Today, Austin Smith discusses why he thinks the credit card delinquency rate will so important to watch when JPMorgan (NYSE: JPM) and Wells Fargo (NYSE: WFC) release their earnings reports on Friday. The average delinquency rate for big banks is approaching 2%, or nearly half of 2009 levels, and a surprisingly low rate for either bank could mean huge long-term benefits, particularly for beleaguered JPMorgan. Investors need to remember that a low delinquency rate does not make JP Morgan a buy by itself, but a decline could definitely add to the overall argument.

For contrarians, the financial sector’s downfall could be a ripe area to pick winners. And no fallen angel is a better bet than Bank of America. To get our senior bank analyst's thoughts on the sector, click here for access to Bank of America's premium investment report.