Important earnings season ahead as investors look for signs that we are still in soft landing territoryBanks on deck this week: JPMC, WFC out Friday with investors hoping for improved investment banking and lending activityUS markets have been rising in anticipation of the Q2 earnings season, which unofficially kicks off Friday with results from the big banks.
The fact that analysts mostly kept their estimates suggests that corporations believe they can surpass these expectations. If growth comes in at 8.8%, it would be the highest growth rate in over two years, that’s with eight of the eleven sectors anticipated to show YoY increases. In Q1, only 60% of S&P 500 names surpassed analyst expectations, well below the one, five, and ten-year average beat rate.), reporting on Friday. While these banks struck a bit of a cautious note in their Q1 reports, recent commentary has sounded a bit more upbeat.