Hugh Son: Wall Street is expected to power results once again this quarter

Core Insights - Earnings estimates for the major banks are projected to increase by 10% to 30%, driven by a rebound in investment banking and strong trading performance [1][2] - Investment banking is expected to rise by 22% for the group, while trading for JP Morgan is anticipated to increase by 17% to 19% due to ongoing geopolitical tensions [1][2] - Consumer credit remains stable, with no significant issues reported, as indicated by the master trust data from credit card companies [3][11] Investment Banking and Trading - The investment banking sector has shown a significant recovery from last year's lows, contributing positively to earnings [1] - Trading volatility has been favorable, particularly in Q2, but has calmed in Q3, which may impact banks differently [4][5] - The performance gap between big banks and regional banks is notable, with big banks outperforming by approximately 16% [5][6] Credit Market Insights - Despite some concerns regarding credit, particularly in the auto sector, overall credit conditions remain resilient [9][11] - There are discussions anticipated around the impact of recent bankruptcies on credit standards, especially in private credit [10] - CEOs are expected to address credit situations during earnings calls, particularly in light of the lack of recent macroeconomic data [7][8]