:max_bytes(150000):strip_icc()/GettyImages-2245869466-d333930993f54a568d8a6f1e8ec100fb.jpg "More Big Banks Reported Earnings Wednesday. The Stocks Are Falling.")
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Key Takeaways
- Bank stocks fell Wednesday as the nation’s biggest banks reported more mixed fourth-quarter results.
- Financial stocks have had a rough week, with President Trump’s recent calls to cap credit card interest rates and worries about an investigation into Federal Reserve Chair Jerome Powell adding to concerns.
A number of big bank stocks slid Wednesday as the latest slate of earnings reports failed to reverse their recent slide.
Shares of Bank of America (BAC), Wells Fargo (WFC), and Citigroup (C) were each down about 5% in recent trading after the banks reported their latest quarterly results. Other banks, including JPMorgan Chase (JPM) and Goldman Sachs (GS) also saw their shares pulled lower.
Bank of America and Citi’s results largely topped analysts’ estimates, while Wells Fargo’s fell short, adding to what has been a mixed earnings season for the big banks that kicked off yesterday with results from JPMorgan, which posted better revenue but lower profits than expected.
Why This Matters to Investors
Investors often look to the big banks’ quarterly earnings for signals about how the economy is doing, and listen closely to what bank executives have to say about the health of the American consumer and potential risks the economy is facing.
Bank of America CEO Brian Moynihan said today that he expects the economy to continue growing this year, though with “any number of risks” ahead. The comments come after JPMorgan CEO Jamie Dimon said yesterday that while the economy has remained resilient in recent quarters, it faces a number of “hazards” including inflation, high asset valuations, and geopolitical uncertainty.
Wednesday’s stock losses add to what was already shaping up to be a tough week for financial stocks, as many lost ground to open the week after President Trump proposed capping credit card interest rates. Worries about the Trump administration’s latest pressure on the Federal Reserve with its investigation into Fed Chair Jerome Powell have also added to concerns.
