The Dow Jones Industrial Average is pushing to a new record high on Wednesday, lifting toward the 26,500 level, as the financial sector gets a huge lift from rising long-term interest rates. This is the offset from the weakness hitting the bond market, with the 10-year Treasury yield pushing well past the 3% threshold to move near levels not seen since 2011.
Yield-sensitive stocks like utilities and telecoms are weakening in a big way. Creating an environment where investors are looking to rotate out of weakness and into strength. Thus, the bid coming into financials.
Here are six big bank stocks that are leading the way higher and looking ready for new money, especially with a bout of recent weakness creating an attractive entry point.
Bank of America (BAC)
Bank of America (NYSE:BAC) shares are bouncing strongly off of their 200-day moving average, setting the stage for a breakout above a three-month consolidation range ahead of a possible push to the record highs set in March. When the company last reported on July 16, earnings of 63 cents per share beat estimates by 6 cents on a 0.9% decline in revenues helped by tax reform impacts. The company returned $6.2 billion to investors throughout the quarter via buybacks and dividends.
The company will next report on Oct. 15, before the bell. Analysts are looking for earnings of 63 cents per share on revenues of $22.8 billion.
Citigroup (C)
Citigroup (NYSE:C) shares are blasting higher, pushing away from their 200-day moving average to top resistance near $73 … taking this bank stock all the way back to levels in March. Management guided third-quarter trading revenue flat to slightly high on a year-over-year basis when presenting to the Barclays Global Financial Services Conference back on Sept. 12.
The company will next report results on Oct. 12, before the bell. Analysts are looking for earnings of $1.66 per share on revenues of $18.4 billion. When the company last reported on July 13, earnings of $1.63 per share beat estimates by 7 cents on a 1.7% rise in revenues.
JPMorgan (JPM)
JPMorgan (NYSE:JPM) is among the most active bank stocks lately, with shares jumping hard and fast out of a two-month downtrend pattern. The pattern shows that JPM is moving up to challenge the highs set in February and tested again in August. On Sept. 13, when the company presented at the Barclays Financial Services Conference, management reiterated expectations of around 6% to 7% in Core Loan Growth and reiterated their 2018 net interest income outlook.
The company will next report results on Oct. 12, before the bell. Analysts are looking for earnings of $2.28 per share on revenues of $27.7 billion. When the company last reported on July 13, earnings of $2.29 per share beat estimates by 7 cents on a 9.1% rise in revenues.
US Bancorp (USB)
US Bancorp (NYSE:USB) shares are rising out of a tight two-month consolidation range, returning to levels not seen since February. Already up nearly 14% from their late May low, this bank stock looks to be in the middle of invalidating a three-year-old head-and-shoulders reversal pattern going back to late 2016. It will distort this pattern successfully with a definitive push above the $55-a-share level.
The company will next report results on Oct. 17, before the bell. Analysts are looking for earnings of $1.03 per share on revenues of $5.7 billion. When the company last reported on July 18, earnings of $1.02 per share beat estimates by 2 cents on a 3.5% rise in revenues.
Goldman Sachs (GS)
Shares of Goldman Sachs (NYSE:GS) are rounding higher but still within the confines of a basing pattern going back to April. Watch for another test of the 200-day moving average after two failed attempts in May and again in August. GS has out-shined other bank stocks lately, as it has been in the news on reports that it is nearing a spinoff of its Simon investment product app.
The company will next report results on Oct. 16, before the bell. Analysts are looking for earnings of $5.59 per share on revenues of $8.5 billion. When the company last reported on July 17, earnings of $5.98 beat estimates by $1.33 on a 19.2% rise in revenues.
Morgan Stanley (MS)
Morgan Stanley (NYSE:MS) shares look ready to rise off of a four-month base of support near the $48-$46 range and are pushing back above their 50-day moving average. The next stop for this bank stock is a test of the 200-day average, which would be worth a gain of 6% from here. Following results back in July, MS stock was upgraded by analysts at Bernstein.
The company will next report results on Oct. 17, before the bell. Analysts are looking for earnings of $1.09 per share on revenues of $9.7 billion. When the company last reported on July 18, earnings of $1.30 beat estimates by 20 cents on an 11.6% rise in revenues.
Anthony Mirhaydari is the founder of the Edge (ETFs) and Edge Pro (Options) investment advisory newsletters. Free two- and four-week trial offers have been extended to InvestorPlace readers.
