Tag Archives: BAC

Fridays Vital Data: Bank of America Corp. (BAC), Micron Technology, Inc. (MU) and Delta Air Lines

U.S. stock futures are trading broadly higher this morning, as Wall Street prepares for the start of another earnings season. Big banks will kick earnings into high gear today. J.P. Morgan Chase & Co. (NYSE:JPM) has already stepped into the earnings confessional this morning. Following on its heels are Goldman Sachs Group, Inc. (NYSE:GS) and Morgan Stanley (NYSE:MS) and Bank of America Corp. (NYSE:BAC) reporting next week.

stock market todayHeading into the open, Dow Jones Industrial Average Futures are up 0.23%, S&P 500 futures have lost 0.03% and Nasdaq-100 futures have dropped 0.12%.

Turning to the options pits, Thursday’s volume was brisk. Overall, about 22.3 million calls and 15.1 million puts changed hands. The CBOE single-session equity put/call volume ratio rose to 0.63. The 10-day moving average ticked lower to 0.56.

Taking a closer look at yesterday’s options activity, Bank of America drew heavy call activity amid the plethora of financial firms releasing quarterly earnings. BofA reports Wednesday next week. Meanwhile, Micron Technology, Inc. (NASDAQ:MU) options traders loaded up on calls despite the stock’s Intel Corporation (NASDAQ:INTC) driven plunge. Finally, Delta Air Lines, Inc. (NYSE:DAL) volume ramped up following a solid quarterly report.

Friday’s Vital Options Data: Bank of America Corp. (BAC), Micron Technology, Inc. (MU) and Delta Air Lines, Inc. (DAL) investorplace.com/wp-content/uploads/2018/01/01-12-2018-Top-Ten-Options-300×135.png 300w, investorplace.com/wp-content/uploads/2018/01/01-12-2018-Top-Ten-Options-65×30.png 65w, investorplace.com/wp-content/uploads/2018/01/01-12-2018-Top-Ten-Options-200×90.png 200w, investorplace.com/wp-content/uploads/2018/01/01-12-2018-Top-Ten-Options-400×179.png 400w, investorplace.com/wp-content/uploads/2018/01/01-12-2018-Top-Ten-Options-116×52.png 116w, investorplace.com/wp-content/uploads/2018/01/01-12-2018-Top-Ten-Options-100×45.png 100w,https://investorplace.com/wp-content/uploads/2018/01/01-12-2018-Top-Ten-Options-112×50.png 112w, investorplace.com/wp-content/uploads/2018/01/01-12-2018-Top-Ten-Options-78×35.png 78w, investorplace.com/wp-content/uploads/2018/01/01-12-2018-Top-Ten-Options-170×76.png 170w” sizes=”(max-width: 542px) 100vw, 542px” />

Bank of America Corp. (BAC)

There is a wave of reports from the financial sector today, but you’ll have to wait until next week to hear from Bank of America. BofA will release its fourth-quarter report ahead of the open on Wednesday next week. Analysts are expecting a profit of 44 cents per share on revenue of $21.53 billion. EarningsWhispers.com puts the whisper number at 48 cents per share.

Options traders are already gearing up for the report. On Thursday, BAC options volume topped 486,000 contracts, or roughly 1.5 times the stock’s daily average. Calls accounted for a whopping 82% of the day’s take.

Currently, expectations are a bit muted for Bank of America. The January 2018 put/call open interest ratio arrives at 1.02, with puts just outnumbering calls for the series. This ratio is trending lower, however, as calls are being added at a faster pace with earnings less than a week away.

Micron Technology, Inc. (MU)

MU stock’s bull rally hit a snag earlier this week. After shaking off NAND and DRAM pricing/demand concerns, Micron was faced with the end of it’s partnership with Intel. MU stock fell sharply on the news, as investors expressed concerns that Intel would could now source cheaper chips from China.

However, J.P. Morgan reiterated it’s “overweight” rating on MU yesterday. The brokerage firm stated that Intel/China fears were overblown. “Micron continues to have ownership rights to the developed technology for many years and any licensing agreement that Intel would enter into with a third party would have to be approved by Micron,” J.P. Morgan noted.

MU options traders took heart in the note, sending more than 182,000 contracts across the tape yesterday. Calls accounted for 76% of that volume. MU’s January 2018 put/call OI ratio reinforces this bullish backdrop, arriving at 0.66. While profit taking has had some impact on call trading, a rebound in MU stock should drive this ratio lower once again.

