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

Do Citigroup earnings forecast another good year for big banking stocks?

James Dennin, Kapitall: Citigroup profits beat estimates while JP Morgan's disappointed. What does that mean for big banking stocks?

The big banking stocks began reporting earnings last Friday, starting with JP Morgan (JPM), and the news wasn't good at first. 

The world's largest financial institution by net assets declined in profitability this quarter, causing many to worry whether that spelled out bad news for other big names in the sector who report earnings this week. 

Read more from Kapitall: Will Earth Day benefit these 7 environmentally friendly companies?

However, it seems like those concerns might have been overly pessimistic. Today  Citigroup (C), the second big bank to report its first quarter earnings, reported profit growth that exceeded analyst expectations. 

That's caused most of the financial stocks on the Dow Jones to get a large bump in price this morning. Bank of America (BAC), Goldman Sachs (GS), and American Express (AXP) are all up at least 1%. Citigroup is up almost 5%, as of 12:25 PM New York Time.

It seems then that many who warned of "regulatory woes" over-estimated the effect of Dodd-Frank on the markets. It's true that Citigroup relied in part on layoffs to turn in an expectation-beating earnings report. But the strong results also came at a time when banks were tasked with re-vamping their trading procedures and dealing with imposed fines. 

Many other big banks will report earnings this week. Good news would augment confidence in the state of the economy; however, bad news could likely erase today's gains. 

Click on the interactive chart to view data over time. 

 Will these big banking stocks overcome new regulations or will they continue to provide unpredictable results? Use the list below to begin your analysis.

1. Bank of America Corporation ( BAC): Provides banking and financial services to individuals, small- and middle-market businesses, corporations, and governments primarily in the United States and internationally. Market cap at $175.76B, most recent closing price at $16.53.


1 of 2

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
AAPL $93.99 0.00%
FB $102.01 0.00%
GOOG $682.40 0.00%
TSLA $151.04 0.00%
YHOO $27.04 0.00%


Chart of I:DJI
DOW 15,973.84 +313.66 2.00%
S&P 500 1,864.78 +35.70 1.95%
NASDAQ 4,337.5120 +70.6750 1.66%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs