Trading Activity Picks Up at Schwab

Financial services firm Charles Schwab(SCH Quote - Cramer on SCH - Stock Picks) reported that total new assets during May were $2.7 billion, and the company said client trading activity increased 11% year-over-year, with daily average revenue trades jumping 15%.

Due to the increase in trading over the past six weeks, the company said second-quarter financial results should improve over its first-quarter numbers.

Total client daily average trades were 199,600 in May, up 13% from April 2003, the company said. Client daily average revenue trades totaled 143,900, up 20% from April.

Total client assets were $833.5 billion as of the end of May, an increase of 4% from April 2003. Daily average trades through Schwab's Mutual Fund OneSource service and other asset-based trades were 55,700 during the month, up 1% from last May, the company said.

"The improved securities market environment we've seen in recent weeks has continued thus far into June, and our clients' daily average revenue trades reached 172,000 for the first 10 trading days of the month," said Chief Executive David S. Pottruck. "Given the increase in trading revenue we've seen over the last six weeks, the company's second quarter financial performance should show significant improvement over the prior quarter."

The company didn't give exact second-quarter guidance. Analysts expect the company to earn 7 cents a share, flat with last year's earnings. The company earned 5 cents a share in the first quarter this year.

Shares of the San Francisco-based company were down 6 cents to $11.28 on the news.