Group 1: Market Outlook - Credit quality is expected to remain stable, with no significant credit cycle anticipated without a recession, although specialized exposures may pose risks [1] - Rate stability is deemed more important than rate cuts, with a positively sloped yield curve and lower rate volatility expected to enhance net interest margins [2] - The banking sector is predicted to experience strong mergers and acquisitions and initial public offerings due to strategic investor interest and a smooth approval process [2] Group 2: Bank of America’s Position - Bank of America (BofA) is optimistic about bank stocks, citing multiple fundamental drivers that create a supportive environment for the sector [4] - The focus is on Global Systemically Important Banks (GSIBs) and select regional banks that demonstrate growth potential [5] - BofA's "Year Ahead 2026" report indicates that current conditions resemble those of the late 1990s and early 2000s, rather than the post-global financial crisis period [5] Group 3: Stock Recommendations - Citigroup is highlighted as having the best risk/reward profile among large-cap banks, with a price target raised to $140, implying a 14.3% upside [7] - Wells Fargo is viewed positively due to the removal of the asset cap, which is expected to enhance growth and productivity [14] - Morgan Stanley is considered a strong buy due to its unique business setup and potential for synergies within its integrated franchise [20][21] Group 4: Earnings Projections - BofA forecasts Citigroup's earnings per share (EPS) to grow by about 25% annually from 2026 to 2027, with a projected EPS of $10.57 for 2026 [7][9] - Morgan Stanley's EPS is expected to reach $7.07 in 2026, with an average annual growth of about 15% [18] - Goldman Sachs is projected to have an EPS of $10.95 in 2026, with an implied upside of 12.6% [24] Group 5: Sector Dynamics - The removal of regulatory constraints is expected to allow banks like Wells Fargo to pursue better growth opportunities [14] - BofA believes that the GSIBs will lead the sector as capital markets activity increases, with a multi-year re-rating cycle anticipated [29][31] - The classic drivers of returns in 2026 are expected to remain focused on revenues, costs, capital, and credit, rather than AI, which is not yet a significant profit driver [31]

Group 1 - SAP SE is recognized as one of the best stocks to buy according to analysts, particularly due to its strong position in the software sector as AI adoption increases [1][2] - Wells Fargo highlights that software vendors managing critical business data systems, like SAP, are well-positioned to attract additional AI spending as companies consolidate vendors and move AI tools into production [2] - The appointment of David Robinson as president of SAP North America is aimed at improving customer outcomes and supporting business transformation, leveraging his extensive experience within the company [3] Group 2 - SAP SE is a leading German multinational software company, recognized as one of the largest providers of enterprise resource planning software and business AI solutions [4]

Financial Sector Insights - Major banks including JPMorgan, Bank of America, and Goldman Sachs are reporting earnings this week, providing insights into consumer spending, business loan demand, and credit quality trends [1][2] - Key metrics such as net interest margins, loan loss provisions, and deposit dynamics will be critical for assessing bank conditions [1] - Investment banking revenues will shed light on M&A activity and capital markets health, while wealth management results will reflect retail investor sentiment [1] Economic Data Releases - The December CPI report is anticipated to be a significant economic release, indicating inflation trends as 2025 concludes [3] - Both headline and core CPI readings will be closely monitored for signs of inflation reacceleration, which could impact Federal Reserve policy [3] - Retail sales data will provide context on consumer demand strength, influencing pricing power and market sentiment [3] Semiconductor Sector Update - Taiwan Semiconductor's earnings will be crucial for understanding global semiconductor demand, particularly in AI and other end markets [4] - Insights on advanced node utilization and capital expenditure plans will be vital for assessing the sustainability of AI-driven chip demand [4] - TSM's commentary on competition from Samsung and Intel will provide context on industry dynamics and future investment expectations [4] Retail Sector Analysis - The NRF 2026 and ICR conferences will offer significant retailer preannouncements and guidance updates, impacting consumer discretionary sector sentiment [6] - November retail sales data will provide hard evidence of holiday shopping performance, with comparisons to conference commentary being critical for assessing retailer optimism [6] - Existing home sales data will further contextualize consumer behavior in the residential real estate market [6] Healthcare Sector Developments - The JPMorgan Healthcare Conference will gather key players in the pharmaceutical and biotech industries, generating significant news flow [7] - Updates on pipeline developments and regulatory approvals from major drugmakers could substantially influence stock movements [7] - The conference will highlight critical themes such as drug pricing pressures and innovations in oncology and gene therapy [7]

Last week Wells Fargo begun to amass Bitcoin (CRYPTO: BTC) in substantial amounts. This development has elicited reactions from the cryptocurrency community, including a response from Changpeng Zhao, the founder of Binance. Wells Fargo’s decision to purchase large quantities of Bitcoin comes at a time of increasing uncertainty in the wider cryptocurrency market. In response to this move, Changpeng Zhao, Binance’s founder, has called on traders to remain resilient. While you were panic selling, U.S. Bank ...

