Goldman Sachs, Morgan Stanley among banks reporting earnings this week amid rising estimates

Goldman Sachs and Morgan Stanley are among several major banks scheduled to report quarterly earnings this week, arriving at a moment when analysts have been raising their profit estimates for the sector.

The two Wall Street banks are seen as benefiting from strong trading and dealmaking activity in recent months, factors that have historically supported earnings in periods of market volatility and renewed corporate activity.

Analysts tracking the broader banking sector have noted that estimates for several large financial institutions reporting this week have been trending upward in the lead-up to the results, a pattern often read as a sign of underlying business momentum heading into the reports.

Investors will be watching closely for commentary from bank executives on trading revenue, investment banking fees, loan growth and credit conditions, all of which offer a broader read on the health of the economy beyond the banks' own results.

Earnings season for major financial institutions typically sets the tone for how markets interpret the health of consumers and corporations in the following weeks, making this week's reports closely watched by investors positioning portfolios ahead of the final quarter of the year.

Beyond Goldman Sachs and Morgan Stanley, other large banks are also due to report results in the coming days, rounding out a busy week for the financial sector on Wall Street.

Market participants note that while rising estimates suggest optimism, actual results and forward guidance from management will ultimately determine how markets react, particularly given ongoing uncertainty around interest rates and the broader economic outlook.