Here’s Why Bank Stocks Are Getting Drop-Kicked Now
The short answer is that Wall Street’s greatest minds have been studying Citigroup’s (NYSE:C) latest earnings report this morning, and are not liking what they’ve found on closer inspection. Citi shares, which were up as high as 3% this morning, have taken a u-turn, and are now trading down 1.5%. Among the uglier numbers analysts uncovered were “revenues grew 5% quarter over quarter but fell 7% year over year. Expenses, meanwhile, grew 5% quarter over quarter and grew 7% year over year.” Also, “revenues and income both fell at Citicorp, the division that Citigroup wants to grow…and the company expects expenses to rise throughout the second half of the year. ” The financial sector (NYSE:XLF) has taken a steep downturn in early afternoon trades on the news.
Don’t Miss: Citigroup Inc. Earnings Cheat Sheet: Profit Up.
Here’s a look at how some of the more popular financial stocks are faring:
JP Morgan (NYSE:JPM) down -1.81%, Bank of America (NYSE:BAC) down -1.45%, Wells Fargo Company (NYSE:WFC) down -.81%, Goldman-Sachs (NYSE:GS) down -.20%, Morgan Stanley (NYSE:MS) down -1.04%, UBS (NYSE:UBS) down -1.53%, Barclays PLC. (NYSE:BCS) down -.14%, Deutsche Bank (NYSE:DB) down -.81%, Royal Bank of Scotland (NYSE:RBS) down -.53%, U.S. Bancorp (NYSE:USB) down -.65%, and Credit Suisse (NYSE:CS) down -.84%.