Shares of Citigroup (NYSE:C) are up more than 2% in early trading. The bank said on Monday that its third-quarter profit rose to $3.8 billion ($1.23 per share), compared to $2.2 billion (73 cents per share). The quarter included $1.9 billion of credit valuation adjustment reflecting the widening of Citi’s credit spreads. The credit valuation adjustment added 39 cents per share to earnings. Other banks such as Goldman Sachs (NYSE:GS) and JP Morgan (NYSE:JPM) are trading lower.
Investing Insights: Citigroup Inc. Earnings Cheat Sheet: Beats the Street on Profit Rise.
Apple (NASDAQ:AAPL) is slightly lower before the opening bell, despite strong iPhone 4S sales. The tech giant says it sold more than 4 million iPhone 4S units in only 3 days. Apple also received a downgrade from BGC Partners from Buy to Hold.
Kinder Morgan (NYSE:KMI) is up 4.5% as they announce a $38 billion deal to buyout El Paso (NYSE:EP). Shares of El Paso are up more than 25% on the news. The deal follows a jump in natural gas production in Texas, Louisiana, and the Northest. Pipeline operators haave also been shifting their routes to reach fast-growing markets in the South.
Lowe’s Companies Inc. (NYSE:LOW) is attracting attention as the company announces plans to layoff 1,950 employees and close 20 stores. The changes will affect the retailer’s earnings by 17 cents to 20 cents per share. The company competes with The Home Depot (NYSE:HD) for home improvement and repair supplies.
Wells Fargo (NYSE:WFC) is falling 5% in early trading after reporting a 21% rise in profit for the third quarter. “This was a strong quarter for Wells Fargo, with solid growth in loans, deposits, investment securities, and capital, long with improved credit quality and lower expenses,” said Chief Financial Officer Tim Sloan.
Investing Insights: Wells Fargo & Co. Earnings Cheat Sheet: Profitable Quarter Accelerates Growth.