Banking

Goldman Sachs, Charles Schwab Earnings Due

Investment banks Goldman Sachs (GS) and Signature Bank (SBNY), as well as brokers Charles Schwab (SCHW) and Interactive Brokers (IBKR), will report fourth-quarter earnings on Tuesday. Most bank stocks fell on Friday, as the first set of bank earnings failed to impress investors.




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Bank and broker stocks face a mix of headwinds and tailwinds. As the Fed gears up to raise interest rates, banks are poised to benefit from higher revenue from the loans they extend. Higher interest income could also translate into more investment activity, which remains brisk.

Meanwhile, as inflation spikes and Covid omicron rages through the country, consumer spending slows.

On Jan. 14, JPMorgan Chase (JPM), Citigroup (C) and Wells Fargo (WFC) reported better-than-expected Q4 results. But while Wells Fargo stock rose, JPM stock and Citigroup retreated.

Bank Stocks: Goldman Sachs Earnings

Estimates: FactSet analysts expect Goldman earnings to fall 4.8% year over year to $11.50 a share. Revenue is seen edging up 2.6% to $12.04 billion.

Results: Check back Tuesday.

Stock: Shares fell 2.5% to 380.90 on the stock market today. GS stock has a cup-with-handle buy point of 412.76, according to MarketSmith chart analysis. But Goldman stock has fallen below its 200-day line after already undercutting its 50-day.

Its relative strength line is trending lower. Its RS Rating is 78 out of a best-possible 99, while its EPS Rating is 93.

Broker Stocks: Charles Schwab Earnings

Estimates: Views are for Charles Schwab earnings per share of 88 cents, 19.1% higher than the year-ago period. Revenue is expected to come in at $4.79 billion, a 14.8% increase.

Results: Check back Tuesday.

Stock: Shares gained 2.4% to 95.61 on Friday. Schwab stock is extended from a flat-base buy point of 84.59. Its relative strength line is trending upward. Its RS Rating is 96, and its EPS Rating is 92.

Broker Stocks: Interactive Brokers Earnings

Estimates: Analysts see Interactive Brokers’ earnings growing 19.8% year over year to 83 cents a share. Revenue is seen adding 11.8% to $669.8 million.

Results: Check back Tuesday.

Stock: Shares gapped down 1.2% to 74.75 on Friday, hitting 73.31 intraday. IBKR stock has a cup-with-handle buy point of 73.41. But the stock is flashing a sell signal because it round-tripped a 13% gain and has fallen through its 50-day line.

Interactive Brokers’ relative strength line is sloping down. Its RS Rating is 75, while its EPS Rating is 92.

Bank Stocks: Signature Bank Earnings

Estimates: Signature Bank earnings are seen jumping 20.9% from the year-ago quarter to $3.94, while sales are expected to surge 31.1% to $549.7 million.

Results: Check back Tuesday.

Stock: Shares were edged up to 365.39 on Friday, slightly extended from a 342.13 cup-base buy point. SBNY stock’s relative strength line is trending up. Its RS Rating is 98, while its EPS Rating is 84.

Follow Adelia Cellini Linecker on Twitter @IBD_Adelia.

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