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Citigroup $C kicks off the banking sector's Q317 earnings season on Thursday October 12 before the market opens along with the other money center major JPMorgan Chase $JPM. Wells Fargo $WFC, PNC Financial $PNC and Bank of America $BAC report Friday. 

Bank stocks jumped recently after the GOP's tax-reform plan was announced. We expect more of the same with trading mellow, interest rates low and business cautious. The banking sector received a boost earlier in the year after the largest U.S. banks passed Fed stress tests and were allowed to raise dividends and share buybacks. The Fed as it raise rates is helping banks' finances.

Citigroup

 Citigroup Consensus Forecas

Analysts expect EPS up 3% to $1.29 on a 0.1% fall in revenue to $17.735 billion.

Caution hangs over the sector if congress can pass regulatory rollbacks after the GOP's unsuccessful attempt to replace the Affordable Care Act. Auto and student loans also overhang the banking and finance sectors.

Citigroup Price trajectory over the past year, breaking out in September

C 10 19 17

The bank rally has been fueled by expectations for easier regulations including a possible repeal of DoddFrank and infrastructure spending. The Federal Reserve decision to raise rates has also helped banks.  The new surge in home prices has also buoyed optimism for the mortgage business and banks profits thereto.

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