All Eyes On JPMorgan As Banks Report Earnings

JP Morgan Chase & Co headquarters
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GOLDMAN SACHS

— Reports: Tuesday.

— Forecast: Profit of $1.28 per share on revenue of $6.4 billion.

— What to watch for: Goldman's primary business is investment banking. It advises corporations on strategies such as acquisitions and helps clients like pension funds make big trades. Both of those areas were slow in the past three months. Analyst David Trone at brokerage firm JPM Securities reduced his estimates for Goldman's earnings by 24 cents per share. He expects trading revenue at Goldman to plunge 28 percent.

BANK OF AMERICA

— Reports: Wednesday, July 18.

— Forecast: Profit of 16 cents per share on revenue of $22.7 billion.

— What to watch for: More cost-cutting. Bank of America CEO Brian Moynihan said last September that the bank would cut 30,000 jobs to save $5 billion a year by 2014. With slow economic growth in the U.S. and abroad and new laws banning certain fees, bankers seem to have run out of ideas to grow. Barclays analyst Goldberg says the bank's cost-cutting plan, dubbed New BAC, is just a fancy name to make up for "less than desired" growth in its revenue.

MORGAN STANLEY

— Reports: Thursday, July 19.

— Forecast: Profit of 34 cents per share on revenue of $7.7 billion.

— What to watch for: Morgan Stanley, like Citi and Goldman, is vulnerable to weaker sales and trading of bonds and shares.

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