U.S. equities are rebounding higher on Wednesday thanks in large part to a powerful rally in the financial sector. The Financial Select Sector SPDR Fund (NYSEARCA:XLF) is up 1.5% to test its high from early last week, returning to levels last seen in early March.
A combination of tailwinds are in play, including positive comments on capital adequacy from the Federal Reserve as well as a lift in long-term Treasury yields over the past 48 hours. That’s lifting net interest margin hope — a key driver of big bank profits.
With all that in mind, here are three bank stocks on the move.
Bank Stocks on the Move: JPMorgan Chase & Co. (JPM)
JPMorgan Chase & Co. (NYSE:JPM) shares are rising up and out of what looks like an invalidated head-and-shoulders reversal pattern. Watch for a move to the “head” near $92.50, setting up a possible breakout from a long seven-month sideways range going back to December.
JPM will next report results on July 14 before the bell. Analysts are looking for earnings of $1.61 per share on revenues of $25 billion. When earnings were last reported on Apr. 13, the company reported earnings of $1.65 per share vs. the $1.53 expected. Revenues jumped 6.2% from the year prior to $25.5 billion.
Bank Stocks on the Move: Wells Fargo & Co (WFC)
Wells Fargo & Co (NYSE:WFC) is rising back above its 50-day moving average after finding support, yet again, on its 200-day moving average near $52 — a level that has provided a turnaround point for the bulls since April. WFC shares have been in a sideways range since November as initial excitement over the “Trump-flation” rally gave way to concerns about falling long-term yields. But with T-bonds under pressure this week, buyers are coming back in.
Watch for a breakout from the four-month downtrend channel with a move above $55. WFC will next report results on July 14 before the bell. Analysts are looking for earnings of $1.03 per share on revenues of $22.5 billion.
Bank Stocks on the Move: Fifth Third Bancorp (FITB)
Shares of Fifth Third Bancorp (NASDAQ:FITB) are rising away from their 50-day and 200-day moving averages, lifting out of a four-month consolidation range ahead of what’s likely to be a test of the February highs near $28.50, which would be worth a 12% move from here.
FITB will next report results on July 21 before the bell. Analysts are looking for earnings of 42 cents per share on revenues of $1.5 billion. When the company last reported results on Apr. 25, earnings of 38 cents per share beat estimates by a penny.