Wednesday saw another day of weak-handed selling, with the low-volume day punctuated by a nearly 1% decline in financials as Wall Street braced for today’s slate of bank earnings. The Dow Jones Industrial Average dipped 0.3%, the S&P 500 finished 0.4% lower and the Nasdaq dropped 0.5%.
But perhaps Thursday won’t be all that bad, considering JPMorgan Chase & Co. (NYSE:JPM) has landed on our list of stocks to watch thanks to blowout earnings. Meanwhile, Advanced Micro Devices, Inc. (NASDAQ:AMD) and ConocoPhillips (NYSE:COP) are making headlines of their own.
Here’s what to look for in Thursday’s trading:
Advanced Micro Devices, Inc. (AMD)
AMD shares are headed solidly lower again on Thursday, but this time, there’s no real catalyst other than more time to think about the negative drivers hammering the stock of late.
Advanced Micro is now off nearly 10% (and soon to be more) following Goldman Sachs analyst Toshiya Hari initiating shares at “Sell.” To recap, Hari said that despite the fact that AMD’s “execution (i.e. new product launches, cost management and [balance sheet] deleveraging) has improved under CEO Lisa Su, we believe current risk-return is unfavorable.”
That announcement quickly sent AMD stock off a cliff, with shares buckling below both the 20- and 50-day moving averages. The stock has been unable to recover since then. Any strength was abandoned on Wednesday, when Advanced Micro was sent more than 2% lower with little resistance through the day.
AMD is off another 2%-plus this morning, and with little else in the way of near-term catalysts on the radar, bulls simply have to hope for a broad-market upswing to help improve the chipmaker’s fortunes.
JPMorgan Chase & Co. (JPM)
JPM shares are starting to crawl higher this morning on a massive first-quarter earnings beat.
JPMorgan posted revenues of $25.59 billion for Q1, topping expectations of $24.88 billion. That was driven largely by a billion-dollar beat in trading revenue, with $6.52 billion clearing a bar of $5.51 billion. That funneled down to EPS of $1.65, which easily bested expectations for $1.52.
That trading revenue was heavily influenced by a boost in bond trading, which was up 17% year-over-year to $4.22 billion. Conversely, revenue on the equity end, while still up, gained more modestly at 2% to $1.61 billion.