The Charles Schwab Corporation - SCHW STOCK NEWS

The Schwab Trading Activity Index™ (STAX) decreased to 47.10 in September from 53.16 in August, marking the largest decline since June 2022. Schwab clients were net sellers of equities, particularly in Information Technology, Consumer Discretionary, and Communication Services sectors. They were net buyers in Energy and Consumer Staples.

The September STAX period was influenced by significant economic data, including a 50-basis point reduction in the Fed Funds rate. Despite market highs, clients de-risked portfolios, shifting from equities to fixed income. The S&P 500 and Dow Jones Industrial Average reached new highs, while the Nasdaq Composite closed up 2.68%.

Popular stocks bought included NVIDIA, Palantir, and Intel, while stocks sold included Tesla, AMD, and Alibaba. The VIX closed 13% higher at 16.96, and WTI Crude Oil futures fell by 7.30%.

The Charles Schwab has announced that Walt Bettinger will retire as CEO on December 31, 2024, as part of a multi-year succession plan. Rick Wurster, currently President of Schwab, will become President and CEO and join the Board of Directors on January 1, 2025. Bettinger will continue as Executive Co-Chairman of the Board alongside founder Charles R. Schwab.

During Bettinger's tenure as CEO since 2008, Schwab has seen significant growth:

• Client assets grew from $1.14 trillion to $9.74 trillion
• Client accounts increased from 9.3 million to 43.2 million
• Schwab's stock value rose 400% to approximately $65 per share
• Market capitalization grew 660% to about $119 billion

Bettinger expressed confidence in Wurster's leadership, citing his intelligence, integrity, and character. Charles Schwab praised Bettinger's successful tenure and supported Wurster as the next CEO, ensuring continuity for clients, employees, and stockholders.

Schwab Retirement Plan Services has secured the top spot in the J.D. Power 2024 U.S. Retirement Plan Digital Experience Study, marking its sixth top ranking in seven years. The company scored 753 out of 1000, 50 points above the industry average. Schwab excelled in key areas such as Navigation, Visual Appeal, and Information/Content.

Lee McAdoo, Managing Director, emphasized the significance of this achievement, highlighting Schwab's commitment to their 'Through Clients' Eyes' strategy and the growing importance of digital channels for plan participants. The company's consistent high performance demonstrates its dedication to providing best-in-class digital experiences for investors and supporting workplace financial journeys.

Charles Schwab has announced its Fall Business Update for institutional investors, scheduled for Tuesday, October 15th. This event is part of an ongoing series aimed at keeping the investment community informed about recent developments and management's strategic focus. The update will be held via live public webcast from 7:30 a.m. to 8:30 a.m. CT (8:30 a.m. to 9:30 a.m. ET).

Key participants in the update will include Co-Chairman and CEO Walt Bettinger, President Rick Wurster, CFO Mike Verdeschi, and Managing Director Peter Crawford. Interested parties can access the webcast at https://schwabevents.com/.

Schwab Advisor Services™ is set to host its 34th annual IMPACT® conference in San Francisco, the largest gathering of registered investment advisors (RIAs) in the nation. The event, scheduled for November 19-21, 2024, will feature keynote presentations, education sessions, and headline speakers, focusing on practice management, leadership, investment strategies, and client experience.

Attendees will hear from industry experts, including New York Times Bestselling Author Daniel Pink, AI experts Ethan Mollick and Allie K. Miller, and Schwab's senior leadership team. The conference will also include 80 higher education students and professors, participating in a Student Union space on the show floor. Jon Beatty, head of Schwab Advisor Services, emphasized the event's role in showcasing the power and promise of the RIA industry.

Charles Schwab 's August 2024 Monthly Activity Report highlights significant growth and positive trends. Core net new assets increased to $32.8 billion, up from $4.9 billion in August 2023. Total client assets reached $9.74 trillion, a 20% increase year-over-year. New brokerage accounts grew by 4% compared to August 2023, totaling 324,000.

Despite typical August seasonality, transactional sweep cash declined modestly to $366.8 billion, showing improvement over previous years. The company anticipates third-quarter results to align with July's Business Update, projecting 2-3% revenue growth and an adjusted pre-tax profit margin of at least 40%. These results reflect healthy investor engagement and slowing rate-related client cash realignment activity.

The Schwab Trading Activity Index™ (STAX) decreased to 53.16 in August from 54.81 in July, indicating moderate trading activity among Schwab clients. Investors were net sellers of equities, particularly in Communication Services, Health Care, and Information Technology sectors, while net buying Consumer Discretionary and Energy. This shift suggests a rotation from equities to fixed income as a de-risking strategy.

Despite market volatility, including a significant sell-off in early August, major indices showed resilience. The Dow Jones Industrial Average reached a new high of 41,585.21 on August 30. Economic indicators were mixed, with softer-than-expected jobs data and inflation metrics coming in slightly below expectations. The 10-year Treasury yield fell by 6.88% to 3.911%, while the US Dollar Index declined by 2.51% to 101.70.

The latest Charles Schwab Trader Sentiment Survey reveals a surge in trader optimism, with 56% reporting a bullish outlook for the next three months, up 10 points from Q2. Nearly 60% of traders believe it's a good time to invest, and over half feel financially better off compared to last year. Inflation concerns have decreased, while expectations for Fed rate cuts have increased.

Traders favor AI stocks (62%) and are most bullish on the Information Technology sector (61%). The survey also highlights increased positive sentiment towards growth stocks, mega-cap tech, and domestic stocks. As the 2024 presidential election approaches, 94% of traders believe it will impact financial markets, with 44% reducing portfolio risk in preparation.

Charles Schwab's 2024 Modern Wealth Survey reveals that Americans now consider $2.5 million as the threshold for being wealthy, up from $2.2 million in 2023. The survey also shows that $778,000 is the average net worth required to be financially comfortable. Notably, Boomers have the highest wealth threshold at $2.8 million, while Gen Z has the lowest at $1.2 million.

Geographically, San Francisco leads with a $4.4 million wealth threshold, followed by Southern California at $3.4 million. The survey also found that 21% of Americans believe they're on track to become wealthy, with Millennials and Gen Z being the most optimistic at 29%. However, only 18% of Americans feel they're currently on top of their finances. Those with a financial plan in place tend to give themselves higher grades in personal finance areas such as savings, investments, and retirement preparedness.