US Security Brokers, Investment Advisors and Exchange Corps 2Q 2013 Earnings Up 24%

I included the very largest US Security Brokers and Investment Advisors in with the US Big Six Financial Corps in an earlier 2Q 2013 Earnings post.

In addition, there are 10 other US Security Brokers, Investment Advisors and Exchange Corps which generated Adjusted Earnings of more than $100 mil in either the 2Q 2013 or the 2Q 2012.

These 10 Corps generated 2Q 2013 Total After-tax Adjusted Earnings which were up a very robust 24% over the 2Q 2012.  And all 10 of them had very nice earnings increases, with 9 of them generating double-digit percentage earnings growth.

Clearly, the overwhelming beneficiaries of this very robust earnings growth is the Big Financial Industry itself along with the wealthy, thereby further expanding the gargantuan economic gap between the wealthy and everyone else.

Below here are the earnings of these 10 US Security Brokers, Investment Advisors and Exchange Corps for the 2Q 2013 and for the comparable 2Q 2012:

	2Q 2013	2Q 2012
	Adjusted	Adjusted
	Net	Net
	Income	Income
	From	From
	Continuing	Continuing	Increase	Increase
	Operations	Operations	(Decrease)	(Decrease)
	mil $s	mil $s	Amount	%
US Security Brokers, Investment Advisors and Exchanges
BlackRock	722	558	164	29%
Franklin Resources	552	455	97	21%
Ameriprise Financial	352	254	98	39%
CME Group	311	245	66	27%
Charles Schwab	256	231	25	11%
T Rowe Price Group	248	207	41	20%
Invesco Ltd	224	180	44	24%
TD Ameritrade	184	144	40	28%
Intercontinental Exchange	153	143	10	7%
NYSE Euronext	153	128	25	20%
Total all 10	3,155	2,545	610	24%

US Big National/Regional Bank Corps 2Q 2013 Earnings Up 80%

I included Wells Fargo in with my earlier post on the 2Q 2013 Earnings of the Big Six Financial Corps.

There were three other US Big National/Regional Bank Corps with After-tax Earnings of more than $1 bil in either the 2Q 2013 or the 2Q 2012.

These three US Big National/Regional Banks generated 2Q 2013 Total Earnings which increased by a massive 80% over the 2Q 2012, double the 40% Total Earnings increase of the US Big Six Financial Corps.  Whew!

This bifurcation between the 2Q 2013 earnings growth of the US Big Financial Industry and the rest of Corporate America is just massive.  This is taking the US towards what existed before the 2008 financial bubble, where the Earnings of the US Big Financial Corps comprised a very significant portion of the Total Earnings of all of Corporate America.  This is a very bad development, being triggered by the substantial propping up of the US Big Financial Industry by the US Congress, which is under effective control to a large extent by the Big Financial Industry, and by US Fed action, which has overwhelmingly benefited the Big Financial Industry and the wealthy.

Below here are the earnings of these three US Big National/Regional Bank Corps for the 2Q 2013 and for the comparable 2Q 2012:

	2Q 2013	2Q 2012
	Net	Net
	Income	Income
	From	From
	Continuing	Continuing	Increase	Increase
	Operations	Operations	(Decrease)	(Decrease)
	mil $s	mil $s	Amount	%
US Big National/Regional Banks
US Bancorp	1,444	1,378	66	5%
Capital One Financial	1,236	193	1,043	540%
PNC Financial	1,123	546	577	106%
Total all 3	3,803	2,117	1,686	80%

US Big Credit Card Corps 2Q 2013 Adjusted Earnings Up 13% and EPS Up Much Higher

There are four large US Credit Card Corps.  Their Total Adjusted Earnings increased by 13% in the 2Q 2013 over the 2Q 2012.  And on an EPS growth basis, their earnings growth was even much higher, due to their substantial stock buybacks.

There is something seriously wrong with the US economy when all of the large Financial Corps do so well all across the board in the 2Q 2013, when so many Non-Financial Corps are not doing well on the earnings front.

And there is also something unfair when these Credit Card Corps and Big Financial Corps like JP Morgan Chase and Citigroup continue to generate blowout earnings while so many of their financially-strapped customers go deeper and deeper in debt, further expanding the huge economic gap between the wealthy and everyone else.

