NEW YORK (TheStreet) -- Bank of New York Mellon (BK) was the loser among the nation's largest banks on Tuesday, with shares declining more than 2% to close at $29.67.
The broad market took a beating, with the Dow Jones Industrial Average down 1.1%, the S&P 500 (SPX.X) declining 1.2% and the NASDAQ Composite declining 2.0%.
Banks took their share of the pounding, with the KBW Bank Index (I:BKX) pulling back 1.1% to 61.20, with all but two of the index components ending with declines.
JPMorgan Chase (JPM) and Wells Fargo (WFC) will lead off third-quarter earnings reports for large-cap banks early on Friday.
Analysts polled by Thomson Reuters
estimate JPMorgan will report third-quarter net income of $4.794 billion, or $1.21 per share. In comparison, the bank earned $1.60 a share during the second quarter and $1.40 a share during the third quarter of 2012. JPMorgan's revenue is expected to decline to $24.059 billion during the third quarter from $25.958 billion the previous quarter and $25.863 billion a year earlier.
Wells Fargo is expected to announce third-quarter net income of $5.211 billion, or 97 cents share, compared to 98 cents the previous quarter and 88 cents a year earlier. The consensus third-quarter revenue estimate is $20.993 billion, declining from $21.378 billion in the second quarter and $21.213 billion in the third quarter of 2012.
For more on what to expect for the largest U.S. banks, please see TheStreet's Big 4 Bank Earnings: The Gift of Low Expectations
Shares of JPMorgan Chase on Monday declined by 1.9% to close at $51.01, while Wells Fargo was down 0.7% to close at $40.3. Rounding out the "big four," Bank of America (BAC)
was down 0.4% to close at $13.76, and Citigroup (C)
pulled back 0.8%, closing at $47.81.
For a roundup on what to expect from the 10 largest U.S. regional banks, please see TheStreet's Regional Bank Stocks Rise Despite EPS Projections
Rather than focusing as usual on coming earnings reports, investors remain fixated on the federal government's partial shutdown, and more importantly on the prospect of a default on debt payments by the U.S. government if the federal debt limit of $16.7 trillion isn't raised soon.
U.S. Treasury Secretary Jack Lew in a letter to House Speaker John Boehner (R., Ohio) on Sept. 28 said the "extraordinary measures" the Treasury was taking to maintain its borrowing power will "be exhausted no later than Oct. 17," unless the $16.7 trillion federal debt limit is raised.