Source: Benzinga
Following a big beat by Morgan Stanley (NYSE: MS ) Thursday, most of the largest U.S. banks have now reported their fourth-quarter numbers. Investors saw a mixed bag from bank stocks this quarter, a trend that may carry over to the remainder of earnings season. Here’s a look at how the market has reacted to big bank earnings this week: Morgan Stanley is up 7.3%. Citigroup Inc (NYSE: C ) is up 3.3%. Goldman Sachs Group Inc (NYSE: GS ) is up 2.1%. JPMorgan Chase & Co. (NYSE: JPM ) is up 1.1%. Bank of America Corp (NYSE: BAC ) is up 0.3%. Wells Fargo & Co (NYSE: WFC ) is down 7.7%. Overall, about one-third of the S&P 500’s finance sector’s market cap has already reported earnings. Earnings for the sector are down an average of 2.2% from a year ago and revenue is up an average of 4.2% so far. Most companies are beating consensus expectations, with 66.7% beating EPS estimates and 74.2% beating sales estimates. Why Bank Earnings Matter Banks typically kick off earnings season in the U.S., and their numbers tell investors a lot about what to expect for the economy …
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