Bank of America is set to report earnings tomorrow before the market opens with a conference call to follow at 8:30am ET.

Current Capital IQ consensus stands at Earnings Per Share of $0.71, Net Income of $6.8 bln, on Revenue of $23.13 bln.

Reports from Citigroup (C), J.P. Morgan (JPM) and Wells Fargo (WFC) have crossed wires with relatively mixed results. One of the keys has been some of the lower expectations around Net Interest Income (NII) and Net Interest Margin (NIM). A lower outlook on NII is not surprising given the dovish turn in the Fed that is now being priced into forward projections by banks.

The other themes we have seen is relatively muted revenue and loan growth and under performance in investment banking units. BAC will be judged by its performance relative to peers.

Capital Return Plan

The Board approved plans for the company to return as much as $37 billion to common stockholders over the next four quarters through an increased quarterly common stock dividend and common stock repurchases, based on the company's current number of outstanding shares and share price. The company plans to increase by 20 percent its quarterly common stock dividend, to $0.18 per share, beginning in the third quarter of 2019. It has been authorized to repurchase approximately $30.9 billion in common stock from July 1, 2019 through June 30, 2020. The buybacks would include approximately $0.9 billion in repurchases to offset shares awarded under equity-based compensation plans during the same period.

TECHS:

BAC has been in a range from the $27-31 area since December of last year. The stock has been riding its 200-sma ($28.15). Investors would certainly like to see the bank manage the difficult back drop efficiently.

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