Investors will learn more about where the nation’s major financial institutions stand later in the week, when the sector kicks off second-quarter earnings season. Financials broadly are expected to show profit growth of 6 percent, third-best of the 11 S&P 500 sectors, according to market data tracker FactSet.
“They will figure out a way to hit their earnings numbers, which are relatively low. But the revenue numbers, I think you’ll see some misses,” said Christopher Whalen, head of Whalen Global Advisors and an expert on the industry.
As banks have gotten a boost lately from positive stress test results and plan in some cases to return record levels of cash to investors, the catalysts for more growth nonetheless appear less certain.