=Interactive Brokers (IBKR) reported earnings on Tue 21 July 20 (a/h)

Interactive Brokers beats by $0.26, beats on revs

Reports Q2 (Jun) earnings of $0.57 per share, excluding non-recurring items, $0.26 better than the S&P Capital IQ Consensus of $0.31; revenues rose 30.5% year/year to $539 mln vs the $484.07 mln S&P Capital IQ Consensus.

The effects of the COVID-19 pandemic on the Company's financial results for the second quarter of 2020 can be summarized as follows: (1) higher commission revenue due to increased trading activity and a higher rate of customer accounts opened during this period; and (2) lower net interest income resulting from lower benchmark interest rates and smaller aggregate margin loans extended to customers as they de-leveraged their exposures.

"We are in discussions with these agencies to settle matters arising from their reviews, and while no agreements have been finalized, we believe that such settlements will entail monetary payments and the retention of an independent consultant to review the implementation of the Company's enhanced practices and procedures."

Earnings this week : July 20 - 24, 20 (wk 30)

Monday (July 20)

• Morning: CALM HAL LII MAN ONB PETS PHG
• Afternoon: ACC BXS CDNS CCK ELS IBM LLNW LOGI STLD ZION

Tuesday (July 21)

• Morning: CIT KO CMA CBSH GATX GPK LMT MUSA NEOG NVS OGI PM PLD SBNY SFNC SYF SNV UBS
• Afternoon: AIR CNI COF CSL FMBI FULT HWC HOPE IBKR ISRG IRBT NBHC NAVI PNFP REXR SNAP SUM AMTD TER TXN UAL UCBI USNA WRB WTFC

Wednesday (July 22)

• Morning: ABB APH AVNT BKR BIIB BOKF CADE CP CHKP CSTM DOV EVR FCFS HCA IQV KEY KNX LAD MKTX NDAQ NRZ NTRS NVR RCI SLGN SBSI TDY TMO
• Afternoon: ALGN NTB BDN BCOV CMG CNS CLB CSX CVBF DFS ECHO EFX FR GL GGG HNI ICLR KALU KMI LSTR LVS MTH MSFT NTGR PLXS SLM SEIC SLG STL SUI SU TSLA TCBI TRN UMPQ UFPI VMI WAFD WSBC WHR

Thursday (July 23)

• Morning: APD ALK ALLE ADS AB AAL T AN BANC BX CVE GTLS CTAS CTXS CMS COLB DHR DOW EWBC ENTF FITB FAF FSV FCX GWW HRI HSY HBAN KMB MTB HZO MTRN NUE ORI PTEN PNR POOL BPOP PHM DGX RS LUV STM TECK TSCO TRV TWTR UNP VLY WSO WBS WST
• Afternoon: ASB OZK BJRI SAM BOOM ETFC EW EHTH FFBC FE IEX INTC LMAT MANH MAT MXL PBCT RGP RHI SCHL SGMS SKX SWKS SIVB VRSN VICR AUY

Friday (July 24) 

• Morning: AIMC AXP BLMN CRI FHB GNTX HON MOG.A NEE NEP SLB TPH TRTN VZ

TD Ameritrade (AMTD) to be acquired by Charles Schwab (SCHW) ?

• Charles Schwab (SCHW) is in talks to acquire TD Ameritrade (AMTD) for $26 billion, according to reports from CNBC and FOX Business. The move comes after industry disruption essentially forced brokerage firms to cut trading commissions to zero. 

AMTD daily

This week's biggest % winners & losers : Sept 30 - Oct 4, 19 (wk 40)

The following are this week's top percentage gainers and losers, categorized by sectors (over $300 mln market cap and 100K average daily volume).

This week's top % gainers

• Healthcare: ENDP (3.82 +19.75%), ARQL (8.29 +18.43%), SRPT (88.25 +17.67%), CDNA (25.37 +16.22%), RGNX (38.49 +15.41%), ARWR (30.6 +13.5%)
• Materials: SBGL (6.36 +14.39%)
• Consumer Discretionary: TSG (20.92 +38.82%)
• Information Technology: RNG (163.3 +31.85%), AVYA (13.23 +28.45%), OKTA (116.53 +20.06%), COUP (148.32 +15.97%)
• Energy: TOO (1.53 +30.77%), DHT (6.88 +14.1%), STNG (33.65 +14.07%), FRO (10.28 +12.72%)

