Tuesday's Market Minute: Banks, Airlines & Apple

Earnings season is back, marked by the big banks reporting third-quarter financial results this week. Citigroup Inc C and JPMorgan Chase & Co. JPM were the first out of the gate Tuesday morning, and shares of both companies were moving higher in the premarket. JPM reports Q3 EPS of $2.92 versus $2.23 consensus, and revenues of $29.1B, including managed revenue of $29.9B, versus consensus of $28.3B. Citi reports EPS of $1.40 versus $0.92 consensus, and revenue of $17.3B versus $17.2B consensus.

JPM saw its net revenue fall by two-tenths of a percent compared to the same quarter last year, and the bank’s provision for credit losses nearly halved, falling to $611.0M from last year’s $1.51B. JPM’s return on equity (ROE) remained unchanged at 15.0%. Citi’s total revenue fell by 6.8% Y/Y, and its provisions for credit losses increased to $2.26B, up from $2.09B last year. Citi’s ROE fell to 6.7% from 10.4% last year.

Later this week, we’ll also see earnings from Bank of America Corp BAC, Goldman Sachs Group Inc GS and Wells Fargo & Co WFC. In addition to banks, airlines are also set to report. Delta Air Lines, Inc. DAL comes out Tuesday morning, and earnings from United Airlines Holdings Inc UAL are expected on Wednesday after markets close.

What else to watch today: Apple’s event begins at 1pm ET. The tech giant is expected to reveal its iPhone 12 series with 5G capabilities. Ahead of the event, shares of AAPL gained 6.4% in Monday’s trading session, its biggest one-day gain since July 31. Additionally, Amazon Prime Day and Target Deal Days started Tuesday and both run through tomorrow.

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