The stock market will meet a major test as first-quarter earnings pour in from big U.S. banks including JPMorgan Chase & Co, Wells Fargo & Co and Citigroup Inc, with expectations that tax cuts will help corporate America show its biggest quarterly profit growth in seven years. Citigroup is expected to report a 12 percent rise in quarterly profit thanks to higher interest rates, additional trading revenue and lower federal taxes.
Any disappointments could further upset the fragile market. PNC Financial Services Group Inc is expected to report a jump in quarterly profit, helped by higher interest rates. Wells Fargo is also expected to report higher profit, and investors will watch for any commentary on the impact of the Federal Reserve’s restrictions on the bank and any updates on its cost-cutting efforts.
REUTERS DATA
