Banks have had a notable runup in the second half of the year as interest rates — both on the long and short end — have moved up:
Here's a few of the major questions investors are grappling with:
"We are late in the game, but we have to get past Nov. 8. Then we can figure out a way for banks to facilitate growth rather than being the whipping boys for the economy," Mayo told me.
Bottom line? Given the price runup, prudence seems to be the order of the day. Wedbush, in a note to clients this morning, reflected this caution: "The environment remains challenging for the bank group and we believe it will be evident in third quarter earnings, reflecting ongoing margin pressure and moderating loan growth... Given the run in the bank group, we believe upside is limited."