Charles Schwab CEO Walt Bettinger said Tuesday that retail investors using his brokerage platform are showing signs of bullishness on the stock market.
Bettinger revealed that Schwab clients have been adding equity exposure in the past few months. The volume of buy orders on Schwab’s platform is 20% higher than sell orders, showing investor optimism about the market, he added.
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“What’s interesting about June is that, even as this cash realigning fell to the lowest level it’s been in many, many months, part of that was because clients are now moving back into the equity markets. So that’s a good thing,” Bettinger said on “Squawk on the Street.”
“It’s clients simply moving into something in cash that pays higher yield. They’re back in the market. And we saw in the aggregate for the second quarter, buys were about 20% higher than sells. Our clients are showing some optimism,” he added.
The S&P 500 has jumped more than 18% this year after scoring its best first half since 2019.
Shares of Schwab soared 12% Tuesday after its second-quarter report topped expectations. Schwab posted adjusted earnings per share of 75 cents on $4.66 billion in revenue. Analysts polled by Refinitiv estimated 71 cents per share on $4.61 billion of revenue.
The stock is still down more than 21% this year, even after Tuesday’s surge. Schwab shares sold off dramatically earlier this year during the regional banking crisis amid concerns about deposit outflows and its balance sheet.
— CNBC’s Jesse Pound contributed reporting.
Source: Finance - cnbc.com
