Text Resize
Print
Email
Subsribe to RSS Feed

Tuesday September 21, 2021

Finance News

Finances
 

Delta Air Lines Reports Earnings

Delta Air Lines (DAL) announced its second quarter earnings on Wednesday, July 14. The Atlanta-based airline reported revenue that exceeded expectations.

Revenue for Delta's second quarter declined to $7.13 billion. This is down 43% from $12.54 billion in revenue during the same quarter in 2019, but exceeded expectations of $6.22 billion.

"Looking forward, we are harnessing the power of our differentiated brand and resilient competitive advantages to drive towards sustainable profitability in the second half of 2021 and enable long-term value creation," said Delta's Chief Executive Officer Ed Bastian. "Domestic leisure travel is fully recovered to 2019 levels and there are encouraging signs of improvement in business and international travel. With the recovery picking up steam, we are making investments to support our industry-leading operation."

Delta reported net income of $652 million. This is down from net income of $1.44 billion in the same quarter in 2019.

Due to the COVID-19 pandemic's impact on the industry, Delta chose to report earnings in relation to the 2019 fiscal year. Delta Airlines, which started from a small aerial crop dusting operation in 1925, marked its first profitable quarter in five quarters. The profit was largely due to government aid during the quarter in which the company received $1.5 billion of payroll support grants. Delta expects a decline in revenue of 30 to 35% in the third quarter.

Delta Air Lines (DAL) shares ended the week at $40.06, down 5.5% for the week.

JPMorgan Chase Reports Earnings


JPMorgan Chase & Co. (JPM) released its second quarter earnings report on Tuesday, July 13. Revenue and net income exceeded analysts' expectations.

JPMorgan posted quarterly revenue of $31.4 billion, beating revenue expectations of $30.1 billion. Revenue was down 7% from $33.8 billion at this time last year.

"We are constantly investing, innovating and making strategic, add on acquisitions to better serve our employees, customers and communities," said JPMorgan Chase CEO Jamie Dimon. "In the first half of 2021, we extended credit and raised $1.7 trillion in capital for businesses, institutional clients, and U.S. customers. We are executing on our commitments to advance economic opportunity and racial equity and launched a new initiative focused on improving healthcare for our employees and the communities we serve."

For the quarter, JPMorgan reported net income of $11.95 billion or $3.78 per share, above the $3.21 per share anticipated by analysts. Net income was $4.69 billion or $1.38 per share at the same time last year.

The world's biggest Wall Street bank, based on total assets, saw a 1% increase to $3.4 billion in investment banking revenue during the quarter. Banking revenue also increased by 1% to $5.1 billion in the quarter. Equity markets revenue increased 13% in the quarter. Total markets revenue decreased 30% to $6.8 billion and fixed income revenue fell 44% to $4.1 billion.

JPMorgan Chase & Co. (JPM) shares closed at $151.91, relatively unchanged for the week.

PepsiCo Earnings Exceed Expectations


PepsiCo, Inc. (PEP) released its second quarter earnings report on Tuesday, July 13. The iconic drink and snack company continued to see strong sales in the quarter.

PepsiCo posted quarterly sales of $19.22 billion, exceeding analysts' expectations of $17.94 billion. This is up from $15.95 billion reported at the same time last year.

"Our results give us confidence that the investments behind our Faster, Stronger and Better framework are working - as we invest in our brands, supply chain and go-to market systems, manufacturing capacity, capabilities and culture, and our society by integrating purpose into everything we do," said PepsiCo CEO Ramon Laguarta. "Moving forward, we remain focused on winning in the marketplace and building competitive advantages that will position us well as consumer habits and preferences evolve over time."

For the second quarter, PepsiCo reported net income of $2.36 billion or $1.70 per share. This is up from $1.65 billion or $1.18 per share reported at this time last year.

PepsiCo's portfolio includes brands such as Frito-Lay, Quaker Foods, Tropicana and Gatorade. In its guidance for the full year, the company increased its expectation to 6% in organic revenue. It affirmed an estimated total cash return to shareholders of $5.9 billion, with $5.8 billion of that comprised of dividends.

