Here are some of the early reads on J.P. Morgan earnings from Wall Street banking analysts. Short version: We're at an inflection point for the loan losses that have dogged banks.

• Goldman Sachs: "Capital markets was clearly better than expected, and consumer credit leverage is now evident with reserve releases in cards. Guidance for mortgage losses is starting to get more positive."
• Bank of America Merrill Lynch: "Credit news was largely positive, with delinquency down sharply and the company thus pulling down reserves by $1 b. Master Trust data correctly foreshadowed improvement. Guidance on Consumer Mortgage revised to say 'if current trends continue, losses may not reach' previously outlined expectations.
• Deutsche Bank: "JPM was more upbeat regarding the macro outlook, noting that there has been 'clear and broad-based improvements in underlying trends' and that these will likelycontinue and gain momentum."

Just as a refresher, better credit trends can translate into better earnings for banks, as they move some of the cash they socked away to cover the losses they previously expected, and move that money back into the earnings column.

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