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The Market Looks Forward to JPMorgan's and Wells' Results

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The Republicans' offer to negotiate an end to the government shutdown is lifting nearly every stock on the market today. Luckily for investors in the country's banking giants, the major financials are seeing an even bigger boost.

Much of this has to do with earnings, as a pair of biggies -- JPMorgan Chase (NYSE: JPM  ) and Wells Fargo (NYSE: WFC  ) -- report their Q3 figures tomorrow. Judging purely by their respective stock prices today, it seems investors are bullish on the numbers both will unveil.

Of the two, JPMorgan is seeing the higher rise. This could have something to do with the company's negotiations with the government over settling at least some of the many legal tangles it's facing. Or perhaps the market is comforted by the bank's healthy diversification outside of the mortgage sector, which is a concern hanging over the more narrowly focused Wells Fargo. At any rate, analysts expect the bank to post a little more than $24 billion in revenue and an EPS of $1.21.

As for Wells Fargo, few expect the firm to post the rock-star mortgage numbers it has in quarters past. The refinancing market that juiced results back then has cooled to far under room temperature, and originations aren't looking so hot, either -- a 30% drop in that figure (to around $80 billion) is anticipated for the quarter.  In recent months, thousands of employees in the bank's mortgage sphere have been let go; more will likely follow.

Nevertheless, Wells' share price is outpacing the Dow, indicating that the market expects some kind of earnings beat over the subdued expectations for the quarter. The average analyst estimate for revenue is around $21.2 billion for the period, with EPS anticipated to come it at around $0.97.

Speaking of mortgages, it's interesting to see that a notable executive is moving on from that segment. American Banker is reporting today that Barbara Desoer, most recently the head of mortgages for ever-mighty Bank of America (NYSE: BAC  ) , has been tapped for a big job by Citigroup (NYSE: C  ) . Next week, Desoer will become the chief operating officer of the sprawling company's key consumer banking subsidiary, Citibank N.A.

Citi's new hire adds a female name to a rather heavy male presence at the top ranks of its executive team -- at the moment, of the 23 members of the company's operating committee, exactly two of them are women. Interestingly, one of those two is Jane Fraser, the CEO of (wait for it...) the CitiMortgage division.

Meanwhile, the "executive biographies" page of Desoer's former employer features pictures and blurbs for 11 of its top managers. Four of those people are female.

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9/30/2016 4:00 PM
BAC $15.65 Up +0.49 +3.23%
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JPMorgan Chase CAPS Rating: ****
WFC $44.28 Down -0.09 -0.20%
Wells Fargo CAPS Rating: ****