-BUZZ-U.S. banks drop led by Wells Fargo, Citi after Q2 results
13/07/2018 16:41
(updates prices)
** Mixed quarterly results pushed down shares in the biggest
U.S. banks on Friday with the biggest drags from Wells Fargo
WFC.N and Citigroup C.N which kicked off the sector's
earnings season alongside JPMorgan Chase JPM.N
** S&P 500 bank index .SPXBK was last down 0.8 pct after
paring losses. On track for biggest one-day pct decline since
July 3
** WFC was lead sector drag, last down 2.0 pct at $54.89
after falling as low as $53.63 Q2 adj. EPS of $1.08 misses
estimates of $1.12 (after a beat n Q1 and miss in Q4) as lending
activity slowed due to higher interest rates and expenses
** Wells Fargo has booked several billions of dollars in
fines and penalties stemming from regulatory probes and to
settle lawsuits due to sales and mortgage abuses. urn:newsml:reuters.com:*:nL4N1U94EW
** Citi shares last down 2.8 pct at $66.62 after falling as
low as $66.22 Q2 EPS of $1.63 tops consensus of $1.56,
continuing its beat streak; But rev of $18.47 bln misses cons.
of $18.51 bln after meeting estimates in prior two qtrs
urn:newsml:reuters.com:*:nBwc1FFkTa
** JPMorgan was last up 0.5 pct, after it beat Q2 EPS
estimates urn:newsml:reuters.com:*:nL4N1U942B
** Bank of America BAC.N was down 0.9 pct; Goldman GS.N
off 0.2 pct while Morgan Stanley MS.N edged up 0.2 pct
** Up to Thursday's close, WFC and C neck-and-neck YTD, with
shares down 7.7 pct and 7.9 pct, respectively
** JPM flat YTD, best performer among big six, Goldman's 11
pct slide the most; S&P 500 banks .SPXBK down ~3 pct
(Reporting by Savio D'Souza)
((RM:savio.dsouza.thomsonreuters.com@reuters.net))