Below here are the Adjusted Earnings of these 4 Big Credit Card Corps in both the 2Q 2013 and the 2Q 2012:

	2Q 2013	2Q 2012
	Adjusted	Adjusted
	Net	Net
	Income	Income
	From	From
	Continuing	Continuing	Increase	Increase
	Operations	Operations	(Decrease)	(Decrease)
	mil $s	mil $s	Amount	%
Big Credit Card Corps
American Express	1,405	1,339	66	5%
Visa	1,225	1,055	170	16%
MasterCard	848	700	148	21%
Discover Financial Services	602	525	77	15%
Total all 4	4,080	3,619	461	13%

US Big Health Insurance Corps 2Q 2013 Adjusted Earnings Up 14% and EPS Up Much Higher.....It's Mostly on the State Insurance Commissions

The Big 5 Health Insurance Corps had their Total Adjusted Earnings increase by a hefty 14% in the 2Q 2013 over the 2Q 2012.  And all 5 of them had very nice earnings increases, particularly very nice in a quarter where the 25 Dow Non-Financials Corps' Total Earnings declined by 11% and where the Big Technology Corps' Total Earnings declined by 15%.

And on an EPS basis, the growth was substantially higher, with WellPoint's Earnings growth of 16.7% advancing to a massive 27.5% on an EPS growth basis, due to its huge stock buyback strategy.  And the giant United Health's Earnings growth of 7.4% grew to 10.2% on an EPS growth basis. 

In all fairness to the country's total health care system, there is no way that State Insurance Commissions should be approving insurance premium hikes that result in these windfall profit increases of the Big 5 Health Insurance Corps.

And I don't see why Aetna was recently allowed to acquire the 6th Biggest Health Insurance Corp Coventry Health Care.  To bend down the long-term US health care cost curve, the country needs more health insurance companies, not fewer.

Below here are the Adjusted Earnings of these 5 Big Health Insurance Corps in both the 2Q 2013 and the 2Q 2012:

	2Q 2013	2Q 2012
	Adjusted	Adjusted
	Net	Net
	Income	Income
	From	From
	Continuing	Continuing	Increase	Increase
	Operations	Operations	(Decrease)	(Decrease)
	mil $s	mil $s	Amount	%
Big Health Insurance Corps
United Health	1,436	1,337	99	7%
WellPoint	787	674	113	17%
Aetna	549	452	97	21%
Cigna	512	434	78	18%
Humana	420	356	64	18%
Total all 5	3,704	3,253	451	14%

US Dow Industrial Corps 2Q 2013 Adjusted Earnings Down 5%.....It's on the US Congress

The 30 Dow Industrial Companies generated Total Adjusted Earnings in the 2Q 2013 which were a 5% decline from the 2Q 2012.

But it gets much worse than this.

The 25 Dow Non-Financial Companies had their Total Adjusted Earnings decline by 11% from the 2Q 2012.  Yeah, that means that the 5 Dow Financial Corps had their earnings go through the roof with Total Adjusted Earnings in the 2Q 2013 up a monstrous 34% over the 2Q 2012.

Adjusted Earnings are what these companies report as their ongoing, core after-tax adjusted earnings in their earnings releases.

This 11% Total Adjusted Earnings decline in the 2Q 2013 for the 25 Dow Non-Financial Companies is a particularly troublesome signal of the US economy because these companies are pretty much among the very best ones in each sector.

And how does the US Congress react to this devastating economic news?  It takes a five-week vacation.

Clearly, the US Congress-mandated Sequester spending cuts have severely harmed nearly all of these 25 Non-Financial Companies' earnings in the 2Q 2013.

Further, US Congress lack of US economic stimulation harmed these companies.

And the US Congress lack of compromise in even refusing to permit the US Government Budget already passed by both the US House and the US Senate to proceed to Conference has increased business uncertainty substantially and thus dampened much needed business capital investments.

I have to ask this question.  Other than members of their own immediate families, who else are included in the 10% who approve of the actions of the US Congress?  Given the way they are destroying the US economy by refusing to compromise on nearly any economic issue of substance in the past three years, a fair overall approval rating of the US Congress has to now be much lower than 10%.

And given that these stellar 25 Dow Non-Financial Companies generated a Total Adjusted Earnings decline of 11% in the 2Q 2013, that so many of the new US jobs are part-time ones, and that many of the new full-time jobs pay so little, how can the US Fed taper its US Government Security Investments in the near term?

And just why does both the US Congress and the Fed continue to significantly prop up the Big Financial Industry and in such a manner which does nothing to help the overall US economy?

