Diamonds and Dogs
Earnings season off to a good start thanks to the banks. JP Morgan (JPM) is up 1.5% while Citigroup (C ) is up 2%, both at all-time highs, following earnings. The bond trading departments boosted returns in the fourth quarter. JP Morgan and Citigroup have also been buying back a lot of stock. Citigroup bought back 10% of their shares last year and 28% over the last several years. That certainly helps earnings.
Wells Fargo (WFC) going the wrong direction. Wells Fargo is down 4% back to a three-month low after missing earnings estimates. The company also took a $1.5 billion charge, or 33 cents per share for litigation and other expenses for their multiple of scandals over the last several years. The bank is also losing brokers. Wells Fargo had 211 fewer brokers in the fourth quarter and has lost 456 brokers over the last year.