Stocks pushed higher aggressively on Tuesday, capping a two-week rally that has taken the S&P 500 back above its 50-day moving average in a big way for the first time since early March.
Fears over trade wars, a geopolitical standoff in Syria, and the Special Counsel investigation into President Donald Trump and possible ties to Russia have been replaced by enthusiasm for Q1 earnings results. Also being set aside are any concerns about the Federal Reserve and its quickening pace of rate hikes.
Gains, where they are happening, are extremely impressive. But the good feelings aren’t universal, with pockets of disappointment. Here are three stocks to watch that are helping lead the way higher; and three that are pulling back on the reins:
Stocks to Watch: Amazon (AMZN)
Amazon.com, Inc. (NASDAQ:AMZN) shares are making a move on the $1,500 threshold again, rising above their 50-day and 20-day moving averages to return to levels last seen in late March. President Trump, who has criticized the company and its CEO Jeff Bezos, has quieted his Twitter feed lately and held off on threats to reexamine its relationship with the U.S. Postal Service.
The company will next report results on April 26, after the close. Analysts are looking for earnings of $1.32-per-share on revenues of nearly $50 billion. When the company last reported on Feb. 1, earnings of $2.19-beat-estimates by 36 cents on a 38.2% rise in revenues.
Stocks to Watch: Netflix (NFLX)
Netflix, Inc. (NASDAQ:NFLX) was the star of the show after earnings, surging 9.6% to a new record high, eclipsing its early March levels, thanks to better-than-expected Q1 results, upside guidance and a slew of analyst upgrades. Revenues rose more than 40% from a year ago on the addition of 7.4 million new subscribers globally vs. the addition of just under 5 million last year.
When the company last reported on Jan. 22, earnings of 41-cents-per-share matched estimates on a 33% rise in revenues.
Stocks to Watch: Alphabet (GOOGL)
Thanks to the lift to big-tech stocks, Alphabet Inc (NASDAQ:GOOG, NASDAQ:GOOGL) was up 3.5% in mid-day trading Wednesday to take the fight back to its 50-day moving average. This caps a multi-week rally off of its early March low. While the stock was caught up in the sympathy selling surrounding the Facebook, Inc. (NASDAQ:FB) data privacy scandal, recent positive coverage in Barron’s has helped flip the script.
The company will next report results on April 23, after the close. Analysts are looking for earnings of $9.21-per-share on revenues of $30.3 billion. When the company last reported on Feb. 1, earnings of $9.70 missed estimates by 37 cents on a 24% rise in revenues.
Stocks to Watch: Goldman Sachs (GS)
Goldman Sachs Group Inc (NYSE:GS) shares were under pressure on Tuesday after management said it did not expect to do any share buybacks in the second quarter — pulling back on what’s been a major source of buying demand for stocks in recent years. Amid higher interest rates and rising corporate debt levels, the bulls will need to reconsider their assumptions that corporate share repurchases are a force of nature.
The company reported earnings of $6.95-per-share, beating estimates by $1.38, on a 25% rise in revenues — the best top-line performance in three years.
Stocks to Watch: Bank of America (BAC)
Bank of America Corp (NYSE:BAC) shares were unchanged on Tuesday after bonking on their 50-day moving average on Monday despite reporting better-than-expected results on Monday morning. Earnings of 62 cents per share beat estimates by 3 cents on a 4.1% rise in revenues. The results were helped by a 9% revenue increase in its consumer banking business and a spike in equity trading related to the market volatility seen during the quarter.
When the company last reported on Jan. 17, earnings of 47 cents beat estimates by 2 cents on a 3.5% rise in revenues.
Stocks to Watch: Morgan Stanley (MS)
Morgan Stanley (NYSE:MS) shares were trading down to the lower end of a two-month trading range earlier this week, threatening to break lower in what would be a test of its 200-day moving average. However, MS stock is on its way back up after reporting results Wednesday morning. Analysts are looking for earnings of $1.25-per-share on revenues of $10.4 billion.
When the company last reported on Jan. 18, earnings of 84-cents-per-share beat estimates by 6 cents on a 5.3% rise in revenues.
Check out Serge Berger’s Trade of the Day for April 20.
Today’s Trading Landscape
To see a list of the companies reporting earnings today, click here.
For a list of this week’s economic reports due out, click here.
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