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| Citigroup (Photo credit: Wikipedia) |
Friday marked the start of the season, when JPMorgan Chase (JPM) and Wells Fargo (WFC) set a mixed tone. Collectively, analysts think financial earnings climbed 4.5% in the third quarter, according to analysts' estimates. That makes the financial sector a bright spot.
Across the entire S&P 500, analysts are projecting overall earnings to decline 2.5%, which would be the first drop since Q3 of 2009.
On Monday, Citi is projected to post third-quarter EPS up 22% at 96 cents. Analysts expect revenue at the No. 3 bank by deposits to have slipped 10.2% to $18.71 billion. Shares fell 2.2% Friday.
On Tuesday, analysts expect Goldman to post EPS of $2.12, from a per-share loss of 84 cents a year ago. Revenue is expected to more than double to $7.3 billion. Shares fell 1.5% Friday.
Wednesday comes the No. 2 bank by deposits, BofA. Analysts think it slipped to a loss of 6 cents per share, from earnings of 56 cents a year ago. Revenue likely fell 22.9% to $21.95 billion. Shares fell 2.4% Friday.
Investment banks are being pinched the eurozone crises, which has stalled markets. Retail banks are being squeezed by record low interest rates, which pinch their own margins.
But both JPMorgan and Wells said the housing market seems to be improving, leading to higher mortgage origination fees, as people buy or refinance at those low rates.
JPMorgan beat views Friday, but shares declined 1.1%. Wells was a penny over on earnings but revenue and net interest margins missed forecasts. Its stock slid 2.6%.
Morgan Stanley (MS) and American Express (AXP) are among the many other major financials also set to report in the coming week.
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