This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Banks Roughed Up Again on Shutdown Day 8: Financial Losers

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.

1 of 2

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 16,998.46 -41.03 -0.24%
S&P 500 1,989.95 -2.42 -0.12%
NASDAQ 4,541.94 +9.8360 0.22%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs