TSMC profit surges amid ‘strong’ AI demand, Charles Schwab stock rises, United slips premarket

U.S. Bancorp (USB) reported net income of $2.00 billion, or $1.22 a share, in the third quarter, beating Wall Street estimates of $1.89 billion and rising from $1.72 billion in the same period last year.

Revenue reached a record $7.3 billion, ahead of estimates for $7.1 billion, according to S&P Global Market Intelligence, while net interest income rose 2% to $4.25 billion.

Provisions for credit losses reached $571 million in Q3, a 2.5% increase from $557 million in Q3 2024.

US Bancorp stock advanced 1.5% ahead of the opening bell.

Charles Schwab (SCHW) stock rose 4% in premarket trading after the financial services company reported earnings of $1.26 per share, beating Wall Street estimates by a penny.

Third quarter revenue also came in better than expected at a record $6.13 billion, a 27% increase year over year.

A dealmaking boom and stock market enthusiasm boosted the other major financial institutions that reported results earlier this week. At Charles Schwab, total client assets increased 17% year over year to a record $11.59 trillion, and net interest margin expanded by 21 basis points to 2.86%.

According to the company, a reduction in higher-cost liabilities, strong securities lending activity, and increased lending by clients helped boost net interest margins.

“Our unwavering focus on delivering for clients helped us attract $137.5 billion in 3Q core net new assets plus over 1 million new brokerage accounts for the fourth straight quarter,” CEO Rick Wurster said in the release.

Yahoo Finance’s Pras Subramanian reports:

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Progressive (PGR) stock tumbled over 6% as of midday trading on Wednesday after the company’s earnings missed analyst expectations.

The insurance giant reported profits of $4.44 per share, underperforming Wall Street estimates for earnings of $5.30 per share. Revenue also fell short, with $21.3 billion reported versus the estimated $21.6 billion. Net income dropped 48% year over year.

Progressive experienced a $950 million expense in September due to a 2023 policy change in Florida that limits profits made on auto insurance.

“Despite actions to lower rates in the last year, it is probable that our personal auto profit in Florida for the 2023 to 2025 period will exceed the statutory profit limit that a Florida statute imposes…,” the company said. “In such event, we would need to credit any profit above the limit to all Florida personal auto policyholders active at December 31, 2025.”

Several regional bank stocks fell on Wednesday afternoon after the companies reported third quarter earnings and a stable

Shares of Citizens Financial Group (CFG) dropped 1%, while PNC (PNC) fell more than 3%. Memphis-based First Horizon (FHN) led the declines, with the stock dropping over 10%. First Horizon reported that deposits declined by $52 million year over year.

Pittsburgh-based PNC beat earnings estimates by $0.31, with profits per share of $4.35 compared to the Street’s expectations for earnings per share of $4.04, per S&P Global Market Intelligence. The regional bank reported that it expects net interest income to rise 1.5% in the fourth quarter but anticipates fee income will fall about 3%.

The stock reaction in regional banks juxtaposed the strength in the large Wall Street banks’ results and their stocks’ move higher. Bank of America (BAC) and Morgan Stanley (MS) shares were up 3% and 5%, respectively, on the back of a dealmaking boom and robust trading activity.

Additional regional banks, Fifth Third (FITB) and Comerica (CMA), will report earnings on Friday, providing investors with further clues about the state of household balance sheets. First Horizon CEO Bryan Jordan noted that the US economy, in the bank’s view, “continues to perform reasonably well.”

Third quarter profits at Morgan Stanley (MS) surged 45% as another Wall Street bank saw a robust quarter and benefited from a trading and dealmaking boom.

Morgan Stanley CEO Ted Pick called his bank’s quarter “outstanding” in an earnings statement. Morgan Stanley stock climbed nearly 4% in premarket trading.

Dealmaking fees at Morgan Stanley surged 44% from a year ago to $2.1 billion, Yahoo Finance’s David Hollerith reports. The bank advised on the Union Pacific-Norfolk Southern megadeal and co-facilitated the Keurig Dr Pepper (KDP) $18 billion acquisition of JDE Peet’s (JDEP.AS).

Trading also did well, with fees from the firm’s client trading division soaring 24%, driven by its stock transactions group. Morgan Stanley’s combined equity, fixed income, currency, and commodity trading for clients ballooned to $6.28 billion.

