Friday’s ETF To Watch: KBE

The first week of the summer earnings season has offered plenty of excitement, but so far has failed to give the markets direction heading into the second half of the year. Some industrial companies such as Alcoa have posted solid numbers, while the tech sector was relatively mixed; Intel beat estimates but Google failed to meet expectations. These trends put the much-maligned banking sector into focus as industry bellwether JP Morgan reported earnings yesterday. The company handily beat expectations by posting second-quarter earnings of $1.09 a share. Analysts surveyed by Bloomberg had estimated profit of 71 cents on average. However, investors did not react all that positively, due to the fact that a large part of the earnings came from a $1.5 billion reduction in the bank’s loan-loss reserves. Additionally, JP Morgan reported a 25% drop in investment banking revenues and a 33% drop in trading revenues, which helped to [...] Click here to read the original article on ETFdb.com. Related Stories: Three ETFs To Watch This Week: EWZ, SMH, IYG Tuesday’s ETF To Watch: PBJ Five ETFs To Watch On Black Friday