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NEW YORK (
Capital One Financial (COF - Get Report) was the big winner among the largest U.S. financial companies on Friday, with shares rising 6% to close at $60.75.
The broad indexes all saw 2% declines on the 25th
anniversary of Black Monday, after a disappointing revenue result from
General Electric (GE - Get Report) and an earnings miss by
McDonald's (MCD - Get Report).
General Electric reported
third-quarter operating earnings of $3.8 billion, or 36 cents a share, meeting the consensus estimate among analysts polled by Thomson Reuters. Operating earnings declined from 38 cents in the second quarter, but grew from 31 cents during the third quarter of 2011.
GE's third-quarter revenue of Third-quarter revenue totaled $36.3 billion, missing the consensus estimate of $36.9 billion, as foreign exchange "negatively impacted revenues by $1.1 billion." Total revenue was declined slightly from $36.5 billion the previous quarter, while growing $35.4 billion a year earlier.
GE's shares declined over 3% to close at $22.03.
McDonalds reported third-quarter earnings of $1.46 billion, or $1.43 a share, missing the consensus estimate of $1.47. Third-quarter revenue was $7.15 billion, meeting the consensus estimate. Earnings were down 3%, while revenue was flat from a year earlier, however, the company said that excluding "the impact of foreign currency translation, earnings were up 1% year-over-year, while revenue rose 4%.
Shares of McDonalds dipped 4.5% to close at $88.72.
Turning back to the financials, the
KBW Bank Index (I:BKX) was down 1% to close at 50.44, with all but three of the 24 index components showing declines.
European leaders agreed early on Friday for a new eurozone bank regulator operating in 2013, under the authority of the European Central Bank. Meanwhile the Financial Times reported that German Chancellor Angela Merkel said that the Eurozone's 500 billion euro rescue fund should not be used to bail out Spanish and Irish banks, but should be reserved to rescue troubled financial institutions going forward. A rescue of Spanish and Irish banks would "not be a retroactive recapitalization," she said, adding that "if direct recapitalization is possible, it will come in the future."
Capital One "Crushed it"
Following Thursday's market close, Capital One reported third-quarter earnings available to common shareholders of $1.17 billion, or $2.01 a share (excluding income from discontinued operations), beating the consensus estimate of $1.68.