JPMorgan Chase and other big banks take center stage

1. Big banks are ready for their close-up: Stocks have gyrated wildly in the past month, mainly beca...

Posted: Apr 9, 2018 7:08 AM
Updated: Apr 9, 2018 7:08 AM

1. Big banks are ready for their close-up: Stocks have gyrated wildly in the past month, mainly because of headlines about possible trade wars and not because of any real data about how companies are doing. That's about to change.

Investors will soon find out how big banks did in the first three months of the year. They'll also get some hints about what these financial giants expect for the remainder of 2018.

Money manager BlackRock, which owns the popular iShares family of ETFs, will report earnings on Thursday morning. And then more results come Friday morning: Jamie Dimon's JPMorgan Chase and scandal-ridden Wells Fargo are the highlights. Citigroup and PNC will also release earnings Friday.

Banks won't be the only ones reporting earnings next week. Delta, Bed Bath & Beyond and Rite Aid are also due out.

Results will probably be very strong. Wall Street is predicting that earnings for the S&P 500 will rise 17% from a year ago, and the banks should do even better.

Analysts are forecasting quarterly profit gains of about 20% from a year ago for BlackRock and Citigroup and a nearly 40% jump for JPMorgan Chase.

One reason: Ironically enough, the breakneck moves in the market are good for banks with big investment businesses. People tend to trade more in volatile markets, which boosts revenue for the financial firms. (Wells Fargo, which has less exposure to Wall Street, is expected to report just a 7% increase in profit.)

"Strip away the headlines and look beneath the surface and you'll see financials should help lead profits higher," said Jack Ablin, chief investment officer with Cresset Wealth Advisors.

But investors will also be looking for clues from the big banks about whether the recent market turmoil will become more of a problem.

Related: Jamie Dimon says immigration deadlock is 'tearing apart' America

Dimon, who typically talks to reporters and financial analysts after JPMorgan Chase reports its earnings, has already issued a stern warning to political leaders in Washington.

He wrote in his annual shareholder letter last week that "retreating from the world is not the solution, nor is burning down the current system and starting anew."

Dimon added that "people don't think about the challenges in their everyday lives as being Democratic or Republican issues - and our political leaders need to stop thinking that way. We need a well-performing, competent government to thrive as a nation."

It will be interesting to see whether Dimon has anything more to say about this - and whether the heads of the other big banks will weigh in with their thoughts on the possibility of a trade war and other big geopolitical issues.

2. Zuckerberg goes to Washington: Mark Zuckerberg will testify before a joint hearing the Senate Judiciary and Commerce committees on Tuesday and then the House Energy and Commerce Committee on Wednesday.

Lawmakers have been insisting that Zuckerberg take their questions since the Cambridge Analytica scandal broke last month, raising concerns about how Facebook handles personal data. There's a lot to talk about.

Initial reports said that the data analytics firm had improper access to the data of about 50 million users. Then Facebook said this week that up to 87 million users may have been affected. It also confirmed that it uses automated tools to scan Messenger chats for abuse. Australia also announced this week that it is launching a formal investigation into Facebook.

Some think Zuckerberg's appearance could encourage other tech CEOs, like the heads of Twitter and Google, to finally testify.

Related: Facebook announces changes to combat election meddling

3. More tariff drama ahead? The United States and China are inching closer to a trade war. President Trump threatened Thursday to impose tariffs on $100 billion more worth of goods, leading the Chinese government to warn that it is willing to take "new comprehensive measures" in response.

The back-and-forth has already been dizzying for Wall Street. The Dow swung 700 points on Thursday, and re-entered a correction on Friday. If escalations continue, the market could react strongly.

Related: Dow tumbles 572 points as trade war fears pummel stocks

4. Inflation watch: The Labor Department will release the producer price index for March on Tuesday, and the consumer price index for March on Wednesday. The Fed will release the minutes from its March 20-21 meeting on Wednesday.

PPI and CPI are measures of inflation. Investors fear that if inflation takes off, the Federal Reserve could raise interest rates faster than it plans to. The indexes, and the details of the Fed meeting, could help investors figure out what to expect.

