JPMorgan Q3 earnings beat expectations, stock jumps - Yahoo Finance

IMAGE DISTRIBUTED FOR JPMORGAN CHASE & CO- Jamie Dimon, Chairman and CEO, JPMorgan Chase, speaks at the Chase NYC Flagship, Tuesday, June 25, 2019 in New York. (Adam Hunger/AP Images for JPMorgan Chase & Co.)

JPMorgan Chase (JPM), the largest U.S. bank by assets, reported third-quarter earnings on Tuesday that surpassed Wall Street’s expectations, boosted by broad strength in nearly all its major business lines.

Here were the key figures from the report, compared to consensus expectations compiled by Bloomberg:

• Revenue: $29.3 billion vs. $28.46 billion expected

• Adj. earnings: $2.68 per share, vs. $2.34 per share expected

Revenue for the quarter set a record, and was even higher on an adjusted basis at $30.06 billion.

“The consumer remains healthy with growth in wages and spending, combined with strong balance sheets and low unemployment levels. This is being offset by weakening business sentiment and capital expenditures mostly driven by increasingly complex geopolitical risks, including tensions in global trade,” said CEO Jamie Dimon.

JPMorgan maintained its No. 1 spot for global investment banking fees, with 9.3% of the wallet share this year. Dimon noted that the firm had a record quarter for investment banking fees with "particularly strong performance in [Debt Capital Markets] and [Equity Capital Markets]." Banking revenue for the quarter was $3.3 billion, up 2% from the same quarter a year ago. Investment banking revenue was $1.9%, up 8% on higher underwriting fees.

Total markets revenue came in at $5.1 billion, up 14% from last year. Fixed income revenue rebounded 25% to come in at $3.6 billion, "driven by strong client activity across products." Equity markets revenue slipped 5% to $1.5 billion "reflecting lower revenues in derivatives."

Elsewhere, in the consumer and community bank, credit card sales volume rose 10% in the quarter, while merchant processing jumped 11%.

The stock, traded on the New York Stock Exchange, jumped more than 2% from Monday’s close to trade near $119.

JPMorgan kicked earnings season off for the big financials. Goldman Sachs (GS), Wells Fargo (WFC), Citigroup (C) will report results on Tuesday, followed by Bank of America (BAC) on Wednesday and Morgan Stanley (MS) on Thursday.

This story is developing.

—

Julia La Roche is a finance reporter at Yahoo Finance. Follow her on Twitter.

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2019-10-15 11:04:00Z
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WeWork reportedly expected to lay off 2,000 workers as early as this week - CNBC

A WeWork logo is seen at a WeWork office in San Francisco, September 30, 2019.

Kate Munsch | Reuters

WeWork is expected to lay off at least 2,000 people, about 13% of its staff, as soon as this week, the Guardian newspaper reported.

WeWork staff told the Guardian that they believe the cuts will not stop there, suggesting more of the company's 15,000 person workforce could be sacked. The Information reported in September that executives and bankers have discussed cutting up to a third of those workers. The embattled start-up is attempting to turn its fortunes around with painful cost reduction measures.

Employees also told the Guardian that little to no work is getting done at the company and new projects have been put on hold.

WeWork declined to comment to the Guardian. Representatives for the company did not immediately respond to CNBC's request for additional comment.

Last month, the start-up pulled the plug on plans to go public. Its much-anticipated IPO prospectus in August revealed a massive $900 million loss in the first six months of 2019 and drew skepticism over its corporate governance. WeWork had a private market valuation of about $47 billion but its potential value in the public market had been slashed significantly.

There has also been a showdown between former CEO Adam Neumann and SoftBank chief Masayoshi Son, who has invested billions into the start-up. Neumann stepped down last month. It was also reported that SoftBank has readied a financing package to take control of the company and further sideline Neumann, who is also a co-founder.

