Bank of America, Citigroup, Wells Fargo and more to report earnings Wednesday

Investing.com -- The oil and gas sector continues to show resilience in 2026, with several major companies delivering strong performance amid evolving market conditions.

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According to Wolfe Research’s latest analysis, a select group of energy giants stands out as particularly promising investments. These "Major picks" demonstrate robust free cash flow growth, operational excellence, and strategic positioning that could drive shareholder value in the coming years.

ExxonMobil (XOM) leads the pack with an Outperform rating and a price target of $140, slightly adjusted from $141 due to updated gas projections.

The company’s shares have reached all-time highs in 2025, outperforming the XLE energy index by approximately 10% year-to-date. Exxon’s updated plan has strengthened its trajectory, boosting 2024-2030 earnings and cash flow by $25 billion and $35 billion, respectively.

Capital spending trends have been reduced to $27-29 billion for 2026, highlighting improved efficiency. With projected surplus cash flow of around $145 billion over 2026-2030 after capital expenditures and dividends, Exxon offers best-in-class visibility and execution that consistently outperforms targets.

ExxonMobil raised its 2030 earnings and cash flow guidance by $5 billion, citing an improved outlook for its Permian Basin operations. Following the update, both UBS and TD Cowen reiterated Buy ratings on the company.

BP PLC maintains its Outperform rating with a $51 price target, reflecting an adjusted WACC of 8% following the announced Castrol sale. After beating the XLE by approximately 5% in 2025, BP emerges as Wolfe Research’s top European major pick for 2026.

Analysts expect accelerated progress on leverage reduction and cost-cutting efforts following the April 1st appointment of Meg O’Neill from Woodside as CEO. BP’s Bumerangue discovery in Brazil could differentiate its outlook from peers, featuring favorable reservoir indicators despite elevated CO2 levels. The recent sale of 65% of its global lubricants business at an implied enterprise value of $10.1 billion exceeded market expectations.

BP PLC agreed to sell interests in its U.S. midstream assets to Sixth Street for $1.5 billion as part of its debt reduction efforts. The company also received a rating downgrade to In Line from Outperform by Evercore ISI, which cited concerns over the upcoming leadership transition.

Suncor Energy (SU) receives an Outperform rating with a price target increase to C$69 from C$68, reflecting its improving risk profile and progress on three-year targets.

Suncor has outperformed the XLE by approximately 20% year-to-date, supported by strong integrated operations and capital returns. The company’s initial 2026 guidance aligns with its 2024 Investor Day framework, with production expected between 840-870 Mbbl/d on corporate spending of about $5.75 billion. Refining utilization of 99-102% suggests effective capacity has increased under CEO Rich Kruger. Capital returns remain a key strength, with 100% of excess cash targeted for shareholders.

In recent news, Suncor Energy reported third-quarter 2025 earnings and revenue that surpassed analyst expectations. The company also received an upgrade to Outperform from Market Perform by Raymond James, which noted a compelling valuation.

TotalEnergies (TTE) maintains its Outperform rating with a price target increase to $81 from $80 based on an updated price deck and European power joint venture. The company’s strategy prioritizes medium-term free cash flow growth and a dividend expected to compound at 5-7% per share. Management has confirmed that the dividend remains the first call on cash, supported by rising cash flow from operations and flexible capital expenditure.

The recently announced European power joint venture significantly improves free cash flow by approximately $750 million per year while freeing up around $1.5 billion annually in capital expenditure. Upstream operations continue to drive growth, with projects in Suriname, Namibia, Mozambique, and the U.S. deepwater supporting margin expansion.

TotalEnergies has continued its strategic moves in renewable energy, signing a 21-year power purchase agreement with Google in Malaysia and selling a 50% stake in its Greek renewable portfolio.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Investing.com--The S&P 500 slipped on Tuesday as a stumble in JPMorgan dragged banking stocks lower, forcing markets to give up early-day gains that had followed data showing slowing inflation.

At 12:33 p.m. ET (17:33 GMT), the Dow Jones Industrial Average fell 315 points, or 0.6%, the S&P 500 index traded 0.1%, lower and the NASDAQ Composite added 0.2%.

