Banking sector: JPMorgan vs Bank of America earnings

What happened: Bank of America (BAC) reported strong Q1 earnings, beating estimates with EPS of $1.11 vs. $1.01 and revenue of $30.43B vs. $29.93B. Profits surged 17% YoY to $8.6B, driven by equities sales and trading, and net interest income. JPMorgan (JPM) also posted robust results, with EPS of $5.94, up 13% YoY, and revenue of $32.4B.

Market impact: The banking sector rallied following these earnings, with BAC and JPM shares up 3.5% and 1.5% respectively. The results boosted investor confidence in the sector, with analysts favoring BAC due to its strong performance and dividend growth. The positive earnings momentum could drive further gains in banking stocks.

What to watch next: On April 15, BAC hosts a Q1 earnings conference call at 8:30 AM ET, providing further insights into its performance. Additionally, investors await JPM's Q2 earnings in mid-July to see if the bank can maintain its momentum. The broader earnings season, kicking off with financials, will also provide clues about the overall economy's health.