This week's top % losers

• Healthcare: GTHX (23.34 -31.29%), LNTH (19.74 -22.04%), ANGO (14.6 -19.02%)
• Materials: SXC (5.31 -15.71%)
• Consumer Discretionary: GPRO (3.97 -21%), TAST (6.8 -16.46%)
• Information Technology: CASA (6.22 -20.47%)
• Financials: AMTD (33.7 -28.25%), ETFC (36.4 -15.87%). SCHW (35.67  -13.86%), IBKR (47.59  -10.86%)
• Energy: NBR (1.57 -18.65%), MDR (1.63 -18.5%), QEP (3.15 -17.54%), CDEV (3.8 -15.95%)
• Consumer Staples: UNFI (7.45 -34.76%), CALM (37.97 -16.4%)

=Charles Schwab (SCHW) to eliminate commissions for stocks, ETFs

Charles Schwab to eliminate commissions for stocks, ETFs and options listed on U.S. or Canadian exchanges, across all mobile and web trading channels;  

• Starting on Oct. 7, Schwab, which holds about $3.72 trillion in client assets, will be slashing its trading commission cost for U.S. stocks, ETFs and options from the previous $4.95 to zero. Trading options will continue to cost 65 cents per contract. 
• This comes after Interactive Brokers (IBKR) last week announced IBKR Lite, which will offer zero commissions on US exchange-listed stocks and ETFs, no minimums, and free market data without its IB SmartRouting system.
• Commissions have been declining for decades but the rise of commission-free trades from start-up trading app Robinhood accelerated the decline in recent years. Robinhood is expected to IPO this year or next.
• TD Ameritrade (AMTD) and E*TRADE (ETFC) seem likely to follow suit to remain competitive.  
• Schwab, TD and ETrade all saw their stock prices take an initial hit on Tuesday following Schwab's pre-market announcement. On a day that saw the S&P 500 Index decline by 1.2%, Schwab shares fell by nearly 10%, TD shares lost nearly 26% and Etrade shares declined nearly 17%.
• https://finviz.com/screener.ashx?v=211&t=AMTD,ETFC,IBKR,SCHW&ta=0&o=-change

Almost forty five years ago, Chuck Schwab made investing more accessible to all Americans with the concept of low commissions to buy and sell stocks. On October 7, 2019, in conjunction with the release of Mr. Schwab's latest book, "Invested," Charles Schwab & Co., Inc. is removing the final barrier to making investing accessible to everyone by eliminating commissions for stocks, ETFs and options listed on U.S. or Canadian exchanges, across all mobile and web trading channels1. Clients trading options will continue to pay 65 cents per contract.

Beginning October 7, 2019, the company will reduce U.S. stock, ETF and options online trade commissions from $4.95 to zero. And with no minimum account size3 to open a full featured Schwab brokerage account, every investor, no matter how large or small, can benefit from the expertise and support of a firm that has been entrusted with more than $3.7 trillion in client assets. Every Schwab client using our web and mobile channels automatically qualifies for the new pricing, without opening a new account, making a new deposit or maintaining a minimum balance of any type.

=Interactive Brokers (IBKR) will offer zero-fee trades on stocks and ETFs

Interactive Brokers (IBKR) will offer zero-fee trades on stocks and ETFs via a new service, as it looks to broaden its appeal with retail investors. IBKR stock retreated slightly Thursday, with TD Ameritrade (AMTD), E-Trade (ETFC) and Charles Schwab (SCHW) falling harder.

The new IBKR Lite service will offer unlimited trades on U.S.-listed stocks and exchange traded funds for a zero trading commission. It debuts in October. It will have no account minimums or inactivity fees.

Interactive Brokers will rebrand its existing low-fee stock trading offering as IBKR Pro.

Fee wars have engulfed financial services firms. But to date, online brokers Schwab, TD Ameritrade and E-Trade only allow customers to trade select ETFs for no commission. They've also lowered fees or removed minimums to trade stocks and ETFs, as investing apps like Robinhood capture a new generation of investors.

Customers can switch between IBKR Lite and IBKR Pro, subject to conditions. Pro clients will get potentially better pricing on stock trades through smart routing technology. Price improvement may matter less to regular investors.

Interactive Brokers' stronghold is active traders and institutions, but it's looking to tap a broader audience.

IBKR Stock, Brokerage Stocks Lagging
Interactive Brokers stock fell 0.4% to 51.51 on the stock market today, well off intraday lows of 49.36. Charles Schwab stock lost 2.2%, E-Trade stock tumbled 4.8% and AMTD stock dived 6.5%. Schwab charges $4.95 for stock trades, and has relatively high exposure to asset management. E-Trade and Ameritrade charge $6.95 per trade.

