Stocks were poised for a second day of selling after Thursday’s rout. Bank earnings began rolling in with mixed results from J.P. Morgan Chase (JPM) and Wells Fargo (WFC). J.P. Morgan missed Wall Street earnings estimates by $0.12. Revenue declined 8% year over year. Meanwhile, Wells Fargo turned in better-than-expected earnings per share, beating the Street by $0.08.
Biotechs have been especially volatile lately and one of the biggest movers investors are watching this morning is Alexion Pharmaceuticals (ALXN) after the stock plunged more than 7% yesterday along with other biotech names like Biogen (BIIB) and Intercept Pharmaceuticals (ICPT), which were both down more than 11% yesterday.
Another favorite momentum stock that was hit hard yesterday is Netflix (NFLX). Netflix was off more than 5% yesterday amid the broad selling that dragged the Nasdaq down more than 3%. Netflix over the last year saw a dramatic run-up as one of the best performers of 2013, but so far this year has fallen more than 7%.
Shares of H&R Block (HRB) surged after the company said late yesterday it agreed to sell certain bank assets and liabilities to BofI Federal Bank for an undisclosed price. The move will free the company from Federal Reserve oversight and allow it to avoid a sharp rise in costs associated with meeting strict new rules for banks.
And shares of Gap (GPS) took a hit after the company reported disappointing same-store sales late yesterday. The retailer said sales declined 6% in the five week period ended April 5th. Gap stores and Old Navy were the hardest-hit, with each seeing sales decline 7%. Banana Republic did a little better, falling 4%. Gap also said it expects gross margins will decline for the first quarter, but affirmed its earnings targets for the full year.