Banking stocks got off to a strong start in 2022, extending gains from the second half of last year.
JPMorgan Chase, Citi and Wells Fargo will tell investors how they did during the fourth quarter and what to expect in 2022 when they report their earnings Friday.
Financial companies are also booming thanks to the boom in the stock market, which has helped boost trading activity. The stock rally has also fueled demand for mergers and initial public offerings, and has led to a jump in lucrative investment banking fees.
Together, trends can increase banks’ profits. Analysts expect JPMorgan Chase share earnings to rise nearly 70% in 2021.
But investors want to hear what these banks have to say about the rapidly spreading Omicron variant of the coronavirus and how it could affect markets and the economy for the rest of the year.
Investors will also be curious to hear what JPMorgan Chase CEO Jamie Dimon and other top bank executives have to say about the recent surge in long-term bond yields.
There are fears that the Federal Reserve will raise interest rates more aggressively than expected this year in order to rein in inflation. If that happens, it could cause a chill in both the housing and stock markets.
All eyes on the economy
Speaking of inflation, the US government will release CPI figures for December on Wednesday.
Friday: US Retail Sales, Industrial Production and Consumer Confidence (US from Michigan); Earnings from JPMorgan Chase, Citigroup, Wells Fargo and BlackRock