BlackRock, more bank stocks yield as markets return to volatile future

Investment management giant black rock (BLK) and custodian banks State Street (STT) and Bank of New York Mellon (BK) reports second-quarter results on Friday as bank stocks slide on worries about a recession.


Earnings will follow past results of other major banks like JPMorgan Chase (JPM) and Morgan Stanley (MS), as they attempt to guide their investor clients through bumpy markets and rising interest rates.

Bank stocks: BlackRock earnings

Estimates: Wall Street expects BlackRock to earn $8.05 per share, down 20%. Revenue is expected to fall 5% to $4.583 billion.

Results: To be submitted before the open on Friday.

BlackRock stock rose 1.2% in the stock market today. Stocks were encountering resistance at their 50-day line.

The stock has a composite rating of 63. Its EPS index is 88.

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BlackRock, in a recent mid-year report, warned of a new era of “increased macroeconomic volatility”, as well as “higher risk premia for bonds and equities”.

“We ultimately expect central banks to live with inflation, but only after locking in growth,” the report said. “The result? Persistent inflation amid sharp, short swings in economic activity.” Portfolio decisions, he said, “will have to become more granular and agile.”

The report, titled “Back to a Volatile Future,” says the current context bears similarities to the early 1980s.

This volatility will come as a result of the pandemic and limited labor availability, as people reconsider their occupation and demand more from their employers. Meanwhile, distorted supply chains and geopolitical conflicts, including Russia’s war in Ukraine, have driven up production costs, he noted. An increasingly politicized landscape, he said, would further disrupt markets, with realistic political solutions rare.

“The tragic war in Ukraine, a global energy shock and the Fed’s more hawkish pivot to address rising inflation in the space of a few months have triggered a reassessment of growth, profitability and risk. , which are played out in the markets,” said the CEO. Larry Fink said in May.

Bank of New York Mellon Earnings

Estimates: Wall Street expects Bank of New York Mellon to earn $1.13 per share, unchanged from a year ago. Revenue rose 5% to $4.172 billion.

Results: To be submitted before the open on Friday.

Bank of New York Mellon manages transactions for clients, as well as investment and wealth management services. It has $2.3 trillion in assets under management.

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Chief Financial Officer Emily Portney, at a conference in June, said she had “not seen anything unusual yet” as the Fed moves more aggressively to fight inflation.

Shares added 0.8% on Tuesday and also hit resistance at their 50-day line.

But as with other bank stocks reporting earnings, the company’s shares have mediocre ratings. Bank of New York Mellon’s composite rating is 40. Its EPS rating is 67.

State Street Revenue

Estimates: Analysts expect State Street to earn $1.74 per share, down 12%, as revenue rose 0.3% to $2.992 billion.

Results: To be submitted before the open on Friday.

State Street reversed early losses and slid 0.2% on Tuesday. The stock was also encountering resistance at its 50-day line. Similar to other bank stocks, its composite rating is 35. Its EPS rating is 75.

State Street, whose clients include mutual funds and insurance companies, handles clearing and settlements and other services for financial transactions. Its advisors also help with investment strategies.


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