The Major Forces Affecting Corporate Profits

Bank stocks had run up ahead of the start of the Q4 earnings season, on favorable trends in treasury yields and the market’s Fed expectations.

The pullback in the stocks following the quarterly releases looked like a sell-the-news type of development. But there has been legitimate worries about some of these bank quarterly releases as well. For example, the cost outlook provided by JPMorgan JPM and Goldman Sachs GS was higher than consensus estimates, but we didn’t see this issue with Bank of America (BAC) and Morgan Stanley MS.

This suggests that  the cost issue at JPMorgan, Goldman Sachs and a few others may be a result of company specific factors.

The cost issue will be key across different industries in this reporting cycle, as it will determine near- and long-term margin trends.

For more details about the Q4 earnings season and evolving expectations for the coming periods, please check out our weekly Earnings Trends report >>> Big Wall Street Banks Provide Mixed Start to Q4 Earnings Season

Infrastructure Stock Boom to Sweep America

A massive push to rebuild the crumbling U.S. infrastructure will soon be underway. It’s bipartisan, urgent, and inevitable. Trillions will be spent. Fortunes will be made.

The only question is “Will you get into the right stocks early when their growth potential is greatest?”

Zacks has released a Special Report to help you do just that, and today it’s free. Discover 7 special companies that look to gain the most from construction and repair to roads, bridges, and buildings, plus cargo hauling and energy transformation on an almost unimaginable scale.

Download FREE: How to Profit from Trillions on Spending for Infrastructure >>

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The Goldman Sachs Group, Inc. (GS): Free Stock Analysis Report
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Morgan Stanley (MS): Free Stock Analysis Report
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


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