Jefferies Financial Group Inc. operates as an investment banking and capital markets firm in the Americas, Europe, the Middle East, and the Asia-Pacific. The company operates in two segments, Investment Banking and Capital Markets, and Asset Management. It provides investment banking, advisory services with respect to mergers or acquisitions, debt financing, restructurings or recapitalizations, and private capital advisory transactions; underwriting and placement services related to corporate debt, municipal bonds, mortgage-backed and asset-backed securities, equity and equity-linked securities, and loan syndication services; and corporate lending services. The company also offers financing, securities lending, and other prime brokerage services; equities research, sales, and trading services; wealth management services; and online foreign exchange trading services. In addition, it provides investment grade distressed debt securities, U.S. and European government and agency securities, municipal bonds, leveraged loans, emerging markets debt, and interest rate and credit index derivative products; and manages and offers services to a diverse group of alternative asset management platforms across a spectrum of investment strategies and asset classes. The company was formerly known as Leucadia National Corporation and changed its name to Jefferies Financial Group Inc. in May 2018. Jefferies Financial Group Inc. was founded in 1962 and is headquartered in New York, New York.

Jefferies Financial Group appears to be a company with strong revenue and acceptable profitability, but with notable balance sheet and quality constraints. Its P/E ratio of 16.89 is 25.7% above the industry median, leaving limited room for revaluation, especially against the backdrop of moderate earnings growth. The P/S ratio of 1.43 is 35% below the industry median, supporting the idea of relative undervaluation on a revenue basis; however, this advantage is partly offset by weak conversion of revenue into net profit. The P/B ratio of 1.30 is close to the median, meaning the market values the company’s equity without any clear discount or premium. P/FCF is zero, which looks anomalous and provides no basis for valuation through free cash flow. Return on capital is mixed: ROE of 8.36% and ROA of 1.24% look acceptable, but both are not above the industry, while ROIC/ROI and return on tangible equity are noticeably weaker than the median. Gross margin is very high, and operating margin is around the industry norm, which points to good underlying operating control, but net profit margin is below the median, meaning a significant portion of the value created is lost below the operating line. Debt load is the main risk: debt/equity of 1.87 is significantly above the industry, and long-term debt remains high, while the quick ratio is zero and the current ratio is only around 1, limiting financial flexibility. On the other hand, equity and assets remain steadily at high levels, and revenue and operating profit have generally grown over recent periods, supporting the fundamental resilience of the business. Dividend yield has fallen to zero, so shareholder returns through payouts are not currently supporting the valuation. Overall, the picture is rather neutral-to-negative for re-rating: the business is large and profitable, but high leverage, weak capital efficiency metrics, and the absence of dividend support limit the upside in the valuation multiple. For an investor, this means fair value should be assessed cautiously and closer to a conservative scenario than a premium one.

Jefferies Financial Group Inc.

Сильный индекс, значительно упал. Быки в растерянности.

Strong index, significantly down. The bulls are confused.

Слабый индекс, значительно упал. Рынок не поддерживает быков.

Weak index, significantly down. The market does not support the bulls.

Средний индекс, значительно вырос. Увеличился приток средств в лонги.

Medium index, significantly up. The inflow of funds into longs has increased.

Strong revenue and high gross margin support JEF, but high debt, weak ROIC/ROTE, and the absence of dividends limit revaluation potential.

