Stocks are rebounding on Tuesday thanks to a rally in crude oil as well as more dovish comments from Federal Reserve officials.
Today, Philadelphia Federal Reserve President Harker said it would be prudent to wait for inflation to heat up further before raising rates again — temping some of his previously hawkish commentary.
Also benefiting has been a cut to the International Monetary Fund’s global economic forecast, the fourth such cut in the last 12 months, which raises hopes of further policy stimulus.
But the biggest catalyst remains the continuation of the first-quarter earnings season that started on Monday. The calendar will be heavy with financial earnings later this week. Here are three stocks to watch.
Bank Stocks to Watch: Bank of America Corp (BAC)
Bank of America (BAC) shares, like many financial stocks, have been drifting lower as the recent strength in long-term Treasury bonds have pressured net interest margins.
Last week, BAC shares dropped below their 50-day moving average for the first time since March, as its stochastic indicator flashes a downtrend signal for the first time since December. Shares are rallying back toward the 20-day moving average on Tuesday as the consolidation near $13 continues.
Edge Pro subscribers are ready with a position in the $13 BAC puts.
The company will report results on April 14 before the bell. Analysts are looking for earnings of 22 cents per share on revenues of $20.3 billion.
Bank Stocks to Watch: Citigroup Inc (C)
Citigroup (C), like BAC and other financials, looks ready to resume the downtrend that started last July as the February-March rebound loses steam.
The hold above the 50-day moving average looks tenuous at best although the stock is challenging its 20-day moving average on Monday in mid-day trading.
The company will report results on April 15 before the bell. Analysts are looking for earnings of $1.09 per share on revenues of $17.6 billion.
Bank Stocks to Watch: JPMorgan Chase & Co. (JPM)
JPMorgan Chase (JPM) shares are consolidating between $60 and $58 — continuing a trading range that’s been in place since early March. The stochastic indicator is flashing a downtrend signal after coming out of overbought territory for the first time since December, however, so watch for a move to test support near $54.
The company will report results on April 13 before the bell. Analysts are looking for earnings of $1.26 per share on revenues of $22.8 billion.