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Stocks retreat from records; banks, media shares weak

13 October 2017

For the three months ending in September, the lender clocked in with earnings per share of $1.42, besting analysts' estimates for profits of $1.32.

In a statement, Citigroup CEO Michael Corbat said the bank had "a very solid quarter" across Citi's businesses. Analysts expressed concerns about higher reserves set aside for bad loans and about a weak trading performance.

AT&T tumbled 3.4 percent as it confirmed many of its full-year financial targets, but said it expects a hit of $210 million in pre-tax earnings in the third quarter due to United States hurricanes and earthquakes in Mexico.

Shares of JPMorgan Chase traded 0.8 percent weaker as of 2.35pm in NY, while those of Citigroup were 2.5 percent lower, even as both banks beat analysts' expectations.

US banks have spent hundreds of millions of dollars attracting consumers to their credit cards with offers of cash-back on spending, plane tickets and free borrowing on balances transferred from other cards.

In the latest United States economic data, a Labour Department report showed its producer price index for final demand climbed 0.4 percent in September, following a 0.2 percent increase in August.

Shares of Bank of America and Wells Fargo, which are both slated to report their latest earnings on Friday, also declined, down 1.4 percent and 0.7 percent respectively.

Like its peers on Wall Street, Citigroup was expecting another tough quarter for trading revenue amid tepid volatility.

Energy stocks declined with the price of oil amid concern about increased USA production at a time the world's major oil producers are trying to curb output. However, Investment Banking revenues jumped 14% to $1.2 billion, while Advisory revenues edged down 1% to $237 million.

"We all would anticipate greater loan growth if there was a bit more clarity as far as you know when or if tax reform was going to pass", Chief Financial Officer John Gersprach told reporters.

And the trend bodes poorly for Goldman Sachs Group Inc, which has recently struggled more in that area than other Wall Street banks.

The first two of the big banks reported earnings on Thursday morning, and all of the major banks are rising following the reports.