Here’s What Big Banks’ Earnings Week Told Us

by Jordan Chussler
By Jordan Chussler

This week, we saw the big banks release Q1 earnings, and it was a mixed bag.

Bank of America (BAC) beat earnings expectations by nearly 15% and saw its stock surge almost 8% from the prior Thursday to this Tuesday when earnings were announced.

Meanwhile, Goldman Sachs (GS) missed revenue estimates after taking a $470 million hit on loans from its subsidiary, Marcus by Goldman Sachs. Shares dropped 4% from Monday’s close to Tuesday’s open.

And shares of Wells Fargo (WFC) jumped 4.26% from the preceding Friday’s close to Tuesday’s open, when it announced that earnings per share beat by 7.86% and revenue beat by 3.34%.

Five-day performance chart of BAC (dark blue), GS (orange) and WFC (light blue) as of Tuesday’s earnings announcements.
Click here to see full-sized image.


But one thing was abundantly clear: The recent crisis spearheaded by Silicon Valley Bank is not a recurrence of 2008’s financial collapse.

However, that is not to say that all banks are safe. In fact, just the opposite is true, particularly for smaller regional banks. Weiss Ratings recently updated its bank ratings to reflect these recent changes, and Director of Research & Ratings Gavin Magor provided details in his column this week:

“Not all banks are offenders, of course. But it could be problematic if yours is among the seven Weiss Ratings is raising concerns about. Let’s just say we’ve identified the group as not being as fiscally prudent with deposits as they should or could be, putting assets at higher risk. That’s because some banks act more like investment firms than custodians of funds and do so with little oversight and monitoring.”

Find Out If Your Bank Made This List

Gavin explains why some banks are playing with fire, and how one big red flag is indicative of which institutions could potentially be the next Silicon Valley Bank.

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Global silver production peaked seven years ago, and last year global demand for the precious metal hit a new high. Senior Analyst Sean Brodrick explains how investors can turn to one leveraged ETF that’s beaten the S&P 500 by 22% over the past month.

Why AI Makes Amazon a ‘Buy’

It's been a miserable two years for (AMZN) shareholders, but everything is about to change thanks to AI. Pulitzer Prize winner Jon Markman reports on how AI is devouring software and how Amazon intends on putting the technology to use to bolster its AWS division.

Invest in Real Estate Without Breaking Your Bank

Americans are being priced out of the housing market, with only half able to afford a $250k home. However, the median home price in the U.S. is $428,700. Senior Investment Writer Karen Riccio explains how investors — and scorned homeowners — can invest in real estate usually available only to big corporations with big money.

Know Your Social Security Benefits

If you start collecting Social Security at full retirement age in 2023, the maximum benefit is $3,627 a month. However, if you retire at age 62 in 2023, your maximum benefit would be reduced to $2,572. That’s $1,055 less each and every month until the day you die. Senior Editor Tony Sagami reports on why understanding how your Social Security benefits work is critical to a financially sound retirement.

Until next time,

Jordan Chussler
Managing Editor
Weiss Ratings Daily

About the Managing Editor

Jordan Chussler is the Managing Editor for a team of research analysts and senior editors. He oversees the development and production of trading and investment products and services reporting on traditional equities, including stocks, ETFs, income vehicles, options and private equity. He is a 15-year veteran of the digital publishing industry and also serves as a contributing writer for Weiss Ratings Daily.

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