My 2c on Financials: US Financials Sector Specialist Commentary Banks · Insurance · Diversified Financials

Research evidence excerpt

My 2c on Financials: US Financials Sector Specialist Commentary Banks · Insurance · Diversified Financials

Rob O'Dwyer - Specialist Sales - US Financials AC North America Specialist Sales J P M O R G A Nrob.odwyer@jpmorgan.com

J.P. Morgan Securities LLC 20 July 2026

My 2c on Financials

Rob O’Dwyer

+1 2126222673

rob.odwyer@jpmorgan.com

Key Highlights

• Positioning and momentum ahead of mixed week of earnings

• Bank rating changes - USB upgrade & TFC dowgrade

• Info Services preview - increasing estimates

Morning – this week in fins is about regional banks, consumer finance, exchanges, info services and insurance + a couple of high

profile outliers (BX & SCHW). That probably makes it a bit harder for thematics to work but fins in general remain a net

beneficiary to unwinds in momentum, in my opinion. My PB colleagues flag that semis and tech hardware positioning among

HFs remains elevated, which means there are still downside risks if the fundamental views change. In short HF are still bullish

momentum despite recent challenges. Retail sentiment is also starting to rebound, it’s interesting for me to note that Bitcoin ETFs

inflowed for the second week in a row last week. Social media sentiment has jumped to the 99th %-tile on a weekly rolling basis

off a low base (60d metric recently hit its lowest since liberation day), a rebound that has historically correlated with market

rallies and points to a more bullish bias.

Otherwise, a couple things to flag this morning – bank rating changes, info services previews

Bank Rating Changes

I sent around some broader observations from bank earnings over the weekend, but a couple of notable rating changes from Vivek

this morning following last week's results. He's upgrading USB to Neutral and downgrading TFC to Underweight (more