Data Explorers Update: Earnings for the Week Ahead...
18 October 2010 London
Image: Shutterstock
The spotlight will be on the US banks, including Goldman Sachs (GS), Bank of America (BAC) and Morgan Stanley (MS) this week as they report third-quarter quarter earnings. Investors will be looking for direction as there is growing concern of the mortgage foreclosure crisis but also an increasing risk of mortgage put-backs. We take a look at investor sentiment in securities lending of those banks announcing this week and other companies updating the markets.
Morgan Stanley (MS) is due to report earnings on Wednesday. It has beaten analyst estimates by considerable margins in three out of the last four quarters. In line with this performance, short interest has been decreasing over the past year reaching a current 52-week low whilst institutional ownership has increased to annual highs.
Wells Fargo (WFC) which is due to report earnings before the opening bell on Wednesday also sees securities lending movement similar to Morgan Stanley, as stock of loan reaches a 52-week low.
Goldman Sachs (GS) is due to report earnings on Tuesday. Previous quarter earnings saw Goldman Sachs significantly miss market consensus estimates in June. Since June, the proportion of lendable stock on loan has decreased. Additionally, we see an increase in lendable supply, the Data Explorers proxy for institutional ownership over the past month.
Bank of America Corp (BAC) led the fall in US financial stocks last Friday. It is reportedly being penalized by its bondholders more than the other large US banks as the foreclosure investigation gains momentum. It has been subject to high trading activity over the past week with a 300% increase of stock on loan. Meanwhile, funds who lend are holding steady as institutional ownership remains relatively static.
Other companies due to announce earnings this week include; Apple Inc (AAPL), eBay Inc (EBAY), Coca-Cola Company (KO) and Yahoo! (YHOO). Of interest is Yahoo! which has seen a jump in its share price on prospect of a possible buyout bid by private equity firms. It has been subject to high trading volume last week as the proportion of stock on loan increased from 2% to 6% over the past month.
For further updates and more information on the market see www.dataexplorers.com/news
Morgan Stanley (MS) is due to report earnings on Wednesday. It has beaten analyst estimates by considerable margins in three out of the last four quarters. In line with this performance, short interest has been decreasing over the past year reaching a current 52-week low whilst institutional ownership has increased to annual highs.
Wells Fargo (WFC) which is due to report earnings before the opening bell on Wednesday also sees securities lending movement similar to Morgan Stanley, as stock of loan reaches a 52-week low.
Goldman Sachs (GS) is due to report earnings on Tuesday. Previous quarter earnings saw Goldman Sachs significantly miss market consensus estimates in June. Since June, the proportion of lendable stock on loan has decreased. Additionally, we see an increase in lendable supply, the Data Explorers proxy for institutional ownership over the past month.
Bank of America Corp (BAC) led the fall in US financial stocks last Friday. It is reportedly being penalized by its bondholders more than the other large US banks as the foreclosure investigation gains momentum. It has been subject to high trading activity over the past week with a 300% increase of stock on loan. Meanwhile, funds who lend are holding steady as institutional ownership remains relatively static.
Other companies due to announce earnings this week include; Apple Inc (AAPL), eBay Inc (EBAY), Coca-Cola Company (KO) and Yahoo! (YHOO). Of interest is Yahoo! which has seen a jump in its share price on prospect of a possible buyout bid by private equity firms. It has been subject to high trading volume last week as the proportion of stock on loan increased from 2% to 6% over the past month.
For further updates and more information on the market see www.dataexplorers.com/news
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