PepsiCo, Inc. (PEP) shares closed at $155.82, up 4.2% for the week.

The Dow started the week at 34,837 and closed at 34,688 on 7/16. The S&P 500 started the week at 4,372 and closed at 4,327. The NASDAQ started the week at 14,744 and closed at 14,427.
 

Treasury Yields Fluctuate

U.S. Treasury yields rose early in the week in response to a greater-than-expected increase in the consumer price index. Yields fell later in the week on the news of unemployment claims.

On Tuesday, the U.S. Department of Labor released the Consumer Price Index (CPI) for June. The CPI rose 5.4%, marking the largest gain since August 2008. This beat analysts' expected increase of 5% for the month. Some analysts attributed the gain to high delayed demand in many sectors due to the COVID-19 pandemic.

"We expected a pop in inflation like this," said the president of the Federal Reserve Bank of San Francisco, Mary C. Daly. "Demand came back faster than supply, and there are these temporary bottlenecks. Right now, it's really — remain steady in the boat, don't read too much signal out of any month of data."

On Thursday, the U.S. Department of Labor released its weekly initial jobless claims report. The report showed 360,000 first-time claims. This was in line with economists' expectations. Continuing jobless claims fell by 126,000 to 3.24 million, reaching a COVID-19 pandemic low. Yields pushed lower as investors digested the news.

"The reopening of the economy has created unprecedented strains, including strong demand for workers," said senior economist and analyst at Bankrate, Mark Hamrick. "One doesn't have to travel very far to find businesses visibly understaffed, some of which are opting to reduce operating hours or output as a less optimal way of adjusting to the worker shortage."

The 10-year Treasury note yield closed at 1.30% on 7/16, while the 30-year Treasury bond yield was 1.93%.
 

Mortgage Rates Fall Further

Freddie Mac released its latest Primary Mortgage Market Survey on Thursday, July 15. The 30-year fixed rate mortgage continued its downward trend this week.

The 30-year fixed rate mortgage averaged 2.88% this week, down from last week's average of 2.90%. Last year at this time, the 30-year fixed rate mortgage was at 2.98%.

This week, the 15-year fixed rate mortgage averaged 2.22%, up from 2.20% last week. During the same time last year, the 15-year fixed rate mortgage averaged 2.48%.

"The summer swoon in mortgage rates continues as the 30-year fixed-rate mortgage fell for the third consecutive week," said Freddie Mac's Chief Economist, Sam Khater. "Since their peak at 3.18% in April, mortgage rates have declined by thirty basis points. While this decline is not large, it provides modest relief to borrowers who are purchasing in a market with strong home appreciation and scant inventory."

Based on published national averages, the savings rate was 0.06% as of 6/21. The one-year CD averaged 0.14%.

