Wall Street Banks’ Market-Beating Rally Faces Earnings Test
- Wells Fargo’s Mayo says capital markets ready for record year
- Earning beats widely expected, sunny outlook could buoy market
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Wall Street banks’ outlook for the year will be in the crosshairs after a disappointing first look at earnings from Jefferies Financial Group Inc. and a blowout jobs report that fanned inflation fears.
The Federal Reserve’s recent reticence to keep up the pace of interest-rate cuts was backed by Friday’s strong labor report that sent the stock market tumbling and yields higher. That throws cold water on investor hopes for a repeat of last year’s stock performance, which saw bank leaders climb 33%, outperforming the broader S&P 500.