JPMorgan Chase will kick off the second-quarter earnings season today. But investors and analysts are not optimistic, and it's expected to be a very difficult quarter for banks and other financial services firms.
Analyst estimates project JPMorgan’s second quarter earnings to drop 7 percent from a year ago. Morgan Stanley, which will report its second-quarter results next week, projects even worse, at a 26 percent decline.
All told, second-quarter earnings for banks in the S&P 500 index are set to drop by nearly 12 percent, according to FactSet. The combined net income at the six biggest banks could decline by as much as 18 percent from the year-earlier quarter, according to analysts surveyed by Bloomberg.