CNBC's "Fast Money" Big Banks Get A Bump… Plus Housing Sector Head Scratcher 7/9/24
Jul 9, 2024
Bank stocks surge ahead of earnings season, driven by rising treasury yields. Analysis of net interest income, banking sector outlook, and challenges in private credit. Discussion on emerging lenders, market performance of companies, and Tesla's stock surge. Exploration of McDonald's, Nike, Lulu Lemon's performance and market trends. Insight into Tesla's robo-taxi hype, housing anomalies, and streaming industry performance.
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Bank Stock Rally
- Bank stocks rallied, with Citigroup hitting a two-and-a-half-year high and Goldman Sachs a record high.
- This positive price action comes before Q2 earnings season, raising concerns about high expectations.
Caution on Bank Earnings
- Karen Finerman advises caution due to the high expectations for bank earnings.
- Despite this, she sees upside in Citigroup due to its low valuation relative to tangible book value.
Net Interest Income Trough
- Analysts believe net interest income for banks will have troughed in Q2.
- They expect an inflection point in the latter half of the year, coupled with increased investment banking activity due to improving yields.