Underlying inflation cools slightly

With investors eyeing the developments around the Fed, the publication of the December U.S. consumer price index, a closely-monitored gauge of inflation has generated additional attention.

U.S headline inflation in December matched both the preceding month, with consumer prices rising by 2.7% annually and by 0.3% on a month-on-month basis. Both equaled November’s rates, and were in line with economists’ expectations.

Stripping out volatile items like food and fuel, the so-called "core" consumer price index from the Labor Department came in at an annualized 2.6% and 0.2% month-on-month. These were also the same as November’s reading, and were slightly cooler than estimates.

Inflation and labor market strength are the Fed’s two biggest considerations for setting interest rates. Nonfarm payrolls data released last week showed some resilience in the labor sector.

"The chances of a rate cut in January are still slim - March looks more likely," said Jarek Sklodowki, head of trading at Financial Markets Online. "America’s recovery is still on track, even if job creation is disappointingly modest, so the Fed won’t be in a hurry to cut rates - but disinflation means it has the freedom to do so.”

JPMorgan kicks off quarterly earnings season; Intel, AMD leads chips higher

JPMorgan Chase (NYSE:JPM) reported fourth-quarter earnings and revenue that topped estimates, but weaker-than-expected performance in its investing banking division just as its acquisition of Apple’s credit-card program weighed on profit. The country’s largest bank posted a fall in profit of 7% after it factored in a previously-disclosed $2.2 billion credit reserve linked to its acquisition of the Apple (NASDAQ:AAPL) credit-card program from Goldman Sachs (NYSE:GS).

Bank of America (NYSE:BAC), Wells Fargo (NYSE:WFC) and Citigroup (NYSE:C) are set to report earnings on Wednesday. 

Coupled with the inflation data, the outcome of the bank earnings could contribute to the tone for stock markets in the early weeks of 2026.

Robust bank earnings could help paint an upbeat picture of the state of Corporate America, and possibly alleviate some worries among more jittery investors in the process.

Elsewhere on the earnings stage, Delta Air Lines (NYSE:DAL) reported fourth-quarter adjusted earnings that slightly exceeded analyst expectations, but shares fell after the airline’s revenue missed estimates and investors reacted to mixed guidance for 2026.

Chip stocks, meanwhile, were in the ascendency, led by Advanced Micro Devices Inc (NASDAQ:AMD) and Intel Corporation (NASDAQ:INTC) after Keybank upgraded its rating on both companies "overweight" and lifted its price target on the stocks, sending them more than 6% higher each.  

Peter Nurse, Ambar Warrick contributed to this article

Investing.com--The S&P 500 slipped on Tuesday as a stumble in JPMorgan dragged banking stocks lower, forcing markets to give up early-day gains that had followed data showing slowing inflation.

At 12:33 p.m. ET (17:33 GMT), the Dow Jones Industrial Average fell 315 points, or 0.6%, the S&P 500 index traded 0.1%, lower and the NASDAQ Composite added 0.2%.

Underlying inflation cools slightly

With investors eyeing the developments around the Fed, the publication of the December U.S. consumer price index, a closely-monitored gauge of inflation has generated additional attention.

U.S headline inflation in December matched both the preceding month, with consumer prices rising by 2.7% annually and by 0.3% on a month-on-month basis. Both equaled November’s rates, and were in line with economists’ expectations.

Stripping out volatile items like food and fuel, the so-called "core" consumer price index from the Labor Department came in at an annualized 2.6% and 0.2% month-on-month. These were also the same as November’s reading, and were slightly cooler than estimates.

Inflation and labor market strength are the Fed’s two biggest considerations for setting interest rates. Nonfarm payrolls data released last week showed some resilience in the labor sector.

"The chances of a rate cut in January are still slim - March looks more likely," said Jarek Sklodowki, head of trading at Financial Markets Online. "America’s recovery is still on track, even if job creation is disappointingly modest, so the Fed won’t be in a hurry to cut rates - but disinflation means it has the freedom to do so.”

