Will another shoe drop tomorrow, or will the banks come to the rescue?
Remember....JP Morgan, PNC Financial, Citigroup and Wells Fargo will announce earnings tomorrow. Will they disappoint? Or will they come to the rescue for the market.
What we know is the financials have had a tough time of it this year. Despite calls by many that they were underpriced. That they would benefit greatly from tax overhaul. That yields rising would help their stock prices. What we have seen instead is lackluster performances. The only big name up this year is JP Morgan Chase.
Today, the sector is getting hit ahead of the key releases (Bank of America reports on Monday).
The earnings will be announced before the opening. Traders will not only be focused on the earnings and revenues vs expectations, but - and this might be the bad - the loan growth. Higher rates can help when rates are higher, but if loan demand is not growing, the market may be disappointed.
