This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Market Preview: Cautiously Optimistic

It's the lowest level since a 30.45% reading for the week ended August 3 and well below the long-term average of 39%. The AAII has about 150,000 members but doesn't disclose how many participate in its survey each week.

Bearishness swelled to 38.8%, a jump of 5.8 percentage points and the highest level since a reading of 43.1% for the week ended July 26. The neutral camp came in at 30.6%.

Thursday was a pretty disappointing day for stocks with the Dow Jones Industrial Average reversing course and dropping more than 100 points from its session high to close at the low. Apple (AAPL) resumed its recent decline, falling 2% to close at its lowest level since Aug. 10, while the Nasdaq has now retreated nearly 5% from its intraday high for the year. Yes, the S&P 500 eked out a miniscule gain to break a four-day losing streak, but that's not much of a consolation prize.

As for Friday's scheduled news, earnings season picks up steam Friday with two big banks opening the books before the opening bell, JPMorgan Chase (JPM) and Wells Fargo (WFC).

JPMorgan is still feeling the fallout from the London Whale debacle with the latest reports saying Chief Financial Officer Douglas Braunstein may on the way out. The average estimate of analysts polled by Thomson Reuters is calling for the Dow component to report a profit of $1.24 a share in the September-ended period on revenue of $24.53 billion.

A big subject for Wells Fargo will no doubt be the lawsuit the bank is facing for its mortgage practices related to the financial crisis. Wall Street is looking for earnings of 87 cents a share from the San Francisco-based company on revenue of $21.47 billion.

Wells shares are up nearly 28% in 2012, edging appreciation of 26% for JPMorgan. Guggenheim Partners is expecting big things from the large-cap banks this quarter. The firm has buy ratings on both Wells and JPMorgan with price targets of $43 and $50, respectively.

"We are forecasting 4% sequential growth in operating earnings per share this quarter, twice the current market expectation," the firm said. "This would represent the 7th positive quarterly earnings surprise since 4Q10. Furthermore, Large Cap Banks could hit post-recession new highs in profitability levels, as returns on tangible common equity could hit 14% this quarter."

2 of 3

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 16,915.07 -70.54 -0.42%
S&P 500 1,964.68 -8.15 -0.41%
NASDAQ 4,396.2040 -22.83 -0.52%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto
Advertising Partners

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs