Banks gear up for earnings season

The upcoming U.S. earnings season, set to begin this week, is poised to have a significant influence on stock markets in the coming month. Leading banks, including JPMorgan Chase & Co. (NYSE:JPM), Citigroup (NYSE:C), and PNC Financial Services Group (NYSE:PNC), are gearing up to reveal their quarterly earnings on Friday. All eyes are on the banking sector’s performance, with analysts anticipating reduced profits for most U.S. banks, except for JPMorgan Chase & Co., as indicated by Angela Barnes from IGTV.

Scott Krisiloff, a finance expert recently featured on Yahoo Finance Live, underscored the importance of closely monitoring sectors sensitive to interest rates, especially in light of the rising long-term interest rates and their potential impact on these sectors and the mortgage industry. Krisiloff also provided reassurance that there is no ongoing financial crisis, particularly concerning the long-duration asset securities portfolios held by banking institutions.

Aside from the banking sector, PepsiCo (NASDAQ:PEP) is scheduled to announce its quarterly results on Wednesday. Despite the current high inflation environment, the company is expected to surpass expectations. However, PepsiCo’s stock has experienced a 14% decline from its yearly peak, attributed to consumers shifting towards more budget-friendly brands and concerns regarding the company’s high debt-to-cash flow ratio.