J.P. Morgan Chase (JPM) unveils its new investing app, You Invest

Shares of Charles Schwab fell 4 percent, TD Ameritrade fell 6.7 percent, E-Trade fell 4.8 percent and Interactive Brokers fell 3.1 percent in premarket trading. The move by J.P. Morgan aggravates a cold-blooded price war, with the globe's largest managers fighting for clients with low-cost options. J.P. Morgan will launch its new service next week.

• J.P. Morgan’s new digital brokerage service comes with free trades, portfolio building tool and access to equity research.
• The bank’s new trading service starts next week and will be available to its 47 million mobile or online users.
• All customers get 100 free stock or ETF trades in the first year. Those with Chase Private Client get unlimited trades.
• CEO Jamie Dimon hinted at this move in 2016, citing Amazon Prime as his inspiration.

   

The move, more than two years in the making, instantly intensifies the price war that is occurring throughout the investing landscape. Whether it’s executing trades, managing portfolios or simply owning mutual funds and ETFs, costs have been collapsing on Wall Street. Among brokerages, the free trading app provided by Robinhood Markets has gained attention recently for attracting more than 5 million users, and a $5.6 billion valuation, in just a few years. 

J.P. Morgan, the biggest U.S. bank, has a distinct advantage over many competitors: It already has financial ties with half of American households. When its engineers flip a switch in coming days, more than 47 million people who already use the company’s banking app or website will gain access to the new service, called You Invest.

“There are customers out there who may not want to trust their credentials or their money to an app of the month,” said Jed Laskowitz, a J.P Morgan veteran who runs You Invest. ”We’re thinking about what’s right for our customers, helping them get invested, and stay invested and diversified. ”

Interactive Brokers (IBKR) reported earnings on Tue 17 July 2018 (a/h)

** charts after earnings **

 

Interactive Brokers beats by $0.16, beats on revs 

• Reports Q2 (Jun) earnings of $0.58 per share, $0.16 better than the Capital IQ Consensus of $0.42; revenues rose 15.0% year/year to $445 mln vs the $409.0 mln Capital IQ Consensus.
• Customer equity grew 29% from the year-ago quarter to $134.7 billion and customer debits increased 27% to $28.8 billion.
• Customer accounts increased 27% YoY to 542 thousand; Total DARTs increased 19% YoY to 797 thousand.

Earnings this week : July 16 - 20, 18 (wk 29)

Earnings expected this week

Monday (July 16)

• Morning: BAC, BLK, JBHT
• Afternoon: NFLX

Tuesday (July 17)

• Morning: UNH, JNJ, GS, PGR, OMC, SCHW, CMA, PLD, FHN, NSM, NEOG
• Afternoon: UAL, CSX, FNF, IBKR, WTFC, HWC, MLNX, PNFP, FULT, MRTN, HOPE, RNST, ADTN, LTXB

Wednesday (July 18)

• Morning: ERIC, NVS, MS, ABT, USB, TXT, GWW, ASML, NTRS, MTB, OACW, MTG, WAFD
• Afternoon: IBM, AXP, AA, KMI, CCK, EBAY, URI, CP, CCI, UFPI, PLXS, PTC, UMPQ, LHO, TCBI, SLG, BXS, RECN, CATY, NDLS, BMI, CNS, CVBF, EGBN, TBK, DWCH

Thursday (July 19)

• Morning: ABB, ADS, BBT, BX, BK, GTLS, DHR, DPZ, DOV, EWBC, FITB, GATX, GPC, HOMB, IIIN, KEY, NUE, PM, POOL, PPG, RCI, RPM, SASR, SAP, SCHL, SBNY, SNA, SON, TSM, TTS, TRV, UNP, WBC, WBS, WNS
• Afternoon: MSFT, COF, CE, CTAS, SKX, SWKS, ISRG, ETFC, SEIC, PBCT, ASB, NWE, WAL, MBFI, FFBC, BDN, FFIN, EXPO, EGP, LLNW

Friday (July 20)

• Morning: GE, HON, SLB, MAN, BHGE, SWK, STT, STI, CFG, RF, KSU, CLF, GNTX, IBKC, SXT, VFC

Interactive Brokers (IBKR) reported earnings on Tue 19 Jul 2016 (a/h)

** charts after earnings **

Interactive Brokers (IBKR) reported 4Q earnings on Tue 19 Jan 2016 (a/h)

** charts before earnings **

 

** charts after earnings **

 

 Interactive Brokers misses by $0.05, misses on revs :

• Reports Q4 (Dec) earnings of $0.25 per share, $0.05 worse than the Capital IQ Consensus of $0.30; revenues rose 30.3% year/year to $271 mln vs the $333.36 mln Capital IQ Consensus.