Finally financials lead–but watch out for a late session fold

Thursday’s action shows just how eager Wall Street is to move on to earnings season

April 13, 2018 | BAC, Daily JAM, Morning Briefing, Short Term, Volatility | 0 comments

Financial stocks led the Standard & Poor’s 500 higher on Thursday as the Financial Sector Sector SPDR ETF (XLF) gained 1.75% to beat the 0.83% rise in the S&P 500. Sure felt to me like the sector was anticipating the earnings reports from the big banks due on Friday morning before the market open. Earnings from the financial sector open first quarter earnings season.

Finally financials lead–but watch out for a late session fold

For shares of Bank of America and Goldman Sachs it’s all about the future

January 17, 2018 | BAC, Daily JAM, Morning Briefing | 6 comments

Certainly no one cheered this morning when Bank of America and Goldman Sachs announced big one-time hits from the recently passed tax bill, but as with JP Morgan Chase and Wells Fargo last week, the big deal for investors was what these huge financial institutions had to say about future quarters. And on that Bank of America and Goldman Sachs delivered differing degrees of optimism

Finally financials lead–but watch out for a late session fold

Looking for the setup to a potential options trade on Bank of America after fourth quarter earnings

December 7, 2017 | Daily JAM, Uncategorized | 1 comment

Will bank stocks in general–and shares of Bank of America (BAC) in particular–take a hit when they report huge fourth quarter “adjustments” and create an opening for a call options play on the 2018 earnings story? Bank stocks have been soaring on the belief, first, that the election of Donald Trump, would provide them with substantial relief from costly regulations and, second, on the belief that banks would be big winners from the tax bill that is now so close to passing Congress. But, to get to those golden days in 2018, banks first have to pass through a fourth quarter from hell. Adjustments to earnings–as result of provisions in the tax bill–will take billions out of bank earnings.

Finally financials lead–but watch out for a late session fold

Unexpected bad news in bank earnings reports

October 13, 2017 | Daily JAM, Morning Briefing | 2 comments

What came as a genuine surprise to me–and what has far bigger negative implications for the U.S. economy than any continued slump in trading revenue–was news that Citigroup and JPMorgan, two of the biggest banks in consumer finance (read credit cards) had taken big new hits in their consumer lending businesses. Citigroup, for example, booked $252 million in credit losses. JPMorgan Chase’s credit costs rose by $200 million from last year because of higher charge offs in its credit card business.

Finally financials lead–but watch out for a late session fold

Saturday Night Quarterback says (on a Sunday), for the week ahead expect…

October 8, 2017 | Daily JAM | 2 comments

Earnings season heads for serious territory this week with reports from Citigroup (C) and JPMorgan (JPM) before the market open on Thursday October 12, and from Wells Fargo (WFC) and Bank of America (BAC) before the market open on Friday October 13. Bank earnings are especially important because the financial sector has been the key support for the continued rally in stocks over the last month

Finally financials lead–but watch out for a late session fold

Today’s bank earnings and market reaction a mixed bag–which is an improvement from Friday’s pessimism

July 18, 2017 | Daily JAM, Morning Briefing | 0 comments

More big bank earnings today–and, fortunately, they were a mixed bag. Which made them markedly better than Friday’s results. Bank of America’s (BAC) ‘s second-quarter earnings per share rose 12% to 46 cents, beating by 3 cents a share. Revenue climbed 7% to $22.8 billion against the Wall Street consensus of $21.915 billion. Shares of Bank of America closed up 0.5% today, July 18.