By Marek Fuchs
Update, July 12
JPMorgan (JPM) and Wells Fargo (WFC) reported earnings on Friday morning and, as predicted in the column below, there could not have been less of a through-line between Alcoa (AA) and what the banks set forth. Technically, the results were up to scratch. They even exceeded analyst expectations. But the banks were hardly a greased wheel. Their results were a swirl of decent performances in certain divisions, as well loan-loss gimmickry and foreboding signs about the economy, particularly in housing.
JPMorgan reported net income of $1.60 a share versus $1.21 a share a year earlier, but 15 cents a share was a product of loan-loss reserve releases. Loan demand — their lasting lifeblood — proved anemic, but JPM shares were up in mid-morning trading on Friday, in part because investment banking appeared resilient. Wells Fargo was a similarly complex picture and it, too, was up in mid-morning trading. The upshot?
The banks are a more complicated picture thanRead More »from Bank Earnings: Here’s What to Watch for — and What to Ignore