[Analyst Rating] What Big Bank Earnings Are Saying About The Economy, Market

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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 …

Full story available on Benzinga.com

Source Benzinga

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