With earnings season well underway, it's important to note that the fourth quarter is typically weak in trading,Brad Hintz, senior analyst at Sanford Bernstein and former CFO at Lehman Brothers, told CNBC on Tuesday.
"I don't think anyone is looking at Q4 [fourth-quarter earnings] to be a great trading quarter. Once bonuses are determined, the traders go on vacation. So sometime in mid-November, nobody is really working on the trading floor, they are playing defense," Hintz said.
"Looking forward, what we are going to be looking for is M&A equity underwriting. The numbers out of Citigroup said equity underwriting is strong. That backs up the idea that we're getting an equity underwriting boom," he said.