Schwab (CHARLES) Corp. (The) Stock Price, News & Analysis

According to a new study by Charles Schwab, the COVID-19 pandemic has significantly accelerated the use of technology in managing personal finances. 41% of investors increased their usage of tech tools during the pandemic, with 32% planning to continue this trend. Interestingly, 19% believe technology will manage their portfolios fully within a year. Despite this, 59% still seek human advice during market volatility, indicating a desire for a hybrid approach in financial management.

The annual survey by Schwab Retirement Plan Services reveals that Gen Z and Millennials are significantly impacted by financial stress, with 44% of Gen Z and 38% of Millennials stating it affects their job performance. A third of Gen Z expects retirement delays due to COVID-19. Gen Z participants show a strong preference for professional financial advice, with 62% seeking help. Their optimism for adopting positive financial behaviors is higher than older generations, especially in increasing 401(k) contributions and saving. Employers who manage COVID-19 well can enhance employee loyalty, with 25% of Gen Z stating increased loyalty.

The Charles Schwab Corporation reported significant growth in its Monthly Activity Report for August 2021. The firm attracted $51.8 billion in core net new assets from clients, with $50.5 billion excluding mutual fund clearing. Total client assets reached $7.84 trillion, marking a 75% increase year-over-year and a 3% rise from July 2021. Moreover, derivative trades accounted for 23.1% of total trades, up from 13.8% in August 2020 and 22.2% in July 2021.

Schwab launches its financial education initiative, Moneywise America, to enhance financial literacy among teens in the U.S. by 2025. The program aims to bridge the education gap, particularly in under-resourced communities, offering a standards-based curriculum and trained volunteers. Schwab plans to mobilize 25% of its workforce for this initiative. Additionally, Schwab collaborates with Girl Scouts of the USA to integrate financial concepts into their programs, enhancing girls' money management skills from kindergarten through grade 12.

The Charles Schwab Corporation (SCHW) announced that as of 5:00 p.m. on September 7, 2021, a significant amount of TD Ameritrade's Old Notes were validly tendered in an exchange offer. Specifically, $333.8 million of 3.750% Senior Notes due 2024, $416.4 million of 3.625% Senior Notes due 2025, $680.4 million of 3.300% Senior Notes due 2027, and $470.2 million of 2.750% Senior Notes due 2029 were tendered. The deadline for the Early Participation Premium has been extended to 8:00 a.m. on September 22, 2021.

According to Charles Schwab's SDBA Indicators Report, the average self-directed brokerage account (SDBA) balance reached $348,183 in Q2 2021, marking a 22% increase year-over-year. Participants averaged 14 trades per account, with equities comprising 37% of assets. Notably, advised accounts had higher balances than non-advised ones, at $550,127 vs. $302,330. Baby Boomers led with an average balance of $532,338.

The Charles Schwab Corporation (SCHW) has initiated exchange offers for notes issued by TD Ameritrade Holding Corporation. This includes offers for four series of notes in exchange for new notes from Schwab. The exchange offers commenced on August 24, 2021, and will expire on September 22, 2021, unless extended. Holders tendering notes by September 7, 2021, can receive total consideration including a premium. The new notes will be unsecured obligations of Schwab with identical terms to the old notes. Conditions apply to the completion of these exchanges.

The Charles Schwab Active Trader Pulse survey reveals that the Covid-19 pandemic, especially the Delta variant, significantly influences traders' strategies in 2021, surpassing concerns like inflation and U.S.-China relations. One-third of traders have altered their strategies, with 44% increasing equity exposure and 37% increasing cash exposure. Nearly half of traders conduct more research now than pre-pandemic. Concerns remain high regarding inflation (95%) and potential stock market bubbles (86%). The survey, conducted from July 28 to August 4, 2021, included 500 U.S.-based active traders.

The Charles Schwab Corporation announced a special five percent pay increase for employees, effective late September 2021. This increase recognizes their dedication during the pandemic, which has driven robust business growth. For the first half of 2021, Schwab reported a record $257 billion in net new assets, more than double the previous year, and opened 4.8 million new brokerage accounts. The company will also maintain flexible work arrangements, delaying a full Return to Office until January 2022, allowing employees to work from home or return voluntarily.