Banks failed to lift US Market. How ?
The “selective” tariffs exemption for electronic imports (mobile phones, semiconductors etc..) announced over the weekend, proved to be “short-lived”.
This is because Mr Perma-tan and US Commerce Secretary Howard Lutnick decided to be wet blanket, “clarifying” that the 145% tariffs are moving to a different “tariffs” bucket, with details due later.
So, on a quiet trading Tues, 15 Apr 2025, US stocks snapped 2-day winning streak as investors monitor the ever-changing tariff landscape and comb through more corporate earnings results.
By the time market closed on Tuesday:
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DJIA: -0.38% (-155.83 to 40,368.96).
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S&P 500: -0.17% (-9.34 to 5,396.63).
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Nasdaq: -0.05% (-8.32 to 16,823.17).
On Tuesday, the best-performing sector on Wall Street was Financials. (see below)
It was up +0.4% on the back of another strong quarterly earnings from:
BAC Earnings.
Like JP Morgan and Morgan Stanley, Bank of America also reported earnings that topped LSEG estimates.
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Earnings per share : was a +18.42% YoY gain to $0.90 vs $0.82 estimate vs $0.76 (Q1 2024).
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Revenue: was a +12.29% YoY gain to $27.51 billion vs $26.99 billion expected vs $24.5 billion (Q1 2024).
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Net income: was a +10.45% YoY gain to $7.4 billion vs $6.7 billion (Q1 2024).
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Net interest income: was a +2.82% YoY gain to $14.6 billion vs $14.2 billion (Q1 2024).
BAC - Q2 Guidance.
On Q2 2025 guidance / outlook, CEO Brian Moynihan said:
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BAC faces a shifting economic landscape ahead.
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However, he is confident that (a) the strategic investments BAC has made for sustainable growth, (b) the bank’s varied business operations, and (c) unwavering commitment to responsible growth will continue to be a source of strength.
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BAC maintains its earlier NII forecast, saying it would hit $15.5 billion - $15.7 billion by Q4 2025, that would be an increase of 6% - 7%.
Citibank Earnings.
US’s 3rd largest lender bank - Citibank did not disappoint.
It also reported a better-than-expected set of results, with gains on fixed income & equities trading. Based on LSEG estimates:
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Earnings per share: was a +24.05% YoY gain to $1.96 vs $1.85 estimate vs $1.58 (Q1 2024).
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Revenue: was a +2.86% YoY gain to $21.60 billion, vs $21.29 billion expected vs $21.0 billion (Q1 2024).
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Net income : was a +21.66% YoY gain to $4.1 billion vs $3.37 billion (Q1 2024).
Citibank Q2 Guidance
On Q2 2025 guidance / outlook, CEO Jane Fraser said:
From quarter to quarter, we are building on our track record of progress. We remain intently focused on executing our strategy, which is based on a diversified business mix and will perform in a wide variety of macro scenarios.
It is the only US bank that maintains its guidance for current quarter:
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Citigroup’s management expects revenues of $83.1- $84.1 billion.
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NII (excluding Markets) is projected to rise +2 - +3% on a YoY basis.
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Management anticipates expenses to be slightly lower than the $53.4 billion.
My viewpoints: (mine only)
Looks like US banks’ strong earnings were not enough to keep Wall Street from pushing US stocks down slightly (on Tuesday).
Unfortunately, analysts will continue to remain cautious and cast a cloud over US markets and global economic outlook, as long as:
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Uncertainty over Trump's trade policies remain.
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Trump’s constant back-and-forth on tariffs persist.
At times like this, it is important to (a) remain level-headed, (b) do not panic buy or sell and (c) read as much to keep abreast with latest happenings. If there is a need to react, you will be ready!
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Do you think US market will continue to coast along aimlessly for the next few days ?
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Do you think there will be a company’s quarterly earnings that would be able to lift US market out of its doldrum ? Which company ?
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