Forex Flash: Wall Street braces for earnings season – Deutsche Bank

FXstreet.com (Barcelona) - Earnings season for the US banking sector kicks off today with both JPMorgan and Wells Fargo reporting before the opening bell - setting the tone ahead of next week's results from Citigroup, Goldman Sachs, BofA and Morgan Stanley.

In terms of consensus estimates, the street is expecting for JPMorgan to report earnings of $1.39 per share, or 6% higher than the prior corresponding period. According to Macro Strategy Analysts J. Reid and C. Tan at Deutsche Bank, “We note that expectations for 1Q EPS have crept up steadily over the last few months, but the bank has a record of beating earnings estimates having done so 11 times out of the last 12 quarters.”

For Wells Fargo, consensus is for earnings of $0.89 per share, or growth of 18% relative to the same quarter last year, although slightly softer than the 20% earnings growth, which the bank delivered last year. The stock prices of JPMorgan and Wells Fargo have risen 12% and 10% respectively this year, pacing a 10% gain in the S&P500.