Earnings week skews financials
FactSet shows this week’s S&P 500 reporting slate is heavily weighted to Financials — 21 of 28 companies scheduled to report are in that sector, about 75% of the roster. The listing includes big banks such as Bank of America, Citigroup, Goldman Sachs, and JPMorgan Chase. (insight.factset.com, cnbc.com)
This week’s earnings calendar is being driven by banks and insurers, with Financials making up 21 of the 28 Standard & Poor’s 500 companies scheduled to report. (insight.factset.com) FactSet said that is 75% of the week’s reporting slate, and the list includes Bank of America, Citigroup, Goldman Sachs, JPMorgan Chase, Morgan Stanley, Travelers and Wells Fargo. (insight.factset.com) The timing is concentrated over two days. Goldman Sachs reported on Monday, April 13; JPMorgan Chase, Citigroup and Wells Fargo were set for Tuesday, April 14; Bank of America and Morgan Stanley are scheduled for Wednesday, April 15. (goldmansachs.com, jpmorganchase.com, citigroup.com, newsroom.wf.com, newsroom.bankofamerica.com, morganstanley.com) That concentration matters because big banks usually open earnings season for the broader market. Their results give investors an early read on loan growth, trading activity, dealmaking and credit losses before most other sectors report. (insight.factset.com, jpmorganchase.com) FactSet said Financials is expected to post the third-highest year-over-year earnings growth among the 11 Standard & Poor’s 500 sectors for the first quarter, at 15.1%, up from a 14.6% estimate at the start of the quarter. All five industries inside the sector are projected to grow, and four are expected to post double-digit gains. (insight.factset.com) Insurance is the fastest-growing pocket of the group in FactSet’s preview, with projected earnings growth of 34%. FactSet said reinsurance is expected to lead at 90%, followed by property and casualty insurance at 59%, insurance brokers at 12% and life and health insurance at 4%. (insight.factset.com) Early reports showed why investors watch the sector so closely. JPMorgan Chase reported first-quarter net income of $16.5 billion on revenue of $49.8 billion, while Goldman Sachs reported net earnings of $5.63 billion on net revenues of $17.23 billion. (jpmorganchase.com, goldmansachs.com) Wells Fargo reported first-quarter net income of $5.3 billion, or $1.60 a share, with revenue of $21.446 billion. Charlie Scharf said revenue rose 6%, loans rose 11% and deposits rose 7% from a year earlier. (wellsfargo.com) Markets were also digesting those bank results alongside a broader rebound in stocks on Monday, when the Standard & Poor’s 500 rose 1.02% to 6,886.24 and the Dow Jones Industrial Average gained 301.68 points. CNBC reported that Goldman Sachs shares still fell more than 3% in premarket trading even after topping Wall Street expectations. (cnbc.com, goldmansachs.com) By Wednesday morning, most of the market’s first big earnings signals will have come from one corner of the index. For this week, the Standard & Poor’s 500 earnings story is largely a Financials story. (insight.factset.com, newsroom.bankofamerica.com, morganstanley.com)
