Wednesday morning J.P. Morgan Chase & Co. and Wells Fargo & Co. took the center stage and announced earnings. It wasn't pretty. Thursday morning Citigroup Inc. and Merrill Lynch & Co. are announcing earnings along with PNC Financial Services Group Inc., BB&T Corp. and Capital One Financial Corp. All are on our Bank Watch list.
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It's a safe assumption that Citi's and Merrill's earnings will be uglier than J.P. Morgan and Wells, which both have less exposure to the subprime markets. However, to get a better barometer of the real health of the sector, PNC and Capital One might be better studies.
PNC took a beating on Tuesday when the rest of the sector bounced thanks to Treasury's direct injection into nine leading banks. PNC was left out of the direct injection -- even though based on market cap they were on par with some of the recipients -- and it's possible that's the only reason they were down. Alternatively, they could have a surprise in store for us -- despite the common wisdom that they don't have a subprime mortgage portfolio to worry about.
Capital One is another to keep an eye on. It relies heavily on its credit card business, and that's starting to show strain as people lose their jobs, so expect an ugly report. - Matthew Wurtzel
Troubled Wall Street
Prices at close |
| Name |
Price at
open |
Price
at close |
Change |
Mkt cap |
| J.P. Morgan Chase & Co. |
39.33 |
38.49 |
-2.22 |
132291.66 |
| Merrill Lynch & Co. |
20.1 |
18.24 |
-3.11 |
27888.57 |
| Goldman Sachs Group Inc. |
114.45 |
113.15 |
-9.75 |
44744.24 |
| Morgan Stanley |
20.23 |
18.13 |
-3.54 |
19253.75 |
| Citigroup Inc. |
17.49 |
16.23 |
-2.39 |
88378.73 |
| Fannie Mae |
1.06 |
1.00 |
-0.10 |
1069.82 |
| Freddie Mac |
1.1901 |
1.14 |
-0.11 |
737.60 |
| Bank of America Corp. |
25.4 |
23.82 |
-2.71 |
119506.24 |
| Wachovia Corp. |
6.17 |
6.06 |
-0.25 |
13082.66 |
| Wells Fargo & Co. |
32.3 |
33.35 |
-0.17 |
110353.86 |
| American International Group Inc. |
2.67 |
2.43 |
-0.37 |
6533.87 |
| Sovereign Bancorp Inc. |
3.38 |
3.06 |
-0.39 |
2027.99 |
| National City Corp. |
2.92 |
3.19 |
0.09 |
6699.00 |
| Fifth Third Bancorp |
12.92 |
12.66 |
-0.55 |
7311.53 |
| Capital One Financial Corp. |
42.6 |
37.76 |
-6.71 |
16489.80 |
| SunTrust Banks Inc. |
43.72 |
44.02 |
-0.64 |
15569.39 |
| U.S. Bancorp |
31.08 |
30.05 |
-1.41 |
52348.68 |
| Regions Financial Corp. |
10.94 |
11.67 |
0.30 |
8108.32 |
| KeyCorp |
10.51 |
10.41 |
-1.56 |
5149.38 |
| PNC Financial Services |
61.75 |
61.50 |
-1.54 |
21309.58 |
| BB&T Corp. |
33.63 |
32.16 |
-1.77 |
17671.59 |
| Bank of New York Mellon Corp. |
32.99 |
29.25 |
-5.51 |
33522.56 |
| State Street Corp. |
52.79 |
46.85 |
-9.84 |
20227.38 |
Source: The Deal |
Matthew Wurtzel is the editor of Dealscape.
