Bank Stocks Sink as Earnings Hurt by Loan Woes, Fed Punishment
- Wells Fargo, Citigroup slump after 2Q disppointments
- JPMorgan’s results aren’t good enough for a rally: Williams
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U.S. bank stocks are hurting after disappointing second-quarter results from Wells Fargo and Citigroup, and as JPMorgan’s earnings beat wasn’t enough to boost investor confidence. Analysts are zeroing in on sliding loans and deposits, while Wells Fargo was also hurt by the Federal Reserve’s asset cap.
The KBW bank index is down as much as 1.9 percent, the most intraday since June 25, led by a decline of as much as 3.3 percent in Citigroup, the most since May 29, and a slide of as much as 4.3 percent in Wells Fargo, the most since March 22. JPMorgan was little changed after dropping as much as 1.6 percent. Bank of America and Goldman Sachs -- which report next week -- are also down.