Group 1: Earnings Reports - Major financial institutions including JPMorgan, Wells Fargo, Morgan Stanley, and Goldman Sachs are set to report earnings, marking the start of the earnings season for Q4 2025 [1][3] - JPMorgan Chase, the largest U.S. bank, will kick off the earnings season with its year-end report, having recently announced it will become the next issuer of the Apple Card [3] - Wells Fargo anticipates slower growth in net interest income for the year, while BNY Mellon and Goldman Sachs are also scheduled to report [4] Group 2: Economic Indicators - December's Consumer Price Index is expected to show inflation pressures slowing to 2.7%, with additional reports on wholesale inflation from October and November to provide further insights [6] - Retail sales data for November will offer insights into consumer activity during the holiday shopping season, which is crucial for the U.S. economy [8] - Reports on new and existing home sales are anticipated, as home sales have stalled due to ongoing affordability challenges [8] Group 3: Sector-Specific Insights - Taiwan Semiconductor's earnings will be closely watched to assess the chipmakers' ability to sustain revenue growth amid rising demand for AI chips [5] - Delta Air Lines' earnings will provide insights into the travel sector's recovery following disruptions caused by last year's government shutdown [5]

Market Overview - Investors should not overreact to uneventful unemployment data, as it allows for a focus on broader market trends and rallies beyond last year's winners [1] - Money is aggressively rotating into overlooked sectors, particularly data storage stocks, which have seen significant rallies while former market leaders struggle [2] Company Insights - Apple and Nvidia have not performed well despite strong underlying businesses, as they have become sources of funds for investors seeking new opportunities [3] - Upcoming earnings season is expected to start strong with JPMorgan Chase, although caution is advised regarding CEO Jamie Dimon's potential risk emphasis [6] - Delta Air Lines is anticipated to report strong results, with banks like Citigroup, Wells Fargo, Bank of America, Goldman Sachs, and Morgan Stanley also expected to perform well [7] Economic Indicators - The December consumer price index will be more significant than recent labor data, with signs of persistent inflation impacting consumer sentiment and presidential policies [5] - The JPMorgan Healthcare Conference is expected to generate merger-and-acquisition activity, with interviews of pharmaceutical executives planned [4] Sector Focus - Attention is on Taiwan Semiconductor Manufacturing Company, which may influence Nvidia's stock performance [8] - Transport stocks are also in focus, with expectations that a solid report from J.B. Hunt will support a bullish outlook on FedEx [9]

Company Overview - &Partners, a hybrid broker/dealer based in St. Louis, was launched by David Kowach, the former president and CEO of Wells Fargo Advisors [1] - The firm has over 100 advisor practices with $50 billion in pre-hire assets and $350 million in revenue [4] Recent Developments - &Partners has added Curley Wealth Management, a practice based in Oneonta, N.Y., with approximately $500 million in pre-hire assets under management [1] - Curley Wealth Management is led by Ed and Corbin Curley, who have extensive experience in the financial services industry, particularly with Wells Fargo [2] Leadership and Vision - Kowach co-founded &Partners in 2023 with Kristi Mitchem and John Alexander, aiming to recreate a boutique brokerage culture with enhanced technology and service [3] - The firm emphasizes a robust investment platform and white-glove service [3] Growth Metrics - The company has recruited about 44 teams in 2025 from various firms, including Wells Fargo and Merrill Lynch [4] - Revenue has increased by 179% year-over-year, and assets under management have doubled since the end of 2024 [4] - Approximately 40% of the advisor teams at &Partners are led by women [4]

Core Viewpoint - Wells Fargo & Company (WFC) is expected to report its fourth-quarter and full-year 2025 earnings results on January 14, 2026, before market open [1]. Financial Performance - WFC's performance in the first nine months of 2025 benefited from higher non-interest income and lower provisions, although increased expenses and a decline in net interest income (NII) negatively impacted results [2]. - The Zacks Consensus Estimate for fourth-quarter revenues is $21.60 billion, indicating a 6% year-over-year growth [2]. - The consensus estimate for earnings for the upcoming quarter has been revised upward to $1.66, reflecting a 16.9% improvement from the prior-year quarter [3]. Earnings Estimates - The Zacks Consensus Estimate for NII is projected at $12.4 billion, representing a 4.1% increase from the previous quarter [8]. - WFC's total non-interest income is estimated at $9.2 billion, suggesting a 3.4% decline from the prior quarter [14]. Loan and Interest Income - The Federal Reserve's interest rate cuts in the fourth quarter are expected to positively influence WFC's NII, with the Fed funds rate now in the 3.50-3.75% range [7]. - The demand for commercial, industrial, real estate, and consumer loans remained strong, likely improving WFC's lending activity [8]. Non-Interest Revenues - Mortgage banking revenues are estimated at $258.5 million, indicating a 3.5% decline from the previous quarter due to lower refinancing activity [11]. - Investment advisory and other asset-based fee revenues are expected to rise to $2.8 billion, reflecting a sequential increase of 4.4% [11]. Expense Management - WFC's non-interest expenses for the fourth quarter are expected to be $13.5 billion, down from $13.9 billion in the third quarter, due to effective expense management initiatives [15]. - The company is focused on cost-cutting measures, including streamlining its organizational structure and reducing headcount [29]. Asset Quality - Total non-accrual loans are projected to reach $8 billion, indicating a 4.5% sequential increase, while non-performing assets are expected to rise to $8.1 billion, a 3.5% increase from the previous quarter [16]. Strategic Outlook - WFC's management has raised its medium-term return on tangible common equity (ROTCE) target to 17-18% from the previous 15%, indicating stronger profitability prospects [30]. - The removal of the asset cap has allowed for balance-sheet growth, supported by disciplined expense management and expanding fee-based initiatives [27].

