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.

Margin-Loan Growth

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.


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