JPMorgan's earnings report is coming up, with analysts expecting financial stocks to contribute one-fifth of the S&P 500's profits.
The signals from the bond market are interesting: the yield curve is steepening.
A steepening yield curve is beneficial for banks—the net interest margin will expand.
Plus, strong merger and acquisition activity means investment banking could deliver surprises.
But the risk lies in credit quality. If employment continues to cool, non-performing loans could rise.