TD Cowen Reinstates Hold on Bank of New York Mellon, Announces $160 Price Target

Shares of banks and financial services companies are trading lower after U.S. core inflation data bolstered the case for more Fed monetary tightening, which may slow lending and limit interest margins. Also, weak Q3 segment results from Bank of America and Morgan Stanley may dent confidence in the broader sector.

Truist Financial Corporation (TFC) Earnings Expected to Grow: What to Know Ahead of Next Week's Release

Truist Financial (TFC) is expected to report Q3 2026 earnings of $1.17 per share, representing 12.5% year-over-year growth, with revenues projected at $5.31 billion. The company has a positive Earnings ESP of +2.67% combined with a Zacks Rank #3, suggesting a likely earnings beat. TFC has beaten consensus estimates in all four trailing quarters.

Here's Another Group of Stocks Getting Hammered by Soaring Yields

Rising bond yields are severely impacting bank stocks, with the KBW Nasdaq Bank index down 9.7% over the past month. Soaring yields squeeze bank profitability through reduced net interest margins, increased deposit competition from Treasury bills, depressed loan demand, and declining bond portfolio values. Major banks including Bank of America, Goldman Sachs, and Morgan Stanley have experienced double-digit percentage declines. The author recommends caution on bank stocks until yields stabilize.