Two things could derail the market this week; drugs and money. No, we’re not talking about some wild party! We’re referring to the slew of earnings set to come out this week. Bank of America (BAC), Citigroup (C), Pfizer (PFE) and Wyeth (WYE) - a combined three quarters of a billion dollars in market cap - are all reporting results this week. What’s the trade?
Jeff Macke says financials have been a fly in the ointment during this rally. He’s not expecting tremendous news from Citigroup, however, he thinks JP Morgan (JPM) needs to perform well Tuesday or financials will drag the market lower.
In addition, Jeff says Wells Fargo (WFC) has huge mortgage exposure. He adds as a rule of thumb if the financials don’t perform, traders sell first and ask questions later.
Eric Bolling says financials have continued to lag and he has not warmed up to the sector.