EC What Will Q2 Bank Earnings Reveal?

The large money-center banks that will kick off the 2020 Q2 earnings season for the sector this week have been hit hard in the ongoing pandemic-driven economic downturn.

Stocks in the Zacks Major Banks industry — including JPMorgan (JPM), Wells Fargo (WFC), Citigroup (C) and others — on deck to report results this week have only modestly recovered from their March 23 lows, and lag the broader market in a major way. Even within this beleaguered space, Wells Fargo is in a league of its own, with the stock losing further ground for company-specific reasons.

The chart below shows the year-to-date performance of the S&P 500 index, the Zacks Major Banks industry, JPMorgan and Wells Fargo. As you can see, JPMorgan (blue line) has done only modestly better than the industry (red line), but they lag the broader market (orange line) in a big way.

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Disclosure: contains statements and statistics that have been obtained from sources believed to be reliable but are not guaranteed as to accuracy or completeness. References to any specific ...

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Moon Kil Woong 3 months ago Contributor's comment

Bank earnings will be poor for quite a while as the Federal Reserve plunges towards zirp and QE to follow the same path at Japan into eternal depression. That said, stock up on assets as they continue to rise and be careful of real estate. It is not immune to the disastrous effects.

William K. 3 months ago Member's comment

After their fraudulent accounts episode how can any have any sympathy for Wells Fargo?

And I am really doubting much recovery for 1Q 2021, unless some cure for the plague becomes available to all. And I doubt that. We are the unfortunate because of the short-sighted Feds pumping money in and creating inflation. What is good for tomorrow may be poison next month.But that has not stopped the creating of inflation, and there seems to be no thinking as to the future results.

Angry Old Lady 3 months ago Member's comment

I don't understand how any one would ever have a bank account with Wells Fargo ever again. Nor can I understand how their employees who were behind the fraud are not in prison. Seems like Wall Street always gets a slap on the wrist, even when stealing millions or billions. But a regular joe who commits a minor crime. And if he's black, he could end up dead during the initial arrest! $WFC