The reporting season begins on Wall Street today. Investors will mainly look at JP Morgan to indicate how the industry fared in the face of rising interest rates.

JPMorgan opens the Wall Street reporting season today, presenting its third-quarter results ahead of the stock market opening. As usual, the earnings season on the US stock exchanges starts with the major banks. Wells Fargo and Citi also present their results before the weekend, as does the world's largest asset manager, Blackrock.

As the largest bank in the US, JPMorgan was the biggest winner of the banking crisis in the spring, when it took over the ailing financial institution First Republic at a favorable price. Analysts believe the leading US bank by assets did well in the third quarter.

Banking Crisis Over?

Third-quarter earnings per share of $3.90 are expected, according to Refinitiv. The bank's results this year suggest it can meet those expectations, making for a promising start to the next installment of the reporting season.

When the earnings figures are presented, Investors will pay close attention to CEO Jamie Dimon's comments on the economy, interest rates, and inflation. Last but not least, analysts will be eager to hear what the top executive says about the banking sector.

Is the regional banking crisis of the spring over? Bank stocks lost ground last month after the Federal Reserve signaled that it would keep interest rates higher for longer than expected to fight inflation.

US Bond Market Under Pressure

The yield on 10-year Treasury bonds, a key indicator of long-term interest rates, rose sharply in the third quarter. Higher rates are impacting banks in several ways. Among other things, they're dampening demand for mortgages and corporate loans, and rising yields mean that bonds are losing value, leading to unrealized losses that weigh on equity.

Generally, the beginning of the reporting season is a test for the US equity market. Investors' expectations for corporate earnings in the year's first half were not too high. The bar for the second half of the year is now higher. Meanwhile, the S&P 500 has fallen significantly since the end of July.