Skip to content

Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work, and whether you can afford to take the high risk of losing your money.
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work, and whether you can afford to take the high risk of losing your money.

US earnings season: all eyes on the banking sector

The US earnings season officially starts today with three major bank reports. The picture has changed in the last three months.

Video poster image

Equity markets

Equity markets ended Thursday's session lower for the first time this week. European indices remain on track to post their first week of gains in four. The dollar rebounded after a stronger-than-expected US consumer price index (CPI).

Chinese consumer prices

In China, consumer prices faltered in September. The consumer price index missed the forecast of a 0.2% gain. Year-on-year core inflation, excluding food and fuel prices, was 0.8%, unchanged from the previous month. The producer price index fell for the 12th straight month, by 2.5% from a year earlier. Economists had predicted a 2.4% fall in September. While signs are emerging that China's economy is stabilising, this latest data indicates deflationary pressure is still a real risk.

Chinese exports and imports

China's exports and imports shrank at a slower pace for a second month in September. Outbound shipments in September declined 6.2% from a year ago, following a drop of 8.8% in August and beating economists' forecast for a 7.6% fall. Imports also fell by 6.2%, less than the 7.3% decline recorded the previous month. This resulted in a broader trade surplus of $77.71 billion in September.

Michigan consumer sentiment

Production is poised to fall by 3.5% in September Year-on-year (YoY), and over in the US at 3 p.m., Michigan consumer sentiment is expected to decline for a third straight month, to 67.2, after 68.1 in September.

The US earnings season

The US earnings season officially starts today with three major bank reports. The picture has changed in the last three months. While Q2 showed that banks had benefited from higher interest rates, they had to manage a deterioration of the economic environment, with slower loan growth and consumer spending.

JP Morgan Chase

JP Morgan Chase, the largest of them all in terms of assets, is expected to post earnings of $3.89 per share, which would be a 15% increase in the same quarter a year ago. Revenue is also forecast to rise by about 25% to $39.5 billion. But sequentially, it would translate into a decline in both the top and bottom lines.

Citigroup

Citigroup could paint a very different picture. Earnings are expected to fall year over year. The street anticipates earnings of $1.24 per share, to be compared with the $1.63 posted for Q3 last year. Revenue is expected to increase, but not by much, to $19.22 billion. Last year, revenue reached $18.5 billion. Citigroup recently underwent a major At 10 a.m. in the eurozone, industrial restructuring will begin, which means that costs will be particularly under scrutiny.

Wells Fargo

Wells Fargo's earnings per share (EPS) is forecast at $1.24 and revenue at $20.11 billion, both top and bottom lines higher than the same quarter last year. As the biggest mortgage lender in the US, Wells Fargo is more exposed to consumer patterns than any other bank. Investors are therefore keen to read how the bank envisions the coming months.

UnitedHealth

Outside the banking sector, healthcare giant UnitedHealth is due to report before the market opens. The Street anticipates earnings of $6.33 per share, compared to the $5.79 it posted the same quarter a year ago. Revenue is expected to increase substantially compared to last year, to $91.42 billion, benefiting from its efforts to diversify its portfolio. Recently, UnitedHealth executives raised the full-year earnings guidance as they expect an increase in activity in the coming months.

AI in the tech sector

Al will be talked about a lot in the coming weeks, not only in the tech sector but potentially in every industry. JPMorgan's CEO, Jamie Dimon, recently stated that artificial intelligence is already an integral part of the firm. Q3 earnings may show what impact Al might have on the investment bank's results. As for UnitedHealth, the recent acquisition of tech firm Change Healthcare shows the company looks set for an Al-supported expansion going forward.

Crude oil

Elsewhere on the commodity market, The Energy Information Agency (ElA) data confirmed the large increase in crude oil stocks announced by the API on Tuesday. Crude Oil stocks rose by 10.2 million barrels last week. Gasoline and distillate inventories fell, respectively, by 1.3 and 1.8 million barrels. Now oil inventors await Baker Hughes rig count data. Last Friday, the total rig count fell further to 619. The number of oil rigs in operation fell by five to 497, a new 19-month low.

This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.

Seize your opportunity

Deal on the world’s stock indices today.

  • Trade on rising or falling markets
  • Get one-point spreads on the FTSE 100
  • Unrivalled 24-hour pricing

See opportunity on an index?

Try a risk-free trade in your demo account, and see whether you’re on to something.

  • Log in to your demo
  • Try a risk-free trade
  • See whether your hunch pays off

See opportunity on an index?

Don’t miss your chance – upgrade to a live account to take advantage.

  • Get spreads from one point on the FTSE 100
  • Trade more 24-hour indices than any other provider
  • Analyse and deal seamlessly on smart, fast charts

See opportunity on an index?

Don’t miss your chance. Log in to take your position.

Live prices on most popular markets

  • Equities
  • Indices
  • Forex
  • Commodities
website terms and agreements. Prices are indicative only. All share prices are delayed by at least 15 minutes.

" >


Prices above are subject to our website terms and agreements. Prices are indicative only. All share prices are delayed by at least 15 minutes.

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.

Plan your trading week

Get the week’s market-moving news sent directly to your inbox every Sunday. The Week Ahead gives you a full calendar of upcoming economic events, as well as commentary from our expert analysts on the key markets to watch.


For more info on how we might use your data, see our privacy notice and access policy and privacy webpage.

You might be interested in…

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading provider of spread betting and CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.