Wall Street Sees Mixed Trading Ahead of Earnings Season

Overview

Wall Street spent Monday in a holding pattern. Stocks went three different directions on October 12, 2026, while investors waited for the biggest US banks to open the third-quarter earnings season.

Market Performance

The Dow Jones Industrial Average rose 0.38% to close at 51,850.55. The S&P 500 slipped 0.06% to 7,807.24, and the Nasdaq Composite fell 0.44% to 27,245.90.

Bank Earnings

Projections call for aggregate stock-trading revenue across the sector of nearly $19 billion for the third quarter. Goldman Sachs and Morgan Stanley are projected to lead the pack in equity trading revenue.

Loan Growth

Forecasts point to year-over-year loan growth of around 11%. Fixed-income trading revenue is forecast to decline from second-quarter levels following an interest rate hike.

Interest Rates

Options markets are pricing in moves of 2.5% to 2.8% for JPMorgan and Goldman Sachs after their reports. The 10-year Treasury yield is near 5.24%.

Bank Index

The KBW Bank Index has dropped more than 10% since mid-August. Treasury yields surged, with the 10-year sitting near 5.24%, and the Federal Reserve delivered its first rate hike in three years.

Investor Takeaways

Watch net interest income guidance closely. That figure, the gap between what banks earn on loans and pay on deposits, is the core engine of a traditional lender, and any change in outlook will shape how the market values these stocks for the rest of the year.

Areas to Monitor

Investment banking and consumer lending are also areas to monitor for softening. Firms with strong equity trading franchises, like Goldman Sachs and Morgan Stanley, could look better positioned if those desks deliver, while lenders more dependent on consumers or bond trading may face tougher questions.