WeWork rents out office spaces to start-ups, freelancers and enterprises by investing in real estate in some of the most expensive markets around the world. It makes money back over time as companies and individuals pay their rent or membership fees.

Read more about the Guardian's report on WeWork's plans to sack 2,000 staff here.

— CNBC's Alex Sherman and Lauren Feiner contributed to this report.

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2019-10-15 09:34:38Z
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WeWork reportedly expected to lay off 2,000 workers as early as this week - CNBC

A WeWork logo is seen at a WeWork office in San Francisco, September 30, 2019.

Kate Munsch | Reuters

WeWork is expected to lay off at least 2,000 people, about 13% of its staff, as soon as this week, the Guardian newspaper reported.

WeWork staff told the Guardian that they believe the cuts will not stop there, suggesting more of the company's 15,000 person workforce could be sacked. The Information reported in September that executives and bankers have discussed cutting up to a third of those workers. The embattled start-up is attempting to turn its fortunes around with painful cost reduction measures.

Employees also told the Guardian that little to no work is getting done at the company and new projects have been put on hold.

WeWork declined to comment to the Guardian. Representatives for the company did not immediately respond to CNBC's request for additional comment.

Last month, the start-up pulled the plug on plans to go public. Its much-anticipated IPO prospectus in August revealed a massive $900 million loss in the first six months of 2019 and drew skepticism over its corporate governance. WeWork had a private market valuation of about $47 billion but its potential value in the public market had been slashed significantly.

There has also been a showdown between former CEO Adam Neumann and SoftBank chief Masayoshi Son, who has invested billions into the start-up. Neumann stepped down last month. It was also reported that SoftBank has readied a financing package to take control of the company and further sideline Neumann, who is also a co-founder.

WeWork rents out office spaces to start-ups, freelancers and enterprises by investing in real estate in some of the most expensive markets around the world. It makes money back over time as companies and individuals pay their rent or membership fees.

Read more about the Guardian's report on WeWork's plans to sack 2,000 staff here.

— CNBC's Alex Sherman and Lauren Feiner contributed to this report.

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2019-10-15 06:35:32Z
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US futures point to a higher open - CNBC

U.S. stock index futures were higher Tuesday morning, as traders look ahead to a new earnings season.

At around 04:10 a.m. ET, Dow futures rose 100 points, indicating a positive open of more than 102 points. Futures on the S&P and Nasdaq were both also higher.

Overall, market players are monitoring developments on the trade front. U.S. Treasury Secretary Steven Mnuchin told CNBC that tariffs will go up in December if there is no deal in place with China.

"I have every expectation if there's not a deal those tariffs would go in place, but I expect we'll have a deal," Mnuchin said Monday.

Furthermore, the U.S. has also decided to stop trade negotiations with Turkey and raised its steel prices to 50%. The decision followed an earlier U.S. announcement to remove all U.S. troops from the northern border of Syria with Turkey.

Investors are also looking ahead to a new earnings season. BlackRock, Citigroup, Goldman Sachs, Wells Fargo and J.P. Morgan Chase are set to release their latest performance numbers before the bell. United Airlines and Interactive Brokers will also release earnings after the bell.

On the data front, the Empire State manufacturing figures are due to be released at 08:30 a.m. ET.

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2019-10-15 06:13:44Z
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Johnson & Johnson’s Legal Challenges Mount - The Wall Street Journal

Johnson & Johnson faced lawsuits from at least 103,300 people or entities in U.S. courts at the middle of this year. Photo: mark ralston/Agence France-Presse/Getty Images

By

Peter Loftus

Peter Loftus
The Wall Street Journal
• Biography
• @Loftus
• Peter.Loftus@dowjones.com

Oct. 14, 2019 8:14 am ET

Johnson & Johnson, JNJ 1.76% facing lawsuits from more than 100,000 plaintiffs over its product safety and marketing tactics, has taken the aggressive strategy of battling many of the cases in court.

And it is losing. A lot.

