Corporate earnings season should pick up steam on Wednesday and that will be the next big test for stocks.
J.P. Morgan earned $1.32 per share, excluding $2.2 billion in tax benefits and other items. This means J.P. Morgan is seen as a bellwether that could set the tone for the rest of the sector come Wednesday.
We could easily see earnings be a particular challenge for stocks this quarter, with analysts expecting a 4.8 percent decline in S&P 500 profits, according to Thomson Reuters. So far, there’s been a trickle of reports, but the season gains momentum Wednesday with results from the major financials and others, like Delta Airlines, Kinder Morgan and Netflix reporting after the close.