Tuesday’s stock markets will react to earnings reports from Bank of America (BAC), Citigroup (C), and Goldman Sachs (GS). Last week, JP Morgan (JPM) and Wells Fargo (WFC) traded higher after posting quarterly earnings.
JPM stock may trade at a new high. The firm will earn less than $87 billion in net interest income next year. In Q4, the firm reported $22.1 billion in NII, compared to $23.4 billion posted in Q3/2024.
Wells Fargo traded higher for seven straight days as of Monday. Investment banking performed well in the quarter. If the government lifts Wells Fargo’s asset cap, it would increase its profitability potential.
Watch for Citi and B of A posting strong NII. Goldman Sachs should post improving EPS momentum.
In fintech, Wedbush Securities upgraded Affirm (AFRM) and Upstart Holdings (UPST) on Monday. Since UPST stock jumped by 15%, investors should wait for profit-taking to lower the stock price.
In the energy sector, oil prices continue to struggle. OPEC cut its demand outlook for 2024. Chances are low that China’s stimulus will encourage its people to consume more.
Election Risks
The U.S. elections are three weeks away. To reduce its risks, investors sold Treasury bonds. Although the bond ETFS, TLT, and IEF, fell, the U.S. dollar is strong. Investors should hold the USD Index Bullish Fund (UUP). UUP stock gained 2.63% in the last month.