Related: US job growth slowed in March

5. Coming this week:

Monday - CBO budget outlook

Tuesday - Equal Pay Day; Zuckerberg testifies; PPI

Wednesday - Zuckerberg testifies; Fed minutes; CPI; Bed Bath & Beyond earnings

Thursday - BlackRock, Delta, Rite Aid earnings

Friday - Citi, JPMorgan, PNC, Wells Fargo earnings

Mississippi Coronavirus Cases

Data is updated nightly.

Cases: 313166

Reported Deaths: 7228
CountyCasesDeaths
DeSoto21496257
Hinds20294414
Harrison17814309
Rankin13573278
Jackson13411246
Madison10066217
Lee9962173
Jones8364163
Forrest7649152
Lauderdale7181240
Lowndes6370145
Lamar621686
Lafayette6171118
Washington5323133
Bolivar4797132
Oktibbeha461498
Panola4561105
Pearl River4499145
Marshall4397103
Warren4380121
Pontotoc419572
Monroe4100133
Union409076
Neshoba4026176
Lincoln3950110
Hancock377786
Leflore3487125
Sunflower335790
Tate332484
Pike3301105
Scott315373
Alcorn311968
Yazoo310769
Itawamba299477
Copiah296465
Simpson294788
Coahoma294379
Tippah287768
Prentiss279560
Adams269582
Marion268880
Leake266273
Wayne262341
Grenada260386
Covington256381
George246848
Newton246061
Winston226881
Tishomingo225967
Jasper220848
Attala214173
Chickasaw207157
Holmes188673
Clay184754
Stone182033
Tallahatchie178140
Clarke177879
Calhoun170132
Yalobusha163337
Smith162234
Walthall133845
Greene130333
Lawrence128323
Montgomery126742
Noxubee126734
Perry125938
Amite122842
Carroll121728
Webster114532
Jefferson Davis106932
Tunica104826
Claiborne102230
Benton99125
Humphreys96133
Kemper95428
Franklin83623
Quitman80216
Choctaw76118
Wilkinson66930
Jefferson65428
Sharkey50317
Issaquena1686
Unassigned00

Alabama Coronavirus Cases

Cases: 530325

Reported Deaths: 10966
CountyCasesDeaths
Jefferson763971520
Mobile40908804
Madison34717503
Tuscaloosa25730452
Montgomery24314588
Shelby23401249
Baldwin21107307
Lee15856171
Calhoun14488314
Morgan14282279
Etowah13819353
Marshall12210223
Houston10557280
Elmore10044205
Limestone9954150
Cullman9649193
St. Clair9644242
Lauderdale9419241
DeKalb8825185
Talladega8214175
Walker7223277
Autauga6918108
Jackson6804112
Blount6651137
Colbert6292134
Coffee5506119
Dale4828111
Russell440638
Chilton4279112
Franklin425582
Covington4118118
Tallapoosa4019152
Escambia393276
Chambers3559123
Dallas3547151
Clarke350861
Marion3113100
Pike310577
Lawrence299898
Winston274072
Bibb260464
Marengo249264
Geneva249077
Pickens234160
Barbour230757
Hale222677
Butler215969
Fayette212062
Henry188744
Cherokee184445
Randolph179941
Monroe177340
Washington167039
Macon158750
Clay156156
Crenshaw152057
Cleburne148741
Lamar141934
Lowndes138653
Wilcox127030
Bullock123041
Conecuh110129
Perry107526
Coosa107128
Sumter104332
Greene92334
Choctaw60424
Out of AL00
Unassigned00
Tupelo
Clear
69° wxIcon
Hi: 80° Lo: 53°
Feels Like: 69°
Columbus
Clear
69° wxIcon
Hi: 81° Lo: 53°
Feels Like: 69°
Oxford
Clear
68° wxIcon
Hi: 80° Lo: 51°
Feels Like: 68°
Starkville
Clear
63° wxIcon
Hi: 81° Lo: 50°
Feels Like: 63°
This will bring back into our area some more chances for some rain and thunderstorms.
WTVA Radar
WTVA Temperatures
WTVA Severe Weather