Key Points
One of Cathie Wood's funds just sold some AtaiBeckley shares.
It also bought some Compass Pathways shares.
This move makes total sense given that Atai was just acquired by Eli Lilly.
The psychedelic medicine field looks like it's finally about to take off, and that's catching the attention of portfolio managers like Cathie Wood. Eli Lilly (NYSE: LLY) agreed on July 16 to acquire the biotech AtaiBeckley (NASDAQ: ATAI) for a $2.8 billion upfront payment, with as much as $1 billion more in potential milestone payments. To put it lightly, a psychedelic nasal spray for treatment-resistant depression (TRD) is not the kind of pharmaceutical asset Lilly would have even considered touching five years ago.
Cathie Wood's Ark Genomic Revolution ETF sold 1.1 million shares of AtaiBeckley on the deal news, and promptly bought nearly 400,000 shares of one of its peers, Compass Pathways (NASDAQ: CMPS), the psilocybin drug developer that Wood has been accumulating for months. So why does she think that Compass is the better bet here?
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What Lilly just bought
Atai's lead candidate, BPL-003, is an intranasal formulation that's being tested in a phase 3 trial for adults with treatment-resistant depression, which is defined as inadequate response to at least two prior antidepressant regimens.
The first data readouts are not expected until early 2029, but investment bank Jefferies estimates that there could be peak sales of between $1 billion and $2 billion for the therapy if it's ever commercialized. For a big pharma stock like Lilly, that's small potatoes relative to its colossal revenue base of $65.2 billion in 2025.
But why would Lilly buy Atai now specifically? In short, a regulatory door that was once closed is now wide open.
President Donald Trump signed an executive order in April 2026 directing the Food and Drug Administration (FDA) to prioritize psychedelic drug review, and six days later, the FDA issued a Commissioner's National Priority Voucher (CNPV) to Compass' lead program; the voucher compresses FDA review to as little as one to two months post-submission. Then, in July, the FDA finalized its psychedelic medicine clinical trial guidance, addressing the problems with the regulatory process that derailed Lykos Therapeutics' MDMA-assisted therapy in 2024 and sent the psychedelics segment into a two-year period of hibernation and doubt.
Compass is closer to the finish line
Wood's recent inclination toward Compass rather than Atai is likely based on the fact that Compass is much closer to potentially reaching the market with its lead candidate, which is now something that's possible to actually do, given the favorable changes to the regulatory environment.
That candidate, COMP360, already met its primary endpoint in both of its phase 3 trials in TRD, reporting some fairly solid depression symptom reductions per the widely used Montgomery-Åsberg rating scale compared to the control group. Compass is targeting completion of its rolling new drug application (NDA) in the fourth quarter of 2026, with its forecast saying that the biotech will be launch-ready by year-end 2026, contingent on both a positive FDA review and the Drug Enforcement Administration (DEA) rescheduling psilocybin from Schedule I, the category for the most dangerous and least medically valuable drugs.
Importantly, Compass has $466 million in cash and equivalents as of March 31, so it has a runway into 2028, which is well past a plausible launch date for COMP360. It's also roughly two years ahead of AtaiBeckley's own timeline for reaching the market, assuming it ever does. That difference means Compass has a shot at getting to market ahead of the next wave of psychedelic drug developers targeting TRD.
Thus, buying Compass now is a bet on COMP360's approval and a smooth launch leading to the company capturing a slice of the TRD market. Wood probably doesn't have anything against Lilly, but it's practically guaranteed that Compass is proportionally exposed to more upside than Lilly after buying Atai because it's a biotech without any drugs on the market, and not a pharma juggernaut where new medicines getting approved barely moves the needle much of the time.
Should you buy stock in Compass Pathways right now?
Before you buy stock in Compass Pathways, consider this:
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Alex Carchidi has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Eli Lilly. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Eli Lilly Is Acquiring AtaiBeckley for $2.8 Billion. Cathie Wood Thinks Another Psychedelic Drug Stock Is an Even Better Bet.

JPMorgan’s JPM second-quarter 2026 adjusted earnings of $6.14 per share beat the Zacks Consensus Estimate of $5.59 by 9.8%. The bottom line was up 17.2% from $5.24 reported a year ago.
Despite the robust quarterly performance, JPM shares fell more than 2% in premarket trading. The decline likely reflected investor concerns over management’s higher non-interest expense outlook for 2026.
Reported net revenues of $57.35 billion rose 27.7% year over year and topped the consensus mark of $49.14 billion. Strong Markets and investment banking (IB) activity powered core growth, while net interest income (NII) got support from decent loan demand.
The quarter included a $4.55 billion pretax gain related to Visa shares, which added $1.27 to earnings per share. JPM also recorded $1.03 billion of gains on certain equity investments, adding 29 cents per share. Including these significant items, net income jumped 41% year over year to $21.16 billion.
