This Day On The Street
Continue to site
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

Market Preview: Who's Afraid of the Fiscal Cliff?

Just in time for Bank of America's (BAC - Get Report) earnings report, which is due before Wednesday's opening bell. The average estimate of analysts polled by Thomson Reuters is for a loss of 7 cents a share on revenue of $21.89 billion from B of A in the third quarter.

At this point, it's difficult to get too excited about Bank of America's numbers. It can't get any traction on the top line and is so big that it's almost impossible to see any signs of a turnaround. For every positive in the numbers each quarter, there's typically a negative to be found somewhere else.

The stock is up 70% so far in 2012, a testament to how dismal 2011 truly was more than anything else. The sell side remains negative with 23 of the 33 analysts covering the shares at either hold (20), underperform (2) or sell (1), and the median price target sitting at $9, implying potential downside of nearly 5% from Tuesday's close at $9.46.

Aside from an unlikely blowout performance, the bank could make a splash if Brian Moynihan resigned/got pushed out of the CEO spot, similar to what happened with the abrupt resignation of Vikram Pandit as CEO of Citigroup (C - Get Report) on Tuesday. That's another long shot but the prospect does get bandied about from time to time.

As for the rest of Wednesday's scheduled news, there's plenty of earnings to consider. The morning roster is stacked with notables such as A.O. Smith (AOS), Abbott Laboratories (ABT), Bank of New York (BK), BlackRock (BLK), Check Point Software (CHKP), Comerica (CMA), First Cash Financial Services (FCFS), Halliburton (HAL), Knight Capital Group (KCG), M&T Bank (MTB), PepsiCo (PEP), Piper Jaffray (PJC), Quest Diagnostics (DGX), St. Jude Medical (STJ), Textron (TXT), and U.S. Bancorp (USB).

It's calmer after the close with just Dow component American Express (AXP) and eBay (EBAY) on the docket.

It will also be interesting to see where Apple (AAPL - Get Report) goes from here as investors will be positioning themselves ahead of the Oct. 23 media event confirmed Tuesday that's expected to mark the launch of the iPad Mini.

The stock's recent weakness has been well-documented, and Jefferies observed Tuesday the trading in the wake of the iPhone 5's launch bore some similarities to previous patterns.

"Sixty days after the launches for both the iPhone 4 and the iPhone 4S, Apple's stock price fell 8% vs. -10% 30 days after the iPhone 5 launch," wrote the firm, which has a buy rating and a $900 price target on Apple. "But 90 days after the launch of the iPhone 4 and 4S, Apple's stock price recovered 17% and 9%, respectively. Also, the press coverage regarding the bumpy transition to the Apple Maps App and the scratches on the case similarly follows the iPhone 4 antenna-gate and the iPhone 4S battery and Siri issues. Despite these concerns, the 4 and 4S were huge successes, and we expect the same for the 5."
2 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

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
Stocks Under $10

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

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
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AAPL $111.60 0.00%
BAC $15.45 -0.45%
C $51.28 0.00%
IBM $151.14 0.00%
INTC $32.21 0.00%


Chart of I:DJI
DOW 17,131.86 +47.37 0.28%
S&P 500 2,014.89 +15.91 0.80%
NASDAQ 4,838.6430 +8.1730 0.17%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs