Why Bank Stocks Are 'Uninvestable': Steve Eisman Explains Bearish Stance On Financial Sector Ahead Of JPM, Citi Earnings
Portfolio Pulse from Shanthi Rexaline
Steve Eisman, portfolio manager at Neuberger Berman, reiterated his bearish stance on the banking sector, including JPMorgan Chase & Co. (JPM), Citigroup, Inc. (C), and Wells Fargo & Co. (WFC). He cited pressure on interest margins, excess deposits, and potential regulatory clampdowns as reasons. He also warned against investing in sectors involved with consumer buying that requires financing. The Invesco KBW Bank ETF (KBWB) rose 1.64% in premarket trading.

October 12, 2023 | 10:26 am
News sentiment analysis
Sort by:
Ascending
NEGATIVE IMPACT
Bearish outlook on Citigroup, Inc. due to pressure on interest margins, excess deposits, and potential regulatory clampdowns.
The bearish outlook by Steve Eisman is based on the pressure on interest margins, excess deposits, and potential regulatory clampdowns. This could negatively impact Citigroup's performance.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 80
NEGATIVE IMPACT
Bearish outlook on JPMorgan Chase & Co. due to pressure on interest margins, excess deposits, and potential regulatory clampdowns.
The bearish outlook by Steve Eisman is based on the pressure on interest margins, excess deposits, and potential regulatory clampdowns. This could negatively impact JPMorgan's performance.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 80
NEGATIVE IMPACT
Bearish outlook on Wells Fargo & Co. due to pressure on interest margins, excess deposits, and potential regulatory clampdowns.
The bearish outlook by Steve Eisman is based on the pressure on interest margins, excess deposits, and potential regulatory clampdowns. This could negatively impact Wells Fargo's performance.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 80
POSITIVE IMPACT
The Invesco KBW Bank ETF rose 1.64% in premarket trading despite the bearish outlook on the banking sector.
Despite the bearish outlook on the banking sector, the Invesco KBW Bank ETF rose 1.64% in premarket trading. This indicates that the market may not fully agree with the bearish outlook.
CONFIDENCE 70
IMPORTANCE 60
RELEVANCE 60