JPMorgan was the first in a wave of banks to report results, and they were disappointing. Bobbi Rebell reports.
JPMorgan leading off bank earnings with an earnings miss, despite higher profits. The biggest U.S. bank by assets reporting a 22 percent rise in profits thanks in part to lower costs and a tax benefit. That made up for weaker trading revenue. Trading was volatile in the quarter on worries about an economic slowdown in China, which kept investors from making big bets. Earnings for the S&P financial sector are expected to have grown 7.6 percent in the third quarter versus a year ago, but earnings expectations have been coming down in the last 30 days. Eric Wiegand, senior portfolio manager, private client reserve of U.S. Bank. SOUNDBITE: ERIC WIEGAND, SENIOR PORTFOLIO MANAGER, PRIVATE CLIENT RESERVE, U.S. BANK (ENGLISH) SAYING: "The lack of a change in monetary policy out of the September Fed meeting interest rates very low are good for consumers, but have a negative impact on net interest margin for many of the larger banks." Concerns about trading revenues have weighed on bank stocks. Jack Ablin, chief investment officer at BMO Private Bank. SOUNDBITE: JACK ABLIN, CHIEF INVESTMENT OFFICER, BMO PRIVATE BANK (ENGLISH) SAYING: "The regulatory environment closing in really takes away one of their biggest levers, the trading, in you know upside profit over at least we've seen over the last several years it's just not there anymore." Also on this week's earnings calendar: Goldman Sachs, Bank of America, Wells Fargo and Citigroup.