etail trading activity is falling more rapidly than expected. Both Charles Schwab
now say that they will fall short of consensus earnings estimates on Wall Street. The culprit was a steep fall in May trading.
"May was a fairly weak month, and that softness has continued," Schwab Chief Financial Officer Chris Dodds
Schwab expects to earn only 7 or 8 cents a share in the second quarter against the 9 cents expected by the Street. Ameritrade expects its third-quarter earnings to range from 2 cents to 4 cents per share, short of the 4 cents expected by the Street.
Trading at the San Francisco firm during May was down 25 percent from a year ago and eight percent from April. Meanwhile, Schwab's Omaha-based rival says trading slip 5.1 percent from April to May.
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