TLDR
- Big banks open third-quarter earnings season on Tuesday, with JPMorgan Chase, Goldman Sachs, Wells Fargo and Citigroup reporting.
- Bank stocks have struggled, and the five major banks have lost about $270 billion in market value.
- The September CPI report is due Wednesday and could shape the Fed’s October rate decision.
- Taiwan Semiconductor reports Thursday, and ASML reports Wednesday.
- Telecom stocks fell Friday after SpaceX agreed to buy a spectrum portfolio.
Third-quarter earnings season starts this week. Big banks report first, and investors will also get key inflation data.
Markets head into the week on a strong note. The S&P 500 closed at 7,811.54 on Friday, up 0.59% on the day. It gained 1.2% for the week, while the Nasdaq rose 0.9% and the Dow added 0.6%.
Big Banks Lead the Reports
JPMorgan Chase, Goldman Sachs, Wells Fargo and Citigroup report on Tuesday. UnitedHealth and Johnson & Johnson also report that day.
Earnings for the week of October 12, 2026https://t.co/hLn2sKQhEY$UNH $JPM $ASML $GS $TSM $WFC $BAC $AA $DPZ $JNJ $C $IBKR $MS $ERIC $AZZ $CMC $BLK $SCHW $MAN $ACI $FBK $EQBK $INDB $JBHT $MTB $PGR $TRV $WSE $WAFD $PNC $RF $SFNC $STT $TFC $HOMB $MRSH $CNS $FAST $FHN $CFG $SOTK… pic.twitter.com/k7NviIQMdD
— Earnings Whispers (@eWhispers) October 9, 2026
Bank of America and Morgan Stanley follow on Wednesday. BlackRock and ASML also report that day.
Bank executives described the economy as healthy this summer. Trading volume was up, and merger activity was brisk.
Higher interest rates tend to raise the money banks earn on loans compared with what they pay on deposits. They can also curb borrowing. That risk may be one reason bank stocks have slumped.
The financial sector fell about 4% over the past month, the second-worst result among S&P 500 sectors. The five major banks have lost roughly $270 billion in market value.
A Truist Securities study found only 35% of institutional investors expect bank stocks to beat the market. That is down from 68% in July.
Analysts expect bank profits to fall from the prior quarter. Trading and investment banking revenue are also expected to decline.
Goldman Sachs CEO David Solomon said in late September that trading in fixed income, currencies and commodities had been “a little bit softer” than a year earlier.
Morgan Stanley co-president Daniel Simkowitz said, “I think it’s safe to say 3Q is no 2Q.”
Taiwan Semiconductor reports Thursday. It beat profit estimates last quarter, but its shares fell after the report.
Inflation Data Could Shape the Fed’s Next Move
The September Consumer Price Index is due Wednesday. Economists expect prices to rise 3.6% from a year earlier, up from 3.4% in August.
Key Events This Week:
1. OPEC Monthly Report – Tuesday
2. September Existing Home Sales data – Tuesday
3. September CPI Inflation data – Wednesday
4. September PPI Inflation data – Thursday
5. Fed Chair Warsh Speaks – Thursday
6. Q3 2026 Earnings Season Begins This Week…
— The Kobeissi Letter (@KobeissiLetter) October 11, 2026
Prices for gasoline, food and computer parts have climbed since the war in Iran began in late February. Fed Chair Kevin Warsh said in September, “The plain fact is that inflation is too high and has been for too long.”
The Fed raised rates by a quarter point in September, its first hike in three years. The target range is now 3.75% to 4%.
Most Fed officials projected at least one more quarter-point hike this year. Traders now price in roughly 80% odds of an October increase.
Bank of America economist Stephen Juneau said the report may not be strong enough to shift expectations toward an October hike. New York Fed president John Williams has also signaled room to wait.
Retail sales and the Producer Price Index arrive Thursday. Industrial production data follows on Friday.
Telecom stocks dropped Friday after SpaceX said it agreed to buy a nationwide low-band spectrum portfolio from Grain Management. Verizon fell 5%, AT&T dropped nearly 7% and T-Mobile declined more than 6%.
SpaceX COO Gwynne Shotwell said in August that Starlink plans to build a wireless network. SpaceX shares closed Friday at $162.57, up 1.25%.
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