JPMorgan kicks off quarterly earnings season; Intel, AMD leads chips higher

JPMorgan Chase (NYSE:JPM) reported fourth-quarter earnings and revenue that topped estimates, but weaker-than-expected performance in its investing banking division just as its acquisition of Apple’s credit-card program weighed on profit. The country’s largest bank posted a fall in profit of 7% after it factored in a previously-disclosed $2.2 billion credit reserve linked to its acquisition of the Apple (NASDAQ:AAPL) credit-card program from Goldman Sachs (NYSE:GS).

Bank of America (NYSE:BAC), Wells Fargo (NYSE:WFC) and Citigroup (NYSE:C) are set to report earnings on Wednesday. 

Coupled with the inflation data, the outcome of the bank earnings could contribute to the tone for stock markets in the early weeks of 2026.

Robust bank earnings could help paint an upbeat picture of the state of Corporate America, and possibly alleviate some worries among more jittery investors in the process.

Elsewhere on the earnings stage, Delta Air Lines (NYSE:DAL) reported fourth-quarter adjusted earnings that slightly exceeded analyst expectations, but shares fell after the airline’s revenue missed estimates and investors reacted to mixed guidance for 2026.

Chip stocks, meanwhile, were in the ascendency, led by Advanced Micro Devices Inc (NASDAQ:AMD) and Intel Corporation (NASDAQ:INTC) after Keybank upgraded its rating on both companies "overweight" and lifted its price target on the stocks, sending them more than 6% higher each.  

Peter Nurse, Ambar Warrick contributed to this article

Investing.com - European stocks edged mostly higher Tuesday, with investors keeping a wary eye on geopolitical developments, important inflation data as well as the new quarterly earnings season.

The DAX index in Germany and the FTSE 100 in the U.K. were both flat, while the CAC 40 in France dropped 0.1%.

Positive lead-in from Wall Street

European markets had received a positive lead-in from Wall Street, where the benchmark S&P 500 index hit a record high, helped by strength in the tech sector.

Sentiment was also boosted by the news that Japan’s Nikkei 225 index hit a record high, aided by reports that Japanese Prime Minister Sanae Takaichi may call for an early election to further boost her government’s parliamentary majority – a scenario that could result in more stimulus spending. 

Still, gains are likely to be limited as investors focus this week on events in Iran, as widespread protests against the ruling clerical authorities have been met with violence and reported heavy casualties as security forces attempted to regain control.

U.S. President Donald Trump stated on Monday that any country that does business with Iran will be subjected to a tariff rate of 25% on any business conducted with the United States. 

Iran’s top trade partners include China, other countries in East Asia, Iraq, the United Arab Emirates, Turkey and Germany.

He is also expected to meet senior advisers later in the session to discuss his options on Iran.

U.S. consumer inflation

The European data slate was largely empty on Tuesday, and thus the focus was on the latest consumer inflation data out of the U.S., the last major piece of data for the Federal Reserve to digest before its meeting at the end of the month.

U.S headline inflation in December matched the preceding month, while underlying price growth eased slightly.

Consumer prices rose by 2.7% in the twelve months to December and by 0.3% on a month-on-month basis. Both equaled November’s rates, and were in line with economists’ expectations.

Stripping out volatile items like food and fuel, the so-called "core" consumer price index from the Labor Department came in at an annualized 2.6% and 0.2% month-on-month. These were also the same as November’s reading, and were slightly cooler than estimates.

Higher cocoa prices help Lindt 

Turning to the European corporate sector, Lindt & Spruengli (SIX:LISN) said its sales grew just over 12.4% organically in 2025, slightly beating market expectations, with the Swiss chocolate maker helped by higher cocoa prices.

Sika (SIX:SIKA) posted a 4.8% fall in 2025 sales, as weak construction markets and currency effects offset growth in local currencies for the Swiss chemicals maker.

Whitbread (LON:WTB) reported a 2% increase in third-quarter group sales, with the U.K. hospitality group’ results supported by higher accommodation revenue in both the U.K. and Germany.

However, a lot of attention will be on events across the pond, with earnings due later in the session from JPMorgan Chase (NYSE:JPM) and Bank of New York Mellon (NYSE:BK), representing the start of the quarterly results season on Wall Street.

Expectations are generally high for the banking sector as a whole, but President Trump’s announcement that credit card rates will be capped at 10% from January 20 could add a complication.

