Stocks were mostly higher today after a speech from Janet Yellen, and strong bank earnings helped support the markets. The Dow 30 was up 40, the Nasdaq 100 was up a fraction of a point, and the S&P 500 added 1. Next week starts with numbers from the housing market.
Wells Fargo (NYSE: WFC) shares had a wide trading range today, but finished slightly lower (0.09%) as investors weighed earnings against the recent turmoil. The lender was able to report earnings and revenue that topped forecasts. Profit fell nearly 4% from a year ago as the bank set aside funds for legal costs related to its sales practices scandal that forced CEO John Stumpf to step down earlier this week. The stock has lost over 12% since the sales scandal broke in early September.
JPMorgan Chase (NYSE: JPM) shares started higher today but finished the day slightly lower (-0.32%) like its rival WFC. The global bank beat estimates on both its top and bottom lines for the third quarter by a mile. Revenue rose 8.4% from a year ago as the company said bond trading revenue surged 48%. JP Morgan also saw strong performance in its consumer lending, commercial banking and asset management businesses. Despite the flat day today, shares remain near their 2016 highs.
Yahoo (NASDAQ: YHOO) was lower again today (-0.43%) as Verizon's (NYSE: VZ) attorney said late yesterday that the massive data breach of more than 500 million email accounts could have a "material impact" on the wireless carrier's decision to buy Yahoo. This is a big shift since last week where Verizon was only hinting at a discount.
Citigroup (NYSE: C) was another large bank to share better than expected third quarter results with us today. However, both earnings and revenue fell from a year ago so shares were unable to hold their highs. A jump in its bond trading and underwriting division was not enough to offset weakness in some of its other businesses. Investors still enjoyed a small 0.29% gain on the day.