Mid-week stock markets continue to reward investors. Bank stocks are the hottest stocks today after posting strong results.
Morgan Stanley (MS) earned $1.82 a share as revenue grew by 11.6% Y/Y to $15 billion. ROTCE was 18.6%. However, provisions for credit loss are still high at $76 million. This is an improvement from $161 million last year.
Bank of America (BAC) spiked higher on Tuesday, gaining 5.35%. The firm earned $0.83 a share as revenue grew by 0.8% Y/Y to $25.4 billion. Expect BAC stock to continue to rise, despite posting provision for credit losses rising to $1.5 billion. This is up from $1.1 billion reported last year.
B of A’s mobile banking app is a bright spot. It served over 47 million active users. Its strength also validates the online banking model, lifting SoFi (SOFI) stock in recent trading.
Adidas (ADDYY) is a hot stock to buy. The firm raised its full-year guidance in its Q2 earnings report. It now expects a 2024 profit of $1.1 billion. CEO Bjorn Gulden is the pivotal leader behind the turnaround. Later this month, the Olympic Games should boost demand for Adidas, Puma, and Nike (NKE) running shoes.
In the media sector, watch for Warner Bros. Discovery (WBD) to break out above $8.00. Despite the high cost of NBA sports, the small layoff round suggests the cost-cutting phase is over.
