STORY: JPMorgan Chase, Citi and Wells Fargo kicked off earnings season with mixed results Friday, with shares of all three dropping.
Hatfield said it’s “pretty normal” for bank stocks to “run up” prior to earnings, which may be part of the reason they dipped.
Still, he suggested that shares of investment banks such as Goldman Sachs and Morgan Stanley, which report earnings results next week, have more upside.
“We do think in terms of earnings momentum, investment banks are very strong, and likely to get stronger when we get an IPO boom from AI,” he said. “So we’re bullish on investment banks, cautious on on both money-setter, pure banks and regional banks.”