JPMorgan, Wells Fargo fail to impress in daily trading
The earnings for both banks did little, however, to move the HW 30 or mid-day market trading. Around the lunch hour, both banks were up slightly on the HW 30.
Wells Fargo's stock fell early on and then picked up around noon, rising a slight 0.36%. Overall, WFC is up 30.38% year-over-year.
"The fourth quarter of 2013 was very strong for Wells Fargo, with record earnings, solid growth in loans, deposits and capital, and strong credit quality," Chief Financial Officer Tim Sloan said in the company's earnings report.
Wells Fargo posted fourth-quarter net income of $21.9 billion, or $3.89 a share, for 2013, up 16% from $18.9 billion in 2012, or $3.36 a share, in 2012.
In comparison, while JPMogan’s stock has fluctuated all day, it has managed to stay positive. The bank’s stock is currently up 0.52% and is up 25.77% year-over-year.
As HousingWire reported Tuesday morning, JPMorgan posted a fourth-quarter profit of $5.3 billion, or $1.30 per share, down from $5.7 billion, or $1.39 a share, in the fourth quarter of 2012.
However, mortgage originations for both banks plummeted. JPMorgan’s fourth-quarter mortgage origination activity tumbled 54% year-over-year, while Wells Fargo’s mortgage banking noninterest income hit $1.6 billion, down $38 million from the third quarter of 2013.
"The important thing for people investing in JPMorgan or Wells Fargo to remember is that they are not one trick ponies. They will be able to offset the decline in mortgage activity and show earnings improvement,” said Dick Bove, an analyst with Rafferty Capial Markets.