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Banks and consumers — What you need to know in markets on Friday

Myles Udland
Markets Reporter

It is perhaps the busiest summer Friday of the year.

On Friday morning, earnings season will unofficially get underway as investors will digest results from financial giants Citi (C), JP Morgan (JPM), and Wells Fargo (WFC). PNC (PNC) will also report earnings before the bell.

Friday will also bring us a rush of economic data about the health of the U.S. consumer, as inflation numbers, retail sales for June, and the first read on consumer sentiment in July from the University of Michigan are due for release.

And while bank earnings will give us an update on the state of play on Wall Street, remember that these banks are also great checks on how U.S. consumers are doing.

These banks know how we’re doing on our mortgage payments, credit card payments, and of course how much money we literally have in the bank.

Bank earnings will also be in focus as the financial sector has been among the most-talked about this year following the post-election “Trump rally” which boosted financial stocks on a combination of hope for faster economic growth — and hence higher rates — and a loosening of financial regulations.

“Banks will meet or miss earnings, but top line will be light in many cases,” Chris Whalen of Whalen Global Advisors told Yahoo Finance.

“Lending volumes are falling across the board, investment banking is light, and there is little momentum behind earnings for rest of the year. Residential mortgages could be a negative for many banks due to very competitive secondary market.”

More to come in the morning.

Myles Udland is a writer at Yahoo Finance. Follow him on Twitter @MylesUdland

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