Big Bank Bonanza: Earnings Off To Strong Start As JP Morgan, Goldman Sachs Crush Expectations

Big Bank Bonanza: Earnings Off To Strong Start As JP Morgan, Goldman Sachs Crush Expectations

Sometimes earnings throw investors a curveball. Not today. The first wave of Q1 big bank results looked pretty much as strong as most analysts had expected. Even stronger, actually. Strength in results doesn't always translate into stock market gains, however. JP Morgan Chase (JPM) actually dipped in pre-market trading, but Goldman Sachs (GS GS ) shares plowed higher. Actually, the entire market appears to be getting an early lift from the results after being mixed earlier in the overnight session. Besides bank earnings, things to watch today include expected comments from Fed Chairman Jerome Powell, who's scheduled to talk at noon about the global economy at the Economic Club of Washington. Also, Fed Vice Chairman Richard Clarida speaks this afternoon. Looking more closely at JPM, a couple of things stand out. The company easily beat analysts' consensus earnings estimate with a profit of $4. 50 a share vs. the $3. 08 expected, while revenue of $33. 12 billion exceeded consensus by more than $2. 5 billion. Fixed income trading was pretty good in Q1 for JPM, but equities trading revenue exploded by 47%, just obliterating the Street's estimates. JPM also released more than $5 billion in reserves it had set