By Caroline Valetkevitch

NEW YORK (Reuters) – As quarterly U.S. earnings bought beneath method with upbeat stories from JPMorgan Chase & Co (NYSE:) and different main banks Friday, analysts marginally brightened their dim outlook for first-quarter U.S. outcomes in contrast with per week in the past.

Based mostly on precise outcomes from 30 of the corporations and estimates for the remainder, analysts now anticipate earnings for the S&P 500 in combination to have declined 4.8% within the first quarter of 2023 from the year-ago interval, in accordance with Refinitiv knowledge Friday. That compares with their week-ago forecast for a 5.2% year-over-year decline within the quarter.

S&P 500 earnings fell 3.2% year-over-year within the fourth quarter of 2022, based mostly on Refinitiv knowledge, which suggests the primary quarter nonetheless would mark a second straight quarterly decline in U.S. earnings, or a revenue recession.

Traders have been eagerly awaiting quarterly outcomes from banks following the collapse of two U.S. regional banks in March.

Whereas shares of JPMorgan and different massive banks rallied following Friday’s outcomes, shares of regional banks principally fell, with PNC Monetary Companies Group Inc (NYSE:) ending almost flat after it posted a quarterly revenue beat however missed expectations on internet curiosity revenue.

“Whereas we do not assume earnings season will carry a lot in the best way of fine information, expectations are low sufficient that we might even see shares maintain up once more after outcomes,” Gina Bolvin, president of Bolvin Wealth Administration Group in Boston, wrote in a observe Friday.

A slew of different regional banks are nonetheless attributable to report within the coming weeks, together with Zions Bancorp on Wednesday. Quarterly outcomes are additionally anticipated subsequent week from Goldman Sachs Group (NYSE:) and Netflix (NASDAQ:).