Stocks Show Mixed Results as Banks Show Balance Sheets

Wells Fargo took the biggest hit today of the three big banks that posted earnings.

Author: Anthony Russo   

U.S. stocks displayed mixed results by midday Tuesday after investors saw financial reports from banking providers.

The award for the biggest sell-off today as of midday goes to Wells Fargo & Company (NYSE: WFC) after announcing wider than anticipated second-quarter losses and revenue that missed expectations.

Shares of the California-based firm tumbled 6% after it said its revenue plummeted 17% year-over-year to $17.84 billion on a net loss of 66 cents per share. Analysts were polled by Refinitiv were calling for a 20 cents a share loss; Wells Fargo's revenue also missed analyst's projections of $18.4 billion. The bank posted its first quarterly loss since the last economic crisis in 2008.

The silver medal goes to fellow banker Citigroup Inc., (NYSE: C) which saw shares fall 2% by midday despite beating estimates. New York-headquartered Citigroup reported revenue of $19.77 on earnings of 50 cents a share. Analysts were expecting revenues of $19.12 billion on EPS of 28 cents.

But JPMorganChase (NYSE: JPM)  is another story. The industry giant was the only big bank stock to rise after its financial report, climbing 51 cents on adjusted revenue of $33.83 billion, with an EPS of $1.38. While the results crushed analysts polled by Bloomberg, which expected revenue of $30.57 billion on EPS $1.01, Jamie Dimon, the chief executive officer of JPMorgan warned of an uncertain economic outlook. 

Benchmarks showed mixed performances. Intraday, the Nasdaq Composite dropped 42 points, the S&P 500 added 5 points, while the Dow Jones gained nearly 1% to 26,318.21 points.

As the United States continues to report Covid-19 cases at record heights, California, one of the hardest-hit states, was forced to roll back reopenings. Indoor operations including restaurants, bars, museums, and movie theaters have been ordered to close in the state. 

New York, which has seen a dramatic fall in Covid-19 cases after being hammered by the virus earlier in the year, saw its infection rate jump to 1.5% for Monday. Gov. Andrew Cuomo says New York schools can reopen in regions with less than a 5% infection rate. New York City has opted to delay the reopening of indoor dining on fears of another spike.
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Next, investors will tune in to the Federal Reserve's comments this afternoon. Gov. Lael Brainard is slated to speak at 2:00 p.m Eastern Time, while Fed President James Bullard is scheduled to do so at 2:30 p.m. Eastern Time.

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