Charles Schwab Soars After Strong Earnings, Outlook Boost

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Charles Schwab (SCHW) shares soared Tuesday as the financial services company reported better third-quarter results than analysts had expected, and also lifted its projections for full-year revenue.

The investment management firm reported $4.85 billion in total revenue, up about 5% from the same time last year and higher than analysts had expected, per estimates compiled by Visible Alpha. Profits were also higher than expected, and jumped 25% to $1.41 billion, while net interest income (NII) fell by a few million to $2.22 billion, narrowly above estimates.

The company also lifted its revenue projection for the full year, calling for a 2% to 3% increase, up from previous estimates of flat to up 2%.

Charles Schwab shares were up about 7% early Tuesday afternoon, trading at their highest level in three months. The stock is now back into positive territory for the year.

The stock plunged in mid-July following the firm’s second-quarter report, when CEO Walt Bettinger said it planned to reduce the size of its bank to improve profitability.

–Aaron McDade

J&J Rises as Results Top Expectations

1 hr 1 min ago

Johnson & Johnson (JNJ) shares advanced Tuesday after the pharmaceutical and medical device company posted better-than-expected third-quarter sales and adjusted profit.

Johnson & Johnson reported $22.47 billion in revenue, up 5% year-over-year and better than analysts had projected, according to estimates compiled by Visible Alpha. It registered $2.69 billion in net income, down 38% and well short of expectation, on billions in one-time expenses like legal costs and acquisitions.

After accounting for over $3 billion in one-time expenses like legal costs, “intangible asset amortization expense,” and the cost of acquisitions, Johnson & Johnson’s adjusted profit of $5.88 billion came in more than half a billion dollars higher than expected.

The company also adjusted its full-year outlook, lifting sales projections to $88.4 billion to $88.8 billion from the prior range of $88 billion to $88.4 billion.

The stock was up nearly 2% in recent trading.

–Aaron McDade

Walgreens Soars After Earnings, Store-Closing Plans

2 hr 35 min ago

Walgreens Boots Alliance (WBA) said Tuesday that it is shutting around 1,200 stores over the next three years, as the drugstore chain moves to turn around its troubled U.S. business.

Walgreens also reported fourth-quarter revenue and adjusted profit that beat Wall Street estimates.

Shares of the company were up more than 15% in recent trading, leading S&P 500 gainers. Despite the gain, the stock has lost about 60% of its value since the start of the year.

Read the full article here.

–Nisha Gopalan

Banking Stocks on The Rise After Strong Earnings

4 hr 31 min ago

Shares of Bank of America (BAC), Citigroup (C)  and Goldman Sachs (GS) gained ground in premarket trading Tuesday after the financial services giants each reported better-than-expected third-quarter results.

The latest reports continue a stretch of strong big bank earnings kicked off last week by rivals JPMorgan Chase (JPM) and Wells Fargo (WFC).

Bank of Amercia, Citi and Goldman were each up more than 2% ahead of the opening bell, while JPMorgan and Wells Fargo were both up slightly.

Major Index Stock Futures Little Changed

5 hr 21 min ago

Futures tied to the Dow Jones Industrial Average were up less than 0.1%.

S&P 500 futures were down less than 0.1%.

Nasdaq 100 futures were also down by less than 0.1%.

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