Below here are the Adjusted Earnings of these 30 Dow Industrial Companies in both the 2Q 2013 and the 2Q 2012:

	2Q 2013	2Q 2012
	Adjusted	Adjusted
	Net	Net
	Income	Income
	From	From
	Continuing	Continuing	Increase	Increase
	Operations	Operations	(Decrease)	(Decrease)
	mil $s	mil $s	Amount	%
Dow Industrials
Financial Corps
JPMorgan Chase	6,496	4,960	1,536	31%
Bank of America	4,012	2,463	1,549	63%
United Health	1,436	1,337	99	7%
American Express	1,392	1,325	67	5%
Travelers	816	495	321	65%
Total all 5 Financial Corps	14,152	10,580	3,572	34%
Non-Financial Corps
Exxon Mobil	6,860	8,410	(1,550)	-18%
Chevron	5,365	7,210	(1,845)	-26%
Microsoft	4,380	6,123	(1,743)	-28%
Johnson & Johnson	4,289	3,644	645	18%
Pfizer	4,003	4,449	(446)	-10%
WalMart	3,784	3,742	42	1%
General Electric	3,685	4,010	(325)	-8%
AT&T	3,606	3,902	(296)	-8%
IBM	3,579	4,077	(498)	-12%
Coca Cola	2,869	2,791	78	3%
Cisco Systems	2,728	2,605	123	5%
Merck	2,530	3,227	(697)	-22%
Procter & Gamble	2,320	2,403	(83)	-3%
Verizon Communications	2,097	1,825	272	15%
Intel	2,000	2,827	(827)	-29%
Walt Disney	1,847	1,831	16	1%
Hewlett Packard	1,698	1,949	(251)	-13%
United Technologies	1,552	1,466	86	6%
McDonalds	1,397	1,347	50	4%
Boeing	1,289	1,128	161	14%
Home Depot	1,226	1,035	191	18%
3M	1,197	1,167	30	3%
DuPont	1,189	1,421	(232)	-16%
Caterpillar	960	1,699	(739)	-43%
Alcoa	76	61	15	25%
Total all 25 Non-Financial Corps	66,526	74,349	(7,823)	-11%
Total all 30 Corps	80,678	84,929	(4,251)	-5%

Arizona Corp Stock Prices Up 160% Since President Obama Took Office, With Major Help From Senator McCain

In an October 14, 2012 post, I found 26 Corps headquartered in the State of Arizona, which had their common stock trading on both January 16, 2009, which is the last day stocks traded before President Obama took office, and also on October 12, 2012, and which also generated Core, Ongoing Pretax Income or Pretax Loss of at least $10 mil each in any of the most recent three fiscal years.

These 26 Arizona Corps had their average stock price increase by 84% from the time President Obama took office in his first term and October 12, 2012, as you can see in the below link:

Arizona Corp Stock Prices Up 84% 

So, how have these 26 Arizona Companies done lately?  Well, exceptionally better, with their average stock price up 160% from January 16, 2009 to the close today Thursday Aug 1, 2013.  And this 160% increase is 1.6 times the 101% increase in the S&P 500 Index over the identical time span.

Yeah, something magical has happened to the stock prices of so many of these Arizona Corps since October 2012.

Arizona citizens have to be extremely happy with the overall stock market performance of their superb Arizona Companies during the Obama Administration.

But there's much more to this story.

Arizona US Senator John McCain has worked hard and very successfully on behalf of nearly all Arizona companies.  And he has very effectively worked across the aisle, particularly when the end result was economically beneficial to Arizona citizens and businesses.

And when you have a very knowledgeable, extremely influential Senator like McCain working with the Obama Administration on key initiatives, it only makes sense that the end result will be that the overall stock prices of Arizona Corps will do exceptionally well.

Thus, it only makes sense that Senator McCain has stepped up to be part of the "The Diners Club", a group of 8 of the most savvy Republican Senators who have decided to patriotically work with the Obama Administration to help solve the country's fiscal problems.

Below here are the common stock market closing prices of each of these 26 Arizona Corps at both the most recent date (August 1, 2013) or at a recent acquisition date for the two companies which were acquired, and also at the date just before President Obama took office in his first term (Jan 16, 2009), as well as the percentage stock market price changes for this period of time:

