) -- Here are the top stock market headlines for the morning of Wednesday, Jan. 20, 2010.

Wednesday's Earnings Roundup

  • Bank of America (BAC) - Get Report reported a fourth-quarter loss of $5.2 billion, or 60 cents a share, disappointing analysts who had forecasted a loss of 52 cents a share in the quarter. Excluding the one-time $4 billion cost of paying back TARP funds, and dividends on preferred stock, its loss narrowed to just $194 million. The bank's credit-card division posted a $5.6 billion loss for the full year, compared with a $1.2 billion profit in 2008. On the positive side, Bank of America said loan charge-offs totaled $8.4 billion, down $1.2 billion from the previous quarter. Pretax, pre-provision income on a fully taxable-equivalent basis was $9.0 billion compared with $5.0 billion a year earlier, the bank said.
  • Wells Fargo (WFC) - Get Report swung to a fourth-quarter profit of $394 million, or 8 cents a share, compared with a year-ago loss of 84 cents a share. The Thomson Reuters consensus estimate was for a loss of a penny a share. Earnings took a 47-cent-a-share hit from the bank's repayment of $25 billion to the government. Wells Fargo increased its loan-loss reserves by $5.91 billion, down 30% from a year earlier. However, fourth-quarter net charge-offs rose to 2.71% of average loans, up from 2.5% in the prior quarter.
  • IBM (IBM) - Get Report said late Tuesday it earned $3.59 a share in the fourth quarter, up from $3.27 a share in the year-ago quarter and better than the Thomson Reuters average estimate of $3.47 a share. IBM said revenue rose 1% from a year ago to $27.2 billion, also exceeding forecasts. For fiscal 2010, IBM expects earnings of more than $11 a share, ahead of the company's previous range between $10 and $11 a share.
  • U.S. Bancorp (USB) - Get Report saw its fourth-quarter profit nearly double from a year ago, rising to $580 million, or 30 cents a share. Results were a penny ahead of the Thomson Reuters average estimate. The bank recorded $278 million of provision for credit losses in excess of net charge-offs, it said. U.S. Bancorp also recorded $158 million of net securities losses, including $179 million of impairments, partially offset by $21 million of net gains on sale of securities.
  • Bank of New York Mellon (BK) - Get Report posted a fourth-quarter profit of $594 million, or 49 cents a share, rising sharply from a profit of 2 cents a share in the year-ago quarter. Excluding one-time items, the bank earned 60 cents a share in the quarter, better than the Thomson Reuters average estimate for a profit of 51 cents a share.
  • State Street (STT) - Get Report posted a fourth-quarter profit of $1 a share, rising from earnings of 66 cents a share in the year-ago quarter and better than the 97 cents a share analysts were expecting. Revenue fell nearly 15% from a year ago to $2.28 billion but was also better than consensus. State Street said Tier 1 Capital reached 17.5% in the quarter, up from 15.3% in third quarter.

-- Written by Robert Holmes in Boston


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