Markets Surge on Strong Corporate Earnings and Potential Tax Plan: Today’s Research Reports on E*TRADE and Visa

U.S. markets surged Thursday on the strength of the latest batch of corporate earnings and Treasury Secretary Steven Mnuchin’s comment that the Trump Administration was close to releasing a “major tax reforms”. The Dow Jones Industrial Average gained 0.98 percent to close at 20,604.83, while the S&P 500 rose 0.87 percent to close at 2,358.42.

Data from Thomson Reuters shows that out of the 82 S&P 500 companies who have reported earnings through Thursday afternoon, approximately 75 percent have surpassed expectations, topping the average of 71 percent over the past 4 quarters. The profit of S&P 500 companies is estimated to increase by 11.1 percent in the quarter, according to Reuters.

"They really are just focusing now on the micro, which they should be, on the earnings and what the earnings are saying," Ken Polcari, director of the NYSE floor division at O’Neil Securities, told Reuters. "Investors are putting the geopolitical stuff to the back of the bus at the moment and they are really focusing on what they should be."

RDI Initiates Coverage on:

E*TRADE Financial Corp.

Visa Inc.

E*TRADE Financial’s shares increased 2.67 percent to close at $34.62 a share on Thursday. The stock traded between $33.26 and $34.67 on volume of 3.42 million shares traded. The company reported a net income of $145 million, or $0.48 diluted earnings per common share, for the first quarter of 2017. Total net revenue in the first quarter of 2017 grew to $553 million from $472 million a year ago. Average analysts estimates called for earnings of $0.39 per share on revenues of $531.9 million, according to analysts surveyed by Zacks Investment Research. Shares of E*TRADE Financial have fallen 0.09 percent year-to-date.

“We had an outstanding start to the year, with strong bottom line results fueled by business growth, capital deployment, and a favorable operating environment,” said Karl Roessner, Chief Executive Officer. “Amidst a period of extraordinary and intensifying competition, we produced record growth in brokerage assets, and our strongest brokerage account growth in three years – well on pace to exceed our 2018 goals.”

Access RDI’s E*TRADE Financial Research Report at:

Visa’s shares increased 1.56 percent to close at $91.15 a share on Thursday. The stock traded between $89.90 and $91.50 on volume of 12.18 million shares traded. The company reported GAAP net income of $430 million, or $0.18 a share, in the second quarter of fiscal 2017. Adjusted earnings were $2.1 billion, or $0.86 a share, for the fiscal second quarter, compared with $0.68 a share a year ago. Net operating revenue totaled $4.5 billion in the second quarter of fiscal 2017. Analysts’ expectations called for adjusted earnings of $0.79 a share on revenues of $4.3 billion, according to analysts surveyed by FactSet. Shares of Visa have gained approximately 16.83 percent year-to-date.

Access RDI’s Visa Research Report at:

Our Actionable Research on E*TRADE Financial Corp. (NASDAQ:ETFC) and Visa Inc. (NYSE:V) can be downloaded free of charge at Research Driven Investing.

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