What’s Driving Stock Prices

It's the not big banks that will sway this market, but one area of the financial sector will influence stocks this earnings season

   

Video Transcript

We do have a bit of a cautious bullish bias at SlingShot Trader. That’s shown in the kinds of trades that we’re taking but we’re keeping the portfolio really light because the market trading activity has been a little unpredictable.

I have gotten some questions recently, so I wanted to dig into this a little bit so everybody understands where I’m coming from. It’s not just about the fundamentals because there certainly are issues on both sides of the table. There are some good things in the fundamentals of the economy and there are some bad things.

In general, corporate profits, which I think is really the headline that’s going to be driving stock prices at least over the next two or three weeks, have so far been looking good. We still need some of the key bellwether reports that I’m looking for are some of the actual banks, not JPMorgan Chase (NYSE:JPM), Bank of American (NYSE:BAC) or things like that. Think about a Zions Bancorp (NASDAQ:ZION) or a Keycorp (NYSE:KEY) or other regional banks, not major banks, where they’re really brick and mortar companies.

Those I think are going to tell us a lot about what to expect for the rest of the quarter’s earnings season and, in particular, what do we expect for guidance from the first-quarter earnings season.  While we’re in the first quarter now, we’ll be looking closely at the fourth-quarter calendar reports from 2012.

Investor Place advisors John Jagerson and S. Wade Hansen are co-founders of LearningMarkets.com, as well as the co-editors of SlingShot Trader, a trading service designed to help you make options profits by trading the news.  Get in on the next trade and get 1 free month today by clicking here.


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