Crude gains on Iranian supply concerns

Oil prices rose Tuesday, climbing for a fourth consecutive session as intensifying anti-government protests in Iran have stoked concerns of disruption of supply from this key OPEC producer.

Brent futures gained 2.5% to $65.48 a barrel and U.S. West Texas Intermediate crude futures rose 3% to $61.10 a barrel.

The Brent contract reached a seven-week high in the previous session, while the WTI benchmark rose to a one-month high.

Iran, one of the biggest producers of the Organization of the Petroleum Exporting Countries, is facing its biggest anti-government demonstrations in years.

Investing.com – Spain stocks were lower after the close on Tuesday, as losses in the Telecoms & IT, Consumer Services and Chemical, Petroleum & Plastic sectors led shares lower.

At the close in Madrid, the IBEX 35 fell 0.01%.

The best performers of the session on the IBEX 35 were SOLARIA ENERGIA Y MEDIO AMBIENTE (BME:SLRS), which rose 2.62% or 0.46 points to trade at 17.81 at the close. Meanwhile, Corporacion Acciona Energias Renovables SA (BME:ANE) added 2.19% or 0.48 points to end at 22.38 and Unicaja Banco SA (BME:UNI) was up 1.59% or 0.04 points to 2.81 in late trade.

The worst performers of the session were Endesa SA (BME:ELE), which fell 2.68% or 0.82 points to trade at 29.83 at the close. Aena SME SA (BME:AENA) declined 2.58% or 0.65 points to end at 24.56 and Telefonica (BME:TEF) was down 2.41% or 0.08 points to 3.35.

Falling stocks outnumbered advancing ones on the Madrid Stock Exchange by 109 to 81 and 20 ended unchanged.

Shares in Telefonica (BME:TEF) fell to 3-years lows; losing 2.41% or 0.08 to 3.35.

Gold Futures for February delivery was up 0.14% or 6.54 to $4,621.24 a troy ounce. Elsewhere in commodities trading, Crude oil for delivery in February rose 2.88% or 1.71 to hit $61.03 a barrel, while the March Brent oil contract rose 2.43% or 1.55 to trade at $65.42 a barrel.

EUR/USD was unchanged 0.19% to 1.16, while EUR/GBP unchanged 0.05% to 0.87.

The US Dollar Index Futures was up 0.31% at 98.93.

Investing.com – Netherlands stocks were higher after the close on Tuesday, as gains in the Oil & Gas, Technology and Basic Materials sectors led shares higher.

At the close in Amsterdam, the AEX gained 0.37% to hit a new all time high.

The best performers of the session on the AEX were BE Semiconductor Industries NV (AS:BESI), which rose 3.11% or 5.05 points to trade at 167.20 at the close. Meanwhile, Shell PLC (AS:SHEL) added 2.29% or 0.71 points to end at 31.46 and ING Groep NV (AS:INGA) was up 1.50% or 0.37 points to 24.98 in late trade.

The worst performers of the session were CVC Capital Partners PLC (AS:CVC), which fell 4.03% or 0.62 points to trade at 14.75 at the close. Adyen NV (AS:ADYEN) declined 2.17% or 31.00 points to end at 1,397.80 and Wolters Kluwer (AS:WLSNc) was down 1.93% or 1.74 points to 88.46.

Falling stocks outnumbered advancing ones on the Amsterdam Stock Exchange by 50 to 44 and 12 ended unchanged.

Shares in BE Semiconductor Industries NV (AS:BESI) rose to 52-week highs; up 3.11% or 5.05 to 167.20. Shares in ING Groep NV (AS:INGA) rose to 5-year highs; rising 1.50% or 0.37 to 24.98.

The AEX Volatility, which measures the implied volatility of AEX options, was unchanged 0.00% to 21.09.

Crude oil for February delivery was up 3.00% or 1.78 to $61.10 a barrel. Elsewhere in commodities trading, Brent oil for delivery in March rose 2.52% or 1.61 to hit $65.48 a barrel, while the February Gold Futures contract rose 0.16% or 7.55 to trade at $4,622.25 a troy ounce.

EUR/USD was unchanged 0.19% to 1.16, while EUR/GBP unchanged 0.02% to 0.87.

The US Dollar Index Futures was up 0.30% at 98.92.