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.

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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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