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

Charles Schwab's annual 401(k) survey reveals improved worker confidence in achieving retirement goals, with 43% feeling very likely to reach their targets, up from 37% in 2023. Despite softening concerns, inflation (58%) and market volatility (36%) remain top obstacles. Workers still aim for a $1.8 million nest egg, expecting it to last 23 years post-retirement.

The study highlights increased 401(k) engagement, with 92% of respondents aware of their account performance. Demand for professional financial advice has risen, with 61% believing their situation warrants it. Workers expect 43% of retirement income from 401(k)s, up from 40% last year, while reliance on Social Security has decreased from 20% to 16%.

Charles Schwab (SCHW) reported strong Q2 2024 results, with net income of $1.3 billion and diluted EPS of $0.66. Adjusted figures were $1.5 billion and $0.73, respectively. Total client assets reached a record $9.4 trillion, up 17% year-over-year. Core net new assets rose 17% to $61.2 billion. The company's pre-tax profit margin was 37.2% (41.0% adjusted). Schwab's Tier 1 Leverage Ratio stood at 9.4%, with an adjusted ratio of 5.9%. The company saw robust client engagement, with active brokerage accounts up 4% to 35.6 million and margin balances increasing 15% since the end of 2023 to $71.7 billion.

The Schwab Trading Activity Index™ (STAX) rose to 54.71 in June from 49.05 in May, indicating a moderate level compared to historical averages. Schwab clients were net buyers, increasing their positions in information technology, consumer discretionary, and consumer staples sectors.

During June, interest surged in 'meme stocks,' with top buys including NVIDIA (NVDA), Advanced Micro Devices (AMD), GameStop (GME), Amazon (AMZN), and Apple (AAPL). Conversely, clients net sold Tesla (TSLA), Meta Platforms (META), Palo Alto Networks (PANW), Walt Disney (DIS), and AT&T (T).

The S&P 500 and Nasdaq Composite achieved new all-time highs, driven by AI sector interest. Inflation showed signs of cooling, with CPI at 0.2% and PPI declining by 0.2%. Employment data revealed nonfarm payrolls up by 272,000, though the unemployment rate rose to 4.0%. The 10-year Treasury yield fell by over 3%, while the U.S. Dollar Index rose by 1.15% and crude oil prices increased by 5.91%.

The Charles Schwab has disclosed its results from the Federal Reserve's 2024 Comprehensive Capital Analysis and Review (CCAR). Schwab's stress capital buffer (SCB) is at the regulatory minimum of 2.5%, applicable for the period starting October 1, 2024. The firm's Common Equity Tier 1 (CET1) ratio stands at 26.71% as of March 31, 2024, significantly above the regulatory minimum of 4.5%, enhanced by the low-risk nature of its assets. Schwab's consolidated Tier 1 Leverage Ratio increased to 8.83% from 8.53% at the end of 2023. CFO Peter Crawford highlighted that the CCAR results affirm Schwab's robust capital management, which supports its client needs and long-term shareholder value. Despite awaiting final rule changes, Schwab remains committed to maintaining strong capital levels, focusing on profitable growth, and returning excess capital over time through dividends and other means.

The Charles Schwab , headquartered in Westlake, Texas, has announced a Summer Business Update for institutional investors on Tuesday, July 16th. The one-hour update will be conducted via a live public webcast from 7:30 a.m. - 8:30 a.m. CT (8:30 a.m. - 9:30 a.m. ET). This event is a part of Schwab's series aimed at keeping the investment community informed about recent developments and management's strategic focus.

Prominent participants include Walt Bettinger, Co-Chairman and CEO; Rick Wurster, President; and Peter Crawford, CFO. Investors can access the webcast at https://schwabevents.com/

Charles Schwab released its May 2024 Monthly Activity Report, showcasing core net new assets of $31.1 billion, marking its second-highest May ever. Total client assets reached $9.21 trillion, reflecting a 20% increase from May 2023 and a 4% rise from April 2024. The company reported 314,000 new brokerage accounts, which remained flat year-over-year but decreased by 13% from April 2024. Schwab expects a 1%-2% decrease in total revenue for Q2 2024 compared to Q1, with an adjusted pre-tax profit margin projected at approximately 40%. The anticipated non-GAAP adjustments for the quarter are estimated between $150 to $200 million.

The 2024 Schwab Modern Wealth Survey reveals significant financial confidence among Americans, with over 60% believing they are better positioned to achieve financial goals than previous generations.

Almost 58% of Americans are investing, with younger generations starting earlier. Gen Z, averaging 19 years old when they start investing, notably benefits from enhanced financial education in schools.

Although 70% of Americans are confident in their investment strategies, only 36% have a written financial plan. The survey highlights a gap between confidence and formal financial planning, with only 18% feeling fully in control of their finances.

The Schwab Trading Activity Index™ (STAX) rose slightly to 49.05 in May from 48.87 in April, indicating a 'moderate low' activity level. Schwab's clients were net buyers, focusing on technology stocks, especially AI-related chipmakers and e-commerce companies. The S&P 500, Dow Jones Industrial Average, and Nasdaq Composite reached new highs, while the Cboe Volatility Index fell significantly. Despite economic headwinds like a brief rise in the 10-year treasury yield and mixed job reports, U.S. equity markets showed resilience. Notable purchases included NVIDIA (NVDA), AMD (AMD), Tesla (TSLA), Amazon (AMZN), and Microsoft (MSFT). Clients sold stocks such as Apple (AAPL), Alibaba (BABA), Bank of America (BAC), Snap (SNAP), and Exxon Mobil (XOM).

Charles Schwab has been recognized as one of the top 50 community-minded companies in the U.S. for the eighth year in a row by Points of Light. The Civic 50 award highlights companies that excel in corporate citizenship through resource investment, volunteerism, integration across business functions, institutional policies, and impact measurement. In 2023, Charles Schwab Foundation contributed $13.9 million to nonprofits, including $2.6 million for employee matching gifts. Additionally, 11,400 employees volunteered 148,000 hours. Schwab’s commitment to financial literacy includes initiatives like Moneywise America, aiming to close the financial education gap. This recognition showcases Schwab's dedication to creating positive social impact and fostering strong communities.