Big banks post strong Q3 profits, but warn higher rates and inflation could bite

JPMorgan Chase, Citigroup, Wells Fargo and Goldman Sachs reported strong third-quarter profits on Tuesday, helping kick off a mixed earnings season on Wall Street. JPMorgan posted $15.3 billion, or $5.57 per share, up from $14.4 billion, or $5.07 per share a year earlier, though it missed analyst expectations of $5.93 a share. The bank cited a slowdown in activity at its fixed income trading desks, particularly in investment banking. Still, shares rose 0.8% early. CEO Jamie Dimon pointed to sticky inflation, elevated asset prices and high interest rates, as well as large fiscal deficits and geopolitical conditions. Analysts expect S&P 500 earnings growth near 30% year over year.