Q3 Earnings Season Kicks Off

Group 1: M&A Activity - Papa John's shares increased significantly following a report of a $64 per share bid from Apollo [3] Group 2: Supply Chain Issues - Ford is temporarily cutting production of at least five models due to a fire at a key aluminum supplier's plant [3] Group 3: Banking Sector Earnings - Large-cap banks are expected to report third-quarter earnings this week, with JPMorgan Chase, Citigroup, Goldman Sachs, and Wells Fargo leading the earnings season [4] - Most large-cap banks are anticipated to report year-over-year EPS growth, with Citigroup expected to show the strongest growth among globally important systemic banks [5] - Citizens Financial is projected to have the highest annual EPS growth among regional banks [5] Group 4: Analyst Insights - Bank of America analyst Ebrahim Poonawala is focusing on guidance for net interest income exit rates for Q4, which may influence EPS revisions and stock performance [6] - Morgan Stanley analyst Betsy Graseck favors Citi, Bank of America, Goldman, and JPMorgan based on expectations of strong investment banking fees and trading revenue [6] Group 5: Market Trends - Financial sector EPS growth for Q3 '25 is starting at +14.25%, which is considered a high bar compared to the sector's average of 6% EPS growth since Q1 '22 [7] - The financial sector's performance this week is expected to reflect positively on the U.S. economy, but stock trading patterns post-earnings will be closely monitored [7] Group 6: Other Corporate Developments - Tesla's Cybertruck sales are reportedly falling short of forecasts [8] - Keurig Dr Pepper's stock gained following news of Starboard's stake acquisition [8] - OpenAI has partnered with Broadcom for its first in-house AI chip [8] - Google plans to invest $10 billion in India and $9 billion in South Carolina [8]