Jim Cramer Explains Why Banks Aren't Going Up After Earnings

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Stocks were mixed in intraday trading on Tuesday following a setback in a coronavirus vaccine trial being conducted by Johnson & Johnson and after JPMorgan Chase and Citigroup topped earnings expectations.

Johnson & Johnson paused its trial of a vaccine for Covid-19, the disease caused by the coronavirus, following an unexplained illness in a patient.

The healthcare giant said the trial participant’s illness was being reviewed and evaluated.

"Adverse events - illnesses, accidents, etc. - even those that are serious, are an expected part of any clinical study, especially large studies,” the company said.

And it is earnings season.

The company also reported third-quarter earnings of $2.20 a share, beating analysts' estimates of $1.98. J&J also raised its revenue and earnings guidance for 2020.

JPMorgan Chase reported stronger-than-expected third-quarter earnings as the bank set aside a much lower amount to cover bad loans amid an improving domestic economy.

Citigroup's third-quarter earnings beat expectations as lower loan loss provisions and firmer trading revenue boosted the bank's bottom line.

Despite better than expected results from both banks, the stocks were muted at best, declining in midday trading. 

Jim Cramer said it all comes down to cash. Hear more in the video above. 

You can follow Jim Cramer and Katherine Ross on Twitter at @JimCramer and @byKatherineRoss. Read more from Katherine Ross here.

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