My take on the current market situation, and I went short the NDX, DOW & SPX yesterday, on the spike..
Wells Fargo Expects $1.13 Bln Charge Tied to Venture Capital
San Francisco, June 6 (Bloomberg) -- Wells Fargo & Co., the fourth-largest U.S. bank, said it expects to take $1.13 billion in second-quarter charges on venture capital losses.
The charges will amount to 65 cents a share, the San Francisco-based company said in a press release distributed by PR Newswire. About $1.05 billion, or 61 cents a share, of the charges result from write-downs of publicly traded and private equity securities, most of which are in the company's venture capital portfolio, according to the release.
When you start to eat $billions, people take notice.....not the stuff bull markets are made of, Imo...but it permits some nice trading swings..
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NEW YORK (Reuters) - J.P. Morgan Chase & Co. (NYSE:JPM - news), the second-largest U.S. bank holding company, said on Wednesday it expects its trading revenues for the second, third, and fourth quarters to be lower than its first-quarter results because of seasonal patterns and market conditions.
Weak stock markets continue to plague three of J.P. Morgan's key businesses -- stock trading, investment banking, and the company's own investment portfolio. Fewer stock offerings and mergers mean less banking fees, while lower stock market volatility means the firm can't make as much money trading on share price movement.
The company also said in a regulatory filing that weak stock market conditions continue to hurt investment banking revenue opportunities.
(fewer suckers to sell those ipo's to than last year)
Few companies are choosing to sell stock, fearing their shares will perform poorly amid the weak conditions. M&A activity has fallen as companies are loath to use their battered shares as currency in a deal.
(nobody wants those "battered shares" is the real story)
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But wait, there is more>
Bank One (ONE -0.2%) warned its second quarter earnings will come in equal to or slightly above its first quarter net of 58 cents per share. This is roughly 8% shy of the current mean estimate for Bank One which is 63 cents per share. The company cited credit deterioration and its decision to reduce credit exposure through voluntary loan sales as contributing to the shortfall...
(Hmmm, so in the face of falling rates, they ain't increasing lending, they are actually decreasing??) |
