Your Wednesday Blip 10/14/20

Your Wednesday Blip 10/14/20

Markets fell in the wake of stalled stimulus talks. The Dow was lower by 165 at 28,514. Trading volume was higher for the Dow but lower for the tech heavy NASDAQ.
Bank of America reported a 24% drop in revenue and a 32% decline in net income sending shares lower. While net income came in better than expected, top line revenue missed estimates. At the heart of the report, gurus were worried about a 17% drop in net interest income (NII) but the bank says this quarter should mark the low point and is forecasting higher NII going forward. Deposits grew 23% Y/Y to $1.7 Trillion while loans grew 3% to $950 billion. Loan losses fell substantially from over $5 billion to $1.4 billion.
Trading house Goldman Sachs posted its Q3 numbers and thanks to its robust trading operations revenue declined only 1% while net profits were up a stunning 102%.
Wells Fargo also released earnings and the results were harsh as revenue fell 25% and net income dropped 61%. Wells Fargo is the purest commercial banking play of all the majors and these results shed light on the trend of rising deposits and sluggish commercial loan growth. Credit losses fell from $9.5 billion to $769 million and net interest income fell by 17%.
With covid lockdowns still in place scouts in troop 100 are turning to Eagle projects as a way to get out and be active. I am currently helping one lunkhead with his project which kicks off this Saturday while another scout has his project scheduled for the following weekend. Much thanks to Salmon Bay Sand & Gravel for donating several yards of crushed rock for the project. They really stepped up. Its good to see this scout driven activity taking place. It suggests these projects are a popular release from the monotony of zoom meetings.

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