JPMorgan's Markets and Fee Income Momentum Boosts Growth
Markets revenues advanced 35% to $12.08 billion on elevated client activity, strong trading performance and continued financing demand in Equities. Fixed Income Markets revenues rose 6% to $6.05 billion, while Equity Markets revenue surged 86% to $6.03 billion.
IB revenues increased 45% to $3.90 billion. IB fees rose 30% to $3.28 billion on higher fees across products, led by equity underwriting. Payments revenues grew 12% to $5.30 billion, while Securities Services revenues gained 17% to $1.66 billion.
JPM's NII Benefits From Balance Sheet Expansion
Reported NII increased 9.9% to $25.51 billion. NII excluding Markets was $23.68 billion, up 4%, supported by higher deposit balances, greater revolving Card Services balances and wholesale loan growth. Lower rates partly offset those benefits.
Average loans expanded 10% to $1.52 trillion, while average deposits grew 7% to $2.69 trillion. The net yield on interest-earning assets was 2.40%, down from 2.43% a year earlier, showing rate pressure despite balance sheet growth.
JPM's Expenses Temper Gains, Credit Trends Offer Support
Non-interest expenses rose 15% year over year to $27.32 billion. Higher compensation, brokerage and distribution fees, marketing, technology and occupancy costs drove the increase. Still, the reported overhead ratio improved to 48% from 53% in the prior-year quarter.
The provision for credit losses was $2.52 billion, down 12%. Net charge-offs (NCOs) were $2.4 billion, down $44 million, and the company recorded a $149 million net reserve build, primarily in Wholesale. Consumer & Community Banking accounted for $2.16 billion of the provision.
JPM's Segment Performance Improves
Commercial & Investment Bank revenues climbed 27% from the prior-year quarter to $24.85 billion, while net income soared 46% to $9.68 billion.
Consumer & Community Banking revenues grew 8% to $20.27 billion, led by higher Card Services NII, auto operating lease income and wealth-management fees. Segment net income rose 3% to $5.31 billion. Debit and credit card sales volume rose 10% to $535.8 billion, while active mobile customers increased 6% to 63.7 million.
Asset & Wealth Management revenues climbed 19% to $6.85 billion. Assets under management reached $5.1 trillion, up 18%, aided by $50 billion of long-term net inflows.
Corporate net income was $4.21 billion compared with $1.7 billion a year ago, influenced by net gain related to Visa shares and gains on certain equity investments.
JPMorgan’s Capital Returns
JPMorgan’s capital position remained strong, even as ratios eased versus year-ago levels. The standardized common equity Tier 1 capital ratio was 14.1% as of June 30, 2026, compared with 15.1% a year earlier. Tangible book value per share rose 10% to $113.35.
Shareholder returns stayed elevated. The bank paid a common dividend of $4 billion, or $1.50 per share, and reported $6.2 billion of common stock net repurchases during the quarter.
Moreover, after clearing this year’s stress test, JPMorgan announced a new share repurchase program worth $50 billion and plans to hike its quarterly dividend by 10% to $1.65 per share.
JPMorgan’s Outlook for 2026
Management expects 2026 NII of roughly $105.5 billion and NII excluding Markets of about $96.5 billion. Both metrics show increases from the prior targets.
Adjusted expenses are projected at around $107.5 billion, with the increase from the prior outlook of $106 billion reflecting higher volume- and revenue-related costs. The Card Services NCO rate is now expected to be approximately 3.2%, down from the previous target of 3.4%.
Our View on JPMorgan
New branch openings, strategic global expansion efforts and decent loan demand are likely to keep aiding JPMorgan’s revenues. As rates remain steady, the company’s NII expansion pace is expected to gather pace, with an improving lending scenario offering further support. However, mounting expenses and a challenging operating backdrop are concerns.
JPMorgan Chase & Co. Price, Consensus and EPS Surprise
JPMorgan currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance & Earnings Dates of JPM’s Peers
Jefferies Financial Group’s JEF second-quarter fiscal 2026 (ended May 31) adjusted earnings per share from continuing operations of $1.03 missed the Zacks Consensus Estimate of $1.09. However, the bottom line increased significantly from the prior-year quarter.
Results were primarily hurt by a rise in expenses and weakness in the Asset Management business. However, record IB advisory and underwriting net revenues, as well as record equities net revenues, offered much-needed support.
Morgan Stanley MS is slated to report second-quarter 2026 numbers tomorrow.
Over the past week, the Zacks Consensus Estimate for Morgan Stanley’s quarterly earnings has been revised 4% north to $2.89. This indicates 35.7% growth from the prior-year quarter.
Beyond Nvidia: AI's Second Wave Is Here
The AI revolution has already minted millionaires. But the stocks everyone knows about aren't likely to keep delivering the biggest profits. AI’s second wave is moving from infrastructure to implementation and these companies are at the forefront of this transition, positioned to become what Amazon and Google were to the internet era.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

