Big Bank stocks will kick off the third quarter earnings season next week, with FBB Capital Partners senior portfolio manager Mel Casey telling Yahoo Finance he expects a strong showing that could support the overall market. Casey pointed to last quarter's strong earnings from both big banks and smaller ones as a sign of good economic growth, lending activity and business activity across the country. Analysts expect a roughly 25% increase in third quarter S&P 500 profits from a year earlier, according to Bloomberg Intelligence data, though Casey cautioned that last quarter included many one-timers and that core operating numbers will matter most. On concentration, Casey said there is no doubt the market remains heavily weighted toward tech, which now makes up 40% of the market, and that the Magnificent Seven effect has grown in recent months after a broader distribution of returns in the first half of the year. He added that valuations have improved, with the market going from 22 times to 20 times earnings, and noted that Nvidia is growing much faster than the market while trading at the same valuation.
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NVIDIA CorporationFBB Capital's Casey expects strong big-bank Q3 earnings that could support the overall market
