S&P 500 off highs on Citigroup slip as major Wall Street banks kick off earnings
Investing.com — The S&P 500 gave gains Friday as financials were hurt by a slip in Citigroup as the Wall Street bank failed to replicate the better-than-expected quarterly results delivered by rivals JPMorgan and Wells Fargo .
The S&P 500 rose 0.1%, the Dow Jones Industrial Average rose 0.50%, or 171 points, and the Nasdaq was up 0.1%.
JPMorgan Chase & Co (NYSE:JPM) and Wells Fargo (NYSE:WFC) reported quarterly results that beat on the top and bottom lines, though both shares retreated from session highs after both banks increased the bad loan provisions and expected that customer deposits were likely to decline further.
Citigroup Inc (NYSE:C), meanwhile, fell more than 3% after its earnings fell short of Wall Street estimates, pressured by weakness in its investment banking business.
“The long-awaited rebound in Investment Banking has yet to materialize, making for a disappointing quarter,” Citigroup chief executive Jane Fraser said.
State Street (NYSE:STT) plunged more than 10% after its quarterly revenue fell short of Wall Street estimates following a drop in net interest income as deposits fell.
Morgan Stanley (NYSE:MS), Bank of America (NYSE:BAC), and Goldman Sachs Group (NYSE:GS) are set to report quarterly results this week.
UnitedHealth Group (NYSE:UNH) surged more than 7% after the health insurer lifted its outlook on full-year profit following second-quarter results that topped Wall Street estimates, driven by cost cuts.
The company said it now expects adjusted EPS of $24.70 to $25.00, compared with a prior range of o $24.50 to $25.00.
Eli Lilly (NYSE:LLY), meanwhile, said it had agreed to acquire obesity drug maker Versanis for up to $1.9 billion as the drugmaker looks to increase share in the weight-loss
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