The biggest banks in the country report second-quarter results on July 14, and the mood on Wall Street is optimistic.
Consumer spending is holding up, deal activity is back, and bank stocks have been climbing all year.
That is usually a sign of a rally. However, this time, Evercore’s (EVR) Glenn Schorr is telling investors to slow down.
Schorr’s argument matters to anyone holding a bank stock, a financials ETF, or an index fund, because these five banks help set the tone for the rest of the earnings season.
What Evercore’s Glenn Schorr is warning bank investors about
The warning comes from Evercore ISI analyst Glenn Schorr, one of the most experienced financial analysts on Wall Street.
Schorr said strong second-quarter numbers already appear priced into bank stocks, Barron’s reported.
His core message is blunt. According to StockTwits, Schorr said second-quarter earnings are already priced in, potentially leading to a sell-the-news response.
A sell-the-news response is when a stock falls even after good news, because investors have already bought in expecting it and start locking in gains once it arrives.
Schorr still sees room for the broader capital markets cycle to run over the long term. He just thinks expectations have climbed so high that simply meeting them may not be enough to push shares higher.
Why big bank stocks already reflect a strong quarter
The SPDR S&P Bank ETF is trading near a record high and has gained about 12% in 2026.
The gains have not been even.
Citigroup has jumped 17% this year, while Wells Fargo is down about 8%. Bank of America and JPMorgan both went up 6% and 3%, respectively.
Underneath the stock moves, the spending data still looks healthy, which is what makes the quarter tricky to trade.
- Consumer spending in June posted its strongest growth since April 2022.
- Bank of America reported a 6.3% annual rise in household card spending in June.
- Many of these banks are lead bookrunners for upcoming IPOs from OpenAI and Anthropic.
When JPMorgan, BofA, Citi, Wells Fargo, and Goldman report
Five banks worth close to $2 trillion combined report on the same morning, Benzinga noted, which is why July 14 carries so much weight for the sector.
Here is the schedule investors are tracking this month.
Key bank earnings dates to watch
- July 14: JPMorgan, Bank of America, Citigroup, Wells Fargo, and Goldman Sachs release reports.
- Later in July, regional and mid-sized banks follow with their own results.
The same day also brings the June inflation report.
StockTwits reported that consumer spending stayed strong, even as inflation remains sticky, so bank results and macro data will land together.
What analysts expect from second-quarter bank earnings
The forecasts help explain why the bar is set so high.
For the second quarter, analysts expect Bank of America to earn about $1.13 per share on roughly $30.8 billion in revenue.
JPMorgan is expected to earn nearly $5.70 per share on $51.2 billion in revenue, with shares trading near $338 against an average analyst target of $350.
More Bank Coverage:
- JPMorgan doubles down on stock market, S&P 500
- J.P. Morgan’s stock price is flashing a valuation warning
- Wells Fargo doubles down on the stock market and AI
Across the banks, one thing stands out.
Most big banks still trade at near 12 times earnings, compared with about 22 times for the S&P 500, IG reports. Sector earnings are also expected to grow about 11% in 2026.
A discount that size is not automatically a bargain, since a low multiple on its own guarantees nothing.
The catch is that when a stock already sits near a record high, the market has usually decided the good quarter is coming, so the result has to beat an already high bar to move shares up.
The risks that could still pressure bank stocks
Even a strong quarter carries risks, and they are worth knowing before the reports land.
- A flatter yield curve can squeeze the gap between what banks earn on loans and pay on deposits.
- Regulatory and compliance costs, plus higher capital requirements, continue to weigh on returns.
- Fast-growing private-credit funds are taking over the loan business that banks once owned.
The Federal Reserve has held its policy rate steady this year, which has supported net interest income but limits how much further rates alone can boost bank profits from here.
Net interest income is what a bank makes on the difference between the interest it charges on loans and the interest it pays out on deposits.
That figure has been a big driver of profits, so a weak outlook on it could hit shares harder than a simple earnings miss would.
What the Evercore warning means for your next move
The Evercore warning comes down to one thing: Don’t panic if bank stocks dip after earnings.
If you own a bank stock or a financials fund, a drop right after solid numbers would fit exactly what Schorr described. It would not mean the business is broken.
- Watch guidance and net interest income commentary more than the headline beat.
- Remember that a single-day drop in good results can reflect positioning rather than fundamentals.
- If you invest through an S&P 500 fund, you already hold these banks, so the reaction touches you indirectly.
Schorr’s own record is also worth considering. He has covered financials since 2000 and has been named repeatedly to the Institutional Investor All-America Research Team.
Therefore, his caution carries some authority even in a strong market.
A strong quarter with solid trading and margins could still push these stocks to fresh highs.
JPMorgan’s recent market call pointed to the same thing: Earnings, not rate cuts, have been driving this rally.
Related: Wall Street’s top analysts just doubled down on 3 stocks
