Commenting on the earnings of Bank Of America and Goldman Sachs, and today’s trading so far, Gorilla Trades strategist Ken Berman said:
Bank Of America And Goldman Sachs Report Disappointing Revenues
The major indices are all trading slightly higher at midday following a very active and slightly bearish morning session on Wall Street. Stocks opened broadly higher following the long weekend, recovering from last week’s shallow pullback, with politics and the ongoing earnings season making headlines. Bank of America (BAC, -0.5%) and Goldman Sachs (GS,-0.6%) reported mixed quarterly numbers in pre-market trading, as while both banks beat on their bottom lines, the former firm's disappointing revenues have been weighing on the sector in early trading.
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The domestic economic calendar was empty this morning, but we still got a couple of very strong European sentiment indicators, which gave an overnight boost to risk assets amid the continued fears of a double-dip recession in Europe. President-elect Joe Biden's Treasury Secretary pick Janet Yellen is currently taking part in her nomination and talking about the new administration's first major task, she said that the government has to "go big" with its COVID relief package. The, hopefully peaceful, transition of power and the details of the Biden administration's plans will likely remain in focus throughout the week, so investors could be in for a roller-coaster ride.
Dow: 30,888, + 74 or 0.2%
S&P 500: 3,782 + 14 or 0.4%
Nasdaq: 13,084, + 86 or 0.7%
Russell 2000: 2,147, + 24 or 1.1%
Market breadth has been in line with the performance of the major indices this morning, with advancing issues outnumbering decliners by a 6-to-5 ratio on the NYSE at midday. Only 2 stocks hit new 52-week lows on the NYSE and the Nasdaq, while 267 stocks hit new 52-week highs. The major indices have been trading below their daily VWAPs (Volume-Weighted Average Price) for most of the morning session, pointing to intraday selling pressure. Energy stocks have been the most active yet again this morning, outperforming all other sectors thanks to crude oil’s rally, but the healthcare sector, industrials, and tech stocks have also been showing relative strength, with utilities, consumer staples, and real estate stocks lagging behind. Stay tuned!