Today marks a significant day for earnings in the United States, with several major banks releasing their results. The initial market response appears to be unfavourable, as shares of JPMorgan, Bank of America, and Wells Fargo have declined following their announcements.
Ahead of the market opening, U.S. stock futures are trending downwards. Futures for the Dow Jones Industrial Average have decreased by 0.2%, similar to the S&P 500 futures, while Nasdaq 100 futures have seen a 0.3% drop.
Bank of America’s shares have fallen by 0.9% in pre-market trading, following a report of increased bad debts and a decrease in yearly profits. The bank’s fourth-quarter net income plummeted to $3.14 billion, a significant drop from the previous year’s $7.13 billion.
In contrast, Wells Fargo’s shares are down by 2.1% despite reporting a slight increase in fourth-quarter revenue and net income.
Conversely, JPMorgan has recovered from initial losses, now up by 2.1%, after announcing a 15% decrease in fourth-quarter net income, although its revenue showed an upward trend.
BlackRock also reported early, revealing that its assets under management exceeded $10 trillion at the end of the fourth quarter. Additionally, the firm announced a cash and shares deal to acquire Global Infrastructure Partners, aiming to establish a leading infrastructure investment platform. For this acquisition, BlackRock will pay $3 billion in cash and issue 12 million of its shares.
Despite this news, BlackRock’s shares have dipped by 0.6% in pre-market trading.
