Big Bank Stocks Stumble After Earnings Missteps
- Wells Fargo leads S&P 500 decliners after earnings disappoint
- Major lenders have become ‘priced to perfection’: Art Hogan
Wells Fargo warned in its earnings report that it won’t be able to cut costs this year as fast as it had projected.
Photographer: Jin Lee/BloombergThe biggest US bank stocks have been trouncing the broader market this year, but their rally got a brake-check once again from earnings results that underwhelmed investors.
Wells Fargo & Co. sank 6% for its worst earnings-day drop in more than three years after a net interest income miss. Citigroup Inc. slumped 1.8% as expenses were in focus, even though its markets revenue beat expectations. And JPMorgan Chase & Co. fell 1.2% after its results and steady guidance failed to impress. All three were among the 20 biggest decliners in the S&P 500 Index Friday, a session in which more than 400 of the index’s stocks rose, with Wells Fargo coming in as the day’s biggest loser.