Why US banks soon will be singing the blues

Dick Bove: Invest in regional banks

With Wall Street banks about to report on how much money they've been making, estimates are moving in the wrong direction.

Coming off a quarter in which the industry collectively reported $43 billion in profits, analysts had been hoping a rising rate environment and increasing demand would keep things moving for the $15.1 trillion sector.

However, fading hopes for a rate hike in 2015 and other factors are making analysts nervous about just how the quarterly profit reports will shape up. JPMorgan Chase gets things started for the Big Four on Tuesday, with Bank of America and Wells Fargo on tap Wednesday and Citigroup due Thursday. Goldman Sachs reports Thursday as well and PNC will report Wednesday.

As a sector, financials are expected to show a 3.8 percent annualized growth in profits, according to S&P Capital IQ. While that's better than the 5.1 percent decline projected for the entire index, it's a big comedown from initial projections. Revenue is expected to grow 4.4 percent.