US earnings preview: what to expect from JPMorgan Chase, Wells Fargo and Citigroup
US earnings season begins this week, providing the main driver of activity for the next month or so in equity markets.
On Friday, the banking sector will grab most of the attention. JPMorgan Chase, Citigroup, and Well Fargo are due to report quarterly earnings. US banks are expected to post lower profit in the third quarter, apart from one: JPMorgan. IGTV’s Angela Barnes has more.
The US earnings season
The US earnings season is starting, and it will be a major factor in how the stock market behaves for the next month. On Wednesday, PepsiCo is releasing its quarterly results and it is predicted to outperform expectations, despite the challenges of high inflation.
PepsiCo stock
However, PepsiCo's stock hasn't been doing well in the past three months, dropping 14% from its highest point this year. One reason for this could be that consumers are feeling the impact of inflation and are turning to cheaper brands, which is affecting PepsiCo's sales. There are also concerns among investors about PepsiCo's financial situation, as it has a lot of debt compared to its cash flow.
Delta stock
On Thursday, Delta Air Lines will be announcing its third quarter results. Delta's stock has gone down by 26% since July, mainly due to engine recalls. Another company called RTX Corporation has recalled 600 to 700 Pratt & Whitney engines, which has led to many grounded planes. Delta Airlines is the most affected North American airline in this situation. People will also be looking at Delta's operating margins, as consumer spending is still under pressure. Despite all this, the overall travel market has remained strong.
JP Morgan Chase, Citigroup, and Wells Fargo
Friday is a big day for US banks like JP Morgan Chase, Citigroup, and Wells Fargo, as they will be reporting their quarterly earnings. It is expected that these banks will have lower profits in the third quarter, except for JP Morgan who is predicted to do well. JP Morgan's stock went up by 1.54% recently, but it has gone down by 11% since the start of August. However, if we look at the bigger picture, the share price has gained around 11% since the start of the year.
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