USA stocks closed lower on Thursday as Wall Street digested earnings from some of the top financial companies.
"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", Gersprach said. Citi's drop in bond trading revenue is similar to what JPMorgan Chase reported on Thursday as well.
In early notes to clients, analysts characterized the results as "solid" or "pretty good", given problems in bond trading that have affected Wall Street banks for some time. Analysts were expecting the company to report earnings per share of $1.32 on revenue of $17.90 billion for the quarter. The banking giant, however, also reported a 27 percent year-over-year decline in fixed income trading revenue.
While Citi's trading desks focus heavily on bond and currency trading, it was the bank's other trading desks that stood out.
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On July 25 Deutsche Bank made no change to the stock rating of "Buy" but lowered the price expectation to $1.00 from $1.00. On average, equities analysts expect that Alphabet will post $30.59 earnings per share for the current fiscal year.
FILE PHOTO: A view of the exterior of the Citibank Corporate headquarters in the Manhattan borough of New York City, May 20, 2015.
Citigroup Inc shares fell $0.34 (-0.45%) in premarket trading Thursday.
Provisions for credit losses across JPMorgan rose 14 percent, with the bank attributing much of that to its credit card business, and 15 percent at Citi in the quarter compared to a year ago.
Other media shares were weak, including Disney and Comcast, both of which lost more than one percent. JPMorgan's net interest income, or the difference between what it pays for funds and collects from lending them out, rose 10 percent.
Corbat told analysts the uptick in provisions were a normal part of the credit cycle and did not point to evidence of consumers under stress.
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The store cards business has been grappling with less successful collection efforts after accounts become delinquent.
"There are two factors pushing the market higher", said Zhiwei Ren, managing director and portfolio manager with Penn Mutual Asset Management.
Citigroup fell 3.4 per cent despite reporting a seven percent rise in profits to US$4.1 billion.
Citi-branded cards in the US provide about 10 percent of Citigroup revenue and profits and are seen by Corbat as one of the company's best shots at growing profits.
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While some might like the idea of unlocking random stuff, it's a pain in the neck for those looking for one specific item. Furthermore, the loot system can not fall under the gambling definition since digital items do not have intrinsic value.