US financials will drive price action next week
The list below shows the most important earnings releases to watch next week with our focus on Delta Airlines, JPMorgan Chase, Bank of America and Citigroup.
Wednesday: Delta Air Lines, JPMorgan Chase, BlackRock, First Republic Bank
Thursday: Fast Retailing, Bank of America, Wells Fargo, Walgreens Boots Alliance, Morgan Stanley, Citigroup, UnitedHealth, US Bancorp, Progressive, Domino’s Pizza
Friday: Zijin Mining, BOC Hong Kong, PNC Financial Services, Goldman Sachs, Charles Schwab, Truist Financial
Delta Air Lines is expected to deliver Q3 revenue of $8.4bn up 175% y/y and its first profitable quarter since the pandemic started with EPS expected at $0.18, and EBITDA at $945mn translating into a healthy 11.2% operating margin. The key focus is naturally the rising fuel costs associated with the ongoing global energy crisis but also on how the uptake on air passengers look like in post pandemic world with vaccinations.
Among the banks and investment banks we focus on JPMorgan Chase for the full picture, and Bank of America for understanding the underlying credit dynamics and loan demand situation in the US, and Citigroup is interesting because of its emerging market tilt. Morgan Stanley and Goldman Sachs are often not interesting given JPMorgan Chase is most of the time a good indicator on investment banking for quarter. Analysts expect a tough quarter for US banks q/q as activity is normalizing across consumer and commercial banking while investment banking activity has not run abnormally high in Q3. Key focus for banks is their outlook for interest rates and any comments on inflation and how it is impacting their customers.