Ronald J. Kruszewski: Client Assets Reach Record Growth of 10%
Ronald J. Kruszewski, Chairman and Chief Executive Officer, said, "In January, total client assets and fee-based client assets reached record levels, increasing 10% and 16% year over year, respectively, driven by market appreciation and solid net inflows. Treasury deposits rose 70% from the prior year, reflecting strong venture and fund banking deposit activity. Client money market and insured product balances declined by less than 3% from year-end due to seasonal factors, as growth in Smart Rate balances was offset by lower Sweep balances. Total bank loans declined by less than 1% during the month, consistent with typical early-year seasonality."
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- Stock Performance: Shares of Fair Isaac, the company behind the FICO score, have dropped for three consecutive days.
- Market Competition: The decline is attributed to Fair Isaac's efforts to maintain its market share against the three major credit bureaus.
- Oil Price Impact: Oil prices surged past $110 per barrel due to the ongoing Iran conflict, leading Chevron to hit an all-time high, while Talos Energy rose by 5%, and ConocoPhillips and Northern Oil gained 2% and 3% respectively, indicating strong performance among oil companies in a high-price environment.
- Hims & Hers Health Surge: The company's stock soared 39% after striking a deal with Novo Nordisk to sell its weight-loss drug, resolving a lawsuit over a copycat version, which is expected to significantly enhance its market share and brand reputation.
- Live Nation Settlement Near: Live Nation's shares rose 6% as it nears a settlement with the Department of Justice regarding monopoly allegations in the live concert industry, which, if successful, will stabilize and expand its future business operations.
- United Therapeutics Buyback Plan: The pharmaceutical company's shares increased by over 8% after its board authorized a $2 billion stock repurchase plan, with $1.5 billion allocated for accelerated buybacks, which is expected to boost investor confidence and enhance shareholder value.
- Strait Closure Impact: The coordinated U.S. and Israeli strikes on Iran have effectively closed the Strait of Hormuz, which typically handles over 25% of global seaborne oil, resulting in a 14% surge in Brent crude prices and a 70% spike in European natural gas, significantly impacting the global energy market.
- Market Restructuring Pressure: Major shippers are rerouting vessels, and insurers are withdrawing coverage, leading Stifel analysts to warn that a prolonged blockade could push oil prices toward $100 per barrel, prompting a shift in equity markets towards a “bid for Value over Growth,” particularly benefiting the Energy and Utilities sectors.
- Inflation and Consumer Impact: With rising energy costs, Stifel notes that consumer spending, which drives approximately 68% of U.S. GDP, is expected to be heavily weighed down, while high-growth tech stocks are punished due to rising discount rates, shifting investor preference towards defensive assets.
- Global Trade Realignment: The disruption at the Strait of Hormuz is catalyzing a broader recalibration of transatlantic and trans-Pacific trade relations, as military buildups force adjustments in “just-in-time” supply chains, significantly slowing global energy flows and increasing capital inefficiencies in manufacturing.
- FDA Drug Rejections: The U.S. FDA has denied or discouraged applications for at least eight drugs over the past year, including UniQure's gene therapy for Huntington's disease, indicating regulatory uncertainty that could impact future treatment approvals.
- Investor Concerns Rise: Investors are increasingly wary as the FDA appears to change its standards for drug applications, particularly for treatments targeting hard-to-treat diseases, leading to diminished confidence in ongoing development efforts.
- Changing Regulatory Standards: The FDA's request for UniQure to conduct new placebo-controlled trials contradicts previous guidance, highlighting inconsistencies in the agency's approval process that may create uncertainty for companies in their R&D efforts.
- Uncertain Future Outlook: Analysts warn that if the FDA does not approve Denali Therapeutics' drug for Hunter syndrome, it could further undermine other companies' confidence in running open-label studies, potentially stifling innovation across the industry.
Financial Boost: Marvell Technology's fourth-quarter financials are expected to improve due to ongoing demand for hardware that supports artificial intelligence.
Customer Demand: The increasing need for AI-related technology is driving customer purchases, positively impacting Marvell's revenue.
- Impact on Congress: The escalating conflict in the Middle East may lead to delays in Congress's legislative activities.
- Risk to Domestic Agenda: This situation poses a threat to a significant portion of President Trump's domestic agenda.











