Let’s get ready to rumble

C joined BAC and JPM with higher than expected earnings and improved credit trends. But they and all financials puked on Friday. You have to wonder… If you’re making more money on less revenue, isn’t that a good thing? Would you rather see increased revenues with lower earnings?

This earnings season expectations are that all earnings will be good, and so far so good. It’s all about what you say in your conference call. BAC laid out a scenario that doesn’t sit well for any financial institution. They are saying that FinReg will curb debit-card fees and that will reduce revenues and increase costs. In BAC’s case, they say they may have to take a charge of up to $10 Billion dollars. That’s gonna hurt not only BAC, but all banks and financials, like MA and V. Boy did that show on Friday!

So now July OpEx Friday is down 7 of last 10. That sucks…and I’m reading in the Stock Trader’s Almanac, that in the week after July OpEx, the Dow has been down 7 of the last 11 years. That’s ominous.

This week will be one of the biggies with hundreds of earnings reports, including GS and AAPL, 11 of the Dow Industrials, and about every airline! Ben Bernanke speaks on the Hill, but otherwise a fairly data-quiet week.

And one more for the intereting reading pile: Short side of commodity market becomes crowded.

See you in the market