Delta Air Lines, Inc. (DAL)

Delta stock flew the friendly skies yesterday, rallying nearly 5% in the wake of a sold fourth-quarter earnings report. For the quarter, Delta said earnings rose 17% to 96 cents per share, topping the Street’s view for 88 cents. Revenue increased 8% to $10.245 billion, also topping the consensus estimate for $10.16 billion.

Looking ahead, Delta raised its 2018 earnings guidance to $6.35-$6.70 per share, up from $5.35-$5.70. Analysts were expecting 2018 earnings of $5.75 per share.

Options volume was extremely brisk for DAL stock yesterday. More than 170,000 contracts changed hands, quintupling DAL’s daily average. Calls were responsible for 72% of that volume. As a result, the February put/call OI ratio fell to 0.91 from a reading north of 1.0 roughly a month ago.

As of this writing, Joseph Hargett was long on Micron Technology, Inc. (MU) stock.

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3 Big Stock Charts for Monday: Bank of America Corp (BAC), Bristol-Myers Squibb Co (BMY) and Advance

Sometimes its amazing how the market can change over a weekend, which is one of the reasons that we often hold off on adding new positions on Friday afternoons.  This weekend’s news cycle focused heavily on the tax reform bill pressing through Congress resulting in this morning’s strong reversal of Friday’s selling spree.

stock market todayOver the short-term, we expect the news to carry stocks higher except for some of the technology sectors.  Today’s Three Big Stock Charts looks at Bank of America Corp (NYSE:BAC), Bristol-Myers Squibb Co (NYSE:BMY) and Advance Auto Parts, Inc. (NYSE:AAP).  All three of the companies are breking into volatility rallies that should carry them higher into the New Year.

Bank of America Corp (BAC)

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The combination of higher rates and strong economic activity has the larger banks in rally mode.

Bank of America shares are flashing signs that the intermediate-term trend is ready to carry shares higher as the stock heads into the seasonally strong year-end trade.

Shares of Bank of America bounced from their 50-day moving average twice in as many weeks, showing the strength of this trendline. This 50-day is also trending higher, indicating a strong intermediate-term bullish trend. Last week, the stock broke above its top Bollinger Band, which acts as the catalyst for a volatility rally. Shares are now back above this threshold, which will continue to draw fast buying to the shares. Shares are moving into overbought territory as the RSI reaches above readings of 70. This could put some selling pressure on the stock, but the intermediate-term trend is more likely to maintain the bullish trajectory.

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Bristol-Myers Squibb Co (BMY)

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Technology and pharmaceutical stocks have been lagging the market of late, but there are some stocks within those group that are presenting themselves as opportunities — like Bristol-Myers Squibb. After spending some time consolidating, the shares are ready to move higher with the market.

Shares just crossed back above their 50-day moving average over the last week of trading as Bristol-Myers Squibb shares are gaining technical traction. We should see the trend of the 50-day turn bullish as it transitions into an ascending pattern. The Chande Trend Meter just moved into bullish signal territory last week as the readings broke above 70. This indicates that the stock is beginning to gain positive momentum as its trend improves. Like a number of other companies, Bristol-Myers Squibb shares broke above their top Bollinger Band over the last week and are resuming this activity today. This suggests that a volatility rally is preparing to carry shares higher on increased volume. Advance Auto Parts, Inc. (AAP)

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After seeing the “sell the news” crowd bring Advance Auto Parts shares lower after their positive earnings results, the stock has regained its technical composure as it moves into a bullish rally. The dip provided by the post-earnings selling gave traders a great opportunity to get in to shares ahead of what is likely to be a strong year-end run.

The break above $100 represents a break of the chart resistance that was in place at this price because of past tops/bottoms and the round-numbered aspect of the price level. The Chande Trend Meter has also moved into bullish territoey on Advance Auto Parts as the trend is now improving while moving through key resistance levels. This will attract more bullish buyers into the market. Advance Auto Parts shares have roughly 12 percent of overhead room to run higher before running into resistance from the stock’s 200-day moving average. A Break above the top Bollinger Band will make quick work of this rally as the bulls pile back into this popular stock.

As of this writing, Johnson Research Group did not hold a position in any of the aforementioned securities.