Corporate earnings season picks up steam Wednesday, and that will be the next big test for stocks.
Big financials — Bank of America, Wells Fargo and BlackRock — report ahead of the opening bell, following J.P. Morgan's disappointing results late Tuesday. J.P. Morgan earned $1.32 per share, excluding $2.2 billion in tax benefits and other items. Volatile financial markets hit revenues, which fell 6.4 percent to $23.5 billion. J.P. Morgan is seen as a bellwether that could set the tone for the rest of the sector.
Earnings could be a particular challenge for stocks this quarter, with analysts expecting a 4.8 percent decline in S&P 500 profits, according to Thomson Reuters. So far, there's been a trickle of reports, but the season gains momentum Wednesday with results from the major financials and others, like Delta Airlines, Kinder Morgan and Netflix reporting after the close.