JPM Q2 Earnings Beat on Trading & IB, Higher Cost Outlook Drags Stock

Key Points
A growing number of analysts are raising their expectations of August’s fiscal Q1 results.
Today’s jump also allows investors to look at recent headlines in a new, more bullish light.
The sizeable gains logged by this stock and several of its peers suggest a sweeping, prolonged reversal of recent bearish sentiment could have just begun.
Most of China's top technology stocks are participating in Wednesday's broad turnaround. Leading the charge, however, is Alibaba Group (NYSE: BABA). As of 12:22 p.m. ET shares of the e-commerce giant are up 11.2%... its best day in nearly a year.
Thank UBS, mostly, although several different developments are contributing to the bullish effort.
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Analysts provide the catalyst
Down by nearly half since its October peak, BABA shares started today's trading session already ripe for a rebound. UBS's Kenneth Fong triggered it, though, noting on Wednesday that the company likely produced marginwidening revenue growth during the quarter ending in June, led by 45% top-line growth from its cloud computing unit. Most analysts expect to see accelerating revenue growth in August's release of the company's fiscal Q1 results, in fact, largely driven by growth of its artificial intelligence business. Jefferies' analysts also added this morning "macro headwinds and softness in consumer sentiment are in the price."
Analysts' fresh optimism regarding Alibaba isn't the only bullish factor at work on Wednesday, however. Although it's not company-specific, similar gains from shares of other Chinese tech names like Baidu (NASDAQ: BIDU) and JD.com (NASDAQ: JD) point to a broad turnaround effort for most of the region's beaten-down technology stocks.
This tailwind also allows investors to look at recent news about Alibaba through a more bullish lens. This includes Monday's decision from a U.S. federal judge to block -- albeit only temporarily -- the Pentagon from designating Alibaba as a Chinese military company under its Section 1260H rules, which would prevent it from lobbying within the United States.
A hint worth taking for risk-tolerant investors
A big day like today is a tough act to follow. As such, don't be surprised if BABA shares show some weakness as soon as Thursday.
Just don't lose perspective on the way this stock and its peers ebb and flow. Most artificial intelligence stocks tend to move as a herd as the sentiment surrounding the AI revolution evolves. Rather than lasting a mere single day, these moves can last weeks, if not months. They often simply start with that one decisive reversal of an aging trend... like today's bounce from a pullback that began months ago.
Should you buy stock in Alibaba Group right now?
Before you buy stock in Alibaba Group, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Alibaba Group wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $410,833!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,208,693!*
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*Stock Advisor returns as of July 8, 2026.
James Brumley has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Baidu and Jefferies Financial Group. The Motley Fool recommends Alibaba Group and JD.com. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Why Alibaba Stock Is Rallying Today

