The four "too big to fail" banks have reported better-than-expected results and they clearly benefited from low interest rates and by booking profits on the $85 billion of U.S. Treasuries and mortgage-backed securities sold to the New York Fed Open Market Trading Desk each month under QE3 and QE4.
The big banks continue to have hold ratings, but with their huge balance sheets, have the accounting flexibility to consistently beat Wall Street estimates.
Meanwhile, consumer staples companies are missing on the revenue line because of the higher cost of living on Main Street. Consumers have cut spending even on necessities.
Wednesday morning premarket, Bank of America ($13.92) was the fourth of the four "too big to fail" money center banks to report an earnings beat. Their beat was by 7 cents, earning 32 cents per share. The stock traded just above $14.00 premarket vs. the multi-year high set on Tuesday at $14.02. My weekly value level is $13.13, with a monthly risky level at $14.66.
On July 11, I wrote, Earnings Scorecard: Yum, Yahoo! On Deck, where I profiled eight stocks scheduled to report quarterly earnings results on Monday and Tuesday of this week. Seven are profiled again in today's earnings scorecard.
Citigroup ($51.83) beat EPS estimates by 7 cents, earning $1.25, and they also beat on the revenue line. The stock traded up to $52.42 Tuesday, still shy of its multi-year high at $53.56 set on May 30. My weekly value level is $48.18, with a monthly pivot at $50.85 on this hold-rated bank.
Comerica ($40.86) beat EPS estimates by 6 cents, earning 76 cents, but the stock traded down to $40.21 on Tuesday. This hold-rated regional bank has a weekly value level at $39.92, with a monthly pivot at $41.31 and semiannual risky level at $44.83.
CSX ($24.64) beat EPS estimates by 5 cents, earning 52 cents per share. This sell-rated railroad reported after the close on Tuesday, and was positioned just below its 50-day SMA at $24.67 pre-release. Wednesday morning, the stock has accelerated above the $25.00 marker. My weekly value level is $22.82, with a monthly pivot at $25.15 and the multi-year high at $26.36 set on May 21.
Goldman Sachs ($160.24) reported a beat of 89 cents, earning $3.70 per share. The stock has a buy rating and traded up to $164.30, but when the company warned that a repeat of these results could be problematic, the stock fell to $159.43, making Tuesday a key reversal day. My weekly value level is $159.31, with a monthly risky level at $166.67.
JB Hunt ($75.48) missed EPS estimates by 1 cent, earning 73 cents per share. This sell-rated trucker traded down, but held its 50-day SMA at $73.12. My weekly value level is $72.22, with its July 11 multi-year high at $77.76, and a monthly risky level at $79.03.
Johnson & Johnson ($90.40) reported a beat of 8 cents, earning $1.48, and the stock traded to a new multi-year high at $91.66 on Tuesday. The day's low was $90.13 on profit-taking on this hold-rated Dow component. My monthly pivot becomes a value level, at $87.52.
Coca Cola ($40.23) matched EPS estimates, earning 63 cents, but reported weaker-than-expected sales. On Monday, the stock was testing its 50-day SMA at $41.19, but fell to $39.50 on Tuesday, staying above its 200-day SMA at $39.08. The day's low was a test of my weekly value level at $39.60 for this buy-rated consumer staple. My monthly pivot becomes the risky level at $41.29, with the quarterly risky level at $42.46.
Mosaic ($54.12) missed EPS estimates by 3 cents, earning $1.12. The stock is below its 200-day SMA at $57.62, with this week's value level at $53.77.
Yahoo! ($26.88) beat EPS estimates by 5 cents, earning 30 cents per share, but missed on the revenue line. The stock is up above $27.00 in the premarket. My weekly value level is $26.02, with a monthly risky level at $28.59.
At the time of publication the author held no positions in any of the stocks mentioned.
This article is commentary by an independent contributor, separate from TheStreet's regular news coverage.