NEW YORK ( TheStreet) -- Citigroup ( C) led banks lower on Thursday as the stock market reversed two days of gains, with shares sliding 4.4% to close at $52.60.

Citigroup reported fourth-quarter net income of $2.7 billion, or 85 cents a a share, on revenue of $17.8 billion.  Excluding debit and credit valuation adjustments and a $189 million after-tax benefit from the gain on the sale of the company's credit card business in Brazil, Citi's fourth-quarter EPS came to 83 cents a share.  This was a major improvement from adjusted EPS of 69 cents during the fourth quarter of 2012, however, the results for the most recent quarter were well shy of the consensus estimate of 95 cents, among analysts polled by Thomson Reuters.

Please see TheStreet's earnings coverage for much more on Citigroup.

Goldman Sachs ( GS) also reported its fourth-quarter results on Thursday. The investment bank's fourth-quarter earnings came in at $2.33 billion, or $4.60 a share, on net revenue of $8.78 billion, ahead of the consensus estimates of EPS of $4.18 and revenue of $7.75 billion. 

Goldman's investment banking unit saw its net revenue rise 47% year-over-year to $1.72 billion during the fourth quarter. However, most of the earnings beat was driven by the firm's Investing & Lending unit, whose profits could be hindered as regulators implement the Volcker Rule's ban on proprietary trading, as well as severe limitations on private equity and hedge fund investments.

The investment bank's shares were down 2% to close at $175.17.

CFO Harvey Schwartz during Goldman's earnings call described the Volcker implementation team that would lead the bank's adaptation of the new regulations.

The broad indices all ended mixed, and Best Buy ( BBY) was the big loser, with share sliding 28.6% to $26.83, after the electronics retailer said same-store sales had declined during the fourth quarter, when analysts had expected an increase.  Rocco Pendola lumped Best Buy in with J.C. Penney  ( JCP) and Sears Holdings ( SHLD), as he discussed his endless warnings to investors during 2013, when the retailer's stock rose nearly 238%.

The KBW Bank Index ( I:BKX) gave up 0.9% to close at 70.55, with all but three of the 24 index components ending with losses.

A notable exception was PNC Financial Services Group ( PNC) of Pittsburgh, with shares rising 2.7% to close at $80.93, after the Pittsburgh-based lender reported a very solid earnings beat, with a fourth-quarter profit attributable to common shareholders of $998 million, or $1.85 a share, increasing from $966 million, or $1.79 a share, during the third quarter, and $664 million, or $1.24 a share, during the fourth quarter of 2012. The year-earlier results reflected a $254 million provision for mortgage repurchases, which lowered EPS by 47 cents a share.

PNC's fourth-quarter EPS came in well ahead of the consensus estimate of $1.65, driven by a decline in credit costs, income from the company's investment in BlackRock and a $124 million release of mortgage repurchase reserves.  The company also reported strong year-over-year loan growth.

Other banks announced their fourth-quarter results on Thursday, with investors not buying results that for the most part exceeded consensus estimates.  These included Huntington Bancshares ( HBAN), which was down 2.7% to 9.63, after the Columbus, Ohio lender reported a decline in earnings, which still came in ahead of expectations. The bank also reported continued strong growth in commercial and industrial loans, as well as auto loans.

BB&T ( BBT) of Winston-Salem, N.C., also announced its results, with fourth-quarter earnings available to common shareholders of of $537 million, or 75 cents a share, beating the consensus EPS estimate of 71 cents, among analysts polled by Thomson Reuters.  Earnings were up from from $268 million, or 37 cents a share, during the third quarter, and $506 million or 71 cents a share, during the fourth quarter of 2012.  The year-over-year improvement mainly reflected a decline in the provision for credit losses, to $60 million during the fourth quarter, from $92 million the previous quarter and $252 million a year earlier.  The company's shares were down a nickel to close at $38.73.  Please see TheStreet's detailed earnings coverage for more on BB&T's results and analyst reaction.


Next: Morgan Stanley

Morgan Stanley ( MS) will announce its fourth-quarter results Friday Morning, with analysts expecting earnings of 44 cents a share on revenue of $8 billion, compared to 50 cents on $7.9 billion in the third quarter and 45 cents on $7 billion in revenue in the fourth quarter of 2012.  The company could face plenty of scrutiny from investors, considering the stocks very strong run during the fourth quarter.

Morgan Stanley's shares were down 0.7% to close at $32.00.

This table shows the performance Morgan Stanley's stock against Goldman Sachs, the Dow Jones Industrial Average  and the S&P 500 over the past year:

MS Chart data by YCharts

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-- Written by Philip van Doorn in Jupiter, Fla.

Philip W. van Doorn is a member of TheStreet's banking and finance team, commenting on industry and regulatory trends. He previously served as the senior analyst for TheStreet.com Ratings, responsible for assigning financial strength ratings to banks and savings and loan institutions. Mr. van Doorn previously served as a loan operations officer at Riverside National Bank in Fort Pierce, Fla., and as a credit analyst at the Federal Home Loan Bank of New York, where he monitored banks in New York, New Jersey and Puerto Rico. Mr. van Doorn has additional experience in the mutual fund and computer software industries. He holds a bachelor of science in business administration from Long Island University.

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