		Market	Market	Percentage
	Arizona	Price	Price	Increase
	HQs	8/1/2013	1/16/2009	(Decrease)
Dow Industrials Index		15,628.02	8,281.22	89%
S&P 500 Index		1,706.87	850.12	101%
S&P Mid-Cap 400 Index		1,257.72	516.75	143%
S&P SmallCap 600 Index		595.83	247.89	140%
Companies HQd in Arizona
Providence Service Corp	Tucson	$28.17	$1.55	1717%
Meritage Homes	Scottsdale	$44.92	$10.90	312%
Petsmart	Phoenix	$74.29	$18.35	305%
JDA Software (1)	Scottsdale	$45.00	$13.31	238%
Insight Enterprises	Tempe	$21.90	$6.74	225%
Medicis Pharmaceutical (2)	Scottsdale	$44.00	$14.32	207%
Mobile Mini	Tempe	$35.32	$13.24	167%
Freeport McMoran	Phoenix	$29.10	$12.20	139%
Microchip Technology	Chandler	$41.69	$17.71	135%
Cavco Industries	Phoenix	$55.18	$23.67	133%
US Airways	Tempe	$19.38	$8.53	127%
Western Alliance Bancorp	Phoenix	$18.14	$8.12	123%
Avnet	Phoenix	$39.11	$17.96	118%
ON Semiconductor	Phoenix	$8.44	$4.40	92%
Grand Canyon Education	Phoenix	$34.32	$20.19	70%
Southern Copper	Phoenix	$26.27	$15.62	68%
Amkor Technology	Chandler	$4.26	$2.70	58%
Amtech Systems	Tempe	$6.61	$4.20	57%
Republic Services	Phoenix	$34.41	$25.54	35%
Knight Transportation	Phoenix	$17.52	$13.11	34%
Viad Corp	Phoenix	$24.74	$22.94	8%
Limelight Networks	Tempe	$2.42	$2.33	4%
AV Homes	Scottsdale	$16.77	$26.16	-36%
Universal Technical Institute	Scottsdale	$11.69	$18.55	-37%
First Solar	Tempe	$48.15	$145.42	-67%
Apollo Group	Phoenix	$19.71	$89.22	-78%
Average Increase: all 26 Arizona Corps				160%
Dow Industrials Index		15,628.02	8,281.22	89%
S&P 500 Index		1,706.87	850.12	101%
S&P Mid-Cap 400 Index		1,257.72	516.75	143%
S&P SmallCap 600 Index		595.83	247.89	140%

(1) JDA Software was acquired by Red Prarie for $45.00 in Dec 2012.
(2) Medici Pharmaceutical was acquired by Valeant Pharmaceuticals for $44.00 in Dec 2012.

US Big Technology Corps 2Q 2013 Adjusted Earnings Down 15%.....It's on the US Congress

There are 17 US Technology Corps which have reported 2Q 2013 After-tax Adjusted Earnings of more than $400 mil each in either the 2Q 2013 or the 2Q 2012.

Adjusted Earnings are what these companies report as their ongoing core after-tax adjusted earnings in their earnings releases.

How did they do?  Not well, with their 2Q 2013 Total Earnings down 15% from the 2Q 2012.  And 10 of the 17 US Big Technology Corps had earnings declines.

The two stick-out earnings winners were Facebook, up a monster 65% and Qualcomm, up 23%.

The three stick-out winners on the Revenue increase front were Facebook, up 53%, Qualcomm, up 35%, and Google, up 19%.

The earnings quality was much better than the down 15%.  As one illustration here, these companies are required to expense up front their huge amounts of R&D expenditures, even though they receive, for the most part, huge future earnings benefits for many years from these R&D investments. 

Particularly, four companies made large R&D Investments in the 2Q 2013, which were substantially higher than their R&D Investments in the 2Q 2012:  Google $1,987 mil, up 29%, Cisco Systems $1,542 mil, up 14%, Qualcomm, $1,298 mil, up 33%, and Apple $1,178 mil, up 34%.

Clearly, the US Congress-mandated Sequester spending cuts have harmed these Technology Corps earnings in the 2Q 2013. 

Further, US Congress lack of US economic stimulation harmed these companies. 

And the US Congress lack of compromise, in even refusing to permit the US Government Budget, which has been already passed by both the US House and the US Senate, to proceed to Conference has increased business uncertainty, and thereby dampening investments in US Technology products.

Below here are the Adjusted Earnings of these 17 large US Technology Corps in both the 2Q 2013 and the 2Q 2012:

	2Q 2013	2Q 2012
	Adjusted	Adjusted
	Net	Net
	Income	Income
	From	From
	Continuing	Continuing	Increase	Increase
	Operations	Operations	(Decrease)	(Decrease)
	mil $s	mil $s	Amount	%
Big Technology
Facebook	488	295	193	65%
Qualcomm	1,823	1,486	337	23%
Ebay	822	730	92	13%
Texas Instruments	469	446	23	5%
Cisco Systems	2,728	2,605	123	5%
EMC	907	867	40	5%
Broadcom	436	435	1	0%
Oracle	4,114	4,143	(29)	-1%
Google	3,233	3,362	(129)	-4%
IBM	3,579	4,077	(498)	-12%
Hewlett Packard	1,698	1,949	(251)	-13%
Apple	6,900	8,824	(1,924)	-22%
Microsoft	4,390	6,123	(1,733)	-28%
Intel	2,000	2,827	(827)	-29%
Western Digital	477	872	(395)	-45%
Dell	372	761	(389)	-51%
Seagate Technology	447	1,028	(581)	-57%
Total all 17	34,883	40,830	(5,947)	-15%