Published July 16, 2021
Print
Email
Subsribe to RSS Feed

Previous Articles

WD-40 Company Reports Earnings

Micron Reports Earnings

Winnebago Drives Earnings

Oracle Reports Earnings

Chico's Reports Strong Earnings

scriptsknown
  • Bequests
    Bequests
    Joe and Anna have been faithful supporters of our organization. They believe it is important to help further our mission.
    More
  • Using a Beneficiary Designation to Make a Gift to Charity
    Using a Beneficiary Designation to Make a Gift to Charity
    Joanne and her late husband Hal had been longtime supporters of our organization. Recently, Joanne's children encouraged...
    More
  • Fixed Income for Retirement
    Fixed Income for Retirement
    After working for decades as a pediatrician in a small town, Patricia is ready to retire.
    More
  • Tax-Free Sale
    Tax-Free Sale
    Howard and Lynn were both age 55 when they purchased some vacant land a few miles outside of town. They thought real estate would be a good investment that could be sold later for a profit.
    More
  • Capital Gains Tax Bypassed
    Capital Gains Tax Bypassed
    Peter and Gail were nearing retirement. Over the years, with the help of their financial advisor, they made solid investments in securities and built a sizable portfolio.
    More
  • Peace of Mind Gift Annuity
    Peace of Mind Gift Annuity
    Many years ago, Clara bought a home. Since she was very pleased with her home, she bought stock in the company that built the home.
    More
  • Endowment Gift
    Endowment Gift
    Pat and Shelly were recently married. They both had been dedicated volunteers at their favorite charity for many years.
    More
  • Sale and Unitrust
    Sale and Unitrust
    Gene and Carol purchased stock in a small medical service company several years ago. The company has done well.
    More
  • The Retirement Unitrust
    The Retirement Unitrust
    Mary grew up on a farm. When her parents passed away, she and her husband Bill inherited the farm.
    More
  • Property Turns Into Income
    Property Turns Into Income
    Miranda lived in the family home where she and her spouse had raised their three children. After her spouse passed away, Miranda found it increasingly difficult to care for her property.
    More
  • Flexible Deferred Gift Annuity
    Flexible Deferred Gift Annuity
    Luis is a 54-year-old executive at a large healthcare company. He purchased company stock during years when the stock price was low, and now the stock has grown substantially in value.
    More
  • Part Gift and Part Sale
    Part Gift and Part Sale
    Susan and Kevin bought a vacant lot along Lake Michigan many years ago. They had planned to build a second home so that their family could spend their summers along the lake.
    More
  • Current Gifts
    Current Gifts
    As is the case with many families, there are times each year when Jim and Sharon focus their attention on gift giving.
    More
  • Gift of a Bank Account When No Longer Needed (POD)
    Gift of a Bank Account When No Longer Needed (POD)
    Keith has been a faithful supporter of The Marfan Foundation and makes regular gifts to support our work.
    More
  • Transferable on Death (TOD) Gifts
    Transferable on Death (TOD) Gifts
    Harold and Jeanne married after meeting at an event The Marfan Foundation held for our donors. They wanted to leave a legacy gift...
    More
  • A Bequest to Further Good Work
    A Bequest to Further Good Work
    Nancy and David were dedicated volunteers. Over the years, they had seen many individuals helped by the good work of their favorite charity.
    More
  • Deferred Gift Annuity
    Deferred Gift Annuity
    Several years ago, Larry and Allison invested $30,000 in what they believed to be an attractive stock.
    More
  • What Will You Do with Your Unspent Retirement Savings?
    What Will You Do with Your Unspent Retirement Savings?
    Michael and Kelly were retired engineers with two adult children. They owned a home, some stocks, and IRAs.
    More
  • Gift Annuity for Real Estate
    Gift Annuity for Real Estate
    Jonathan purchased his home many years ago for $80,000. The home is now worth $420,000. Jonathan wants to sell his home and buy a condo for $130,000.
    More
  • A Bequest to Save Taxes
    A Bequest to Save Taxes
    Thomas was a widower who had a great love for our organization. As an individual who had directly benefited from our work, Thomas wanted to thank us with a gift from his estate.
    More
  • Leading for the Future
    Leading for the Future
    Luke and Cynthia spent many years volunteering and supporting their favorite charity. They wanted to give back in a way that would help fulfill its mission.
    More
  • Give it Twice Trust
    Give it Twice Trust
    While visiting her favorite charity's website, June came across the idea of a give it twice trust. She contacted the charity for more information.
    More
  • Providing for Our Children's Future
    Providing for Our Children's Future
    Ron and Kathy worked for many years building their nest egg for retirement.
    More
  • Bequest of Insurance
    Bequest of Insurance
    Marla and Wayne purchased a life insurance policy many years ago to create security for their children's future.
    More
  • Testamentary Charitable Remainder Unitrust: Have Your Cake and Eat it Too!
    Testamentary Charitable Remainder Unitrust: Have Your Cake and Eat it Too!
    We have all heard the saying "You can't have your cake and eat it too." This phrase describes a situation where we want two good things at the same time when that isn't possible.
    More
  • A Personal Donor Story
    A Personal Donor Story
    "I want the work of the foundation to go forward whether I'm here or not"
    Estate planning is your final statement about the causes you care about
    More