Key Points
Investors are getting wary of AI spending sprees, which may be hurting SpaceX stock right now.
OpenAI has reportedly considered waiting to go public after seeing SpaceX's share price volatility.
Most large companies that go public experience significant share price swings, and usually gain only about 3.5% in the 12 months after their IPO.
OpenAI is reportedly considering delaying its IPO until sometime next year. The company has already filed the preliminary paperwork to go public, so the potential delay is a bit of a disappointment to investors who are waiting to invest in the AI juggernaut.
The New York Times reported that advisors to OpenAI CEO Sam Altman are telling him that the recent volatility in Space Exploration Technologies' (NASDAQ: SPCX) IPO indicates that now is not a good time for AI companies to go public.
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SpaceX stock, after opening at $150 per share on its IPO debut and rising as high as $225 a few days later, is now back down to around $156, as of this writing. Cerebras, another recent IPO by an AI company, also experienced a huge spike on its IPO day, only to see its shares remain volatile in the following weeks.
Investors are indeed concerned that AI companies are spending too much on infrastructure, with hopes of future profits too far down the road.
But OpenAI may be missing the bigger picture: IPOs tend to be highly volatile regardless of the market environment.
OpenAI is trying to avoid SpaceX's volatility
OpenAI and SpaceX may seem like very different companies, but there's actually a fair amount of overlap between the two. SpaceX owns the Grok AI chatbot and recently made a major $60 billion purchase of Cursor, giving it AI software for programming to better compete with ChatGPT and Anthropic's Claude.
SpaceX is also building extensive AI infrastructure for its neocloud business, renting out high-powered processors to AI companies such as Anthropic, Alphabet's Google, and others.
Why does this matter in the context of an OpenAI IPO? Both SpaceX and OpenAI are burning through piles of cash to expand their AI services at a time when investors are starting to doubt companies will see a return on their spending.
SpaceX's 2025 capital expenditures totaled $20.7 billion and are likely to be higher this year, given that Q1 2026 spending was already $10 billion. The company also reported a net loss of nearly $5 billion last year and doesn't expect to be profitable for at least several years.
OpenAI's detailed financial information isn't publicly available yet, since the company's S-1 filing hasn't been filed, but investors can get a good idea of the company's spending from estimates -- and there's a lot of it.
OpenAI had an operating loss of nearly $21 billion last year and spent about $34 billion. The company has just over $13 billion in revenue for 2025, and says it has an annual revenue run rate of $20 billion.
The point here is that, like SpaceX, OpenAI is spending oodles of dollars to build out its AI empire, and profits aren't close.
The company reportedly aims to reach a $1 trillion valuation when it goes public and to avoid the volatility SpaceX stock has seen thus far. But that's easier said than done, even if SpaceX waits until next year to go public.
The one thing OpenAI advisors are missing
IPOs are inherently volatile, and larger ones can be especially so. Research from Jefferies analysts shows that companies worth $10 billion or more that went public over the past 26 years averaged 26.5% returns in their first week.
Pretty good, right? Except that one year later, they were up by an average of just 3.5%.
Ouch.
The lesson here is that expecting a mega IPO to perform exceptionally well over the next year, even with all of the AI hype that's currently underway, is statistically unlikely, which means that whenever investors can get their hands on some OpenAI shares, they should be prepared for a roller-coaster ride.
That doesn't mean OpenAI shares won't be a good long-term investment, or that SpaceX can't be, for that matter, either. But if you're interested in either stock, it's best to wait about a year before buying.
And with investors unlikely to look the other way on the AI spending sprees underway, I expect much more share price volatility in this space ahead.
Should you buy stock in Space Exploration Technologies right now?
Before you buy stock in Space Exploration Technologies, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Space Exploration Technologies wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $400,101!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,212,683!*
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*Stock Advisor returns as of July 2, 2026.
Chris Neiger has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet and Jefferies Financial Group. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

OpenAI Is Now Considering a 2027 IPO With a $1 Trillion Valuation. Should Investors Expect the Same Volatility as the SpaceX IPO?

