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Article via Titan.com

Banks are always some of the first companies to report earnings and we’re well on our way with mixed results. Banks and financial companies are usually strong barometers for the strength of the economy given their access and real time view of the health of corporations and consumers. JPMorgan Chase and Wells Fargo saw their adjusted profits fall, while Citigroup saw sluggish spending on its credit cards. Bank of America topped expectations while Morgan Stanley missed the mark.

The biggest takeaways so far? (1) Investment banking is rebounding: A clearer outlook on interest rates is giving bankers hope that M&A may be emerging from a two-year slowdown. Combine that with a political election that may change the pressures from antitrust cases, expectations are moving back towards historical averages. (2) Asset and wealth management businesses are working: the focus on recurring revenues via fees and the cost synergies from blockbuster M&A (h/t E*Trade and TD Ameritrade) are finally coming through the P&L. (3) Lower end consumers are feeling the pressure: more borrowers are carrying higher balances, some spending is shifting away from nondiscretionary goods, and budgets are under pressure.