Wall Street's biggest lenders are expected to report strong second-quarter earnings this week, driven by a surge in investment banking activity, elevated trading revenue and signs of a long-awaited recovery in commercial lending.
JPMorgan Chase, Bank of America, Citigroup, Wells Fargo and Goldman Sachs are scheduled to report earnings Tuesday, followed by Morgan Stanley on Wednesday. Analysts expect double-digit revenue growth across much of the sector as banks benefit from what veteran banking analyst Mike Mayo told CNBC is a "sweet spot" in which both Wall Street and Main Street businesses are performing well. "You saw the largest IPO in history, a pace of mergers that's on track to be a record year, and a broadening out of trading to include equity and fixed income across myriad geographies," noted Mayo. "There's not much more you can ask for."
