Major US banks to report results with lowered expectations
Analysts see first quarter of contracting corporate earnings since 2016
New York — Investors will focus on falling profits, a more dovish Federal Reserve and lower interest rates as major US banks kick off what analysts expect to be the first quarter of contracting corporate earnings since 2016. On Friday JPMorgan Chase and Wells Fargo will post results to begin the earnings season in earnest. Citigroup and Goldman Sachs will report the following Monday, followed by Bank of America and Morgan Stanley on Tuesday. In the wake of the Federal Reserve's cautious shift due to signs of softness in the US economy and the subsequent drop in 10-year treasury yields, S&P 500 banks are seen posting year-on-year first-quarter earnings growth of 2.3%, down from 8.2% forecast six months ago, according to Refinitiv data. “The Fed pivoted so abruptly, which gives one pause about what they're saying about the economy,” said Chuck Carlson, CEO at Horizon Investment Services in Hammond, Indiana. “Flat to falling interest rates are not good news for bank interest margi...
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