The Bank Wave of Earnings Reports Is Coming
On Tuesday, October 15th, several banking institutions will be reporting their earnings for the quarter. Among them are Goldman Sachs, Citigroup, and Bank of America.
Goldman Sachs (GS) is up 0.88% for Monday, ahead of its quarterly earnings report. Goldman Sachs has done very well this year as a stock, rising from sub-$400 to today’s high of $520 (it’s highest point for the year).
Citibank (C) has climbed by 0.54% from yesterday as its report release nears. They have had a much bumpier year than Goldman Sachs, but their stock is still priced today at one of its highest points for the year. Overall, this year, this bank stock has done well.
Bank of America (BAC) rose by a miniscule 0.05% from Monday but has gained 24% this year as a stock. The company was doing better earlier in the year, but like Citigroup, this earnings report will come during one of their higher points for the year.
Why the Bank Stock Are Important
These stocks do play a significant role in where the stock market is headed for the rest of the year. Investors will be watching how they perform, because their earnings reports give a snapshot of the wider economy. If the banking stocks suffer, the economy dies as well.
They serve as economic indicators, for the most part. As the bank stocks go, so too goes much of the stock market. Investor confidence will rise and fall with how the banks perform.
Because these stocks have done mostly well this year, the earnings reports are expected to be positive as well. Investors are showing their confidence in positive quarterly reports right now with the way these stocks have ticked up over the last 24 hours. The fact that these bank stocks were already elevated and then rose even more as the quarterly reports near is a good indicator of a healthy economy and good expectations for the reports.