U.S. stocks displayed mixed results by midday Tuesday after investors saw financial reports from banking providers.
The biggest sell-off today as of midday went to Wells Fargo & Company (NYSE: WFC) on it announcing wider than anticipated second-quarter losses and revenue that missed expectations.
Shares of the California-based firm tumbled 6% after it said its revenues plummeted 17% year-over-year to $17.84 billion on a net loss of 66 cents per share. Analysts were polled by Refinitiv were calling for a 20 cents a share loss; Wells Fargo’s revenue also missed analyst’s projections of $18.4 billion. The bank posted its first quarterly loss since the last economic crisis in 2008.
It also wasn’t too pretty for a fellow banker Citigroup Inc., (NYSE: C) which watched its shares fall 2% by midday despite beating estimates. New York-headquartered Citigroup reported revenues of $19.77 on earnings of 50 cents a share. Analysts were expecting revenues of $19.12 billion on EPS of 28 cents.
Meanwhile, the sole bank that gained after its financial report was the industry giant JPMorgan Chase & Co., (NYSE: JPM) whose stock rose 51 cents on it posting adjusted revenues of $33.83 billion on EPS of $1.38. While the results crushed analysts polled by Bloomberg, which expected revenues of $30.57 billion on EPS $1.01, Jamie Dimon, the chief executive officer of JPMorgan warned of uncertainties on the outlook of the economy.
As a result, the benchmarks showed mixed performances. Intraday, the Nasdaq Composite dropped 42 points, the S&P 500 added 5 points, while the Dow Jones gained nearly 1% to 26,318.21 points.
As the United States continues to report Covid-19 cases at record heights, one of the hardest-hit states California was forced to roll back its reopenings. According to Gov. Gavin Newsom, indoor operations including restaurants, bars, museums, and movie theaters have been ordered to close in the state. In addition, New York, which has been one of the few states that have had the pandemic under control in the past couple of months or so, saw its infection rate jump to 1.5% for Monday. Gov. Andrew Cuomo says New York schools can reopen in regions with less than a 5% infection rate. New York City has opted to delay the reopening of indoor dining on fears of seeing another spike.
Next, investors will await comments from Federal Reserve members this afternoon. Gov. Lael Brainard is slated to speak at 2:00 p.m Eastern Time, while Fed President James Bullard is scheduled to do so at 2:30 p.m. Eastern Time.