Market Wrap-up for July 14 – Key Earnings on Tap this Week (C, GS, JPM, INTC, GE, more)

Although Alcoa (AA) unofficially kicked off earnings season last Tuesday, the real bulk of important releases will begin this week. Here’s a sector-by-sector breakdown of what investors can expect over the next several days.

1. Financials Citigroup (C) posted results this morning, and although its adjusted profit and revenue beat expectations, its sales were still down from last year. The company also agreed to a $7 billion mortgage settlement with federal authorities stemming from the lead-up to the financial crisis of 2008-2009. The market cheered the report early on, but Citi’s performance over the next several days will be the real indicator of whether the company is actually turning things around. Goldman Sachs (GS) is slated to deliver its quarterly results on Tuesday, July 15th. The much-maligned investment bank has seen its shares decline nearly 6% year-to-date, compared with a 7% gain in the S&P 500, so it’ll need to begin improving its bottom line to step out of an industry-wide funk. One thing to key in on in the GS report will be trading revenues, which have traditionally accounted for a large portion of the firm’s earnings. Those revenues have been under pressure in recent quarters amid lackluster fixed income and commodities markets. JPMorgan (JPM) will also report earnings tomorrow (July 15). Analysts expect a steep decline in profits for the period, as is evidenced by the fact that the consensus estimate has fallen from $1.47 per share a few months ago to just $1.30 per share currently. Profits–especially those in the banking sector–are notoriously difficult to decipher, so we’ll be focusing on JPM’s revenues, which plunged 9% year-over-year in the first quarter. Ending that trend of revenue declines will be a key determinant for the heavily-fined bank’s future growth potential. Bank of America (BAC) rounds out the wave of major U.S. finance earnings on July 16th. Like JPM, analysts expect lower profits this time around, as well as a whopping 17% revenue decline from last year. Word is that BAC is negotiating its own mortgage settlement with the federal government, so expect some additional loan loss reserves to be announced, and maybe some preliminary details of a settlement, which will likely be in the billions. 2. Healthcare Johnson & Johnson (JNJ) will deliver its latest report on Tuesday, July 15th. Expect another quarter of big gains in the company’s drug segment, while its other units will likely post flat-to-down revenue. We’ve always liked JNJ from a defensive/dividend perspective, but the shares are looking a bit stretched this year after a 15% gain year-to-date. A major earnings-related pullback could bring a better entry point for investors looking to build up exposure to this dividend stalwart. Abbott Laboratories (ABT) reports earnings on July 16th, and investors will key in on its commentary following today’s announcement to sell its developed markets branded generics pharmaceuticals business. Impacts from this sale won’t be seen in the company’s Q2 results, but the guidance should be interesting. UnitedHealth Group Inc. (