Big banks will kick off third-quarter earnings reports in earnest on Oct. 13, helping to set the tone for the broader U.S. stock market, as businesses cope with the eighth month of the pandemic.
The nation’s largest lenders are expected to reap the rewards of a rip-roaring market for initial public offerings anda record corporate borrowing spree during the pandemic.
See: Wall Street banks net $64 billion in fees in bumper year for M&A and IPOs
On the flip side, major banks also are expected to reflect the downside of the Federal Reserve’s protracted near-zero interest rate policy, as well as concerns about commercial real estate and other parts of the economy hard hit by the coronavirus pandemic.
“Clearly, the banks always start off earnings and everyone pays attention to that, given how sensitive they are to the economy,” said Aaron Clark, portfolio manager at GW&K Investment Management.