Big banks are up next and they’re walking into earnings season with momentum. Since late June, bank stocks have rallied hard. A steeper yield curve helped. So did the Fed’s stress tests, which banks passed cleanly, unlocking the ability to buy back shares and hike dividends. That gave investors a nice reason to stay bullish on financials.
But zoom out a bit, and things get murkier.
Even as the market hits new highs, earnings expectations aren’t exactly booming. In fact, analysts have lowered their outlooks for S&P 500 earnings in recent weeks. It’s a weird setup: stocks are flying, but the earnings bar keeps dropping. That disconnect feels a little fragile.
Stock Unlock helps you cut through the noise with powerful stock screeners, intuitive financial visuals, and real-time portfolio insights—all in one clean, easy-to-use platform. Whether you're just starting out or managing a serious portfolio, it’s a smarter way to analyze companies and make confident decisions.
Still, that low bar might work in investors' favor next week. If banks can deliver decent results or even just slightly better than expected, they could jump the hurdle and give the market another boost. Especially since the setup favors upside surprises.
The bigger story, though, may come from the guidance. First quarter was full of “we’ll wait and see” commentary because of tariff chaos. That uncertainty is still around, but the tone has shifted. The administration keeps teasing new trade deals and claims a few are already in place. If banks show more confidence this time around, it could mean a lot more than the backward-looking numbers.
👀 What to Watch:
- Do the big banks beat on earnings or just squeak by?
- Any companies raise full-year guidance after sitting out last quarter?
- How do bank execs talk about tariffs, credit risk, and the consumer?
- Do earnings revisions for the broader market finally stop slipping?
Low expectations mean next week could go either way, a quiet letdown, or the start of a broader earnings comeback.
Disclaimer: Content published by Portfolio Activity is for educational purposes only and does not constitute personalized investment advice or a solicitation to buy or sell any security. Investing involves risk, including possible loss of principal. Past performance is not indicative of future results. Always conduct your own research and consult a licensed financial professional before acting on any information provided. Portfolio Activity, its contributors, and affiliates may hold positions in securities mentioned and assume no liability for errors, omissions, or losses arising from use of this material.
Comments