Major financial institution Bank of America Corp (NYSE:BAC) reported earnings last week and the shares bottomed out following the results, falling 3.5% the day of the quarterly report and testing their 100-day moving average. Fast forward to today, and BAC is up 1.6% to trade at $38.35, pacing for a sixth-straight win, filling that pos-earnings bear gap, and trading at its highest mark since November 2022. Better yet, a "buy" signal is flashing that could keep the wind at the equity's back.  BAC's Schaeffer ...

Subscribers to Chart of the Week received this commentary on Sunday, April 21.There aren’t many constants on Wall Street, but one is bank stocks paving the way for the new cycle of quarterly reports. They always offer investors a sneak peek of what to expect each earnings season. One of the first to enter the ring is usually Charles Schwab (SCWH), which took a haircut back in January on the back of a disappointing fourth quarter whiff. This time around, the banking giant’s first-quarter earnings and revenue ...

Core Viewpoint - Salesforce.com, inc. (NYSE:CRM) stock has experienced a decline of 11.6% over the last month, moving away from its record high of $318.72, but a historically bullish trendline may provide support for a potential recovery [1] Group 1: Stock Performance - The current stock price is $270.90, reflecting a slight increase of 0.2% [1] - The stock is nearing its year-to-date breakeven mark after a significant drop [1] Group 2: Technical Indicators - Salesforce.com stock is now within one standard deviation of its 126-day moving average, a level it has spent months above [2] - A similar signal in the past three years led to a positive return of 5.5% one month later, suggesting potential for the stock to reach nearly $286 [2] Group 3: Options Market Sentiment - The stock's 50-day put/call volume ratio is 0.91, indicating a strong appetite for long puts, which is in the elevated 85th percentile of its annual range [2] - An unwinding of this pessimism in the options market could facilitate a price increase for the stock [2] Group 4: Momentum Indicators - The stock's 14-day relative strength index (RSI) is at an "oversold" level of 23.9, indicating potential near-term tailwinds [3] - Options are currently affordable, as indicated by the Schaeffer's Volatility Index (SVI) of 29%, which ranks in the 20th percentile [3]

Verizon Communications Inc. (NYSE:VZ) earlier reported a first-quarter earnings beat, though revenue missed the mark. The company also a saw much smaller-than-expected loss of wireless phone subscribers. The security is down 1.7% to trade at $39.82 at last check, despite surging above resistance form the 20-day moving average earlier in the session. The security still sports a 7.3% lead for 2024, thanks to its run up to an April 4, 52-week high of $43.42. Though shares are today looking to snap a three-day ...

An earthquake in Taiwan led the company to scrape some of its wafersTaiwan Semiconductor Mfg. Co. Ltd. (NYSE:TSM) stock was last seen down 4.8% at $132.30, despite the semiconductor giant surpassing first-quarter earnings and revenue expectations. Today's losses follow an earthquake in Taiwan earlier this month that led the company scrape some of its wafers, though it caused no structural damage.The security earlier hit its lowest level since early March, and could today settle below the 60-day moving avera ...

Core Viewpoint - Eli Lilly's weight loss drug Mounjaro has shown positive results in reducing irregular breathing in patients with obstructive sleep apnea, contributing to a 2.8% increase in stock price to $767.65 [1] Stock Performance - The stock is poised to end a four-day losing streak and has a remarkable 106.1% year-over-year gain [1] - Shares reached an all-time high of $800.78 on March 4, with support at the $730 level since early February [1] Options Trading Activity - Short-term options traders are predominantly bullish, with a Schaeffer's put/call open interest ratio (SOIR) of 0.62, ranking in the low 9th percentile of annual readings [1] - Current options volume is double the intraday average, with 10,000 calls and 6,250 puts traded so far [1] - The most active contract is the April 750 put, closely followed by the 470 call in the same series, both set to expire later this week [1]

Core Viewpoint - Chevron Corp's shares are experiencing a pullback from a recent five-month peak, with the energy sector generally declining due to easing tensions in the Middle East and falling crude prices [1] Company Summary - Chevron's stock is on track for a fourth consecutive daily loss, indicating a potential trend reversal [1] - The current price is within one standard deviation of its 50-day moving average, which historically suggests bullish implications [1] - Over the past three years, similar signals have resulted in an 83% probability of the stock being higher one month later, with an average gain of 5% [1] Options Market Summary - Puts are currently outpacing calls in the options market, running at double the intraday average [1] - A potential unwinding of this pessimism in the options market could provide a boost to Chevron's stock [1] - The most popular options contracts include the June 115 put and the April 155 put expiring this week [1]

Cincinnati-based manufacturing giant Proctor & Gamble Co (NYSE:PG) is slated to step into the earnings confessional before the open on Friday, April 19. The company is expected to report fiscal third-quarter adjusted earnings of $1.42 per share on revenue of $20.5 billion -- a 3.7% and 2.1% year-over-year increase, respectively.  Looking at PG's earnings history, there's a precedent for positive post-earnings returns, with six of its eight next-day sessions ending higher. The last eight quarters produced an ...

Core Insights - UnitedHealth Group Inc's shares are experiencing a significant increase following the release of first-quarter results that exceeded expectations, despite a cyberattack anticipated to cost the company up to $1.6 billion this year [1] - The stock is currently up 6.3% at $473.75, having reached a high of $479.95 earlier in the day, which has positively influenced sector peers [1] - Year-to-date, the stock has declined approximately 10%, and it has not yet fully recovered from the bear gap that occurred in early April due to the cyber event [1] Options Activity - There has been notable activity in the options market for UnitedHealth, with 22,000 calls and 16,000 puts exchanged, which is seven times the typical volume for this period [1] - The most popular options are the April 480 call and the April 485 call, with new positions being opened at the latter [1] Analyst Ratings - Analysts have not yet provided feedback following the positive earnings report, but it is noteworthy that 20 out of 21 analysts covering the stock already have a "buy" or better rating, with only one analyst rating it as a "hold" [2] - The consensus 12-month price target for UnitedHealth is $574.52, indicating a 20% premium over current stock levels [2]

Core Viewpoint - Kroger Co has received an upgrade from Wells Fargo, moving from "equal weight" to "overweight," with a new price target of $65, reflecting improving fundamentals and potential for a significant buyback [1] Group 1: Stock Performance - Kroger's shares are currently up 1% at $55.92 [1] - The stock has an 18.2% year-over-year lead and a 23.6% gain year-to-date [1] - The stock is approaching its annual high of $58.33, although it remains below its all-time high of $62.78 [1] Group 2: Options Market - The Schaeffer's Volatility Index (SVI) for Kroger is at 21%, which is in the low 17th percentile of its 12-month range, indicating low volatility expectations from options traders [1]