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The shares recorded a partial rebound on Friday after sharp declines earlier in the week. the Dow Jones Industrial Average (DJINDICES: ^ DJI) and the S & P 500 (SNPINDEX: ^ GSPC) opened higher, then sank around noon, but turned around and rose sharply during the last hour of the session.
Stock exchange today
| Index | Percentage of change | Point change |
|---|---|---|
| Dow | 1.15% | 287.16 |
| S & P 500 | 1.42% | 38.76 |
Data source: Yahoo! Finance.
Technological stocks have rebounded somewhat after being battered in recent days, and the NASDAQ PowerShares Internet ETF (NASDAQ: PNQI) closed up 2.9%. Banks' stock indexes fell despite the release of positive financial results, SPDR S & P Regional Banking ETF (NYSEMKT: KRE) fall of 2%.
As for individual stocks, JPMorgan Chase (NYSE: JPM) and Wells Fargo (NYSE: WFC) were among several large banks reporting today their third quarter results.
Source of the image: Getty Images.
JPMorgan records strong growth
JPMorgan Chase helped the Q3 earnings season get off to a good start by posting better-than-expected results, but the stock lost 1.1%. Revenues increased 5.2% to $ 27.8 billion and earnings per share increased 33% to $ 2.34. Analysts expected earnings per share of $ 2.25 on a $ 27.5 billion business figure.
Average core loans, excluding investment banking, were 6% higher than the previous year and 2% higher than the previous quarter. Net interest income increased 7% to $ 14.1 billion, driven by higher interest rates and growth in loans and deposits. Return on equity was 14%, up from 11% in the third quarter of 2017.
The bank's largest segment, personal and commercial banking, saw its revenue increase 10% over the prior year and 6% over the second quarter. The net result of the segment increased by 60% over the same period last year and by 20% compared to the previous quarter. The only weak point in the consumer sector is home loan product, which fell by 16% but represents only 4.7% of JPMorgan's total revenue.
President and CEO Jamie Dimon has issued a positive note on the state of the economy. "JPMorgan Chase posted solid results this quarter, with record growth in each of our businesses and a demonstration of the strength of our platform," he said in a press release. "The United States and the global economy continue to show strength, despite growing economic and geopolitical uncertainties that, in the future, could have negative effects on the economy."
Customers return to Wells Fargo
Wells Fargo has reported third quarter results below expectations, but showing that the bank was recovering from recent scandals. The stock rose 1.3%.
Revenues met analysts' expectations, at $ 21.9 billion, up 1.8% from the previous quarter and 0.4% from the third quarter of the previous year. Earnings per share were $ 1.13, up 36% from the same period last year, but Wall Street's expectations for earnings per share of 1 were lacking. $ 17. The shortfall was not as bad as it appears; the retirement of certain preferred shares of the Company reduced EPS by $ 0.03.
Wells Fargo's consumer business seems to be getting healthier. The number of customers in the primary consumer goods sector increased 1.7%, following a 1.2% year-over-year increase in the last quarter. Debit card purchase volume increased by 9% and credit card purchase volume increased by 7%.
Analysts are looking closely at the results of banks this quarter to see if lending activity has declined due to rising interest rates. The neighborhood of Wells was mixed in this respect. Small business loans grew 28% over the previous year, auto loans rose 10% and personal loans rose 3%. But residential mortgages, a much larger category than others for Wells Fargo, were $ 46 billion, 8% lower than last quarter and 22% lower than last year.
Jim Crumly has no position in the mentioned actions. The Motley Fool has no position in the mentioned actions. Motley Fool has a disclosure policy.
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