PreMarket Prep Recap: Q4 Earnings Season Begins, Apple Gets A Downgrade

Since today was the start of earnings season, the price action instigated by reports from a few large banks was covered at the top of today's PreMarket Prep Show.

Now That's A Big Beat

In recent years, it has been reports from a trio of large banks (JPMorgan Chase, Citigroup and Wells Fargo) that kicks off the season.

Before the open, JPMorgan Chase JPM announced an EPS beat of 22 cents along with stunning revenue beat of $1.25 billion. Since the issue was deep in the green in pre-market trading, the only level that was mentioned was a potential resistance point at its all-time high at $141.10.

After a modestly higher open, it had a brief retreat to $137.69 and resumed its move higher. The ensuing rally has fallen short of the aforementioned level as $140.76 stands as the high for the day with just under three hours remaining in the session.

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Delta Nears All-Time High

Also posting a solid beat for EPS was Delta Airlines DAL. The company exceeded EPS estimates by 30 cents, but its revenue beat was only $89 million.

After struggling to clear the $59.50 area over the past month, the issue easily cleared that resistance area when it opened at $62.04 and and quickly declined to $60.86 before rebounding to make a new high for the session at $62.25.

Since making that high, it has been struggling to remain in the $62 handle. The all-time high for the issue was made last July at $63.44.

Apple Gets A Downgrade

In the last six months of 2019, Apple Inc. AAPL received two downgrades from Wall Street analysts. In 2020, the company has been downgraded twice since Jan. 6.

The initial downgrade from Needham on Jan. 6 was met with nothing but buyers as the issue has rallied from its Jan. 6 close ($299.80) to $317.57 earlier in today's session.

However, today's Atlantic Equities downgrade has instigated some profit taking in the issue. After making a new all-time high for the sixth day in a row, the issue was lower by $3.30 at $313.96 in today's session as of 2 p.m. EST.

Nic Chahine Joins The Show

Midway through the broadcast, Nic Chahine, the author of Create Income With Option Spreads joined the crew. He commented on several issues of interest from our listening audience.

On Wednesday at 8:35 a.m. EST, David Trainer, founder and CEO of New Constructs, will reveal what his models are predictions for the upcoming earnings.