Financial exchange traded funds were higher in Thursday’s preopen trading after JP Morgan (NYSE: JPM) reported profit that topped analyst expectations as credit losses moderated.

Quarterly results late this week from JP Morgan and Citigroup (NYSE: C) will set the pace for bank earnings season and sector ETFs.

JP Morgan on Thursday said its second-quarter earnings rose to $1.27 a share, while analysts were looking for $1.21 a share. Revenue also came in higher than expected at $27.4 billion while trading results were solid.

JP Morgan shares rose more than 2% before the opening bell.

Improving credit trends at JP Morgan are a probable sign of “relief” for most banks’ second-quarter reports, Miller Tabak analysts said Thursday.

“If other banks report second-quarter credit trends similar to JP Morgan’s, we expect regional bank stocks to rally on the ‘relief’ news,” they wrote in a report. “We can’t be sure JP Morgan’s experience will prove typical, but, as a probable leading indicator, it’s a positive sign.”

JP Morgan continues to deliver strong results in “what seems like a mixed trading environment (at best),” Deutsche Bank analysts added.