The Charles Schwab Corporation - SCHW STOCK NEWS

Charles Schwab (SCHW) has announced a Winter Business Update scheduled for institutional investors on Tuesday, January 21st. The event will be conducted via a live public webcast from 7:30 AM - 8:30 AM CT (8:30 AM - 9:30 AM ET). CEO Rick Wurster and CFO Mike Verdeschi will participate in this update, which is part of an ongoing series aimed at keeping the investment community informed about recent developments and management's strategic focus. The webcast will be accessible through the Schwab Events website.

Schwab Center for Financial Research (SCFR) has released its annual market outlook for 2025, providing comprehensive insights across multiple financial sectors. The report indicates a complex economic landscape ahead, with crosscurrents from tariff, immigration, and tax policies. While U.S. equities show strong momentum and breadth entering 2025, increased volatility is expected due to sticky inflation and labor market challenges.

The fixed income outlook suggests a volatile year with the Federal Reserve's planned rate cuts competing with inflation risks. Corporate bonds show strong fundamentals but rich valuations, while municipal bonds are expected to face a year of two halves, heavily influenced by tax policy changes. The global outlook indicates potential volatility but suggests solid returns for international stocks, despite challenges from trade policy and slower growth.

Charles Schwab (SCHW) reported strong November 2024 performance with $28.8 billion in core net new assets and total client assets reaching $10.31 trillion, marking a 26% increase year-over-year and 5% growth from October. Daily average trades rose 20% month-over-month to 6.6 million, driven by equity volumes. Transactional sweep cash remained stable at $393.7 billion.

The company revised its full-year 2024 net revenue growth forecast upward to 3.0-3.5% from the previous 2.0-3.0% range, citing increased investor engagement, post-election market strength, and stabilizing client cash balances.

Schwab Trading Activity Index (STAX) rose to 49.22 in November from 48.37 in October, indicating a 'moderate low' trading activity compared to historical averages. More clients were net buyers of equities, particularly in Information Technology, Health Care, and Consumer Staples sectors, while selling was concentrated in Communication Services, Financials, and Consumer Discretionary.

Following the U.S. election results and Fed's interest rate cut announcement, market uncertainty decreased, with all three major U.S. stock indices reaching new all-time highs. The VIX fell 26% to 13.49, while the 10-year Treasury yield closed at 4.172%. Popular buys included NVIDIA, Palantir, and AMD, while Apple, Disney, and Tesla were among the most sold stocks.

Schwab's new survey reveals a significant generational shift in wealth transfer preferences among high net worth Americans. The study of over 1,000 individuals with $1M+ in investable assets shows that 97% plan to transfer their wealth, with younger generations breaking from tradition.

Millennial and Gen X millionaires are twice as likely to share wealth during their lifetime compared to Boomer counterparts. On average, wealthy Americans plan to distribute $4.1M in assets, with 40% in real estate, 31% in investments, 18% in cash, and 11% in life insurance proceeds.

Notable findings include that 63% of wealthy Americans started planning wealth transfer before age 45, and 70% stipulate how their wealth should be used. Nearly all Millennials (97%) and Gen X (94%) include stipulations in their wealth transfer plans, compared to only 34% of Boomers.

Schwab Advisor Services has announced an expansion of its RIATA Student Scholarship program. As it approaches its fifth anniversary in 2025, the program will increase awards to $15,000 for 15 students. This expansion coincides with the Schwab University Grant Program's expected $25M milestone in 2025. To date, grants have been awarded to 35 colleges across 28 states.

The initiative aims to address the industry's projected need for 70,000 new professionals over the next five years, as indicated by Schwab's RIA Benchmarking Study. The program supports curriculum development, facilities, and technology to create pathways for careers in financial planning. The celebration of these advancements will take place at the IMPACT® 2024 Conference in San Francisco.

Schwab Asset Management launched the Schwab Mortgage-Backed Securities ETF (SMBS) with an industry-leading low expense ratio of 0.03%. The ETF tracks the Bloomberg US MBS Float Adjusted Total Return Index and invests in investment-grade mortgage-backed securities guaranteed by Ginnie Mae, Fannie Mae, and Freddie Mac. The launch marks Schwab Asset Management's 15th anniversary in the ETF space, where it has grown to become the fifth-largest ETF provider.

Charles Schwab has released its October 2024 Monthly Activity Report, highlighting significant financial metrics. The company attracted $24.6 billion in core net new assets and $21.0 billion in net new assets excluding mutual fund clearing. Total client assets reached $9.85 trillion, marking a 29% increase year-over-year but a 1% decrease from September 2024. Transactional sweep cash grew by $10.0 billion to $394.0 billion compared to the previous month.

Charles Schwab employees packed and donated nearly one million meals to families in need across the United States during its annual 'Season of Giving' campaign. Thousands of volunteers across 13 U.S. cities participated in the initiative, with the Charles Schwab Foundation contributing an additional $300,000 to local food banks and hunger relief nonprofits. Employees volunteered more than 6,000 hours, organizing meal-packing events and in-office drives. The company partnered with Harvest Pack to coordinate the meal donations, addressing food insecurity which affects over 47 million people, including 1 in 5 children annually.