Wells Fargo was upgraded to HSBC's top pick. The net interest income trajectory is expected to improve in coming quarters after underperformance. Other positives include accelerating capital buybacks, a buildout of capital markets businesses, a well-performing investment management business, and a discount relative valuation compared to peers, which underpins a more constructive view.
Wall Street had an exceptional quarter with capital markets strength, high asset prices, good loan growth, and strong credit; absent a major market correction or economic weakness, nothing seems likely to derail the momentum.