This Day On The Street
Continue to site
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

Capital One: Earnings Season Winner

SunTrust's shares rose 0.5% on Friday to close at $41.43. The company will announce its full third-quarter results on Oct. 17.

JPMorgan Chase's Surprise

The nation's largest bank by assets early on Friday reported a third-quarter net loss of $380 million, or 17 cents a share, declining from earnings of $6.5 billion, or $1.60 a share in the second quarter, and $5.7 billion, or $1.40 a share, during the third quarter of 2012.

Investors knew JPMorgan Chase's earnings would decline, because of the bank's three major regulatory settlements during the third quarter, including an agreement to pay $410 million "in penalties and disgorgement to ratepayers," to settle Federal Energy Trading Commission charges of market manipulation, $920 million in fines to settle multiple probes of the 2012 "London Whale" trading fiasco and another $369 million in fines and customer refunds to settle regulatory charges of " illegal credit card practices."

But investors have been waiting for "the big one," which is expected to be a global settlement of multiple criminal and civil investigations of JPMorgan's mortgage lending and sales activities by the Department of Justice, federal regulators and states' attorneys general. Various media reports have estimated the settlement -- possibly delayed by the partial shutdown of the federal government -- could reach as high as $11 billion.

JPMorgan took a forward approach by setting aside $9.15 billion for litigation reserves during the third quarter, which lopped of $7.20 billion, or $1.85 a share, from after-tax earnings.

The company increased its transparency by reporting its litigation reserves totaled roughly $23 billion as of Sept. 30, with a "range of reasonably possible losses" up to $5.7 billion beyond what is currently reserved. Those are huge figures, but the relatively strong market reaction to the announcement shows that investors are comfortable that further losses will have little effect on JPMorgan's financial performance in 2014. JPMorgan set earnings records over the past three years of $17.4 billion, or $3.96 a share in 2010; $19.0 billion, or $4.48 a share, in 2011; and $21.3 billion, or $5.20 a share, in 2012.

JPMorgan's shares were down a penny to close at $52.51. The shares remain among the cheapest for bank stocks, valued at just 8.8 times the consensus 2014 EPS estimate of $5.99, among analysts polled by Thomson Reuters.

Wells Fargo Continues Record Streak

Wells Fargo is now the nation's most profitable bank, and on Friday posted record earnings of $5.578 billion, or 99 cents a share, for the third quarter. In comparison, the company earned $5.519 billion, or 98 cents a share, in the second quarter, and $4.937 billion, or 88 cents a share, during the third quarter of 2012.
2 of 4

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

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
Stocks Under $10

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

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
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
BAC $14.20 0.50%
COF $69.68 0.00%
STI $40.64 0.00%
WFC $48.94 0.00%
AAPL $94.19 0.00%


Chart of I:DJI
DOW 17,651.26 -99.65 -0.56%
S&P 500 2,051.12 -12.25 -0.59%
NASDAQ 4,725.6390 -37.5850 -0.79%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs