Round Two: Bank Earnings Continue With JPMorgan And Wells Fargo On Tuesday

Earnings season starts to pick up the pace this week, with reports from JP Morgan and Wells Fargo scheduled before market open on Tuesday, January 15.Between the Fed’s rate hike path, growing concerns regarding global economies and future growth, and geopolitical uncertainty, there’s plenty for executives to discuss on tomorrow’s earnings calls.Beyond whether the banks beat, meet, or miss projections, it could be interesting to tune in to earning’s calls to see whether executives discuss their outlook for interest rates. The yield on the 10-year Treasury has pulled back to well under the key 3% rate as investors have sought the relative safety of U.S. government debt. At the same time, there have been worries about the potential inversion of the yield curve, an out-of-the-ordinary formation that has preceded recessions in the past.In addition to interest rate movement, global uncertainty regarding economic growth and geopolitics has been a regular topic in recent quarterly calls. Still, executives haven’t seemed too worried yet that any of it might start to dampen loan and deposit growth in the immediate future.At an Axios event recently, JP Morgan CEO Jamie Dimon said “2019 could be the fastest global growth year on record,” although he did mention that a slowdown in 2020 seemed likely. The International Monetary Fund expects global growth to come in at 3.7% in 2019, lower than their previous 3.9% estimate. The World Bank is less optimistic, expecting global growth to slow to 2.9% this year.