The unofficial kickoff to the 20Q3 earnings season occurred today, Oct. 13, when the S&P 500 banks industry’s Citigroup Inc (C.N), First Republic Bank (FRC.N), and JPMorgan Chase & Co (JPM.N), delivered quarterly results. Analysts had been expecting declines in both net interest income (NII) and net interest margin (NIM) for the banks industry. However, expectations were too high for the large diversified banks sub-industry constituents, as both Citigroup and JPMorgan missed analysts’ expectations for these metrics. Citigroup reported NII of $10.49 B vs. the consensus of $10.61 B and NIM of 2.03% vs. an expectation for 2.17% while JPMorgan

Retailing giant Amazon.com Inc (AMZN.O) is scheduled to report 19Q3 earnings after the close on Oct. 24. The company known for industry disruption is expected to increase third quarter ad-revenue 71.7% from the prior year and to far outpace the 14.2% outlook for the S&P 500 media entertainment industry group. Analysts also anticipate that Amazon will outperform the S&P 500’s interactive media & services industry (19.5%), which consists of names such as Alphabet Inc (GOOGL.O, GOOG.O), Facebook Inc (FB.O), and Twitter Inc (TWTR.N).

Netflix shows that it’s not enough to beat earnings. The media giant beat 19Q2 earnings with an EPS of $0.60 vs. the $0.56 per share estimate; however, failed to deliver on a key performance indicator. Net subscriber additions for the quarter of 2,699 million missed expectations by 47.2%. As a result, Netflix shares have fallen 16%. Now that the stage has been set, investors eagerly await the fate of the remaining members of F.A.N.G., Facebook Inc (FB.O), Amazon.com Inc (AMZN.O), and Alphabet Inc (GOOGL.O, GOOG.O), which start to report this afternoon with Facebook. Exhibit 1: F.A.N.G. YoY Growth Rates Analysts

The second quarter of 2019’s earnings season kicked off with a flood of bank earnings reports. Fourteen of the 19 companies within the S&P 500’s bank industry have reported 19Q2 earnings and revenue. While the majority of companies within the industry beat top and bottom line expectations, they fell short on some industry key performance indicators (KPI’s). Exhibit 1: S&P 500 Bank Industry YoY Growth Rates The S&P 500 bank industry is expected to see 19Q2 YoY revenue increase 2.9% and earnings increase 18.4%. Of the companies that reported, 78.6% beat revenue estimates, which came in 1.7% above expectations. The