Bank of America, Microsoft, and IBM Continue Earnings Parade

bankamericaStocks ended their sixth straight week with gains, but a number of financial companies, including Bank of America (BAC) and U.S. Bancorp (USB) still have yet to report results. Aside from banks, technology companies will also dominate earnings this week as investors hear from IBM (IBM), Microsoft Corp. (MSFT), and Advanced Micro Devices Inc. (AMD).

Goldman Sachs (GS) and Wells Fargo (WFC) have eased some investors concerns after posting earnings improvements in the first-quarter, however, some of the optimism was reigned in last week after UBS AG (UBS) said it expects to report a first-quarter loss of nearly $1.75 billion and will cut 8,700 jobs worldwide by the end of next year. Citigroup (C) also reported better-than-expected first-quarter results Friday, though the company continues to take charges to reserve for consumer defaults.

On Monday, IBM reports its first-quarter results in after-hours trading, and analysts polled by Reuters expect a profit of $1.66, up 1.2% from a year ago, on revenue of $22.6 billion. The stock is down 16% over the past 12 months.

Investors trading into earnings should know that IBM favors a long-term reversal pattern in its session-to-session performance, crossing narrower next-day percentage closing levels following after-hours earnings events in 11 of the last 19. However, the near-term is mixed, with the stock widening once, narrowing once, and reversing twice its rafter-hours move in the following regular session. On January 20, the stock rose 4% in after-hours trading when IBM guided for higher 2009 earnings. The stock widened its move in the following trading session, ending up 11.5%.

Yahoo! (YHOO) is due with its first-quarter results after the close on Tuesday and is expected to report earnings of $0.08 per share, down 27% from a year ago, on revenue of $1.2 billion. Yahoo shares are down 50% over the past 12 months and are trading slightly above their 50-day moving average.

Investors trading into earnings should know that in the near-term, Yahoo is trending toward widening its after-hours move, doing so in two of the last four quarter. On January 27, the stocks rose 4.2% in after-hours trading after earnings beat the Street. The stock widened its move in the following regular session, ending up 7.9%.

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  1. [...] Original post by Midnight Trader Blog [...]

  2. [...] Midnight Trader Blog created an interesting post today on Bank of America, Microsoft, and IBM Continue Earnings ParadeHere’s a short outlineStocks ended their sixth straight week with gains, but a number of financial companies, including Bank of America (BAC) and U.S. Bancorp (USB) still have yet to report results. Aside from banks, technology companies will also dominate earnings this week as investors hear from IBMÂ (IBM), Microsoft Corp. (MSFT), and Advanced Micro Devices Inc. (AMD). Goldman Sachs (GS) and Wells Fargo (WFC) have eased some investors concerns after posting earnings improvements in the first-quarter, however, some [...]


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