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Q4 Earnings from Wall Street On Deck: JPMorgan, Citi, BofA and Wells Fargo
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So much for Consumer Price Index (CPI) results providing the broader stock market with a particular direction — today’s closing bell shows all major indices basically flat. CPI data was a tad warmer than expected, offering an opportunity for market participants to reassess its dot-plot estimates for Fed interest rate moves throughout 2024. The Dow is +0.04% for the session, the S&P 500 closed -0.07%, and the Nasdaq came in at +0.004%. Only the small-cap Russell 2000 had a tougher time of it, -0.78%, as small-cap stocks — particularly regional banks, ahead of Wall Street earnings reports — take it on the chin.
With December CPI now filed and out of the way, in the process of being absorbed into market value considerations, we turn our attention to Q4 earnings season, which picks up steam Friday morning before the opening bell. While we will also see market leaders like Delta Air Lines (DAL - Free Report) and UnitedHealth (UNH - Free Report) putting out quarterly numbers, here we will stay focused on what to expect from the biggest of the big Wall Street banks.
JPMorgan Chase (JPM - Free Report) is the biggest and best-performing of these, at least over the last six months or so (+15%). The Zacks Rank #3 (Hold)-rated company with a Style Score of F (receiving F’s in both Value and Growth, but an A in Momentum) is expected to post +13% earnings growth on +6.7% top-line increases year over year. The bank is riding a quarterly earnings winning streak of five straight quarters, with the trailing four-quarter positive surprise average of +16.76%.
Citigroup (C - Free Report) , amid rumblings of the bank’s largest-ever restructuring program — which has led to a slight downturn in shares over the past week, +9.7% over the past six months — is expecting +4% revenue growth for its Q4 top line, while earnings are expected to come up -21.8% short of the year-ago figure. Citi has doubled the size of one-time charge the company is expected to take in its Q4 statement tomorrow. Shares are down -2% today ahead of the Friday morning report.
Bank of America (BAC - Free Report) is also riding a five-quarter winning streak of positive earnings surprises (averaging a +11.7% beat in the trailing four quarters), but analysts anticipate year-over-year losses on both top and bottom lines: -1.87% on earnings and -18.8% on revenues. Bank of America has blossomed +13% over the past six months of trading — even more impressive that this is coming off near-term lows in late October.
Wells Fargo (WFC - Free Report) is carrying a five-quarter earnings winning streak of its own into tomorrow morning’s Q4 results, but unlike BofA, Wells looks to have put up a stellar +76% in earnings growth year over year. Revenues are expected to come up +3.3% from a year ago. Even though the stock is off its mid-December highs, and -1.86% in the past week of trading, an upside surprise from here may unlock some valuation increases.
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Q4 Earnings from Wall Street On Deck: JPMorgan, Citi, BofA and Wells Fargo
So much for Consumer Price Index (CPI) results providing the broader stock market with a particular direction — today’s closing bell shows all major indices basically flat. CPI data was a tad warmer than expected, offering an opportunity for market participants to reassess its dot-plot estimates for Fed interest rate moves throughout 2024. The Dow is +0.04% for the session, the S&P 500 closed -0.07%, and the Nasdaq came in at +0.004%. Only the small-cap Russell 2000 had a tougher time of it, -0.78%, as small-cap stocks — particularly regional banks, ahead of Wall Street earnings reports — take it on the chin.
With December CPI now filed and out of the way, in the process of being absorbed into market value considerations, we turn our attention to Q4 earnings season, which picks up steam Friday morning before the opening bell. While we will also see market leaders like Delta Air Lines (DAL - Free Report) and UnitedHealth (UNH - Free Report) putting out quarterly numbers, here we will stay focused on what to expect from the biggest of the big Wall Street banks.
JPMorgan Chase (JPM - Free Report) is the biggest and best-performing of these, at least over the last six months or so (+15%). The Zacks Rank #3 (Hold)-rated company with a Style Score of F (receiving F’s in both Value and Growth, but an A in Momentum) is expected to post +13% earnings growth on +6.7% top-line increases year over year. The bank is riding a quarterly earnings winning streak of five straight quarters, with the trailing four-quarter positive surprise average of +16.76%.
Citigroup (C - Free Report) , amid rumblings of the bank’s largest-ever restructuring program — which has led to a slight downturn in shares over the past week, +9.7% over the past six months — is expecting +4% revenue growth for its Q4 top line, while earnings are expected to come up -21.8% short of the year-ago figure. Citi has doubled the size of one-time charge the company is expected to take in its Q4 statement tomorrow. Shares are down -2% today ahead of the Friday morning report.
Bank of America (BAC - Free Report) is also riding a five-quarter winning streak of positive earnings surprises (averaging a +11.7% beat in the trailing four quarters), but analysts anticipate year-over-year losses on both top and bottom lines: -1.87% on earnings and -18.8% on revenues. Bank of America has blossomed +13% over the past six months of trading — even more impressive that this is coming off near-term lows in late October.
Wells Fargo (WFC - Free Report) is carrying a five-quarter earnings winning streak of its own into tomorrow morning’s Q4 results, but unlike BofA, Wells looks to have put up a stellar +76% in earnings growth year over year. Revenues are expected to come up +3.3% from a year ago. Even though the stock is off its mid-December highs, and -1.86% in the past week of trading, an upside surprise from here may unlock some valuation increases.
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