Sorry!! The article you are trying to read is not available now.
Thank you very much;
you're only a step away from
downloading your reports.

Stocks Drop as Wells Fargo, JPMorgan Fail to Impress


Today's financial recap and Monday's outlook.

MINYANVILLE ORIGINAL Stocks took a breather on Friday as we saw mixed earnings results from two major financial institutions.

Wells Fargo (NYSE:WFC), the nation's largest mortgage provider, reported better-than-expected earnings. However, its net interest margin was lower than expected, as was the profitability of its mortgage business, resulting in a decline in the stock of nearly 3%.

JPMorgan (NYSE:JPM) also traded down after beating on both the top and bottom lines, possibly due to disappointment on its own net interest margin line.

However, keep in mind that financials have been the best performing sector in the S&P 500 (INDEXSP:.INX) this year, and that the housing market has improved in recent months, raising earnings expectations for these two names.

In economic news, September PPI was reported at 1.1% versus a consensus forecast of 0.8%. Core PPI, however, was flat while economists were expecting a 0.2% gain.

Additionally, October consumer sentiment came in above consensus estimates at 83.1, which gave the market a boost in early going.

However, the risk-off trade that dominated the action this week subsequently took hold, and we saw notable weaknesses in small caps, cyclicals, and the aforementioned financials.

The Nasdaq (INDEXNASDAQ:.IXIC) showed relative strength, but only because Apple (NASDAQ:AAPL), which accounts for about one-fifth of the index, was in positive territory.

Monday's Financial Outlook

On Monday, we will see three economic data releases: August business inventories, September retail sales, and the October Empire Manufacturing Index.

We will also see earnings reports from Citigroup (NYSE:C), Charles Schwab (NYSE:SCHW), and Gannett (NYSE:GCI), among others.

Twitter: @Minyanville

Follow the markets all day every day with a FREE 14 day trial to Buzz & Banter. Over 30 professional traders share their ideas in real-time. Learn more.
< Previous
  • 1
Next >
No positions in stocks mentioned.

The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.

Copyright 2011 Minyanville Media, Inc. All Rights Reserved.

Featured Videos