🇺🇸 TRUMP SAID INFLATION IS VERY LOW AND FED SHOULD CUT RATES BY 3 POINTS. https://t.co/FljnHJphSf ...

Wells Fargo Shares Slide on NII Miss, Forecast Cut. Get caught up on the day's gainers and decliners on the latest Stock Movers report https://t.co/IXvZTM0vCi ...

Welcome to Yahoo Finance's special coverage of the June CPI report. I'm Julie Hyman. The key inflation number just crossing the wire and coming in somewhat in line with estimates.0.3% the month overmonth increase in the consumer price index. If you take out food and energy, the increase was actually smaller than estimated 2/10en of 1% versus the 3/10en that was estimated. And then as we take a look at the year-over-year numbers, consumer inflation rising 2.7% year-over-year.If you take out food and energy, ...

Heading into earnings season, a price to earnings or PE ratio of 22 suggest stocks are priced at 22 times their annual earnings, which is historically high. For context, the S&P 500 long-term average PE is around 15 to 16 with peaks near 25 to 30 during past bubbles such as the dot era. A PE of 22 is elevated but not extreme by historical standards.Elevated pees could signal overvaluation if driven by speculative fervor or concentrated in a few stocks, especially if earnings falter or rates rise. Conversely ...

🇺🇸 TRUMP: Urges Fed to cut rates by 3 points, claiming it would save $1 trillion a year. https://t.co/1YWjbLU7u3 ...

Industry Overview - The Zacks Consumer Loans industry includes companies providing various loan products such as mortgages, credit card loans, and personal loans, which are crucial for generating net interest income (NII) [3] - The industry's performance is highly sensitive to the overall economic conditions and consumer sentiments, with many providers also engaging in commercial lending and asset recovery to diversify revenue sources [3] Key Influencing Factors - **Asset Quality**: Prolonged high interest rates are affecting borrowers' repayment capacity, leading to increased reserves by loan providers to mitigate rising defaults, which is deteriorating asset quality [4] - **Interest Rates & Loan Demand**: Steady interest rates have slightly improved loan demand, but consumer confidence remains low due to tariff-related uncertainties, limiting growth in net interest margin (NIM) and NII [5] - **Lending Standards**: Improved credit scores due to the removal of tax liens from credit reports have expanded the borrower pool, while relaxed lending standards are helping meet loan demand [6] Industry Performance - The Zacks Consumer Loans industry has a Zacks Industry Rank of 155, placing it in the bottom 37% of over 250 Zacks industries, indicating underperformance in the near term [7][8] - Analysts have revised the industry's earnings estimates for the current year down by 7.9%, reflecting a loss of confidence in earnings growth potential [9] Market Comparison - Over the past two years, the Zacks Consumer Loans industry has outperformed the Zacks S&P 500 composite and the Zacks Finance sector, with a collective stock increase of 68.3% compared to 39.5% and 42% respectively [11] Valuation Metrics - The industry has a trailing 12-month price-to-tangible book ratio (P/TBV) of 1.33X, above the five-year median of 1.03X, but significantly lower than the S&P 500's ratio of 13.33X [14][16] Investment Opportunities - **Capital One Financial Corporation (COF)**: Focused on consumer and commercial lending, COF is well-positioned for growth with a market cap of $141.3 billion and expected earnings growth of 10.7% and 20% for 2025 and 2026 respectively [21][20] - **Enova International, Inc. (ENVA)**: A financial technology company with a market cap of $2.94 billion, ENVA has seen a 20.7% increase in shares this year and is expected to grow earnings by 28.9% and 17.6% in 2025 and 2026 respectively [26][25]

Financial Performance - Banks are expected to report good results, with upward rerating in stocks justified by improved macro environment [2] - Loan growth is decent at about 3% for both commercial industrial and consumer [3] - Higher for longer interest rates have resulted in some upward repricing on securities [3] - 3% loan growth can translate into 5% to 6% net interest income growth [3] Macroeconomic Factors - Deregulatory environment is constructive for banks [2] - Employment is healthy, which is a significant determinant for delinquencies and loan loss provisions [4] - The shock factor of tariffs has abated, with companies finding ways to navigate the tariff environment [6] Potential Risks and Opportunities - Uncertainty from tariffs could result in more moderate loan growth and pause on expansion plans [7] - Trade finance might be negatively impacted by tariffs [7] - IPO and M&A activity could be much stronger in the absence of tariff conversations [7] - Potential for rebound in capital markets generally [7]

