NEW YORK (
) -- Stock movement in the financial sector on Friday provided clear evidence of the winners and losers from a week of fourth-quarter earnings from most of the big banks.
Bank of America
, the last of the banking titans to report, was losing 1.3% in recent trading at $14.36, after reporting
an unexpected $2 billion loss. Mortgage settlements, litigation and impairment charges wiped out what would have been a profitable quarter otherwise - despite weak trading results - showing just how problematic BofA's consumer business has become.
>>>Read More: Mortgage Woes Weigh on Bank of America
Unexpected changes in interest rates last quarter was an impediment to all of the big investment banks' trading profits.
showed the first signs of trading weakness on Tuesday, when its fourth-quarter profit came in at just half of what Wall Street had been expecting.
followed up with similar weakness in fixed-income trading revenue, leading to a general bearishness on banks, despite the fact that both firms beat expectations.
top and bottom lines came just in line with
This week's earnings news represented a reversal from
last Friday. The bank
kicked off the earnings season with a strong quarterly report - beating profit expectations by 47% - without showing any signs of an unexpected trading slowdown. JPMorgan's trading results were resilient enough to prompt Goldman CFO to offer accolades: "I can't explain JPMorgan," he
. "All I can say is 'congratulations.'"
Shares of Goldman and Citi tumbled during the week, losing 5.3% and 6.3%, respectively, through Thursday's close. By Friday afternoon, though, the bearishness had quieted down, with Goldman up 0.5% at $166.45 and Citi up 2% at $4.89 in recent trading.
>>>Read More: Reinventing Goldman Sachs
Morgan Stanley, whose
results were seen positively on Wall Street, was up 3.4% at $30.01. The stock opened the week trading below $29. Similarly,
Wells Fargo was up 2.2% at $32.60.
Elsewhere in the sector, big regionals were soaring even higher on signs of increasing improvements in their credit books.
was up 5.9% in recent trading at $29.51, with
up 4.5% at $28.29,
up 4.2% at $49.24 and
up 3.9% at $8.73. All three banks reported increased earnings, with SunTrust citing
better asset quality , BB&T showing
lower mortgage losses and
Capital One's credit card book mending losses.
One loser in the financial sector was
American International Group
stock, which was in the second day of trading detached from a warrant dividend. Its shares were losing 2.7% at $42.03 in recent action.
>>>Read More: AIG Warrant Terms Still Befuddling
-- Written by Lauren Tara LaCapra in New York
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