What to watch for 4/11/22

The week ahead will mark the beginning of the Q1 earnings season, with large-cap banks leading the charge amid expectations that profits will fall sharply from the levels recorded a year ago, when deal-making was revving higher. Net income for the six biggest U.S. banks is forecast to be down about 35% from last year, with a sharp deceleration in activity seen during March following the Russian invasion of Ukraine. Bank reports will be watched closely on the costs side, particularly with labor, technology and acquisition expenses rising. UBS thinks there could be a surprise to the upside for the sector with guidance likely to highlight that the benefits of higher rates and better than anticipated loan growth could offset higher credit cost provisions and weaker equity markets. The firm recommends Bank Of America (BAC) amid the rising rate environment, while warning that Wells Fargo (WFC) could underperform. $JPMorgan(JPM.US)$ $Bank of America(BAC.US)$ $Citigroup(C.US)$ $Goldman Sachs(GS.US)$ $Wells Fargo & Co(WFC.US)$