Bank shares slump after Wells Fargo miss

Bank stocks continued to put pressure on the broader stock market Monday.

The Financial Select Sector SPDR ETF (XLF) fell 2%. JPMorgan's (JPM, Fortune 500) disappointing earnings from last week were followed by contradicting reports from Citigroup (C, Fortune 500) and Wells Fargo (WFC, Fortune 500).

Citigroup managed to beat the already lowered Wall Street's estimates. The third largest U.S. bank by assets reported quarterly EPS of 84 cents vs a consensus for 81 cents.

The stock gapped up 2%, but the initial strength quickly faded as investors realized that a substantial portion of Citi's bottom line comes from accounting benefits in the face of credit valuation adjustments of $1.9 billion.

Read Full Article from CNN

- Posted: 2011-10-17 14:03:15

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