Banking On Blowout Earnings
J.P. Morgan's blowout third-quartergave the financial sector a big boost today. The firm reported a profit of $0.82 a share versus Wall Street's consensus estimate of $0.52.
With J.P. Morgan's results setting the tone on the earnings front, should investors expect similar results from the group?
On the Closing Bellwe asked the question, but the answers were mixed.
Here's the positive.
Al Villalon of First American Funds believes "J.P. Morgan's earnings showed signs of stabilization in the consumer."
When asked about opportunities in the sector, Villalon says value can be found in commercial banks.
His top picks?
J.P. Morgan, Bank of America and Comerica .
As far as concerns, Fred Lane of Raymond James said "financial services is going well but the group has gone too far ahead of itself." Lane believes there has been positive movement in debt and equity markets, but "continuing problems in consumer credit will impact Citi and Bank of America."
Keep an eye out on some important earnings for the rest of the week with Goldman Sachs and Bank of America both set to report.
DISCLOSURES: Fred Lane of Raymond James does not own positions of Citi and Bank of America. Al Villalon of First American Funds does not own positions of J.P. Morgan, Bank of America and Comerica.Donna Burton contributed to this article.
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