U.S. bank profits down 1.5% in 2019 – FDIC
WASHINGTON, Feb 25 (Reuters) – The U.S. banking sector reported $233.1 billion in profits in the fourth quarter of 2019, a 1.5% decline from the year prior, according to new data from a U.S. banking regulator.
The Federal Deposit Insurance Corporation reported that quarterly bank profits were down 6.9% from the fourth quarter of 2018, as net interest income was down 2.4% in 2019, the first decline over a twelve-month period since the third quarter of 2013. (Reporting by Pete Schroeder)
Airline stocks extend declines despite bounce in broader stock market
Airline stocks are mostly lower in morning trading Tuesday, as they extended the previous session’s sharp losses despite the bounce in the broader stock market. Among the more-active Dow Jones Transportation Average DJT, -1.63% components, shares of American Airlines Group Inc. AAL, -4.60% fell 1.6% after dropping 8.5% on Monday; Delta Air Lines Inc. DAL, -2.90% shed 0.9% to extend Monday’s 6.3% selloff; United Airlines Holdings Inc. UAL, -3.12% gave up 0.9% after falling 3.3% on Monday; and JetBlue Airways Corp. JBLU, -1.81% slipped 0.2% after sliding 6.0% on Monday. The Dow transports fell 21 points, or 0.2%, to add to Monday’s 3.7% plunge. Meanwhile, the Dow Jones Industrial Average DJIA, -0.54% rose 92 points, or 0.3%, after plummeting 1,032 points on Monday.
Global Trade Suffers First Full-Year Drop Since Financial Crisis
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Global trade had a rough 2019 as weaker world growth and a manufacturing recession took their toll.
As the world now watches the spread of the coronavirus and its impact on businesses and households, updated figures from the CPB World Trade Monitor show trade volumes fell 0.4% last year. The decline isn’t huge, but it’s the first since 2009 and follows growth of more than 3% in 2018. It reflects President Donald Trump’s protectionist stance and the U.S. trade war with China, as well as Germany’s industrial slump.
There was hope for a better 2020, and surveys of business activity and manufacturing had started to slowly improve. But the outbreak of the virus, which has shut huge areas of China, closed factories, and now spread internationally, has put a damper on that.
Even at the end of 2019, the trade situation remained weak. The CPB said trade momentum, based on three-month figures, showed a 0.4% decline. December alone showed a small monthly increase.
Stock Alert: Sailpoint Technologies Climbs
Shares of Sailpoint Technologies Holdings Inc. (SAIL) are surging more than 7% Tuesday morning.
The company reported fourth-quarter earnings, that slightly increased from last year and also surpassed the consensus estimates.
Net income in the fourth quarter was $5.4 million or $0.06 per share compared to $5.1 million or $0.06 per share in the same quarter a year ago. Excluding items, adjusted EPS of $0.15, beat average estimates of analysts polled by Thomson Reuters at $0.08.
Revenue for the quarter increased 10% year-over-year to $89 million.
In the earnings conference call, Jason Ream, CFO said, “We expect that our bookings growth will accelerate from 2019 growth rate, driven by a strong market and the better execution we’re seeing across the business.”
For the first quarter, SailPoint expects revenue to be in the range of $71.0 million to $72.0 million and adjusted loss per share to be in the range of $0.03 to $0.02. Analysts see loss per share of $0.02 on revenue of $70.13 million.
For the full year, the company expects revenue to be in the range of $320.0 million to $325.0 million and adjusted EPS to be in the range of $0.02 to $0.03. The consensus estimate for earnings is at $0.21 on revenue of $329.25 million.
SAIL is currently trading at $24.81 and has traded in the range of $16.63- $31.94 in the past one year.
Dow sinks more than 300 points to session low as 10-year Treasury rate hits record low at 1.321%
U.S. stocks on Tuesday were giving up opening gains and trending firmly in negative territory as the 10-year Treasury note yield breached an all-time low, reflecting persistent worries about the impact of COVID-19, the illness derived from the novel s train of coronavirus, to supply chains and economies world-wide. The 10-year Treasury note TMUBMUSD10Y, -2.55% hit an intraday low at 1.321%, according to FactSet data, which is just a few basis points below its 2016 nadir at 1.325%. Bond prices rise as yields fall. Stocks, meanwhile, appeared to come under pressure as yields for government bonds continued to edge lower. The Dow Jones Industrial Average DJIA, -1.18% was off 329 points, or 1.1%, at 27,656, following a more-than 1,000-point drop for the blue-chip gauge on Monday. The S&P 500 index SPX, -1.08% retreated 1.1% at 3,191, while the Nasdaq Composite Index COMP, -0.87% was down 1.1% at 9,116 in late-morning action. The 30-year Treasury note, meanwhile, has already hit an all-time low, achieved last week. The number of worldwide cases of COVID-19 continues to rise; there are now 80,238 cases in 34 countries and at least 2,700 deaths, according to the World Health Organization (WHO).
Home prices rise in December on low rates, inventory
Existing home sales up due to thriving economy
FOX Business’ Deirdre Bolton says Millennials are buying tons of homes now that they’re reaching the typical home buying age. Nicholas Wealth Management president David Nicholas maintained that while it’s good home sales are going up, supply is going down, which means higher home prices.
WASHINGTON — U.S. home prices rose at a faster pace in December as mortgage rates remained low and a falling supply of available properties set off bidding wars between buyers.
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The S&P CoreLogic Case-Shiller 20-city home price index climbed 2.9% in December from a year earlier after posting a 2.5% gain in November.
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Prices rose in all 20 cities, led by increases of 6.5% in Phoenix, 5.3% in Charlotte, North Carolina and 5.2% in Tampa, Florida. Prices rose just 1% in Chicago and New York.
Just 1.42 million homes were on the market at the end of January, down nearly 11% from a year earlier. The limited supply pushes prices higher. The rate for a benchmark 30-year, benchmark mortgage loan was 3.49% last week, down from 4.35% a year earlier.
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Prices in the 20 cities are up 63% from the low they reached in March 2012 in the wake of the financial crisis and 6% above their July 2006 pre-crisis peak.