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NEW YORK ( TheStreet) -- This week's earnings reports illustrate how Federal Reserve policy helps Wall Street, while Main Street struggles.
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.
[Read: <a target="blank" data-add-tracking="true" href="http://www.thestreet.com/story/11980278/1/no-lust-for-tesla.html"><em>No Lust for Tesla</em></a>]
Wednesday morning premarket,
Bank of America(BAC - Get Report) ($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(C - Get Report) ($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(CMA) ($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(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.