Big banks will kick off third-quarter earnings reports in earnest on Oct. 13, helping to set the tone for the broader U.S. stock market, as businesses cope with the eighth month of the pandemic.

The nation’s largest lenders are expected to reap the rewards of a rip-roaring market for initial public offerings anda record corporate borrowing spree during the pandemic.

See: Wall Street banks net $64 billion in fees in bumper year for M&A and IPOs

On the flip side, major banks also are expected to reflect the downside of the Federal Reserve’s protracted near-zero interest rate policy, as well as concerns about commercial real estate and other parts of the economy hard hit by the coronavirus pandemic.

“Clearly, the banks always start off earnings and everyone pays attention to that, given how sensitive they are to the economy,” said Aaron Clark, portfolio manager at GW&K Investment Management.

JP Morgan Chase & Co
JPM,
+0.94%

and Citigroup, Inc.
C,
+0.50%

are set to report their third-quarter results on Oct. 13, following a day later by Bank of America Corp.
BAC,
+0.45%
,
Goldman Sachs
GS,
+0.68%

and Wells Fargo & Co.
WFC,
+1.82%
.

But after putting meaty investment banking fees to one side, Clark sees plenty of headwinds for banks that reflect the broad challenges the economy faces in the coming months, including whether Congress provides another significant fiscal stimulus package to bolster U.S. households, businesses and cities.

“Unfortunately, that’s the key,” he told MarketWatch. “You’re basically trying to bridge-fund the economy until a vaccine comes along.”

President Donald Trump on Friday gave the Wall Street a stark reminder of what could be at stake due to the untamed pandemic, after he was taken to Walter Reed Medical Center in Bethesa, Md. out of an

By Tom Westbrook

SINGAPORE, Oct 2 (Reuters)The dollar drifted toward posting its softest week in more than a month on Friday, as revived hopes for a new U.S. stimulus package to boost the world’s biggest economy had investors seeking out riskier currencies.

Against a basket of six majors =USD, the dollar held near a one-month low in Asia and has slipped 0.9% this week, its largest weekly loss since late August.

The New Zealand dollar NZD=D3 made a fresh one-week peak of $0.6659, while the euro and Aussie held just below week highs made overnight.

Moves in morning trade were small, however, with signs of an impasse on Capitol Hill and the risk of disappointment at U.S. jobs data due later in the day holding investors back.

U.S. House Speaker Nancy Pelosi and Treasury Secretary Steven Mnuchin failed on Thursday to bridge what Pelosi described as differences over dollars and values.

Analysts view their talks as a last-gasp effort to secure relief ahead of the Nov. 3 election for tens of millions of Americans and business including U.S. airlines, which have begun furloughing over 32,000 workers.

“Markets surely remain susceptible to the lack of a deal this side of the election,” said National Australia Bank’s head of foreign exchange strategy, Ray Attrill.

The risk-sensitive Australian dollar AUD=D3 was last steady at $0.7182 after climbing as high as $0.7209 overnight. It has so far posted a weekly gain of 2.2%, its best since late August. AUD/

The Japanese yen on the other hand, a safe-haven currency that tends to gain during periods of uncertainty, barely moved this week, suggesting a degree of caution remains. The yen JPY= last traded at 105.55 per dollar.

Sterling had a bumpy overnight session, bouncing around on conflicting Brexit headlines before ultimately

FORT LAUDERDALE, Fla. — With financial losses mounting over recent years, insurance companies in Florida are ordering more home inspections. Their aim is to force homeowners to fix potential problems or find justifications to dump risky properties.

John Strautman, owner of an expansive home in Fort Lauderdale’s historic Colee Hammock neighborhood, learned this the hard way several months after switching from his longtime insurance company to one with a lower annual rate.

Strautman was stunned several weeks ago when his new insurer, Sunrise-based Monarch National Insurance, sent him a letter ordering him to remove one of several historic live oak trees surrounding the home he built in 2010. The letter demanded he remove “a large tree within close contact of the dwelling.”

“Please provide color photos showing the tree has been completely removed,” the letter stated. “Requested documentation is required within 15 days to prevent further underwriting action.”

Only later did the insurer clarify which tree it wanted to be removed, but by then the 15 days had expired and Monarch followed up with a letter stating that because of his failure to remove the tree, it would not renew his policy after it expires in March.

Now John Strautman and his wife, Catherine, will have to find another insurance company that will let them keep their cherished trees. They don’t understand why Monarch demanded that they remove one when their previous insurer never objected to any of them. Officials of Monarch, which is owned by FedNat, did not respond to requests to discuss the Strautmans’ case.

Complying with Monarch’s removal order is not an option, John Strautman said. “It would be tragic. Once we remove one of our majestic natural resources such as a healthy and vibrant live oak tree from our neighborhood, it can never be replaced.”

Other

Pepsi (PEP) will report third quarter fiscal 2020 earnings results before the opening bell Thursday. The snack and beverage giant has taken a hit during the pandemic, in part due to the lockdown restrictions and the effect restaurant closures has had on the company’s soda and overall beverage sales.

In that same vein, however, with more people working and learning from home, Pepsi’s Frito-Lay brands snack business has taken off as shoppers stocked both their pantries and refrigerators with several Pepsi prepared-food brands such as Quaker Foods and Rice-A-Roni. While the company reported an 2% decline in Q2 organic revenue, this was nonetheless better than expected as overall demand took a hit at the height of the pandemic — an issue that also impacted rivals Coca-Cola (KO) and Keurig Dr. Pepper Snapple (KDP).

Nonetheless, Pepsi’s diversified food and beverage portfolio was a notable asset to the company, unlike its aforementioned rivals as Q2 total core gross margin rate grew 6 basis points to 55.6%. It’s for this reason, among other achievements, that Pepsis stock has outperformed the Consumer Staples Select Sector SDPR ETF (XLP) over the past six months. For the share price to remain bubbly, on Thursday the company will need to plant more optimism about the sustainability of its growth drivers, including its Frito-Lay North America business.

For the three months that ended September, Wall Street expects the company to earn of $1.48 per share on revenue of $17.21 billion. This compares to the year-ago quarter when earnings came to $1.56 per share on $17.19 billion in revenue. For the full year, ending in October, earnings of $5.36 per share would decline 3% year over year, while full-year revenue of $68 billion would rise about 1.2% year over year.

While the expected year-over-year declines in Q3 EPS