Interactive Brokers Tests Buy Point With Q1 Earnings Due; E-Trade Still In Range
Interactive Brokers (IBKR) flirted with a buy point with first-quarter earnings due after the close. E-Trade Financial (ETFC) is still in buy range as it gears to report Thursday. TD Ameritrade (AMTD) also continues to set up nicely ahead of its report on April 24.
All three highly rated IBD 50 growth stocks got a boost from an earnings beat by fellow online broker Charles Schwab (SCHW) Monday. Charles Schwab also is working on a base.
Schwab scored record trading activity amid a spike in volatility, which bodes well for its peers.
Estimates: Interactive Brokers’ earnings should vault 65% to 56 cents a share as revenue jumps 28% to $ 478 million, according to Zacks Investment Research.
Results: To come.
Stock: Shares rose 2.2% to 73.93 after briefly crossing a 74.21 flat-base buy point earlier on the stock market today and making a new all-time high.
E-Trade stock added 1.4% to 58.38 Tuesday, taking gains from its early-March breakout past a 56.10 entry. The buy zone extends to 58.91. Schwab stock added 0.6% to 53.38, eyeing a 58.21 flat-base buy point, after jumping 4% on Monday. TD Ameritrade retreated 0.15% to 60.40 after completing a flat base with a 63.11 entry last week.
In January, Interactive Brokers raised interest rates on margin loans above $ 3 million from 1.67% to 1.72%. The deep-discount broker called this a “conservative step” to check loan growth. Margin loans outstanding could top $ 30 billion.
The overall financial sector has come off early-April lows after Goldman Sachs (GS), JPMorgan Chase (JPM), Citigroup (C) and Bank of America (BAC) all reported strong stock-trading revenue in recent days.
Lower taxes, higher interest rates and a stronger economy boosted the big banks’ earnings.
Rising rates also benefit online brokerage firms, whose interest-earning assets include margin loans and mortgage-backed securities.
YOU MIGHT BE INTERESTED IN:
How To Invest In Stocks For Free: New Apps Aim For Beginners
Looking For The Best Stocks To Buy And Watch? Start Here
BlackRock Earnings Growth Strong As Assets Under Management Top $ 6.3 Trillion
Charles Schwab Beats Ahead Of Top-Rated E-Trade, Interactive Brokers
Goldman Sachs Crushes Q1 Forecasts As Trading Roars Back; Dividend Hiked