Juries and judges have ordered the health-products giant to pay billions of dollars in several recent trials over claims that J&J’s signature baby powder and certain drugs and medical devices injured people, and that its marketing practices fueled the opioid-addiction epidemic.

The latest: A Philadelphia jury last week awarded $8 billion in punitive damages to a man claiming his use of J&J’s antipsychotic Risperdal when he was a boy caused abnormal breast enlargement. J&J says it properly disclosed the drug’s risks and benefits, and plans to appeal the verdict.

In August, an Oklahoma judge ordered J&J to pay $572 million to the state for contributing to the opioid-addiction crisis, a judgment the company is appealing. Last year, a St. Louis jury found that J&J should pay $4.7 billion to 22 women and their families who alleged the company’s baby powder caused ovarian cancer. J&J, which says the talcum powder is safe and doesn’t cause cancer, is appealing the decision.

The New Brunswick, N.J., company faced lawsuits from at least 103,300 people or entities in U.S. courts at the middle of this year, up from the 8,580 plaintiffs pending in October 2011, according to a Wall Street Journal review of J&J’s securities filings. J&J discloses the number of plaintiffs for the most significant of its product-liability cases in its filings.

The number of talc lawsuit plaintiffs surged to 15,500 as of June 30, from 1,400 in early 2016, the Journal analysis found. Plaintiffs in personal-injury lawsuits over J&J’s pelvic mesh devices for women have declined from a peak of more than 55,000 pending in 2017 but still number about 24,800.

J&J is challenging many of the lawsuits, rather than quickly settling, according to lawyers on both sides. “Their natural reflex is to fight and delay, drag it out as long as they can,” said Andy Birchfield, an attorney with Beasley Allen in Montgomery, Ala., who has sued J&J over baby powder and other products.

The Risperdal damages and some other awards are likely to be reduced by judges, and possibly overturned, on appeal. Yet the losses signal J&J may ultimately have to pay a costly sum to resolve the lawsuits. The opioid litigation alone could cost J&J $5 billion to $10 billion to settle, Wells Fargo analysts have estimated.

J&J has won its share of trials. The company argues science supports the safety of its products, and that its increasing caseload is a product of aggressive plaintiff’s lawyers eyeing the company’s big pockets. It is in the company’s best interest, its outside lawyers say, to deter more lawsuits lacking merit by avoiding premature settlements now.

J&J is approaching the litigation “with an eye to managing this onslaught overall, and not creating false incentives for lawyers to file even more claims that are marginal at best,” said John Beisner, a partner with Skadden, Arps, Slate, Meagher & Flom LLP who is defending J&J in litigation over talc and some other products.

J&J may be following in the footsteps of Merck & Co., which took to trial a number of lawsuits alleging its Vioxx painkiller caused heart attacks and strokes, said Nora Freeman Engstrom, a law professor at Stanford Law School who studies personal-injury litigation.

Merck won more verdicts than it lost, and ultimately agreed in 2007 to settle nearly all of the lawsuits for $4.85 billion, lower than analysts initially expected. Yet a key difference, Ms. Engstrom said, is that J&J is battling litigation on a large scale for multiple products.

Concerns about J&J’s litigation risk have weighed on its stock, which is down about 12% since its 52-week high in December. Some analysts say the slide reflects investors’ expectations that J&J may have to spend from $20 billion to $50 billion to resolve all of the litigation. J&J had $81.6 billion in revenue last year.

In August, Moody’s Investors Service changed its outlook for J&J’s bond rating to negative from stable, citing uncertainty over the outcome of litigation.

Eye-catching verdicts also are hurting the company’s reputation for trustworthiness, amassed from decades of careful marketing to parents and its famous handling of a Tylenol scare. Recent legal losses have dropped J&J to 57th out of 58 companies in a pharmaceutical reputation index developed by Alva Group, which bases its scores on mentions in the news, social media and analyst reports. J&J was in the index’s top 10 in 2014.

