The bank stock rally has paused since the results of the Fed's capital-review tests, but...

|About: Bank of America Corporation (BAC)|By:, SA News Editor

The bank stock rally has paused since the results of the Fed's capital-review tests, but improving underlying fundamentals continue, says Sterne Agee. Warnings about lower mortgage profits should be offset by stronger lending demand elsewhere. Favorites heading into earnings: BAC, C, JPM, KEY, PACW, PNC, BPOP, OFG.