The Week Ahead: Big Banks Report Earnings

Jeremy Glaser: Earnings kick off this week with the big banks. We're expecting results from Citigroup, JP Morgan, Bank of America, and Wells Fargo. In a recent update on the sector, analysts Eric Compton and Jim Sinegal highlighted a few themes for investors to watch out for. These include the impact of higher rates; how much more room there is for cost-cutting; what kind of focus there will be on returning capital to shareholders; and what the impact of marginally slower loan growth will be. They also expect that the generally placid market environment could mean that trading revenue was weak in the quarter.

Heading into earnings, they see Wells Fargo as being the most attractively priced as it works to rebuild trust after its recent controversies.

Friday will bring the week's most important economic data, including an update on the consumer with retail sales and the University of Michigan consumer sentiment index and an inflation update with the consumer price index.

Stay tuned to Morningstar for our take on these stories.