NEW YORK (TheStreet) -- Major bank earnings gave mixed signals for investors seeking direction after yesterday's severe selloff. JPMorgan Chase
(JPM - Get Report) took a beating in the first quarter, missing analyst expectations and putting more pressure on the battered market. But Wells Fargo
(WFC - Get Report) reported better-than-anticipated earnings.
JPMorgan revealed Friday that it missed consensus estimates for earnings per share and sales. The bank reported first-quarter net income of $1.28 per share on $23.9 billion in revenue. Analysts had expected $1.40 EPS on $24.53 billion in sales, according to stats on Yahoo! Finance.
Wells Fargo, on the other hand, reported $1.05 EPS on $20.6 billion in revenue. EPS soundly beat consensus calls for 97 cents. Sales came in line with expectations, according to stats on Yahoo! Finance. The stock climbed 1% in the pre-market by 8:20 a.m.
$WFC "credit performance was strong in Q1 as losses remained at historically low levels. nonperforming assets continued to decrease" -- Ned Graham (@nedgraham) Apr. 11 at 08:10 AMBut Wells Fargo's results didn't calm investor fears about the broader markets. The ETFs that track the Nasdaq (QQQ), Dow (DIA) and S&P 500 (SPY) were all down in the premarket. JPMorgan fell 3% by 8:20 a.m., prompting cashtaggers to bet it was a harbinger of a greater fall in the major indices.
"@1971capital: Wow terrible reults for $JPM. Not what the market needed today" agreed. Need $wfc blowout -- Aleks (@NYCStox) Apr. 11 at 07:08 AM
Is $JPM a catalyst for another ugly downday? $SPY $QQQ http://stks.co/g0Uct -- CPAuser (@CPAuser) Apr. 11 at 07:23 AMCashtaggers said that the reasons for JPM's miss indicated the banks were no longer getting a major lift from low interest rates that encouraged homeowners to refinance loans. Wells Fargo's mortgage business also showed weakness.
Huge drop in mortgage banking revenue & net income for $JPM. No huge surprise since rates have crept up. But still not good. Refi boom over. -- Paul La Monica (@lamonicabuzz) Apr. 11 at 07:05 AMAt the time of publication the author held no positions in any of the stocks mentioned. This article represents the opinion of a contributor and not necessarily that of TheStreet or its editorial staff.