1,252 million[26] - Total trading assets as of December 31, 2025, are $1,530 million, which includes $92 million in Level 1 and $1,434 million in Level 2[25] - Total trading liabilities as of December 31, 2025, are $883 million, which includes $229 million in Level 1 and $654 million in Level 2[25] Securities and Investments - Available-for-sale securities as of December 31, 2025, total $6,648 million, with $429 million in Level 1 and $6,219 million in Level 2[25] - The total available-for-sale securities amounted to $6,648 million as of December 31, 2025, down from $6,888 million on September 30, 2025[46] - The company reported unrealized losses of $477 million on total securities, with $185 million in losses for securities held for less than 12 months and $5,442 million for those held for 12 months or more[51] - The total amount of tax-exempt loans remained stable at $1,148 million, with no significant changes in credit quality indicators[94] - The company has unfunded commitments of $112 million as of December 31, 2025, primarily related to renewable energy tax credit investments[144] Loans and Credit Quality - The total loans held for investment increased to $53,715 million as of December 31, 2025, up from $51,603 million as of September 30, 2025, reflecting a growth of approximately 4.1%[78] - Nonaccrual loans totaled $122 million as of December 31, 2025, compared to $109 million as of September 30, 2025, indicating an increase of approximately 11.9%[83] - The allowance for credit losses (ACL) as a percentage of total loans held for investment decreased to 0.82% as of December 31, 2025, from 0.88% as of September 30, 2025[78] - The credit quality of the bank loan portfolio shows that as of December 31, 2025, 21,461 million in SBL loans were classified as "Pass," while 54 million were classified as "Special Mention," indicating a stable credit quality[94] - Total C&I loans classified as "Pass" amounted to $10,708 million, with 15 million classified as "Special Mention," suggesting a focus on maintaining credit quality[94] Revenue and Income - Total revenues for the three months ended December 31, 2025, were $4.176 billion, with net revenues of $3.735 billion after interest expense[169] - Non-interest revenues amounted to $3.169 billion for the same period, with asset management and related administrative fees contributing $1.999 billion[169] - Net interest income for the three months ended December 31, 2025, was $569 million, compared to $529 million for the same period in 2024, reflecting an increase of 7.6%[174] - The company reported a total of $746 million in C&I loans for 2025, compared to $744 million in 2024, indicating a stable performance in this segment[95] - The company reported a total of $49 million in tax-exempt loans for 2025, consistent with the previous year's figures, indicating stability in this segment[95] Capital and Shareholder Information - As of December 31, 2025, RJF's Tier 1 capital ratio was 23.2%, exceeding the required minimum of 8.5%[181] - RJF's total capital ratio as of December 31, 2025, was 24.3%, above the required minimum of 10.5%[181] - The Board of Directors authorized common stock repurchases of up to $2 billion in December 2025, replacing the previous authorization[161] - Common shares outstanding decreased from 203.3 million at the beginning of the period to 197.0 million at the end of the period for the three months ended December 31, 2025[160] - Dividends per common share declared increased to $0.54 for the three months ended December 31, 2025, compared to $0.50 in 2024[163] Regulatory and Compliance - The effective income tax rate for the three months ended December 31, 2025, was 22.7%, higher than the 21.3% effective tax rate for fiscal year 2025[135] - The estimated upper end of the range of reasonably possible aggregate loss for legal and regulatory matters was approximately $10 million as of December 31, 2025[154] - The company has outstanding commitments to extend credit totaling $64,092 million as of December 31, 2025, compared to $62,422 million on September 30, 2025, indicating an increase of 2.68%[140] Miscellaneous - The company announced an agreement to acquire a majority stake in GreensLedge Holdings LLC, expected to close in fiscal 2026, enhancing its securitization and advisory capabilities[146] - An agreement was reached to acquire Clark Capital Management Group, expected to close in fiscal 2026, which will operate as an independent boutique investment manager within the Asset Management segment[147] - The total amount of collateral received under reverse repurchase agreements was $4,354 million as of December 31, 2025, compared to $4,003 million as of September 30, 2025[71] - The total amount of repurchase agreements increased to $368 million as of December 31, 2025, from $325 million as of September 30, 2025[67] - The company redeemed all 80,500 outstanding shares of Series B Preferred Stock on January 2, 2026, for an aggregate redemption value of $81 million[156]

分组1 - Raymond James Financial, Inc. reported quarterly earnings of $2.86 per share, missing the analyst consensus estimate of $2.88 per share [1] - The firm reported quarterly sales of $3.735 billion, which also fell short of the analyst consensus estimate of $3.92 billion [1] - Raymond James Financial shares gained 0.9% to close at $167.34 [4] 分组2 - iShares U.S. Aerospace & Defense ETF was selected as a final trade by Partners Group's chief investment strategist [2] - iShares MSCI Brazil ETF was named by Hightower Advisors' chief investment strategist [2] - Vulcan Materials Company was recommended by Virtus Investment Partners' senior managing director [2] 分组3 - B. Riley Securities analyst initiated coverage on Vulcan Materials with a Buy rating and set a price target of $345 [3] - Vulcan Materials shares rose 1.8% to close at $305.92 [4] - iShares U.S. Aerospace & Defense ETF fell 0.5% during the session [4] - iShares MSCI Brazil ETF gained 1.1% during the session [4]

Core Insights - Raymond James Financial Inc. reported mixed first-quarter fiscal 2026 results, with net revenues of $3.7 billion, a 6% increase year-over-year, but pre-tax income and net income available to common shareholders fell by 3% and 6% respectively [1][2]. Group 1: Financial Performance - The Private Client Group, the largest sector of the company, generated revenues of $2.77 billion, reflecting a 9% year-over-year increase [2]. - Asset Management revenues increased by 11% year-over-year, reaching $326 million [2]. Group 2: Future Outlook - The company anticipates quarterly share buybacks between $400 million and $500 million and a 1% increase in fiscal Q2 asset management fees [3]. - Management is focused on organic growth and potential acquisitions, with an expected effective tax rate of 24-25% for fiscal 2026 [3]. Group 3: Company Overview - Raymond James Financial Inc. is a diversified financial services company providing wealth management, capital markets, asset management, banking, and other services to individuals, corporations, and institutions [4].