Market Overview

PreMarket Prep Recap: Impressive Bank Earnings, Aphria Sparks Rally In Marijuana Sector

PreMarket Prep Recap: Impressive Bank Earnings, Aphria Sparks Rally In Marijuana Sector

Third-quarter earnings kicked off in earnest on Tuesday and dominated the content on PreMarket Prep
With the exception of Goldman Sachs Group Inc (NYSE: GS), the Street was taking a liking to the reports from the financial sector during the premarket session, and Aphria Inc (NYSE: APHA) has given a boost to much-maligned marijuana sector.

Beyond the earnings reports, breaking news on Roku Inc (NASDAQ: ROKU) instigated a price spike at the end of Tuesdaty's broadcast.

Big Banks Surviving In Low Interest Rate Environment

Four of the major banks reported on the same day of earnings season.

JPMorgan Chase & Co. (NYSE: JPM), which has been the best of breed in the sector for quite some time, did not disappoint investors and delivered a strong third-quarter print.

The PreMarket Prep co-hosts pointed out that resistance in the issue was its former all-time-high from Sept. 13, at $120.40. The stock has surpassed that level, reaching $121.14, and is poised to post a new all-time-closing high if it can close above $120.23.

Both Wells Fargo & Co (NYSE: WFC) and Citigroup Inc (NYSE: C) are trading higher after their earnings reports, but both remain quite a distance from all-time-highs.

Citigroup has been the most volatile of the group, breaching Monday's low ($69.46) before rebounding and going green for the session.

The rally has come up just shy of the pair of highs at the $72.50 area from late July. The stock was trading 2.18% higher at $71.77 at the time of publication. 

The only bank to disappoint was Goldman Sachs, which swooned to $198.61 off the open, but has now matched Monday's close ($205.82) and is attempting to stay green for Tuesday's session. 

Johnson & Johnson Earnings So Far Unaffected By Legal Bills

Johsnon & Johnson (NYSE: JNJ) has been dinged by the opioid crisis recently and was slapped with an $8-billion verdict in its Risperdal lawsuit last week.

Those negatives did not affect its third-quarter report, and the stock is firmly in the green.

The issue's premarket high of $134.24 has been matched in the regular session, reaching $134.25, and it is now attempting to remain in the $133 handle.

Aphria Drives Marijuana Rally 

No sector has been under more selling pressure of late than marijuana.

Once the poster-child for momentum and HFT traders in the fall of 2018, many of the issues in the sector have wilted and made new all-time-lows.

The Street's interpretation of Aphria Inc. (NYSE: APHA) has the issue over 20% higher in Tuesday's session.

After the stock made a premarket high of $5.45, investors were alerted by the PreMarket Prep co-hosts to the multiple highs in that area from late September and early October.

At the time of publication, that area has capped the rally as $5.54 in the regular session.

Roku-Apple TV Partnership 

As the broadcast was concluding, Roku announced a partnership with Apple Inc. (NASDAQ: AAPL) TV, which sent the issue into orbit.

Longer-term investors were alerted to the midpoint of its major decline, $137.32, as a potential upside target.

New Guest Wednesday 

In addition to having an excellent slate of regular guests on the broadcast, we bring on new guests on occasion.

At 8:35 a.m. Wednesday, Tom Bowley of will join the show to discuss his site and his style of investing.

PreMarket Prep is a daily trading show hosted by prop trader Dennis Dick and former floor trader Joel Elconin. You can watch PreMarket Prep live every day from 8-9 a.m. ET here. The replay can be found on Benzinga's YouTube channel, and the podcast is on iTunesGoogle PlaySoundcloudStitcher and Tunein.

Related Links: 

PreMarket Prep Recap: Market-Moving News On Columbus Day

PreMarket Prep Recap: Making Sense Of A Senseless Market, Finding Support In Delta, PG&E Plunge

Posted-In: PreMarket Prep Tom BowleyNews Trading Ideas Best of Benzinga


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