Core Viewpoint - Huntington Bancshares Incorporated (HBAN) is expected to report an increase in quarterly revenues and earnings year over year for the second quarter of 2025, with earnings anticipated to be stable compared to the previous quarter [1][3]. Financial Performance - The bank recorded an earnings surprise of 9.7% in the last reported quarter, driven by improvements in fee income and net interest income (NII), although non-interest expenses increased [1][2]. - Preliminary results indicate earnings of 34 cents per share, reflecting a 13.3% rise from the year-ago figure, despite a 2.9% decline in the Zacks Consensus Estimate over the past week [3][10]. - Revenues for the quarter are projected to be $1.95 billion, slightly below the consensus estimate of $1.99 billion, but still representing a year-over-year increase of 9.6% [4][10]. Key Factors Influencing Performance - NII is expected to grow to $1.5 billion, a 3% increase from the prior quarter, supported by steady loan demand and interest rates remaining unchanged by the Federal Reserve [5][10]. - The average total earnings assets are estimated to rise by 1.5% to $191.1 billion, reflecting strong demand for commercial and industrial loans [6]. - Mortgage banking income is projected to increase by 9.5% to $34 million, aided by stable refinancing activities despite fluctuating mortgage rates [7][8]. Non-Interest Income and Expenses - Total non-interest income is expected to decline by 5.4% to $520.6 million, influenced by rising expenses and credit loss reserves [10][12]. - Higher expenses are anticipated due to increased costs from data processing, marketing, and expansion efforts in commercial banking [13][14]. Asset Quality - The bank has increased its allowance for credit losses by $37 million to $2.5 billion, reflecting concerns over potential delinquent loans amid economic uncertainties [14]. - The Zacks Consensus Estimate for total non-accrual loans indicates a 3.5% increase from the prior quarter, suggesting a cautious approach to asset quality [15]. Earnings Expectations - The chances of HBAN beating earnings estimates are considered low due to a negative Earnings ESP of -2.42% [16]. - The company currently holds a Zacks Rank of 2 (Buy), indicating a favorable outlook compared to other stocks [17].

Core Viewpoint - U.S. Bancorp (USB) is expected to report year-over-year increases in revenues and earnings for Q2 2025, benefiting from lower expenses and higher non-interest income [1] Group 1: Financial Performance Expectations - The company anticipates net interest income (NII) for Q2 2025 to be between $4.1 billion and $4.2 billion, with a consensus estimate of $4.01 billion, reflecting a marginal increase from the previous quarter [2][8] - The consensus estimate for total revenues in Q2 2025 is $7.06 billion, indicating a rise of 3.3% from the year-ago figure [13] - The Zacks Consensus Estimate for average earning assets is $611.2 million, suggesting a slight sequential increase [4] Group 2: Non-Interest Income and Trading Activity - Non-interest income is projected to rise by 3.3% due to gains in trading, mortgage, and card revenues, with total non-interest income estimated at $2.93 billion [9][8] - Trading volumes in equity derivatives and corporate bonds have increased, with the consensus estimate for commercial product revenues at $391 million, reflecting a 2.4% increase from the prior quarter [5] Group 3: Loan Activity and Market Conditions - Lending activity remained strong in Q2 2025, supported by a resilient labor market and easing inflation, with notable demand for commercial and industrial loans [3] - Mortgage banking revenues are expected to reach $179.6 million, indicating a 3.8% increase from the previous quarter, despite mortgage rates fluctuating in the mid-to-upper 6% range [6] Group 4: Expense Management and Asset Quality - The company aims to keep non-interest expenses at or below $4.2 billion in Q2 2025, despite higher costs related to compensation and employee benefits [10][9] - The Zacks Consensus Estimate for non-performing loans is $1.72 billion, indicating a rise of 1.8% from the prior quarter [10] Group 5: Earnings Expectations - U.S. Bancorp has a positive Earnings ESP of +0.21%, indicating a high likelihood of beating earnings estimates [11] - The consensus estimate for Q2 earnings is $1.07, reflecting a 9.2% increase from the year-ago reported number [12]

Treasuries were mostly steady after Tuesday’s mixed inflation report for June largely matched economists’ expectations and slightly raised bets on interest-rate cuts by the Federal Reserve https://t.co/Hvf8kcKnzA ...