To The Moon

🔥 Bank Earnings Beat! But Can the Rally Hold? 💣📉

The Q2 earnings season has kicked off with a bang — or maybe a bank 💥. 

$Citigroup(C)$  surged after beating revenue estimates, driven by a rebound in trading and market activity. $JPMorgan Chase(JPM)$   flexed its Wall Street muscle too, with stronger-than-expected performance in investment banking and fixed income. But not all big banks had a smooth ride — $WFC surprised with a solid earnings beat, only to see its shares tumble 5% 🚨 after slashing guidance for 2025 net interest income. What gives?

🏦 What’s in the Earnings?

Citigroup led the charge with better-than-expected markets revenue, marking a comeback from previous quarters. Its consumer and commercial segments showed stable growth — a rare combo in this environment. $JPM continued to deliver with trading desks firing and a cautious but stable outlook on loan growth. But $WFC’s results stirred up concerns. Despite beating Q2 expectations, the bank flagged a tougher road ahead, citing pressure on interest income and a more conservative lending stance amid macro uncertainty. That spooked investors. Meanwhile, all eyes now turn to $GS, $BAC, and $MS, set to report later this week. Will they echo the same mixed signals?

📈 Market Pulse & Risks

So far, the financial sector is holding up well — the KBW Bank Index has nudged higher, but it’s clear the market isn’t pricing in across-the-board optimism. With the Fed likely holding rates higher for longer and loan demand stabilising, the bullish case rests heavily on trading and dealmaking strength — not core lending. The inversion of the yield curve still weighs on margins, and commercial real estate risk hasn’t disappeared. But valuations in some names — especially $C and $BAC — look cheap relative to history. Could there be more upside? Or is this as good as it gets?

💬 Your Turn!

👉 Which big bank are you most bullish on this season — $JPM, $GS, $BAC, or another?

📉 Can earnings momentum keep up with these lofty stock prices, or are we in for a pause?

Let’s hear your take below. 💡👇

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