NEW YORK (TheStreet) -- Major bank earnings gave mixed signals for investors seeking direction after yesterday's severe selloff. JPMorgan Chase (JPM) took a beating in the first quarter, missing analyst expectations and putting more pressure on the battered market. But Wells Fargo (WFC) 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.
Absolutely horrific reaction to the $JPM earnings. The market remains in a tricky spot for adding longs. Be careful.-- Ben C Banks (@BenCBanks) Apr. 11 at 07:34 AM
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 AM
But 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.
Cashtaggers 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 AM
At 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.