Key Highlights
- JPMorgan Chase will lead off bank earnings season on Tuesday morning, followed by Bank of America, Citigroup, and Wells Fargo on Wednesday.
- Goldman Sachs and Morgan Stanley will finish the week's big bank lineup on Thursday. Here's what to watch for. Expectations are lofty Following a year in which rising asset prices and market volatility once again favored the high-end of the k-shaped economy, analysts are forecasting record annual profits at the major banks, fueled by booming trading revenue, a sharp increase in deal-making activity, and continuing demand for loans.
- Strong earnings as well as multiple expansion have already powered bank stocks higher.
- Last year, shares of all six major banks outperformed the S&P 500, in some cases by wide margins.
- By the same token, the KBW Nasdaq Bank Index rocketed some 30%, handily surpassing the S&P’s 17% gain.
