Financials Are Taking A Clobbering Even Though JP Morgan And Wells Fargo Beat Earnings

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After both JP Morgan and Wells Fargo beat expectations in their first quarter earnings for 2012, most large-cap financials are down in the first hour of trading.We’re not sure what’s triggering the sell off, but both the S&P and Dow are down and European markets are also in the red as less than optimistic news comes out of Spain and Italy, so everyone’s feeling the burn.

This morning, consumer sentiment fell 50 basis points to below expectations, showing that people may be less confident about the economy.

The stocks’ fall could also be due to the weakness in investment banking business—in particular, JPM’s revenue fell 11% in that department, according to DealBook. That could have big ramifications for Morgan Stanley and Goldman Sachs—reporting next week—whose operations focus more solely on banking and are not as diversified as JPM’s.

(It’s also Friday the 13th, so not sure if that’s scaring off some traders.)

Here’s a quick run-down: 

  • JPMorgan: -1.83%
  • Wells Fargo: -1.73%
  • Citigroup: -2.09%
  • Bank of America: -3.60%
  • Goldman Sachs: -3.19%
  • Morgan Stanley: -3.18%

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