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The third-quarter earnings season for the broker-dealer neighborhood included a giant loss for one wirehouse agency, which is digesting a former competitor. 4 BDs noticed their earnings decline from the year-ago interval, however six reported stronger outcomes.
“At the moment, U.S. shoppers and companies usually stay wholesome, though shoppers are spending down their extra money buffers,” defined JPMorgan Chase CEO Jamie Dimon in an announcement when the agency introduced its newest outcomes. “Moreover, the struggle in Ukraine compounded by [the Oct. 7] assaults on Israel could have far-reaching impacts on vitality and meals markets, international commerce, and geopolitical relationships.”
The CEO added: “This can be essentially the most harmful time the world has seen in many years. Whereas we hope for the perfect, we put together … for a broad vary of outcomes so we will constantly ship for shoppers regardless of the setting.”
The markets proceed to anticipate a pause within the Federal Reserve’s latest coverage of elevating rates of interest. The S&P 500 has improved over 20% this yr, however monetary shares are usually not maintaining. The Monetary Sector SPDR, as an illustration, is up solely 4.7%, whereas the iShares U.S. Financials ETF has improved 6.9% yr thus far.
Nonetheless, leaders within the sector stay bullish. As an example, LPL Monetary CEO Dan Arnold stated throughout an earnings name that the agency now has “13 options in our general companies portfolio, [and] … we’ve received three extra options that we are going to roll out within the close to to intermediate time period and one other handful in incubation.”
These enterprise companies “proceed to be a spot of innovation for us, and we expect there’s nonetheless a great little bit of alternative to proceed to assist [us] construct leverage factors for advisors within the spirit of serving to them run thriving companies,” Arnold stated.
On Jan. 12, JPMorgan, Wells Fargo and Citigroup will kick off the This autumn 2023 earnings season.
Credit score: Chris Nicholls/ALM
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