DFS - Banks' Q1 earnings will reflect strong consumer weak equity capital markets

Banks once again are gearing up to report Q1 earnings, which will give investors and economists alike more insight into where the strong and weak spots are in financial markets and systems. JPMorgan Chase (NYSE:JPM) and BlackRock (BLK) will kick off the earnings reports on Wednesday. Consumer and business banking and the higher interest rates will provide some lift, while equity capital markets and reduced M&A activity are likely to detract from earnings. Rates on the rise: Banks are expected to see some improvement as interest rates started climbing in the quarter. Still, the Fed has only started its tightening cycle, so most of the benefits from a more hawkish Fed lie ahead. "We'll get a lot of leverage" from rising rates, said Bank of America (NYSE:BAC) CEO Brian Moynihan on CNBC less than three weeks into Q1. Morgan Stanley analyst Betsy Graseck sees higher rates likely boosting consensus net

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Banks' Q1 earnings will reflect strong consumer, weak equity capital markets