Market Faces Expectations of Weak First Quarter Earnings
As usual, Alcoa kicks off the earnings season after today's closing bell, and the strong gains of recent years are not expected to continue.
As usual, Alcoa kicks off the earnings season after today's closing bell, and the strong gains of recent years are not expected to continue.
Profits at U.S. banks jumped almost 37 percent for the October-December period, reaching the highest level for a fourth quarter in six years as banks continued to step up lending. The figures are fresh evidence of the industry's sustained recovery more than four years after the financial crisis.
Investors will hear from leaders in the banking industry this week, when Bank of America, Citigroup, JPMorgan, Goldman Sachs and Morgan Stanley report quarterly results. Bank stocks outperformed the broader market last year, but that trend may not last in 2013.
From eBay stepping up with its latest financials to Facebook showing off its latest clever ideas, there will be plenty of news breaking in the coming days. Here's a rundown of what's likely to shape the week ahead on Wall Street.
U.S. banks are ending the year with their best profits since 2006 and fewer failures than at any time since the financial crisis struck in 2008. They're helping support an economy slowed by high unemployment, flat pay, sluggish manufacturing and anxious consumers.
U.S. banks earned more from July through September than in any other quarter over the past six years. The increase is further evidence that the industry is strengthening four years after the 2008 financial crisis.
U.S. bank earnings rose 21 percent in the April-June quarter and lending to consumers increased, adding to evidence that the industry is strengthening four years after the financial crisis.
A surge in earnings by the biggest banks at the end of last year made 2011 the most profitable time for the industry in five years. More earnings and fewer troubled banks suggest the industry has healed since the 2008 financial crisis.
Investors have generally taken a negative position on big banks lately: Major financial institutions face a host of issues that are punishing their bottom lines. However, some of Wall Street's most carefully watched investors -- short sellers -- are withdrawing their bets against them.
Apple, BofA, Morgan Stanley, IBM, GE, Goldman and Google are among the names reporting this week. And if last week's numbers are any guide, the market should have plenty of reasons to rally -- especially because expectations aren't all that great.
Fourth-quarter 2010 earnings season ramps up this week. Analysts expect strong results from some big corporate names. And on the heels of last week's big earnings beat from JPMorgan Chase, the financial sector will have plenty more results to peruse this week.
As big banks start reporting earnings, JPMorgan CEO Jamie Dimon is the latest exec to talk about dividends. Overall, Wall Street is expecting the big banks to post strong results, including improved credit quality and increased capital.
The nation's second-largest bank by assets said third-quarter income rose 23% to $4.4 billion, or $1.01 a share. While investment and retail banking revenue slipped, JPMorgan was able to set aside less money to cover bad loans, which accounted for the better-than-expected earnings in the quarter.
JPMorgan Chase kicks off earnings season for the financial sector Thursday, and investors will be keen to see whether a pick-up in mergers and acquisitions has offset an industry-wide drop-off in trading activity.
Morgan Stanley's second-quarter earnings easily topped Wall Street's expectations as the investment bank swung to a profit from a year-ago loss on sharply higher revenue. Adjusted earnings were 80 cents per share, versus the 46-cent estimate.














