NEW YORK ( TheStreet) -- TheStreet's Brittany Umar and Antoine Gara explained why Wells Fargo ( WFC) initially opened lower after reporting record profits, while JPMorgan Chase ( JPM) rallied after reporting an unexpected loss. These two banks kicked off the earnings season for financials.

Although investors keep expecting earnings to fall at Wells Fargo, the bank continues to beat estimates, notching its 15th consecutive quarter of growth. However, the firm hasn't been able to grow revenue, which Gara thinks should improve as the economy recovers.

Perhaps most important was housing. Depending on which metric was viewed, Wells Fargo's mortgage business declined by 30% to 40%, confirming that higher rates and possibly higher home prices are hurting the housing market, Gara stated. This trend was confirmed by JPMorgan, but that was offset by strength in JPMorgan's investment banking division.

Strong revenue from initial public offerings and mergers and acquisitions activity helped investors find a silver lining in JPMorgan's earnings loss, the first under CEO Jamie Dimon.

Gara said he'll be watching to see if JPMorgan took market share from other firms including Goldman Sachs ( GS), which reports next week.

Bank of America ( BAC), Citigroup ( C) and Morgan Stanley ( MS) also report earnings next week.

-- Written by Bret Kenwell in Petoskey, Mich.

Bret Kenwell currently writes, blogs and also contributes to Robert Weinstein's Weekly Options Newsletter. Focuses on short-to-intermediate-term trading opportunities that can be exposed via options. He prefers to use debit trades on momentum setups and credit trades on support/resistance setups. He also focuses on building long-term wealth by searching for consistent, quality dividend paying companies and long-term growth companies. He considers himself the surfer, not the wave, in relation to the market and himself. He has no allegiance to either the bull side or the bear side.