Image courtesy of Shutterstock

JPMorgan, Wells Fargo, Citi to Report Earnings April 12

By:Thomas Westwater

The big banks will kick off earnings season

  • Bank earnings on Friday, setting the tone for earnings season.
  • JPM, WFC and C will report before the market opens.
  • High implied volatility in bank stocks makes options attractive.

As usual, bank earnings are set to kick off the earnings reporting season, with J.P Morgan (JPM), Wells Fargo (WFC), and Citi (C) scheduled to report on Friday, April 12, before the market opens. The investment management company BlackRock (BLK) will report alongside those banks.  

Earnings from big banks typically help set a tone for the market ahead of other reports from big tech names. The combined three names make up nearly 16% of the State Street Financial Select Sector SPDR (XLF), an exchange-traded fund (ETF), that analysts regularly use to evaluate the performance of the financial sector within the S&P 500. That said, Friday's market reaction to the reports could be revealing. 


Analysts’ expectations  

The consensus figures for the respective bank earnings show that profits are likely to be nearly flat. This is due to subdued loan activity from the commercial and consumer sides amid high interest rates. On the other hand, the resilient U.S. economy and a robust labor market are likely to have helped trim the effects of higher interest rates. 

Another positive for the big banks is the renewed initial public offering (IPO) market, with successful launches from Reddit (RDDT) helping to fuel speculation that more companies will list in the near to mid-term.  Another factor to consider is how bond prices have dropped over the last few months, which could drag on bank balance sheets.  

JMP is expected to report earnings per share (EPS) of $4.16 and revenue of $42 billion. WFC is expected to report EPS of $1.08 and revenue of $20.1 billion. And C is expected to report EPS of $1.20 and revenue of $20.4 billion.  

Trading bank earnings 

Viewing implied volatility metrics reveals that JPM is trading with the highest implied volatility rank (IVR), at 60.8 as of April 8. However, WFC and C also have lofty IVRs at 50.8 and 56.6, respectively. For those wanting to take advantage of the IV crush from earnings, you could go with an iron condor or short strangle, although those strategies depend on prices staying within your short strikes. Selling a put or call spread offers a way to play earnings with a more directional approach that also offers a defined risk.  

Thomas Westwater, a tastylive financial writer and analyst, has eight years of markets and trading experience. @fxwestwater 

For live daily programming, market news and commentary, visit tastylive or the YouTube channels tastylive (for options traders), and tastyliveTrending for stocks, futures, forex & macro. 

Trade with a better broker, open a tastytrade account today. tastylive, Inc. and tastytrade, Inc. are separate but affiliated companies. 

Options involve risk and are not suitable for all investors. Please read Characteristics and Risks of Standardized Options before deciding to invest in options.

Related Posts

tastylive content is created, produced, and provided solely by tastylive, Inc. (“tastylive”) and is for informational and educational purposes only. It is not, nor is it intended to be, trading or investment advice or a recommendation that any security, futures contract, digital asset, other product, transaction, or investment strategy is suitable for any person. Trading securities, futures products, and digital assets involve risk and may result in a loss greater than the original amount invested. tastylive, through its content, financial programming or otherwise, does not provide investment or financial advice or make investment recommendations. Investment information provided may not be appropriate for all investors and is provided without respect to individual investor financial sophistication, financial situation, investing time horizon or risk tolerance. tastylive is not in the business of transacting securities trades, nor does it direct client commodity accounts or give commodity trading advice tailored to any particular client’s situation or investment objectives. Supporting documentation for any claims (including claims made on behalf of options programs), comparisons, statistics, or other technical data, if applicable, will be supplied upon request. tastylive is not a licensed financial adviser, registered investment adviser, or a registered broker-dealer.  Options, futures, and futures options are not suitable for all investors.  Prior to trading securities, options, futures, or futures options, please read the applicable risk disclosures, including, but not limited to, the Characteristics and Risks of Standardized Options Disclosure and the Futures and Exchange-Traded Options Risk Disclosure found on

tastytrade, Inc. ("tastytrade”) is a registered broker-dealer and member of FINRA, NFA, and SIPC. tastytrade was previously known as tastyworks, Inc. (“tastyworks”). tastytrade offers self-directed brokerage accounts to its customers. tastytrade does not give financial or trading advice, nor does it make investment recommendations. You alone are responsible for making your investment and trading decisions and for evaluating the merits and risks associated with the use of tastytrade’s systems, services or products. tastytrade is a wholly-owned subsidiary of tastylive, Inc.

tastytrade has entered into a Marketing Agreement with tastylive (“Marketing Agent”) whereby tastytrade pays compensation to Marketing Agent to recommend tastytrade’s brokerage services. The existence of this Marketing Agreement should not be deemed as an endorsement or recommendation of Marketing Agent by tastytrade. tastytrade and Marketing Agent are separate entities with their own products and services. tastylive is the parent company of tastytrade.

tastycrypto is provided solely by tasty Software Solutions, LLC. tasty Software Solutions, LLC is a separate but affiliate company of tastylive, Inc. Neither tastylive nor any of its affiliates are responsible for the products or services provided by tasty Software Solutions, LLC. Cryptocurrency trading is not suitable for all investors due to the number of risks involved. The value of any cryptocurrency, including digital assets pegged to fiat currency, commodities, or any other asset, may go to zero.

© copyright 2013 - 2024 tastylive, Inc. All Rights Reserved.  Applicable portions of the Terms of Use on apply.  Reproduction, adaptation, distribution, public display, exhibition for profit, or storage in any electronic storage media in whole or in part is prohibited under penalty of law, provided that you may download tastylive’s podcasts as necessary to view for personal use. tastylive was previously known as tastytrade, Inc. tastylive is a trademark/servicemark owned by tastylive, Inc.