By Megan Davies and Lananh Nguyen NEW YORK (Reuters) -Wall Street’s biggest banks stockpiled more rainy-day funds to prepare for a possible recession, while showing caution about forecasting income growth in an uncertain economy and as higher rates increase competition for deposits. The outlook for big U.S. banks has been clouded by the Russia-Ukraine conflict…
By Niket Nishant and Saeed Azhar (Reuters) -JPMorgan Chase & Co, the biggest lender in the United States, said on Friday it set aside $1.4 billion in anticipation of a mild recession, even as it beat forecasts for quarterly profit on the back of a strong performance at its trading unit. JPMorgan and other banks…
By Mehnaz Yasmin and Carolina Mandl (Reuters) – Citigroup Inc reported a 21% fall in quarterly profit on Friday, missing forecasts, as the bank increased provisions to prepare for a worsening economy and investment banking revenue declined due to a sharp drop in dealmaking activity. Fears of a potential recession prompted Citi to add $640…
By Manya Saini and Lananh Nguyen (Reuters) -Bank of America Corp reported a bigger-than-expected fourth-quarter profit on Friday, helped by a surge in net interest income as the U.S. Federal Reserve raised rates through most of last year. The ‘higher-for-longer’ rate environment to battle decades-high inflation has underpinned profits at consumer banks, with analysts expecting…
By Noor Zainab Hussain and Hannah Lang (Reuters) -Wells Fargo & Co on Friday reported a 50% decline in profit for the fourth quarter, missing analysts’ estimates, as the bank racked up more than $3 billion in costs related to a fake accounts scandal and boosted loan loss reserves for a potential economic slowdown. The…
By Carolina Mandl NEW YORK (Reuters) – Goldman Sachs Investment Strategy Group expects U.S. equities to generate positive returns for investors in 2023 even if the economy enters a recession, according to its outlook report released on Friday. The bank’s wealth management team expect the benchmark S&P 500 to end 2023 at between 4,200 and…
By David Randall and Saqib Iqbal Ahmed NEW YORK (Reuters) -Some investors believe a slowdown in U.S. inflation last month may be paving the way for a market-friendly “Goldilocks” scenario for asset prices, allowing the Federal Reserve to bring down consumer prices without badly damaging growth. U.S consumer prices unexpectedly fell last month for the…
By Chris Taylor NEW YORK (Reuters) – If there was only one word to sum up 2022, “unpredictable” might be the most accurate. Yet we all enjoy trying to predict the future, especially when it comes to our finances – to protect ourselves from the downside, or to take advantage of the upside. What does…
By Caroline Valetkevitch NEW YORK (Reuters) – A tentative bounce in U.S. stocks is about to face a key test, as companies get set to report fourth-quarter results amid worries over a potential recession in 2023. Analysts expect earnings for S&P 500 companies to have declined 2.2% for the quarter compared with a year ago,…
By Davide Barbuscia, Carolina Mandl and Shankar Ramakrishnan NEW YORK (Reuters) – Investors are increasing their exposure to U.S. corporate bonds as they take advantage of a surge in supply, but some say conflicting opinions about the economy are creating both long and short trading opportunities. The belief that the Federal Reserve may be nearing…