Wall Street Breakfast

Big bank results on tap

Big banks Q2 earnings expected to show rebounding IB, soft loan growth. (00:21) Tesla (TSLA) falls 7% on reports that the robotaxi event is delayed until October. (01:36) Dollar General (DG) to pay $12M fine for workplace safety violations. (02:42)

Episode transcripts seekingalpha.com/wsb.

Show links:
Biggest stock movers today: TSLA, ERIC, and more
SA subscribers pitch stocks that could potentially replace Tesla in Magnificent 7
PayPal may profit from Apple-EU settlement, analyst says
AI made up a third of all VC funding this quarter, U.S. companies taking the lead - DataTrek

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Duration:: 5m
Broadcast on:: 12 Jul 2024
Audio Format:: mp3

Welcome to Seeking Alpha's Wall Street Breakfast, where we cover the top news for investors every morning. Good morning! Today is Friday, July 12. I'm Julie Morgan. Earning season is here. Tesla's Robotaxi event may be delayed, and Dollar General agrees to pay a fine. The second quarter earning season shifts into higher gear today with some major banks releasing results. In shares of most of a group of big banks have outstripped the S&P 500s advance this year. JPMorgan Chase and Wells Fargo will be among those kicking off the parade of Q2 bank results. Broadly, for banks analysts say among the figures to watch are those for loan growth, which are likely to remain soft in the face of still high interest rates. Meanwhile, investment banking fees are likely to benefit as activity starts to rebound. But prospects for the Federal Reserve to begin lowering borrowing costs in 2024 has helped drive up the S&P 500 banks index by 19% this year. Shares of five of six big banks whose results are in Wall Street's spotlight have moved higher than the banks index and the 17% advance in the S&P 500 in 2024. We're giving you a look at how shares of six major banks have performed a year to date ahead of Q2 results. You can see that list in the transcript of this podcast. We also have our big banks earnings calendar and preview. A link to the article is in show notes along with a link to the transcript. Tesla close lower on Thursday after Bloomberg reported that the company may be delaying its Robotaxy event scheduled for August 8th. Tesla fell 8.4% on Thursday and is down 1% pre-market. Sources indicate that the event may not take place until October because it needs more time to build the autonomous vehicle prototypes. CEO Elon Musk has been mentioning the Robotaxy event since April, while the Robotaxy concept has been part of Tesla's master plan for at least eight years. Tesla has not confirmed if the date of the Robotaxy event has changed. Last month, JP Morgan warned that consensus expectations and valuation demands around the Robotaxy business imply it will be a home run, which it considers far from certain. Notably, the firm thinks that time frame for any company to generate material revenue from Robotaxy operations is years out. That plays into its view that investors and Tesla may have gotten ahead of themselves in terms of baking in a Robotaxy premium. Dollar General has agreed to pay a $12 million fine and improve safety conditions as part of a settlement with the U.S. Department of Labor. The settlement is to resolve violations that included unsafe storage, blocked emergency exits and fire extinguishers, and inaccessible electrical panels. The Tennessee-based company agreed to establish new safety protocols, hire more safety staff, and significantly reduce store inventory to avoid obstructed exits. Dollar General, which operates more than 19,000 stores nationwide, has also brought in a third-party consultant to identify hazards and perform unannounced compliance audits annually. If inspectors find similar issues, the discount retailer will have to pay $100,000 a day, up to $500,000 if problems are not resolved within 48 hours. I'd like to share a few other articles that you can find on Seeking Alpha. S.A. subscribers pitched stocks that could potentially replace Tesla in the Magnificent Seven. Analysts say PayPal may profit from the Apple EU settlement. And according to data trick, A.I. made up a third of all VC funding this quarter with the U.S. companies taking the lead. Now, for a look at the markets today, as of 6 a.m., Dow, S&P, and Nasdaq futures are in the green. Crude Oil is up 1% at $83 a barrel. Bitcoin is down 2.1% at 57,000. In the world markets, the FTSE 100 is up 0.1%, and the DAX is up 0.2%. Ericsson is on our list of the biggest movers of the day pre-market. Following Q2 results, Eric is up 3.6%, despite a 7% year-over-year dip in revenue, as the decline was smaller than expected, especially with strong growth in North America. On today's economic calendar at 8.30 a.m., PPI, and at 10 a.m., consumer sentiment. That's it for today's Wall Street Breakfast. Thanks for listening! To take full advantage of Seeking Alpha with coverage on significant stocks and ETFs, become a premium subscriber. Check out seekingalpha.com/subscriptions. I'm your host, Julie Morgan. Go out and make it a great day! ♪♪♪ [BLANK_AUDIO]