Key Points
Weak job growth could suggest the labor market has not rebounded, as some had believed.
However, it could also suggest that core inflationary pressures are set to slow.
The report should give the Fed added flexibility regarding monetary policy.
In a highly anticipated jobs report ahead of the July 4th holiday weekend, the U.S. economy added a seasonally adjusted 57,000 jobs in June, roughly half of what economists expected.
The unemployment rate fell to 4.2% and average hourly earnings rose 0.3% from the prior month, in line with estimates.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
As of 12:44 p.m., the Dow Jones Industrial Average traded roughly 347 points higher, while both the S&P 500 Index and Nasdaq Composite were slightly in the red.
The report is a bit of a mixed bag. On one hand, it strays from the narrative suggesting the labor market has rebounded.
On the other hand, the soft data also gives the Federal Reserve more flexibility regarding the trajectory of interest rates.
Here’s the takeaway for investors.
Image source: Getty Images.
The bad news
On the negative side of the spectrum, the economy had been coming off three consecutive jobs reports showing solid gains.
Investors had been worried about the labor market, so the string of positive reports suggested that the economy may be on better footing.
Not only did the economy add far fewer jobs in June than expected, but the May jobs forecast got revised down to 129,000, indicating the picture hadn’t been as rosy as some had hoped.
Additionally, while the unemployment rate fell to 4.2%, the main driver was a decline in the labor force participation rate, which fell by 0.3% to 61.5%, the lowest level since March 2021.
This means the number of people working or actively seeking work declined, so it isn’t necessarily a good sign.
The good news
Due to high inflation, largely driven by the Iran war, the economy was getting to a point where it looked like the Fed may have no choice but to hike interest rates again.
This also put the economy in a position where bad news once again became good news.
A weaker labor market can suggest inflation will slow because demand is often driven by a healthy labor market, where people have disposable income to spend.
Additionally, this report gives the Fed added flexibility with interest rates, specifically the ability to continue holding them steady.
“For the Fed, this number is fine,” Jefferies Senior Economist Thomas Simons wrote in a research note, according to CNBC. “The pace of job growth is plenty strong enough to maintain a steady unemployment rate and average hourly earnings are solid, but not accelerating. There is no imperative on their part to do anything with rates immediately, and the softening in the pace of job growth suggests that rate hikes are very unlikely to be necessary this year.”
Yesterday, the market placed a roughly 36% chance on the Fed keeping rates steady at its September meeting. As of this writing, the likelihood of the Fed holding rates steady in September increased to over 46%.
Higher interest rates tend not to be as bullish for stocks. Ultimately, this is good news for the Fed, which likely wanted to avoid rate hikes if possible.
However, I don’t see this as an overly impactful report. The major indexes are most certainly being impacted by other factors on a day likely characterized by weak overall trading volume.
Inflation is still an issue, while the labor market remains a mystery.
Should you buy stock in Jefferies Financial Group right now?
Before you buy stock in Jefferies Financial Group, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Jefferies Financial Group wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $400,101!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,212,683!*
Now, it’s worth noting Stock Advisor’s total average return is 911% — a market-crushing outperformance compared to 208% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of July 2, 2026.
Bram Berkowitz has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Jefferies Financial Group. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

The U.S. Economy Added an Underwhelming 57,000 Jobs in June. Here's the Takeaway for Investors.

Key Points
The largest U.S. banks recently passed the Federal Reserve's stress test.
Most have taken the opportunity to boost their dividends.
Here's why this is a good time to buy bank stocks.
The Federal Reserve conducts an annual stress test of the 32 largest U.S. banks to assess how well they would withstand a severe recession or economic shock. These tests were borne out of the global financial crisis of 2008 as legislators took steps to shore up the banking system to avoid a similar meltdown.
This year, the large banks all passed the stress tests by varying degrees. According to the Fed, the banks proved they had sufficient capital to absorb nearly $708 billion in losses while continuing to lend to households and businesses under these hypothetical, stressful conditions.
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Under the hypothetical scenario of a severe recession, the aggregate common equity tier 1 (CET1) capital ratio of the 32 banks fell from an actual 12.8% Q4 of 2025 to a low of 11.2% in the depths of the hypothetical recession. But this was still above the required minimum regulatory levels. Then the average recovered back to 12.7% by the end of the scenario.
The stress test results typically lead to the Federal Reserve setting stress capital buffers for banks, which is the amount of additional capital they would need beyond the regulatory minimum to absorb a shock. But this year, the buffers did not change, as the Fed is currently calculating new stress capital buffer requirements and awaiting public feedback on potential changes. So the buffers from last year will remain in place this year.
So, what is the upshot for investors?
Most top 10 banks boost dividends
Banks typically raise their dividends after the stress test results and initiate share buybacks. That's because if the results are good, this tells the banks they have plenty of capital to survive tough times, which gives them the green light to return capital to investors under normal conditions.
Immediately after the results came out last week, JPMorgan Chase (NYSE: JPM), Goldman Sachs (NYSE: GS), Wells Fargo (NYSE: WFC), Morgan Stanley (NYSE: MS), Citigroup (NYSE: C), PNC (NYSE: PNC), U.S. Bancorp (NYSE: USB), and BNY Mellon (NYSE: BNY) initiated dividend raises.
Of the 10 largest banks, only Bank of America (NYSE: BAC) and Truist (NYSE: TFC) have not.
But Bank of America has raised its dividend every year since 2021 in the third quarter following stress test results, so it's likely to do so again when it announces second-quarter results on July 14. Truist has neither raised nor lowered its dividend since 2022.
In addition, JPMorgan Chase, known for its fortress balance sheet, took the opportunity to initiate a $50 million share buyback post-stress test, while Morgan Stanley launched a $20 million repurchase plan. Further, both Bank of America and Citigroup said they will continue executing on their multibillion-dollar repurchase plans.
Why is this a good time to invest in banks
This is a particularly good time to consider investing in large banks for a few reasons.
First, most banks are raising their dividends, which provides additional income or adds to the stock's total return. Share buybacks are also good for the stock price, as they reduce the number of shares outstanding, which tends to raise the price of the remaining shares.
Second, banks are set to announce their second-quarter earnings starting the week of July 13, with most of the large banks reporting that week. If banks have strong quarters and beat expectations, stock prices usually rise. Of course, that all depends on how banks do.
But a reason for optimism is that the second quarter looks like a strong one for banks. As a bellwether, Jefferies (NYSE: JEF), an investment bank, reported its fiscal second-quarter earnings last week for the period ended May 31, posting record investment banking revenue.
Also, the stock market was soaring in Q2, with the S&P 500 (SNPINDEX: ^GSPC) rising about 13% from April 1 through June 29. This should help the large banks' asset management and institutional trading arms.
Finally, bank stocks are pretty cheap right now, with several, including Bank of America, Truist, Wells Fargo, U.S. Bancorp, and PNC, trading at less than 15 times earnings, and BNY Mellon, Citigroup, Goldman Sachs, JPMorgan Chase, and Morgan Stanley all trading below 20 times earnings.
Should you buy stock in JPMorgan Chase right now?
Before you buy stock in JPMorgan Chase, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and JPMorgan Chase wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $397,890!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,196,664!*
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*Stock Advisor returns as of July 1, 2026.
Citigroup is an advertising partner of Motley Fool Money. Bank of America is an advertising partner of Motley Fool Money. JPMorgan Chase is an advertising partner of Motley Fool Money. Wells Fargo is an advertising partner of Motley Fool Money. Dave Kovaleski has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Goldman Sachs Group, JPMorgan Chase, Jefferies Financial Group, Truist Financial, and U.S. Bancorp. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

