3 Bank Stocks Setting the Tone This Earnings Season

The bank sector is indicating this earnings season could be a windfall for Wall Street

Managing Editor
Jul 18, 2023 at 1:56 PM
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Earnings season is in full swing, and more bank names have stepped into the confessional this morning. Below, we will take a look at the outsized post-earnings reactions from Charles Schwab Corporation (NYSE:SCHW)Morgan Stanley (NYSE:MS), and Bank of America Corp (NYSE:BAC)

SCHW is propping up the New York Stock Exchange (NYSE) today, last seen 12.1% higher to trade at $65.71. The security is on track for its largest single-session pop since March 2020, and is set to close at its highest level since a massive bear gap back in March. Schwab's second-quarter earnings and revenue topped estimates thanks to a jump in asset management fees. Despite today's breakout, there's overhead resistance at the shares' 200-day moving average and -20% year-to-date level.

MS is 6.2% higher to trade at $91.81, on track for its best day since November and eyeing its highest close since March. Morgan Stanley also turned in a top-line beat for the second quarter thanks to a growing investment banking backlog. Shares are now up 16.4% year-over-year. 

BAC is up 4.2% to trade at $30.64 at last check, brushing off a downgrade from CFRA to "hold" from "buy," as well as a price-target cut to $32. Bank of America announced a beat-and-raise for the second quarter, with a share buyback offering tailwinds as well. The stock remains off over 7% in 2023, with their 160-day moving average looming above. 

 

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