Not everything is well on Wall Street on an otherwise rocking Monday.
Despite the S&P 500 smashing through a new intraday trading high to start the week — and big banks' shares trading up in an optimistic market Monday morning — analysts are almost universally bearish on those same financial institutions in the longer term.
Their concerns have little to do with earnings announcements coming this month; in fact, some analysts think consumer banks, which are responsible for billions in lending every quarter to home buyers and auto purchasers, could see loan figures rise for the second quarter: "Banks may experience a boost in non-interest income as demand for residential refinance ticks up in the low rate environment," said Bain Rumohr, director of Fitch Ratings.
The problem, he said, is that banks won't thrive as long as interest rates are at historic lows. Greater loan activity "will not be enough to offset pressure from the flattening yield curve."