Banking is the one industry above all others that should cruise higher during a Trump administration, but the road likely won't be smooth.
In business terms, no one cheered louder than financial institutions after President Donald Trump's stunning November election victory. The sector surged more than 25 percent on hopes that higher interest rates, stronger
Nearly 100 days into the Trump administration, the picture has become muddied.
The muscular performance after the election didn't last, and the sector is about flat now for the year. First-quarter earnings saw strong profits for banks, but weak lending. The initial steps toward deregulation finally came about last week, but there's much to be done.
In all, banks face as uncertain a future as pretty much anything else in the Trump economy.
"Since the inaugural, many of the public policy issues that had been factored in have dissipated from the stocks. The rally has met reality," said Fred Cannon, director of research and chief equity strategist at financial services firm Keefe, Bruyette & Woods. "Now bank stocks have gone from very exciting, where everything's going to get better, to a show-me kind of a thing."
If the current momentum is any indicator, banks could be ready to show a lot.