The Fed's Bank Stress Test Results Are In. Here's What They Mean for Dividends and Buybacks.

Key Points
TD Cowen initiated coverage on Vertex stock.
Vertex stock is trading at a discount to its historical valuation.
Starting the week on an auspicious note, Vertex (NASDAQ: VERX) stock is rising this morning. Shares of the software company are bouncing higher after an analyst initiated coverage with a bullish outlook.
As of 11:02 a.m ET, shares of Vertex are up 4.4%, retreating from an earlier gain of 7.5%.
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This firm sees strong revenue growth ahead
Initiating coverage today with a buy rating, TD Cowen assigned a $14 price target to Vertex, a software specialist that helps businesses maintain compliance with tax laws. TD Cowen based its bullish outlook on the belief that the company can maintain double-digit revenue growth through fiscal 2028 and possible beyond.
Based on Vertex's stock closing at $11.37 on Friday, TD Cowen's $14 price target implies upside of 23.1%.
TD Cowen's price target is consistent with other firms. In early May, for example, Jefferies and Morgan Stanley assigned price targets of $14 and $19, respectively.
Is Vertex stock a buy after today's news?
Underperforming the market, Vertex stock has suffered in 2026, falling more than 41% year to date as of this writing. While the company achieved growth across several metrics in the first quarter of 2026, investors remain skeptical. Vertex reported net revenue retention of 105% in Q1 2026, down from 109% during the same period last year.
Although the company's decline in net revenue retention is undesirable, it reported strong sales and free cash flow growth in Q1 2026. With shares of the tech stock trading at 11.8 times operating cash flow -- a discount to its five-year average cash flow multiple of 31.8 -- now looks like a good time to consider a position while the stock is sitting in the bargain bin.
Should you buy stock in Vertex right now?
Before you buy stock in Vertex, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Vertex wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $398,052!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,181,688!*
Now, it’s worth noting Stock Advisor’s total average return is 892% — a market-crushing outperformance compared to 205% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of June 29, 2026.
Scott Levine has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Jefferies Financial Group. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Why Vertex Stock Is Rising Today

Key Points
Jefferies stock was tanking following its Q2 earnings release.
The company missed revenue and earnings estimates but had record investment banking results.
What is the takeaway for the major investment banks?
Big banks are always among the first companies to report earnings every quarter. As banks are seen as bellwethers for the economy, investors can get a sense of what to expect from other sectors of the economy based on bank earnings. But there is one stock that might be considered a bellwether for the bellwethers -- Jefferies Financial (NYSE: JEF).
Jefferies is a leading investment bank, and it reports earnings weeks before other big investment banks like Goldman Sachs (NYSE: GS), Morgan Stanley (NYSE: MS), and JPMorgan Chase (NYSE: JPM). That's because its quarter ends one month earlier than those other banks -- in this case, May 31.
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So while it might not be a total apples-to-apples comparison to the other banks, Jefferies results can certainly give investors a sense of how the quarter went for the other major banks, perhaps providing intel on whether they should buy leading up to earnings season.
So how did Jefferies do? Here are some takeaways.
Earnings miss and a mixed bag
Jefferies' fiscal second-quarter earnings, released June 24, were a mixed bag. Net earnings grew a solid 5% year over year to $226 million, or $1.02 per share, but it was short of estimates of $1.16 per share. Revenue also missed estimates, despite rising 37% year over year to $2.21 billion. Analysts anticipated $2.22 billion.
The miss was the primary reason that Jefferies stock dropped about 8% the next day, June 25.
The earnings and revenue, while strong, missed estimates due to weak asset management numbers. Asset management revenue tumbled 46% to $188 million in the quarter due to a difficult stock market environment from March through May. Also, it took a hit from losses by its subsidiary, Point Bonita, which had significant exposure to First Brands Group, a company that went bankrupt last fall.
But on the plus side, Jefferies had blowout investment banking results.
Blowout investment banking revenue
Investment banking, Jefferies' bread and butter, had a record quarter. This should get the attention of investors looking at earnings for Goldman Sachs and Morgan Stanley next month.
Investment banking revenue surged to $1.2 billion, a 58% increase year over year. It was a record quarter for Jefferies, led by advisory and equity underwriting. It also had a strong quarter in capital markets as revenue rose 13% to $799 million. Combined, capital markets and investment banking revenue increased 37% year over year to a record $2 billion.
While the quarter may have been a mixed bag for Jefferies, it was good news for other investment bank stocks and their investors. Obviously, the record investment banking and capital markets hauls indicate that this will be a strong quarter for the large investment banks.
Additionally, the downside of this report for Jefferies, asset management, won't translate to the other competitors. That's because Jefferies' asset management results include March, a terrible month for stocks. Goldman Sachs', Morgan Stanley's, and JPM's quarters won't include March and will start with the recovery rally in April.
Also, a big part of Jefferies' asset management hit was from its Point Bonita exposure to First Brands. The other companies won't have that drag. So Q2 should be a good one for the investment banks.
Should you buy stock in Jefferies Financial Group right now?
Before you buy stock in Jefferies Financial Group, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Jefferies Financial Group wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $398,052!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,181,688!*
Now, it’s worth noting Stock Advisor’s total average return is 892% — a market-crushing outperformance compared to 205% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of June 28, 2026.
JPMorgan Chase is an advertising partner of Motley Fool Money. Dave Kovaleski has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Goldman Sachs Group, JPMorgan Chase, and Jefferies Financial Group. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Jefferies Reports Earnings Before the Big Banks. Here's Why Wall Street Should Be Watching Closely.

