We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site.

Free Trading Guides
EUR/USD
Bearish
Oil - US Crude
Mixed
Wall Street
Bullish
Gold
Bearish
GBP/USD
Mixed
USD/JPY
Bearish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
More View more
Real Time News
  • The British Pound technical outlook still seems to favor the downside. GBP/CAD may pressure key rising support from August as GBP/AUD could prolong its downtrend. GBP/CHF may fall. Get your $GBP market update from @ddubrovskyFX here: https://t.co/hBOpDKXmfW https://t.co/AJlT2YKeCu
  • USD/JPY is approaching medium-term uptrend resistance and while the outlook remains constructive, the advance may be vulnerable near-term while below confluence resistance. Get your $USDJPY technical analysis from @MBForex here: https://t.co/93D7AyhHtG https://t.co/KQcLLrkMP3
  • AUD/USD has had the most impressive show of trend over the past couple of months with the pair gaining almost 1500 pips from the March low. Get your $AUDUSD technical analysis from @JStanleyFX here: https://t.co/vLz4Rpln3u https://t.co/AOwnJja5V8
  • Has the #Euro been saved? Find out from @CVecchioFX here: https://t.co/eiXfOTyGa6 https://t.co/AyRiYpb4cN
  • U.S. Market Analyst at https://t.co/JsVsSmefgR, Shain Vernier covers - ✔️ Safe haven assets in volatile markets ✔️ Central banks and governments ✔️ How will commodities trade in a recession Only on Trading Global Markets Decoded #podcast. Tune in here: https://t.co/1UmEzEbwiy https://t.co/ygwjGNvS61
  • The $USD, Euro, British Pound and Australian Dollar will all be at the mercy of political developments in Asia, Europe and North America this week. An avalanche of PMI data will set the backdrop. Find out from @ZabelinDimitri here: https://t.co/L8cfAgVx94 https://t.co/THWhPAS6AM
  • The price of #gold plunged 1% immediately after the stunning US jobs report crossed the wires. Get your market update from @RichDvorakFX here: https://t.co/8i0L6YIqjy https://t.co/y9dIXazJf9
  • S&P 500, Dow Jones, Nasdaq explode higher with stocks surging in response to shockingly better-than-expected monthly jobs data. Get your #equities market update from @RichDvorakFX here: https://t.co/nuMVWOzzuC https://t.co/M3nGBjd7kZ
  • The record-breaking NFPs increase behind us and the FOMC rate decision on Wednesday sets the tone for my trading video: 'Dow Soars Above 200-Day Average on NFPs, Will the #Fed Keep the Dollar Sliding' https://www.dailyfx.com/forex/video/daily_news_report/2020/06/06/Dow-Soars-Above-200-Day-Average-on-NFPs-Will-the-Fed-Keep-the-Dollar-Sliding.html?ref-author=Kicklighter&QPID=917719&CHID=9 https://t.co/kquvec5HVc
  • Seasonal factors, oversupply issues and the outbreak of COVID-19 has seen the price of liquefied #naturalgas (LNG) fall to 22-year lows (1.519), with the situation exacerbated by ‘fuller-than-normal’ storage facilities. Get your market update here:https://t.co/VOqfkBQ4aR https://t.co/OsaphmqEmu
Citibank, JPMorgan, Wells Fargo Start Earnings Season with a Beat

Citibank, JPMorgan, Wells Fargo Start Earnings Season with a Beat

Share:

Talking Points:

  • The US 1Q earnings season starts off strong, as US equities look to close out the week positive
  • Despite better-than-forecasted numbers, the bank stocks have since seen their shares drop
  • Bank earnings season continues next week with Bank of America and Charles Schwab on Monday

Learn the number one mistake traders make when trading. Download our Traits of Successful Traders Guide in the Beginner section of the DailyFX Trading Guides page.

Earnings season has long been an opportunity for equity markets to gauge how solid the fundamental backdrop is for speculative development. Yet, over the past few years, a noticeable detachment has shown through. As benchmark indices like the Dow and S&P 500 continued to climb, the collective view from earnings had grown progressively less and less impressive. While analyst expectations were still bested by the majority of industries and the companies within those categories, the actual path of corporate profits was on a moderate path of slowing. With three major banks – Citigroup, JPMorgan Chase and Wells Fargo – kicking off the Q1 2018 earnings season in earnest this week, we will see whether the stats are genuinely more impressive or a charge in volatility in 2018 will translate to a different baseline assessment of more complex earnings data.

Citigroup

Citigroup was the first bank on the docket to report, beating with earnings of $1.68 per share versus $1.61 expected. Revenue also beat expectations at $18.827 billion versus $18.865 billion. The positive results are due to a number of factors, including lower taxes and a rise in equity trading revenue. Last quarter, their effective tax rate fell to 24 percent compared to 31 percent in the first quarter of 2017. Equity trading revenue rose 38 percent in the first quarter, offsetting a 7 percent decline in fixed-income trading. Citigroup CEO Michael Corbat said “our first quarter results demonstrate strength and balance across our franchise and position us well for the rest of the year.” The bank’s shares rose nearly 3 percent on Thursday but have since forfeited most of those gains in the early hours of Friday.

Citibank, JPMorgan, Wells Fargo Start Earnings Season with a Beat

JPMorgan Chase

A new accounting rule for JPMorgan played a major role in their beat this quarter, boosting first quarter revenue by $313 million. The new rule prompts the bank to include changes in value for some of the equity securities it holds. The bank expects the rule to boost revenue by $1.2 billion during 2018. Under the rule, expenses went up by the same amount resulting in an unchanged net income. Despite influences from the rule, the bank had strong performance elsewhere. Stock trading revenue rose 25 percent leading to a beat of $2.37 a share versus $2.28 expected. Revenue outperformed expectations at $28.52 billion versus $27.68 billion. JPMorgan CEO Jamie Dimon said “2018 is off to a great start with our businesses performing well across the board, driving strong top-line growth and building momentum from the last year.” A similar fate befell the bank’s shares, rising Thursday and giving up gains Friday morning.

Citibank, JPMorgan, Wells Fargo Start Earnings Season with a Beat

Wells Fargo

To cap off the first day of bank earnings, Wells Fargo also delivered a beat of expectations. Despite the strong performance, regulatory action looms over the bank and may undo the gains seen in the most recent quarter as the bank emphasized there may be a possible $1 billion settlement. The bank remains mired in regulatory action after more than a year from their initial scandal of opening extra accounts for millions of customers. The bank reported earnings of $1.12 a share versus $1.06 forecasted and $21.93 billion in revenue versus $21.73 billion anticipated. Tim Sloan, CEO of Wells Fargo said “I’m confident we will continue to transform Wells Fargo into a better, stronger company; however, we recognize that it will take time to put all of our challenges behind us.” Shares also sank Friday morning after posting gains in the early days of the week.

Citibank, JPMorgan, Wells Fargo Start Earnings Season with a Beat

Broader Trends

As the season starts off with performances above forecasts, the results may not be too unexpected for traders as the three bank shares gave up early week gains Friday morning. This could suggest the results were already priced in during the run-up to earnings. The positive earnings bode well for non-banks and overall business growth as the banks look to continue making loans. Broader insight into the health of US equities will continue to emerge in the coming weeks as banks and other important sectors (technology, construction, industrials and more) report their earnings. Although the bank shares are leading the decline in US equities Friday, markets currently stand to post a small gain on the relatively volatile week. Bank earnings will continue next week with Bank of America and Charles Schwab reporting on Monday.

Citibank, JPMorgan, Wells Fargo Start Earnings Season with a Beat

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES

News & Analysis at your fingertips.