Top Bank Stocks to Play During Earnings

Welcome back to the Rude Awakening for Friday, April 9, 2021.

We are seeing the markets take a bit of a breather as the trading day is underway.

However, Yahoo Finance reported at the open this morning:

Stocks traded mostly higher on Friday in another record-setting session on Wall Street.

The S&P 500 edged higher to reach another all-time high. The blue-chip index was on track to end the week higher for a third straight week. The Dow gained, while the Nasdaq fell slightly as technology stocks gave back some of Thursday’s sharp advances.

Traders considered more reassurances from Federal Reserve Jerome Powell, who reiterated in remarks Wednesday that the Fed was looking for “actual progress” rather than “forecasts” for progress toward the central bank’s employment and inflation goals. He also underscored the distance still left for the economy to go before reaching these targets and prompting a policy shift, with the recovery in the labor market especially still “uneven and incomplete” to date. A disappointing jobless claims report earlier on Thursday, with new claims unexpectedly climbing for a second straight week, appeared to affirm these sentiments.

Although markets aren’t screaming higher today, we are still up around these fresh all time highs.

We have seen a lot of volatility and some comparative weakness in the tech stocks and the Nasdaq.

All of our technicals are still showing bullish indicators across the board, but seeing a lot of “overbought” signals as well.

We have no clear indicator right now, though, whether this market stands to continue pushing higher or if we are at a peak right before a retracement.

However, what we DO have is some stocks to add to your watchlist…

Best Earnings Stocks to Play, Coming Up

First up, Carnival Cruise Lines (CCL) has had a lot of volume the past couple of days. Reporting earnings this morning, they missed expectations by a whopping 25 cents. However, the stock is trading higher this morning by about 1.5%.

It’s moved up to a higher top range of around $29.40 per share. This one might be poised for a breakout as the economy continues to open up more and more.

Next we have Bed Bath & Beyond Inc. (BBBY). This stock has had a very tight range for the past several weeks. Reporting earnings April 14, options are showing an 8% implied move which would be a big one for this relatively stable stock. Definitely one to watch.

Last but not least, we have the banks.

All the major money center banks (meaning Goldman, JP Morgan Chase, Bank of America, and CitiGroup) are all reporting earnings coming up.

Bank of America (BAC) and Citigroup Inc. (C) are reporting April 14 and 15, respectively.

These are two that I always like to play during earnings season…

Have a great trading day, folks, and a great weekend.

We’ll see you Monday!


Scott Stewart

Scott Stewart
Editor, Rude Awakening

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