Banks Shoulder a Heavy Load

If the pros are right, financial companies will lead the market in the second half of 2005.

According to Thomson First Call, analysts expect earnings for the financial services sector to rise an eye-popping 25% in the third quarter and a still-robust 17% in the fourth. By comparison, earnings for the entire S&P 500 are expected to rise 15% and 12% in the next two quarters.

Wall Street analysts expect earnings at banks, brokers and insurers to soar in the second half, feasting on a lively mergers landscape, benign monetary policy and a vigorous economy. ...