A J&J spokesman said the company’s reputation remains strong because it has developed high-quality consumer products and treatments for cancer and HIV. He said the company’s victories at trial and reversals of losses on appeal don’t garner the same level of attention as high-dollar trial losses.

The company’s wins include two talc trials last week in which California juries sided with the company. And it has settled others. In March, J&J and partner Bayer AG said they agreed to pay $775 million to resolve most claims that their blood thinner Xarelto causes excessive bleeding. The companies had won several Xarelto trials and didn’t admit liability in the settlement. This month, J&J agreed to pay $20.4 million to settle opioid lawsuits filed by two Ohio counties, avoiding a trial.

Some lawyers say the longer litigation continues, the easier the cases become for plaintiffs to win because more documentation is unearthed and plaintiffs’ lawyers can refine their strategies based on earlier trials.

“The cases only get better for plaintiffs, not worse,” said Richard Golomb, a Philadelphia attorney representing women who have sued over J&J’s baby powder.

J&J, however, has a reason for holding out on a large talc settlement. It has asked a federal judge in New Jersey overseeing pretrial proceedings for a majority of the talc suits to exclude testimony from the plaintiffs’ expert witnesses who claim talc causes cancer. Plaintiffs’ lawyers say the testimony should be allowed.

If the judge sides with J&J, it could effectively wipe out most of the talc lawsuits; a decision is expected in the coming months.

Write to Peter Loftus at peter.loftus@wsj.com

Copyright ©2019 Dow Jones & Company, Inc. All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8

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2019-10-14 12:14:00Z
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Asian shares get trade lift, let down by China data - Investing.com

By Ritvik Carvalho

LONDON (Reuters) - A global index of stock markets slipped on Monday as signs of progress in the China-U.S. trade dispute drew mixed a reaction from investors, with some cautioning over a lack of detail in the initial stages of the agreement.

Stock markets in Asia cheered U.S. President Donald Trump's outlining the first phase of an agreement to end a trade war with China and suspending a threatened tariff hike, but European shares slipped.

The pan-European STOXX 600 index () was down 0.75% in early trade in London.

Germany's DAX (), dominated by companies exposed to China, slipped 0.5%. All European country indexes were in the red.

MSCI's All-Country World Index, which tracks shares across 47 countries, was down 0.06% on the day.

The emerging trade deal, covering agriculture, currency and some aspects of intellectual-property protection, would represent the biggest step by the two countries in 15 months. But investors advised caution.

"While a positive development, we are not absolutely certain that this marks the start of a clear de-escalation of the trade dispute," said Mark Haefele, chief investment officer at UBS Global Wealth Management. A number of issues were unresolved or unclear, in his view.

"A delay to the scheduled December tariffs was not announced, although that's likely if a deal is reached, and the state of provisions on intellectual property, forced technology transfer, and Chinese state subsidies, the most difficult aspects of the negotiations, are still unclear."

Contributing to the gingerly reception of phase 1 of the trade agreement were data showing a further contraction of Chinese exports and imports in September. Liquidity was also lacking with Japan off and a partial market holiday in the United States for Columbus Day.

Australia's main index gained 0.54% () and South Korea () rose 1.11%. Shanghai blue chips () added 1%.

E-Mini futures for the S&P 500 were down 0.2% after rising on Friday.

The drag from the trade war was a major reason Singapore's central bank eased monetary policy on Monday for the first time in three years. Data showed the city-state's economy had only narrowly dodged recession.

BIG WEEK FOR BREXIT

The progress on trade was still enough to hit safe-haven bonds. Yields on U.S. rose to 1.7530%.

The yield curve also steepened as short-term rates were held down by news the Federal Reserve would start buying about $60 billion per month in Treasury bills to ensure "ample reserves" in the banking system.

