Wall St drops as bank earnings fail to cheer, media stocks drag

Wall St drops as bank earnings fail to cheer, media stocks drag

The Dow Jones Industrial Average lost 0.1 per cent at 22,841.01.

"We still have a long way to go in the earnings season to know where things are", said Ken Moraif, senior advisor at Money Matters.

JPMorgan Chase & Co JPM.N easily beat Wall Street's third-quarter profit expectations on Thursday, with loan growth and higher interest rates more than offsetting weakness in its markets-related unit.

First, JPMorgan earned $1.76 per share, well above Wall Street's consensus estimate of $1.65 as revenue from fixed income trading plunged 27% from the same point a year ago.

Citi's consumer banking division reported a 6 percent drop in profits in the quarter, to $1.17 billion, as the bank saw higher credit costs. Citi's institutional client group, which contains its trading desks and investment bank, had net income of $3.04 billion compared with $2.64 billion in the same period a year earlier.

"We had revenue increases in numerous products we have been investing in, tightly managed our expenses, and again saw loan growth in both our consumer and institutional businesses". "There's kind of a general feeling that things are better than they have been, and that's being reflected in the earnings season", he said.

(NYSE:C.) edged lower in early deals on Thursday despite the USA investment bank reporting better-than-expected third quarter results.

Analysts on Citi's earnings call questioned when the incentives would end and investors would start to see a return. Using hedge fund analytics tool Kensho, CNBC found the S&P 500 posts a gain of 2.3 percent on average 30 days after third-quarter earnings season begins, trading positive 79 percent of the time. "Don't freak out. It doesn't mean it's going to be 21 months before we see growth in anything", Chief Financial Officer John Gersprach told analysts.

"There are two factors pushing the market higher", said Zhiwei Ren, managing director and portfolio manager with Penn Mutual Asset Management. The second one is positioning.

The Labor Department said US producer prices rose 0.4 percent last month and 2.6 percent in the 12 months through September.

On the other hand, equity markets revenues improved 16% to $757m thanks to growth in the cash equities business. The stock is now down 2% as of noon Thursday, but is up 24% year-to-date.

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