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Shares of pharmaceutical and medical device maker Abbott (ABT) fell 1% in premarket trading on Wednesday after earnings came in a tad light.

The company reported diluted earnings per share of $0.94; the Street was looking for $1.04, according to S&P Global Market Intelligence. Revenue of $11.3 billion was roughly in line with Wall Street’s estimates.

Sales in Abbott’s Nutrition segment rose 4.2%, propped up by 13.3% growth internationally. In the US, Nutrition sales fell 6.5%. Abbott makes products such as Pedialyte and Ensure.

Its Diagnostics sales declined by 6.6% year over year, while sales of Established Pharmaceuticals, which are only sold internationally, rose 7.5%. Medical Device sales saw the greatest amount of growth, increasing by 14.8%.

Yahoo Finance’s David Hollerith reports:

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LVMH (MC.PA, LVMUY) unexpectedly reported a return to sales growth in its third quarter earnings, a sign the decline in luxury demand is easing.

Paris-listed shares of the owner of Louis Vuitton and Christian Dior rose as much as 14% — the biggest intraday gain since 2001 — while its US-listed stock jumped around 9% in premarket.

Reuters reports:

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ASML’s (ASML, ASML.AS) orders topped estimates in the third quarter amid an AI investment boom, and the Dutch maker of chipmaking equipment said it expects to keep benefiting.

Shares rose over 3% in premarket trading even after ASML also warned it expects Chinese demand to drop significantly next year,

Reuters reports:

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Citigroup (C) stock rose just under 1% on Tuesday morning as Wall Street banks benefited from dealmaking, mergers, and IPOs in the third quarter.

Dealmaking fees at Citi jumped 17%, and traders in equities and fixed income generated $5.6 billion — 15% more than a year earlier, Yahoo Finance’s David Hollerith reported.

Meanwhile, Citi’s total revenue grew 9% as all of its divisions set records for the quarter. Its net income for the third quarter was $3.8 billion, or $1.86 per diluted share, on revenue of $22.1 billion. A year ago, the bank reported net income of $3.2 billion, or $1.51 per diluted share, on revenue of $20.2 billion.

“The cumulative effect of what we have done over the past years — our transformation, our refreshed strategy, our simplification — have put Citi in a materially different place in terms of our ability to compete,” Citi CEO Jane Fraser said in a statement. “Investments in new products, digital assets and AI are driving innovation and improved capabilities across the franchise.”

Shares of Domino’s Pizza (DPZ) climbed nearly 5% in premarket trading after the pizza chain reported that US same-store sales accelerated by 5.2%.

Domino’s third quarter earnings and revenue also beat expectations, which CEO Russell Weiner attributed to promotional activity and a new stuffed-crust offering. Earnings per share came in at $4.08, topping estimates of $3.97, while revenue of $1.15 billion narrowly surpassed estimates of $1.14 billion.

Year to date, Domino’s stock is down 2%, however.

Johnson & Johnson (JNJ) announced it plans to spin off its orthopedics business on Tuesday as the company reported better-than-expected earnings and raised its 2025 revenue guidance.

J&J’s orthopedics unit, which makes hip, knee, and shoulder implants, among other products, is expected to become an independent company called DePuy Synthes within the next 18 to 24 months.

“We think this business will benefit from focused capital deployment and a focus in the competitive landscape. We think this positions both entities for success,” CFO Joe Wolk told Yahoo Finance’s Julie Hyman.

For the quarter, J&J reported adjusted earnings per share of $2.80, compared to Wall Street estimates of $2.76.

Pharmaceutical sales rose 6.8% year over year to $15.56 billion, while medical device sales also rose 6.8% to $8.43 billion. Oncology treatment sales hit $3.67 billion.

Johnson & Johnson raised its 2025 sales forecast by about $300 million to a new range of $93.5 billion to $93.9 billion, above analysts’ expectations of $93.4 billion.

The stock ticked lower in premarket trading.

Wells Fargo (WFC) posted third quarter results that beat analysts’ expectations on Tuesday, lifting the stock over 2% in premarket trading.

Bloomberg reports:

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JPMorgan Chase (JPM) stock edged lower after the major US bank reported that its profits climbed in the third quarter.

Yahoo Finance’s David Hollerith reports:

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Yahoo Finance’s David Hollerith previews what to look for when the major Wall Street banks report earnings on Tuesday:

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