Dow jumps 400 points after rollercoaster week for stocks, earnings season kicks into high gear [CNBC]
The S&P 500 just came off its fourth negative week in five with a 1.6% loss last week…. “The 200-week moving average is a serious floor of support until companies fully confess or a recession officially arrives, both of which could take several more months and lead to a technical rally in the short term,” Morgan Stanley’s Mike Wilson said in a note to clients.
Goldman Plans Sweeping Reorganization, Combining Investment Banking and Trading [WSJ]
Marcus, Goldman’s consumer-banking arm, will be part of the asset- and wealth-management unit, the people said.
A third division will house transaction banking, the bank’s portfolio of financial-technology platforms, specialty lender GreenSky, and its ventures with Apple Inc. and General Motors Co., the people said…. Following the changes, Goldman’s organizational chart will look more like its peers.
BofA profits fall as bank sets aside money for downturn [AP]
The nation’s second-largest bank said it earned $7.08 billion last quarter, or 81 cents a share, compared to a profit of $7.69 billion, or 86 cents a share, in the same period a year earlier. The results were better than Wall Street forecasts, who were looking for BofA to earn 78 cents a share, according to FactSet.
BofA put $378 million into its loan-loss reserves this quarter — a similar level to Citigroup and Wells Fargo.
FlyExclusive to Go Public Through $600 Million SPAC Merger [WSJ]
FlyExclusive‘s Jet Club is a multitiered membership program that allows customers to access its fleet for a monthly fee—for short trips or cross-country excursions. Mr. Segrave said the company, started in 2015, has been profitable since its second year of operations…. Two of flyExclusive’s peers, Wheels Up Experience Inc. and Blade Air Mobility Inc., merged with SPACs only to see their share prices tumble.
SPAC Sponsors Were Winners Even on Losers [WSJ]
Stock-market investors in SPACs that merged with private companies since 2015 lost an average 37% of their investment a year after the merger through the end of September…. At the same time, SPAC managers, known as sponsors, turned an average investment of about $8 million into about $54 million, giving them average annualized returns of 110% on their initial investment in the SPACs, the authors found.
Activist investor Starboard has sizable stake in Splunk [Reuters via U.S. News]
Starboard's Chief Executive Officer Jeffrey Smith plans to discuss the investment at Tuesday's 13D Monitor Active-Passive Investor Summit…. Last week, Splunk added two directors to its board, including a partner from Hellman & Friedman. The private-equity firm owns about 7.8% stake in the software maker.