Amwal Al Ghad English - 2017-01-07 06:18:15
President-elect Donald Trump takes center stage with his first postelection news conference Wednesday, and traders are looking for more details around the promises that have helped drive the Dow up 9 percent since Election Day.
Another test for the rally will be the start of fourth-quarter earning seasons, and first up are financials, the leaders of the Trump rally with a near 18 percent gain since Nov. 8. JPMorgan Chase, Bank of America,Wells Fargo, PNC Financial and others report Friday.
Earnings for the S&P 500 are expected to increase by 6.1 percent in the fourth quarter, but the S&P financial sector earnings are expected to have the biggest gains, with earnings up 15.7 percent, according to Thomson Reuters.
The sector has bounced hard on the prospect of higher interest rates and a steeper yield curve, which would help bank profitability. The stocks also are rising on Trump's vow to end excess regulation. Besides banks, names like Goldman Sachs and Morgan Stanley are in that financial group and both are trading at near decade highs. Goldman is up 35 percent since the election, and has been leading the Dow. More»