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Big Banks are ready to kick off earnings season. Citi (C), JPMorgan Chase (JPM), Goldman Sachs (GS), and Wells Fargo (WFC) report on Wednesday, while Bank of America (BAC) and Morgan Stanley (MS) release results on Thursday.
RBC Capital markets analyst Gerard Cassidy joins Seana Smith and Brad Smith to discuss what investors can expect from Big Bank earnings.
"The fourth quarter results are expected to be good; you're going to see stronger investment banking activity, credit quality is expected to remain very healthy, and we think that we'll start to hear about some improvements in the net interest margin," Cassidy says.
"What's interesting is what the outlook is going to be for 2025. That's what investors are likely to focus in on," the analyst adds. He notes that the 2025 guidance will provide insight into Big Bank's expectations for the Federal Reserve's rate easing cycle, economic growth, geopolitical tensions, and President-elect Donald Trump's return to the White House, specifically around merger and acquisition (M&A) activity.
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"Goldman Sachs [and] Morgan Stanley are the pure plays, but also the money center banks, Bank of America, JPMorgan, [and] Citi are another way to play that as well," Cassidy says.
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This post was written by Naomi Buchanan.