Jan. 14 at 6:33 PM
Financial stocks had a volatile week driven by political headlines and fourth-quarter earnings, yet several names appear well positioned to recover and outperform. The Financial Select Sector SPDR ETF fell just over 3%, pressured in part by comments from President Donald Trump about temporarily capping credit-card interest rates, a proposal viewed as unlikely but disruptive for card issuers. At the same time, major U.S. banks reported earnings that were generally solid but not strong enough to extend stocks that had already risen sharply over the past year.
Despite near-term weakness, results suggest a favorable outlook. JPMorgan, Bank of America, Citigroup, and Wells Fargo mostly beat adjusted earnings expectations, supported by revenue growth from higher loan demand and net interest income, along with disciplined cost control. Wells Fargo stood out with a decline in non-interest expenses and roughly 27% EPS growth.
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