Corporate earnings are expected to be the main market-driver this week with major US banks scheduled to present their fourth-quarter results in the next four days.

Goldman Sachs and JP Morgan will hold earnings presentations on Wednesday, followed by Bank of America - Merrill Lynch on Thursday and Morgan Stanley on Friday.

Analysts have been anticipating these events by lowering their fourth-quarter earnings estimates considerably, by up to 15.9%, which would make the banking sector among the weakest sectors, according to FactSet.

Riverfront Investment Group strategist Doug Sandler weighs the possibility of a positive surprise given that estimates are so low. He believes the market may even reward entities that post results that are in line or modestly above consensus.

Wells Fargo has already posted its numbers last Friday. Although its net interest margin fell to 3.56% from 3.89% a year earlier, the bank beat the consensus on both earnings and revenue.

SB

Related share prices