The Stock Market May Bounce Back


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.


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.


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


Nvidia (NVDA)

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

nvidia, nvda

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 


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.

View single page >> |

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 ...

How did you like this article? Let us know so we can better customize your reading experience. Users' ratings are only visible to themselves.


Leave a comment to automatically be entered into our contest to win a free Echo Show.