Core Viewpoint - Wells Fargo (WFC) is expected to report quarterly earnings of $1.66 per share, reflecting a 16.9% increase year-over-year, with revenues projected at $21.6 billion, a 6% increase from the previous year [1]. Earnings Projections - Changes in earnings projections are crucial for predicting investor reactions, with empirical studies showing a strong link between earnings estimate trends and short-term stock price movements [2]. Key Metrics Estimates - Analysts expect the Efficiency Ratio to be 62.9%, down from 66.0% a year ago [3]. - The Average Balance of Total interest-earning assets is projected to reach $1,872.93 billion, compared to $1,756.36 billion last year [4]. - Return on equity (ROE) is anticipated to be 12.5%, up from 11.7% year-over-year [4]. - Book value per common share is estimated at $52.68, compared to $48.85 in the same quarter last year [5]. - Total nonperforming assets are forecasted to be $8.10 billion, up from $7.94 billion a year ago [5]. - Net loan charge-offs are expected to be $1.08 billion, down from $1.21 billion last year [5]. Financial Ratios - The Tier 1 Leverage Ratio is expected to be 7.5%, down from 8.1% a year ago [6]. - Total nonaccrual loans are projected at $7.96 billion, compared to $7.73 billion last year [6]. - Common Equity Tier 1 (CET1) is estimated at 10.7%, down from 12.4% year-over-year [7]. - The Tier 1 Capital Ratio is expected to be 11.9%, compared to 12.6% last year [7]. Income Estimates - Total Noninterest Income is projected to reach $9.17 billion, up from $8.54 billion a year ago [8]. - Net interest income (on a taxable-equivalent basis) is expected to be $12.48 billion, compared to $11.91 billion in the same quarter last year [8]. Stock Performance - Wells Fargo shares have increased by 3.3% over the past month, outperforming the Zacks S&P 500 composite, which rose by 1.2% [8].

Core Viewpoint - The US Supreme Court is poised to deliver a significant ruling on President Trump's global tariffs, which could have far-reaching implications for trade policy and the economy [1][2]. Legal Authority and Refunds - The case examines whether the Trump administration lawfully imposed tariffs under the International Emergency Economic Powers Act (IEEPA) and whether importers are entitled to refunds if the tariffs are deemed unlawful [3][4][5]. - Legal experts suggest that if the court finds the use of IEEPA improper, it could lead to refunds estimated at up to $150 billion, creating a complex situation for the federal government [6]. Market Reactions and Predictions - Investors are anxious due to the uncertainty surrounding the ruling, with prediction markets indicating only a 28% chance that the Supreme Court will fully uphold the tariffs [7]. - Analysts from Morgan Stanley highlight that the court's decision could vary, potentially narrowing the president's authority or allowing some tariffs to remain while striking down others [9]. Economic Implications - A ruling against the tariffs could boost S&P 500 earnings before interest and taxes by approximately 2.4% in 2026, prompting a potential rally in equities, especially for companies reliant on imported goods [12]. - Consumer-facing businesses and retailers are expected to benefit the most from a favorable ruling, while sectors like materials and domestic producers may lag [13]. Bond Market Impact - A decision against the tariffs could negatively affect US government revenues, leading to higher Treasury yields and increased volatility in bond markets [15][16]. Broader Economic Context - Despite initial fears, the economic impact of the tariffs has been limited, with inflation effects being muted and the US trade deficit narrowing significantly [17]. - The administration argues that tariffs are reshaping trade flows without hindering economic growth, with Morgan Stanley projecting only modest economic effects if tariff rates remain unchanged [18]. Long-term Trade Policy Implications - The ruling is expected to set a precedent for how future presidents utilize emergency powers in trade matters, with significant stakes for companies across various sectors [19][20].