This week was the key one for earnings reports by big banks, and it turned out to be a bit of a rout. After Morgan Stanley fell short of expectations yesterday, the six biggest U.S. banks - including JP Morgan Chase, Bank of America, Citigroup, Wells Fargo and Goldman Sachs - all disappointed in one way or another.
Morgan Stanley missed the analysts' earnings expectations by 0.4 percent, and its share price suffered yesterday as a result, dropping by about 4 percent. It joined J.P. Morgan, Bank of America, and Citigroup, all of whom fell short of earnings estimates. On average, banks this season have missed analysts’ earnings estimates by 6.3 percent.
Wells Fargo and Goldman Sachs at least met expectations, but they still underwhelmed investors. Wells Fargo's shares fell by 1.6 percent after its earnings report, and Goldman's income dropped by 7 percent from a year earlier. It was a tough week to be a big bank.
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