CLOSING BELL: October 12th: DJIA: 13,328.85 | UP 2.46 | +0.02%
OIL: $91.86 DOWN 0.21, -0.23%
GOLD: $1,759.70, DOWN 10.90, -0.62%
GASOLINE (US Avg): $3.810, DOWN .003
Rodrigo Campos, Reuters – Stocks wrapped up their worst week in four months, led lower on Friday by financial shares as results from Wells Fargo and JPMorgan ignited concerns about shrinking profit margins for big lenders.
Shares of Wells Fargo (WFC.N) fell 2.6 percent to $34.25 and JPMorgan Chase & Co (JPM.N) lost 1.1 percent to $41.62 as concerns grew over their lower net interest margin – the difference between what a bank pays on deposits and what it makes on loans – which could narrow further as the Federal Reserve keeps interest rates near zero.
The lackluster market reaction came even though both Wells Fargo and JPMorgan, the two largest U.S. financial stocks by market value, reported record profits.
“Bank shares as a group have had a nice move (up) this year so far,” said Ken Polcari, managing director at ICAP Equities in New York. “Guidance is cautious so people are taking money off the table.”
The results sparked a selloff in other bank shares. An S&P financial index .GSPF, down 1.4 percent, represented the worst performer of the S&P 500′s top 10 sectors. The KBW Bank index .BKX lost 2.5 percent.
Read the full story at Reuters [here]
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