The Stock Market May Bounce Back

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JP Morgan (JPM)

Speaking of the banks, JP Morgan reported revenue and EPS that missed today. EPS came in at $1.98 versus estimates of $2.19 on revenue of $26.1 billion versus estimates $26.69 billion. Home lending for the bank fell 8% versus last year, which should not be a surprise given the rising mortgage rates and slowing housing sales during the quarter. Although those trends have changed recently as interest rates have fallen, it is likely to be a tailwind for the first quarter.

The markets and investors services unit fell 11% versus last year. Fixed income trading declined 16% versus last year, better than Citigroup, while equity trading revenue increased 15%. Overall the investment bank’s revenue fell 4% to $7.2 billion from $7.5 billion, making up a good portion of the overall revenue miss for the company.

The stock is trading lower to start the day to around $98.50. Resistance is at $102.60, and support doesn’t come until $94.72.

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Wells Fargo (WFC)

Wells Fargo is trading slightly lower after it reported eps of $1.21 vs. estimates of $1.18. Revenue was short of expectations at $20.98 billion versus estimates of $21.8 billion.


GM (GM)

Keep an eye on GM today; it is trading right around $38 in the pre-market and increase above $38 sends the stock higher to $39. But the stock has failed at $38 the two times it has tried. If it fails for the third time the stock is heading back to $35. Premium commentary: Investors Seem Skeptical On GM

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Nvidia (NVDA)

Nvidia is trading above technical resistance at $151.82. It sets up a potential rise to $160.

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I wrote a column for Seeking Alpha on why JD and Alibaba may be due to rise as the Renminbi weakens: JD.Com And Alibaba May Surge As Outlook Brightens 


Yields

10-Year yield appear to be finding support around 2.70%. I don’t expect that too last, and I see yields falling lower. PPI later this morning may play a hand in that.I have called for lower rates since October, and so far that has been correct. I think 2.61% is in the cards.

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Disclosure: Michael Kramer and the clients of Mott Capital own Apple

Disclaimer: This article is my opinion and expresses my views. Those views can change at a moments notice when the market ...

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