Stocks pulled back with the Dow falling 31 points on heavy trade to close at 22,841. Earnings season has begun with reports from some banks.
Bank biggies JP Morgan Chase and Citigroup hit the news wires with earnings reports today and they both showed strength in retail banking and loan growth. JP Morgan beat estimates with a revenue gain of 8% and an 11% jump in profits. While trading operations were soft retail banking was strong with deposit growth, loan growth and falling charge offs pushing ROE to 11% which is above the 9% to 10% range JP has been in for the past few years. JP did see a rise in credit card writeoffs which is being attributed to hurricane related losses.
Citigroup meanwhile saw revenues move up 8% and net income grow by 3%. Like JP Morgan, Citi saw some credit card Hurricane related losses but strength in the global institutional clients group and investment banking offset weakness in consumer banking and credit cards.
Domino’s Pizza reported Q3 numbers that, while they beat estimates, did not provide the inspiration or confidence you would get from a hot fresh pepperoni pizza delivered via drone. Domino’s is expanding into the UK/EU and saw some weakness there. Overall however the company posted a 14% rise in sales and a 32% rise in profits thanks in part to an accounting change. CEO Pat “Pizza” Doyle said that delivery issues in Europe had arisen but were being addressed. Pizza sales in the US were solid.