This QE funded parabolic move on U.S stock markets has lined the coffers of the ‘banksters’. How much? Bank earnings season continues as Citibank $C, Bank of America $BAC, Goldman $GS and Morgan Staney $MS follow $JPM, $WFC and $PNC.
This QE funded parabolic move on U.S stock markets has lined the coffers of the ‘banksters’. How much? Bank earnings season continues as Citibank $C, Bank of America $BAC, Goldman $GS and Morgan Stanley $MS follow JPMorgan Chase $JPM,Wells Fargo $WFC and PNC Financial $PNC
Its a Wonderful Life for Bankers in 2018
At all time highs bank earnings have been boosted by traditional banking roles while trading revenue has faltered for many money center banks with wrong bets on commodities, fixed income and foreignexchange. In the banks outlooks look for their guestimate on any negative impact from the Trump tax cuts. It is the time to talk things down with markets at record highs.
What to watch for:
- Fixed income, credit and currency trading revenue
- Consumer and business banking revenue
- Commercial banking revenue Asset and wealth management revenue
- 2018 Effective tax rate
Citi kicks off the banks this week reporting Tuesday before the open.
Citigroup $C Reports Earnings Tuesday Jan 16 Before the open
Forecast: EPS of $1.19 on revenue of $17.09
Bank of America $BAC Reports Earnings Wednesday Jan 17 Before the open
Forecast: EPS of $0.44 on revenue of $21.28
Goldman Sachs $GS Reports Earnings Wednesday Jan 17 Before the open
Forecast: EPS of $4.90 on revenue of $7.63
Morgan Stanley $MS Reports Earnings Thursday Jan 18 Before the open
Forecast: EPS of $0.77 on revenue of $9.13
Banks Earnings Scorecard So Far
JPMorgan Chase $JPM JPMorgan Wealth Management Kicks Off Strong Bank Earnings
PNC Financial $PNC PNC Earnings Gain From Fed Interest Rate Rises
Wells Fargo $WFC Wells Fargo Earnings Still Hampered By Banking Litigation
The bank rally has been fueled by expectations for easier regulations including a possible repeal of DoddFrank and infrastructure spending. The new surge in home prices has also buoyed optimism for the mortgage business and banks profits thereto. Auto and student loans overhang the banking and finance sectors.
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