After a Streak Not Seen Since 2008, Bank Stocks Face a Five-Day Test

NEW YORK, Oct. 19, 2026 /CNW/ -- Equity Insider News Commentary - The 24-member KBW Bank Index was on course Friday for a sixth straight weekly decline, which Bloomberg said would be its longest weekly losing streak since the 2008 financial crisis. The index sat about 13% below its August record, in correction territory, even after the largest U.S. banks reported third-quarter results. This week the spotlight moves to regional lenders, card issuers and a trust bank, with a different name on the calendar almost every day. Companies mentioned in this article include: Fifth Third Bancorp (NYSE: FITB), Capital One Financial Corporation (NYSE: COF), Northern Trust Corporation (NASDAQ: NTRS), Huntington Bancshares Incorporated (NASDAQ: HBAN), American Express Company (NYSE: AXP).

What Last Week Told Us

The big-bank reports did little to turn the tide. Weak fixed-income trading offset strength in equities, and the sector also had to absorb concerns that AI could disrupt financial services, along with a hotter-than-expected inflation reading that raised questions about how aggressively the Federal Reserve would act, Bloomberg reported. Barclays analyst Jason Goldberg noted the bank index had underperformed the S&P 500 in 18 of the 21 sessions since the Fed's Sept. 16 rate increase, a stretch with no match since the index was created in May 1992.

Bloomberg Intelligence analyst Herman Chan pointed to rates staying higher for longer, which could slow growth and push loan losses up. Stock trading was the bright spot. Across five top lenders, equities desks brought in nearly $67 billion in the first nine months of the year, about $5 billion more than their bond, currency and commodities counterparts, according to Bloomberg. Wells Fargo analyst Mike Mayo described a "multi-year divergence of equities versus fixed income." Citigroup, State Street, Bank of America and Morgan Stanley were among last week's weakest performers, while JPMorgan Chase shares rose 2.02%.

That sets up a different kind of test this week. The companies on the calendar are regional lenders, card issuers and a trust bank rather than the big trading houses, which puts loans, deposits, cards and custody at the center of the story.

Monday: A First Look After a Big Merger

Fifth Third opens the week, with results expected at about 6:30 a.m. ET on Oct. 19 and a call at 9:00 a.m. It will be the company's first quarterly report since the Comerica systems conversion it had scheduled for Labor Day weekend. In the second quarter, with a full quarter of Comerica included, Fifth Third earned $801 million, adjusted earnings came to $1.02 a share, and its net interest margin rose 6 basis points to 3.36%. "Fifth Third's second quarter was another step toward the earnings power we committed to deliver by year-end," CEO Tim Spence said at the time. The shares slipped 0.53% last week to $50.37, according to Stock Analysis data.

Tuesday: The Consumer Credit Read

Capital One reports after the close on Oct. 20, at about 4:05 p.m. ET, with a call at 5:00 p.m. Its second-quarter results showed net income of $3.0 billion, or $4.73 a share ($5.81 adjusted), on $15.9 billion of revenue. The provision for credit losses fell $1.1 billion from the first quarter to $3.0 billion, including $3.6 billion of net charge-offs and a $662 million reserve release. "We're now 14 months into our integration of Discover, and integration is going well," CEO Richard Fairbank said. The shares gained 1.24% last week to $201.74.

Wednesday: The Custody Check

Northern Trust releases third-quarter results on the morning of Oct. 21, ahead of an 8:00 a.m. CT call, a week after custody peer State Street finished among the sector's weakest performers. In the second quarter, Northern Trust reported diluted earnings of $4.23 a share and assets under custody and administration of $20.0 trillion, up 11% from a year earlier, with assets under management up 16% to $2.0 trillion. "Northern Trust delivered another quarter of strong performance," CEO Michael O'Grady said. The shares fell 1.59% last week to $165.54.

CONTINUED... Read more market coverage at: equity-insider.com

Thursday: A Bigger Regional Bank

Huntington reports before the open on Oct. 22, with a call at 9:00 a.m. ET. The bank has grown quickly: after completing its Cadence acquisition on Feb. 1 and converting Cadence's systems in mid-June, Huntington's second-quarter net interest income rose 40% from a year earlier to $2.05 billion, and average loans climbed 42% to $189.3 billion. It earned $727 million, including $152 million of pre-tax acquisition-related expenses, and adjusted earnings came to $0.39 a share. "Growth in our legacy organization was outstanding, credit remains strong," CEO Steve Steinour said. The shares eased 0.33% last week to $15.27.

Friday: The Spending Signal

American Express closes the week, with results at about 7:00 a.m. ET on Oct. 23 and a call at 8:30 a.m. In the second quarter, revenue rose 10% to $19.6 billion, earnings reached $4.53 a share, and Card Member spending grew 9%, which the company called its fastest pace in three years on an FX-adjusted basis. It raised its full-year revenue growth outlook to 10% and kept its 2026 earnings guidance of $17.30 to $17.90 a share. The shares rose 1.76% last week to $313.59.

Around the Reports

The economic calendar adds its own pressure points: housing starts and building permits on Tuesday, a 20-year Treasury bond auction on Wednesday, weekly jobless claims on Thursday and preliminary purchasing managers' indexes plus final University of Michigan consumer sentiment on Friday. The Fed's next rate decision follows on Oct. 28. For a group that was on track for its longest weekly losing streak since 2008, the next five days bring a broader look at how regional and consumer-facing banks fared in the third quarter.

Bank stocks have a catalyst nearly every day this week. Learn to read the charts behind moves like these with the free Stock Preachers guide, plus The Roadmap market reports, at stockpreachers.com.

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