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What to Look out for Today: US Big Bank Earnings Report
Analyst are expecting “soft” earnings for this quarter, largely due to years of financial “fat-trimming” and the dissipation of the so-called “Trump Effect” which bolstered investors’ confidence initially in the tycoon-turned-president’s ability to reform the economy, put proved legislatively impotent within the first few months of its administration. Forecasts estimate Citigroup shares to float around $1.21 and earnings in the area of $17.4 billion, JP Morgan Chase at $1.59 and $25 billion of revenue and finally Wells Fargo at $1.01 and earnings at $22.16 billion. Wells Fargo fared the worst of the three institutions after weathering (i.e. settling) a $142 million class action suite regarding the creation of fake customer accounts.
Second quarter earnings for the institutions last year were:
Citigroup - $1.24/share, $17.55 billion
JP Morgan Chase - $1.55/share, $25.21 billion
Wells Fargo - $1.01/share, $22.16 billion
At the moment, due to the expectation that earnings and shares for these three institutions will be lackluster, markets and investor sentiment is unlikely to fluctuate greatly but we will have to wait for the releases and see.
This article comprises the personal view and opinion of the STO Investment Research Desk and at no time should be construed as Investment Advice.