Jefferies analyst John Hecht says recent trends for both prime and non-prime auto finance companies do not support the weakening economic cycle that investors are pricing in. Current valuations, particularly for Santander Consumer (SC) and Ally Financial (ALLY), provide attractive entry points, Hecht tells investors in a research note titled "3Q Auto Finance Preview - It's Just Not That Bad."

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Reports Q1 revenue $1.99B, consensus $1.96B. "Ally's financial and operating results in Q1 reflect the strength and scale of our market leading franchises," said Interim CEO Doug Timmerman. "Our teammates remain focused on what we can control, caring for our customers and communities, and consistently executing against our strategic priorities, driving long-term shareholder value. Dealer financial services continues to demonstrate the benefits of its high-tech, high-touch approach as we decisioned a single quarter record 3.8 million consumer auto applications. Consumer originations totaled nearly $10B with 40% of retail auto volume coming from our highest credit quality tier, positioning us for very attractive risk-adjusted returns going forward. Within Insurance, earned premiums of $349M were also a record, and our comprehensive product suite resulted in new OEM relationships that will drive continued momentum in fee revenue."

Notable companies reporting before tomorrow's open, with earnings consensus, include Blackstone (BX), consensus 96c... Elevance Health (ELV), consensus $10.53... D.R. Horton (DHI), consensus $3.06... Genuine Parts (GPC), consensus $2.16... Snap-on (SNA), consensus $4.64... Keycorp (KEY), consensus 22c... Ally Financial (ALLY), consensus 33c... Alaska Air (ALK), consensus ($1.05).