Yesterday we saw JPMorgan Chase (JPM), Citigroup (C), and Wells Fargo (WFC) all beat earnings expectations for the third quarter – even if the Street wasn’t pleased by the margin that JPM beat by. Big banks, which always kick off the season, are often considered an economic bellwether. With the lack of government data due to the shutdown, earnings become even more important to gauge the state of the U.S.

So far it seems like good news, though. Bank of America (BAC) beat estimates this morning with EPS of $1.06 and revenue of $28.24 billion. Average deposit balances rose by 4% to $1.99 trillion, and investment banking revenue rose by a staggering 43% as business activity picked up post-rate cut.

On the consumer side, net charge-offs were $1.4 billion, but it lowered its provisions for credit losses to $1.3 billion from $1.5 billion. Shares of BAC are up around 14% year-to-date, and 19.5% year-over-year.

Morgan Stanley (MS) posted a massive beat, fueled by dealmaking and trading revenue. EPS hit $2.80, while revenue was a record $18.22 billion. Investment banking revenue jumped 44% and investment-management assets under management climbed to $1.81 trillion from $1.6 trillion last year.

MS shares have had an even better year than BAC: up over 40% year-over-year and 24% year-to-date.

Overall, it seems like even a small rate cut brought a lot of businesses back into the game, looking both at IPOs and M&A activity. With the Fed signaling more cuts ahead, the financial sector could be anticipating a boom. However, investors should keep an eye on the consumer side of things – ultimately, there’s no business without consumers.

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