The Dow Jones Industrial Average was up over 30 points in the early trading session Friday as the markets digested the latest earnings from banks JPMorgan Chase Co, Citigroup and Wells Fargo.
The NASDAQ inched up 0.11% and the S&P 500 was up ever so slightly at 0.01%. Walgreens Boots Alliance Inc and United Technologies Corp are pulling the Dow–both up 1.7% and 1.2%, respectively. PACCAR Inc gained 2.3% for the NASDAQ and Newfield Exploration Co was up 2.6% to lead the S&P 500.
Banks Report Mixed Earnings
In a week where most companies have been reporting better-than-expected second quarter earnings thus far, banks ended up mixed with JP Morgan Chase Co beating consensus estimates with a $2.29 earnings per share figure, besting the forecasted $2.22 earnings per share number. Citigroup posted better-than-forecasted earnings with $1.63 per share over forecasts of $1.56, but underdelivered on revenue with $18.469 billion versus an expected $18.512 billion.
Conversely, Wells Fargo couldn’t replicate the results of its peers, posting losses in profit and revenue. Earnings per share were $1.08, which fell short of a forecasted $1.12 estimate for the second quarter and a net income of $5.19 billion was less than expectations of $5.47 billion.
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Wells Fargo’s woes weren’t a case of today being Friday the 13th as its troubles were brewing well ahead of publishing its second quarter earnings.
“The broad-based weakness of Wells Fargo’s results is troubling, with many indicators such as deposits, commercial and consumer lending trending down. It appears that the slew of scandals that Wells Fargo has been involved in are taking their toll,” said Octavio Marenzi, the CEO of capital markets management consulting firm Opimas. “Compared to JPMorgan’s excellent results earlier today, Wells Fargo is looking rather hapless, unable to get it right.”
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