Track the companies that matter to you. It's FREE! Click one of these fan favorites to get started: Apple; Google; Ford.



A Fool Looks Back

Wells Fargo  (NYSE: WFC  )  and JPMorgan Chase (NYSE: JPM  ) kicked off on Friday what promises to be a very challenging earnings season. Instead of sending a unified message, the banking bellwethers showed their divergent ways. Wells Fargo posted better-than-expected results, but JPMorgan fell short.

The market was braced for a ho-hum quarter out of JPMorgan, but after seeing profitability shrink at its consumer banking, mortgage originations, and corporate and investment banking divisions, there was no way it would be able to live up to Wall Street forecasts. 

Wells Fargo held up relatively better, overcoming weakness in its mortgage banking business to deliver better-than-expected results.

Where do we go from here? Wells Fargo and JPMorgan are essentially kicking off the new earnings season. The next few weeks will feature companies stepping up to disclose their financial performances during the first three months of the year, and it could get pretty hairy. Lousy weather earlier in the period slowed retailers, and margins are getting squeezed across several industries. The market itself has already been correcting in some sectors, including tech and biotechnology. Investors can't afford to sleep through the next few weeks of reports. 

Briefly in the news
And now let's look at some of the other stories that shaped our week.

  • Carl Icahn is finally letting eBay  (NASDAQ: EBAY  )  be. The billionaire activist investor dropped his proposal to spin off PayPal and add two members of his choosing to eBay's board. The online marketplace giant did agree to bring on a former telco executive as a board member to satisfy Icahn, but that's a small concession to silence him.
  • China's Alibaba is buying all of AutoNavi (NASDAQ: AMAP  ) in a transaction that values the developer of mobile maps at a cool $1.5 billion. Alibaba already owned a minority stake in AutoNavi as the e-commerce leader gears up for its upcoming IPO.
  • Yelp  (NYSE: YELP  )  has been one of the hardest hit stocks in recent weeks, but it got back-to-back-to-back boosts of confidence with analyst upgrades on Monday, Tuesday, and Wednesday. It's not a total victory for the leading reviews website, though. The bullish price targets are below where the shares were when it peaked last month. However, after shedding more than a third of its value, Yelp investors will take it. 

Learning from the past helps you spot hot trends in the future
Every investor wants to get in on revolutionary ideas before they hit it big -- like buying PC maker Dell in the late 1980s, before the consumer computing boom, or purchasing stock in e-commerce pioneer in the late 1990s, when it was nothing more than an upstart online bookstore. The problem is, most investors don't understand the key to investing in hypergrowth markets. The real trick is to find a small-cap "pure play" and then watch as it grows in explosive fashion within its industry. Our expert team of equity analysts has identified one stock that's poised to produce rocket-ship returns with the next $14.4 trillion industry. Click here to get the full story in this eye-opening report.

Read/Post Comments (0) | Recommend This Article (1)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2913004, ~/Articles/ArticleHandler.aspx, 8/29/2015 5:34:32 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Rick Munarriz

Rick has been writing for Motley Fool since 1995 where he's a Consumer and Tech Stocks Specialist. Yes, that's a long time. He's been an analyst for Motley Fool Rule Breakers and a portfolio lead analyst for Motley Fool Supernova since each newsletter service's inception. He earned his BBA and MBA from the University of Miami, and he now lives a block from his alma mater.

Today's Market

updated 8 hours ago Sponsored by:
DOW 16,643.01 -11.76 -0.07%
S&P 500 1,988.87 1.21 0.06%
NASD 4,828.33 15.62 0.32%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

12/31/1969 7:00 PM
AMAP $0.00 Down +0.00 +0.00%
AutoNavi Holdings… CAPS Rating: *
EBAY $27.25 Up +0.15 +0.55%
eBay CAPS Rating: ****
JPM $64.13 Down -0.35 -0.54%
JPMorgan Chase & C… CAPS Rating: ****
WFC $53.54 Down -0.49 -0.91%
Wells Fargo CAPS Rating: *****
YELP $23.96 Down -0.02 -0.08%
Yelp CAPS Rating: **