Legendary investor Warren Buffett advises to be fearful when others are greedy, and be greedy when others are fearful. One way we can try to measure the level of fear in a given stock is through a technical analysis indicator called the Relative Strength Index, or RSI, which measures momentum on a scale of zero to 100. A stock is considered to be oversold if the RSI reading falls below 30.
In trading on Friday, shares of Jefferies Group Inc. (Symbol: JEF) entered into oversold territory, hitting an RSI reading of 29.8, after changing hands as low as $48.48 per share. By comparison, the current RSI reading of the S&P 500 ETF (SPY) is 45.0. A bullish investor could look at JEF's 29.8 RSI reading today as a sign that the recent heavy selling is in the process of exhausting itself, and begin to look for entry point opportunities on the buy side. The chart below shows the one year performance of JEF shares:
Looking at the chart above, JEF's low point in its 52 week range is $35.53 per share, with $71.04 as the 52 week high point — that compares with a last trade of $49.10.
Further JEF Research:
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Jefferies Group is Now Oversold (JEF)

The S&P 500 Index ($SPX) (SPY) on Thursday closed down -0.01%, the Dow Jones Industrial Average ($DOWI) (DIA) closed up +0.14%, and the Nasdaq 100 Index ($IUXX) (QQQ) closed up +0.75%. September E-mini S&P futures (ESU26) rose +0.01%, and September E-mini Nasdaq futures (NQU26) rose +0.80%.
Stock indexes settled mixed on Thursday, with the S&P 500 falling to a 2-week low and the Dow Jones Industrials posting a new all-time high. The weakness in the Magnificent Seven technology stocks weighed on the broader market, led by a -6% plunge in Apple after it raised prices of Macs, iPads, home devices, and the Vision Pro to offset cost hikes driven by a shortage of memory chips and storage. Also, the weakness in software stocks on Thursday was a drag on the overall market.
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Stocks initially moved higher on Thursday, amid strength in chipmakers after Micron Technology’s blowout forecast reaffirmed the bull case for the artificial intelligence trade. Micron rallied more than +15% after forecasting Q4 revenue of $50 billion, well above the consensus of $43.24 billion. Also, Qualcomm rose by more than +3% after forecasting annual sales of more than $15 billion from artificial intelligence components for data centers by fiscal 2029.
Stocks also found support after Thursday’s US economic news showed signs of strength in the US economy. Q1 GDP was revised higher, weekly jobless claims fell more than expected, May personal spending and income were stronger than expected, and May capital goods new orders rose more than expected. Also, benign inflation news knocked bond yields lower and is supportive of stocks after the May core PCE price index, the Fed's preferred inflation gauge, rose as expected. The 10-year T-note yield fell to a 6-week low of 4.36%.
WTI crude oil (CLQ26) rebounded from a 4-month low on Thursday, rising more than 2%, weighing on market sentiment. Renewed tensions in the Persian Gulf pushed crude oil prices sharply higher on Thursday after the UK Maritime Trade Operations reported that a cargo vessel was hit by an unknown projectile off the coast of Oman in the Strait of Hormuz. The incident occurred after several freighters turned around while attempting to cross the Strait of Hormuz, with maritime intelligence companies reporting broadcasts purportedly from the Iranian navy instructing ships not to cross.
US weekly initial unemployment claims fell -12,000 to 215,000, showing a stronger labor market than expectations of 225,000.
US May personal spending rise +0.7% m/m, stronger than expectations of +0.6% m/m. May personal income rose +0.7% m/m, stronger than expectations of +0.4% m/m and the biggest increase in 10 months.
The US May core PCE price index, the Fed's preferred inflation gauge, rose +3.4% y/y, right on expectations and the largest increase in 2.5 years.
US May capital goods new orders nondefense ex-aircraft and parts, a proxy for capital spending, rose +1.6% m/m, stronger than expectations of +0.6% m/m.
US Q1 GDP was revised upward to +2.1% (q/q annualized), stronger than expectations of no change at +1.6%.
The markets are discounting a 32% chance of a +25 bp rate hike at the next FOMC meeting on July 28-29.
Overseas stock markets settled higher on Thursday. The Euro Stoxx 50 closed up +0.85%. China's Shanghai Composite closed up +0.23%. Japan’s Nikkei-225 Stock Average closed up sharply by +4.61%.
Interest Rates
September 10-year T-notes (ZNU6) closed up by +3 ticks on Thursday, and the 10-year T-note yield fell -0.2 bp to 4.390%. Sep T-note prices climbed to a 6-week high on Thursday, and the 10-year T-note yield fell to a 6-week low of 4.363%. Thursday’s benign inflation news supported T-notes after the May core PCE price index, the Fed's preferred inflation gauge, rose as expected. Also, Thursday’s initial decline in WTI crude oil to a 4-month low was bullish for T-notes. Solid demand for the Treasury’s $44 billion auction of 7-year T-note was positive for T-notes, as the auction had a bid-to-cover ratio of 2.50, above the 10-auction average of 2.47.
Thursday’s generally strong US economic news was bearish for T-note prices. Also, the reversal of crude oil prices from lower to sharply higher boosted inflation expectations and was bearish for T-notes.
European government bond yields were mixed on Thursday. The 10-year German bund yield fell to a 3.5-month low of 2.845% and finished down -0.8 bp to 2.857%. The 10-year UK gilt yield rose +1.6 bp to 4.699%.
The German July GfK consumer confidence index rose +0.5 to -29.2, weaker than expectations of -28.0.
Swaps are discounting a 6% chance of a +25 bp ECB rate hike at its next policy meeting on July 23.
US Stock Movers
The weakness in the Magnificent Seven technology stocks weighed on the broader market. Apple (AAPL) closed down more than -6% to lead losers in the S&P 500 and Dow Jones Industrials after raising prices of Macs, iPads, home devices, and the Vision Pro to offset cost hikes caused by a shortage of memory chips and storage. Also, Amazon.com (AMZN) and Microsoft (MSFT) closed down more than -3%, and Meta Platforms (META) closed down more than -2%. In addition, Nvidia (NVDA) closed down more than -1%, Alphabet (GOOGL) closed down -0.46%, and Tesla (TSLA) closed down -0.11%.
Software stocks fell on Thursday, pressuring the overall market. Atlassian Corp (TEAM) closed down more than -8%, and Palantir Technologies (PLTR) closed down more than -5%. Also, ServiceNow (NOW) closed down more than -4%, and Workday (WDAY) closed down more than -3%. In addition, Oracle (ORCL) and Intuit (INTU) closed down more than -2%, and Adobe Systems (ADBE) and Salesforce (CRM) closed down more than -1%.
Cryptocurrency-exposed stocks were under pressure on Thursday as Bitcoin (^BTCUSD) fell more than -2% to a 1.75-year low. Strategy (MSTR) closed down more than -9% to lead losers in the Nasdaq 100, and Coinbase Global (COIN) closed down more than -5%. Also, Galaxy Digital Holdings (GLXY) closed down more than -1%, and MARA Holdings (MARA) closed down -0.86%.
Chipmakers and AI infrastructure stocks rallied on Thursday, led by a +15% surge in Micron Technology (MU) after it forecasted Q4 revenue of $50 billion, well above the consensus of $43.24 billion. Also, Sandisk (SNDK) closed up more than +21%, and Applied Materials (AMAT) closed up more than +13%. In addition, KLA Corp (KLAC) and Lam Research (LRCX) closed up more than +7%, and Western Digital (WDC) and ASML Holding NV (ASML) closed up more than +4%. Finally, Qualcomm (QCOM) closed up more than +3% after forecasting annual sales of more than $15 billion from artificial intelligence components in data centers by fiscal 2029.
Bio-Techne (TECH) closed up by more than +20% after Merck & Co agreed to buy the company for about $11.3 billion, or $73 per share.
Xylem (XYL) closed up more than +4% after Jeffries upgraded the stock to buy from hold with a price target of $140.
Keurig Dr. Pepper (KDP) closed up more than +3% after Barclays upgraded the stock to overweight from equal weight with a price target of $36.
McCormick & Co (MKC) closed up more than +1% after reporting Q2 net sales of $1.94 billion, above the consensus of $1.91 billion.
Trip.com ADRs (TCOM) closed down more than -12% after reporting Q1 adjusted earnings per American depositary receipt of 5.73 yuan, weaker than the consensus of 6.09 yuan.
Jeffries Financial Group (JEF) closed down more than -9% after reporting Q2 EPS of $1.02, weaker than the consensus of $1.24.
Dell Technologies (DELL) closed down more than -5% after GF Securities downgraded the stock to hold from buy.
HB Fuller (FUL) closed down more than -4% after agreeing to buy Advance Medical Solutions Group for $868 million.
Earnings Reports(6/26/2026)
Apogee Enterprises Inc (APOG) and Anavex Life Sciences Corp (AVXL).
On the date of publication, Rich Asplund did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Jefferies Financial Group Inc.

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