Proactive Investors - 9.58am: Markets fall at open as banks dip
The Dow Jones opened 197 points off at 38,261 on Friday morning, as several banks shed value following first-quarter updates earlier on.
Falling 129 points and 28 points respectively, the Nasdaq and S&P 500 followed suit.
JPMorgan Chase (NYSE:JPM) & Co faced a 4% fall despite beating estimates with an earnings update before the market opened.
XTB analyst Kathleen Brooks noted the bank’s guidance for US$90 billion in net interest income this year was lower than market expectations of US$90.72 billion.
“JPMorgan is a victim of its own success,” she said, “the market is getting used to seeing blowout earnings and nice upside surprises. Anything less than [...] is a disappointment”.
Goldman Sachs Group Inc (NYSE:NYSE:GS, ETR:GOS) also took a hit, falling 1.9% on the back of the banking updates, which also featured earnings from Wells Fargo (NYSE:WFC) & Co (NYSE:WFC, ETR:NWT) and BlackRock Inc (NYSE:NYSE:BLK).
7.13am: Markets to open lower
Futures trading had US markets opening lower on Friday, as several big banking names reported on first quarter trading early on.
The Dow Jones was seen opening 115 points down at 38,617, while the Nasdaq and S&P 500 looked to fall 98 and 22 points respectively to 18,386 and 5,221 on the bell.
BlackRock Inc (NYSE:BLK) gained 2.6% in pre-market trading after announcing a 36% increase in first quarter profits and that assets under management had hit a record US$10.5 trillion.
JPMorgan Chase & Co (NYSE:JPM, ETR:CMC) fell 3.5%, alongside Wells Fargo & Co (NYSE:WFC, ETR:NWT) by 2.6%, despite both beating estimates.
JPM said profits climbed 6% to US$13.42 billion, while per share earnings jumped 8% to US$4.44.
Wells Fargo reported a 7% drop in net income to US$4.62 billion increase, while earnings per share fell 2% to US$1.20.
Markets also awaited earnings from CitiGroup Inc, with the shares sitting flat in pre-market trading.