Good morning,
The banks are kicking off earnings season as you read this, so what better time to take the financials sector into Overtime?
Of course, we won’t be previewing any revenue numbers or discussing the impact of non-GAAP adjusted earnings, but we will highlight what price levels investors should be watching this week on the most important stocks in the sector.
I also want to take a top-down look at financials because the sector currently sits in the middle of a very split market.
On one hand, sectors like technology, energy, and healthcare are breaking out and near 52-week highs. On the other, more defensive sectors are outright breaking down, and cyclical areas like discretionary and industrials can’t catch a bid.
But what financials (still the second-largest SPX sector) do from here looks critical for keeping the Q4 rally on track, and that starts this week with earnings.
Bottom-up earnings preview
This morning: JPMorgan & Chase (JPM)
JPM is into a big range of support and so far, holding the lower end of it. The stock is up 1% premarket to just above $337; if it can hold that throughout the day, it goes a long way toward getting this stock back in gear.
This morning: Goldman Sachs (GS)
Going into this morning’s report, the MACD is about all the Goldman bulls had to hang their hat on. It looks like it is going to be good for a bounce, as the stock is up about 3% premarket, but it’s very hard to be bullish this stock below the $983 level.
This morning: Wells Fargo (WFC)
