By Staff Reporters
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Between Friday and Tuesday morning, Charles Schwab moved more than 7,000 advisors, nearly 4 million accounts held by clients, and $1.3 trillion in assets from TD Ameritrade to Schwab’s platform. It’s a milestone in Schwab’s acquisition and integration of TD Ameritrade, and comes amid an eventful year for Schwab (ticker: SCHW). The company’s stock plummeted in March amid concerns about deposit outflows. Shares have pared some of those losses but are down about 27% this year. Last month, the Westlake, Texas-based company disclosed fresh details on cost-cutting moves, including layoffs and office closures.
The weekend’s TD Ameritrade integration was years in the making. Schwab unveiled its deal to buy its longtime rival for $26 billion in November 2019, after both companies had cut commissions to zero. The acquisition, which closed in 2020, boosted Schwab’s online brokerage business and gave it a dominant position in the RIA custody sector. Registered investment advisors rely on custodians to hold client assets and to provide investment, technology, and other services.
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Now, here is where the major benchmarks ended:
- The S&P 500 Index was down 31.35 points (0.7%) at 4,465.48; the Dow Jones Industrial Average (DJIA) was down 198.78 points (0.6%) at 34,443.19; the NASDAQ Composite was down 148.48 points (1.1%) at 13,872.47.
- The 10-year Treasury note yield (TNX) was up about 3 basis points at 4.296%.
- CBOE’s Volatility Index (VIX) was down 0.44 at 14.45.
Financial and technology shares were among the weakest performers Wednesday, with the KBW Regional Banking Index (KRX) dropping more than 2%. The retail and transportation sectors were also under pressure. Energy stocks were one of the few gainers, lifted by WTI crude futures gaining for the sixth straight day after Saudi Arabia said it would extend a voluntary oil production cut.
The U.S. Dollar Index (DXY) strengthened for the fourth day in a row, rising to its highest point since mid-March.
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Filed under: "Advisors Only", Alerts Sign-Up, Career Development, Financial Planning, Investing | Tagged: CBOE, Charles Schwab, crude oil, DJIA, DOW, DYX, KRX, NASDAQ, S&P 500, SCHW, Schwab, Schwab integrates TD Ameritrade, TD Ameritrade, VIX, WTI crude | Leave a comment »