The uptrend that Charles Schwab (SCHW) enjoyed since March 2024 is over. SCHW stock lost 10.18% on Tuesday after posting quarterly results. It will open this morning at $67.43.
Schwab posted weak revenue growth, up by 0.6% Y/Y to $4.69 billion. Although total client assets increased by 17% Y/Y to $9.4 trillion, investors are still concerned about the firm’s TD Ameritrade acquisition. It continues to work through glitches that hurt customer service levels.
The firm is anticipating growth in the Q4/2024 timeframe. This is slower than the market likes. As a result, the firm risks losing customers as they migrate to other services like Fidelity. The firm could help its customers maximize interest income through cash sorting. That way, they earn 5% in money market funds automatically.
Constellation Energy (CEG) is trading at a premium above the $200 level. Energy investors may take profits as the bet that clean energy demand powering AI loses momentum. Related stocks to consider today include The Southern Company (SO) and Duke Energy (DUK).
Watch Molina Healthcare (MOH) this morning after shares rose by 8.22% yesterday. Centene (CNC) and Humana (HUM) will post Q2 results, along with Molina. Analysts expect it to earn $5.73 in the quarter.