The fading rally in risk assets as European markets opened saw the Japanese yen regain ground against the dollar. The currency was 0.2% higher to the dollar at 108.22 .

The dollar gained 0.2% against a basket of currencies.

Sterling fell to $1.2556 , retreating from a 15-week high of $1.2708 on Friday on optimism Britain could reach a deal on Brexit with the European Union. However, both British and EU officials said on Sunday more work would be needed to secure an agreement.

More talks will be held on Monday before a summit of EU leaders in Brussels on Thursday and Friday.

gained 0.05%, last trading at $1,490.20 per ounce.

Oil prices pared gains made on Friday after reports that an Iranian state-owned oil tanker had been attacked in the Red Sea.

Investors were also watching Turkey's incursion into Syria as the White House threatened to impose sanctions on Ankara.

futures eased 1.14% to $59.82 a barrel. lost 1.04% to $54.13 a barrel.

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2019-10-14 04:55:00Z
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The Average Social Security Benefit Is Probably Smaller Than You Think - The Motley Fool

An estimated 44.5 million retired workers receive monthly income in the form of Social Security benefits. If you work and pay Social Security taxes, then chances are, those benefits will be an important source of income for you once your career comes to an end. But if you rely on those benefits too heavily and neglect your savings as a result, you may be in for an unpleasant reality check as soon as your golden years kick off.

Currently, 50% of married seniors and 70% of unmarried seniors get 50% or more of their income from Social Security, while for 21% of married seniors and 45% of unmarried retirees, those benefits represent 90% or more of their income. But when we look at how much money that actually translates into, it's easy to see why Social Security alone isn't enough to sustain the typical senior.

IMAGE SOURCE: GETTY IMAGES.

The average retiree on Social Security today collects $1,471 a month, or $17,652 a year. Meanwhile, the average senior aged 65 and over spends $46,000 a year on living expenses, reports the Bureau of Labor Statistics. Clearly, there's a pretty wide gap between those two numbers, and it's for this reason that planning to live on Social Security alone in retirement is a truly bad idea. If that's your intent, consider this your wakeup call to start building savings and come up with a backup plan.

What will your expenses look like in retirement?

Many people expect their living costs to drop dramatically once they retire, but many seniors don't see all that substantial a decline. And when we think about the things seniors generally spend money on, that makes sense.

Seniors require housing, transportation, food, clothing, utilities, and modest forms of leisure, like cable TV, just like working folks do. Furthermore, retirees tend to face higher healthcare costs than workers, especially when we consider the various out-of-pocket expenses associated with Medicare. And that's why most seniors can't get by on just 40% of their former income, which is what Social Security is designed to pay the average earner. Retirement just plain costs too much money.

The solution? Save as much as you can while you're working. If you start out young, you can get away with contributing smaller amounts to a retirement savings plan and growing your balance with the right investments. If you're already older, you'll need to make more sizable contributions to build a solid level of savings.

Check out the following table, which illustrates how your savings efforts might pan out, depending on the window of time you have to work with and the amount of money you sock away in a retirement plan each month:

Age You Start Saving	Monthly Retirement Plan Contribution	Total Savings by Age 65 (Assumes a 7% Average Annual Return)
30	$400	$663,000
35	$500	$567,000
40	$600	$455,000
45	$700	$344,000
50	$800	$241,000

CALCULATIONS BY AUTHOR.

The less time you give yourself to sock away funds for retirement, the less wealth you stand to amass. In our table, increasing monthly contributions doesn't help compensate for delayed savings. That's because by putting off your savings, you miss out on years of critical investment growth. And if you're wondering about the 7% return used above, it's actually a couple of percentage points below the stock market's average yearly performance.

Of course, building savings isn't the only way to supplement your Social Security benefits. You can also get a part-time job in retirement or monetize a hobby. In fact, your retirement income can come from a variety of sources. Just make sure your plan is not to have all of it come from Social Security.

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2019-10-13 13:18:00Z
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