Stock Market Today – Futures Up, Market Looks to Rebound, Q1 Earnings Begin

NEW YORK (TheStreet) — U.S. futures were climbing premarket Monday, as the market looks to rebound at the start of earnings season following a shaky week of trading.

World markets were also climbing with the Dax leading the way in Europe, up 1.1%. The CAC 40 was rising 0.5% and the FTSE 100 showed modest gains, up 0.02% with about three hours left in trading. In Asia, the Shanghai Composite closed trading up 1.6% and the Hang Seng rose 0.4%. The Nikkei was the lone laggard, falling 0.4%.

Crude prices were off to a rocky start Monday with industry standard Brent crude contracts for June delivery falling $0.12 to $41.82 per barrel while West Texas crude also fell $0.12 to $39.60 per barrel.

Company fundamentals will be under scrutiny this week as the market prepares for the first-quarter earnings season. Alcoa (AA) kicks things off after the closing bell today. While the company is expected to report a sharp drop in earnings for the year-ago period, Real Money’s Jim Cramer told his “Mad Money” viewers Friday that the company’s stock is worth owning due to the value that will be created by its breakup plan.

Other earnings Cramer will be watching this week include railroad company CSX (CSX) on Tuesday, JPMorgan Chase (JPM) on Wednesday, and Bank of America (BAC) and Wells Fargo (WFC) — two stocks that are key holding of the Action Alerts PLUScharitable trust — on Thursday.

Citigroup (C) closes out the major banks reporting this week on Friday. Cramer is bearish on the banking sector due to low interest rates that he doesn’t see rising anytime soon.

Yahoo! (YHOO) was rising premarket Monday following reports that the company that owns the Daily Mail newspaper in London is interested in a bid for the company’s assets. The Daily Mail could be bidding against the likes of Verizon (VZ) and Action Alerts PLUS holding Alphabet (GOOGL), if reports from last week are accurate.

United Continental (UAL) could see some negative pressure today after the airline forecast a possible 7.8% decline in revenue per available seat mile, a dip it pinned on a strong dollar and a decline in travel by customers whose businesses are affected by the drop in crude prices.

Finally, Toll Brothers (TOL) was climbing premarket following the weekend cover story from Barron’s that placed a 40% upside on the company’s stock, saying the homebuilder could rise to $40 per share from its $29 close on Friday. The optimistic outlook is based on the company’s successful expansion in the lucrative New York City luxury condominium market.

“Long known for its high-end homes, Toll Brothers has made a successful foray into luxury condominium development during recent years, mainly in New York through its City Living division. That high-margin business accounted for 20% of its operating income last year,” Barron’s Andrew Barry wrote. “But the division now is a source of concern on Wall Street and has contributed to a 30% decline in Toll’s shares (ticker: TOL), to a recent $29 from an August 2015 peak of $42. Investors worry about an oversupply of new condos in Manhattan and a potential market bust. …  The condo focus is obscuring strength in the company’s core single-family homes, with signed contracts rising for the sixth-straight quarter in the three months ended in January.”

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