Citigroup Inc (C) Stock Dips Despite Q3 Earnings Beat

Citigroup Inc (C) Q3 Earnings Beat, Despite Very Weak Fixed Income Performance

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In 2.35pm trading in NY, the Dow Jones Industrial Average slipped 0.08 percent, while the Nasdaq Composite Index inched 0.04 percent lower.

"We still have a long way to go in the earnings season to know where things are", said Ken Moraif, senior advisor at Money Matters.

Wall Street slipped, after touching record highs earlier in the day, as shares of JPMorgan Chase and those of Citigroup fell after the U.S. banks posted quarterly earnings.

First, JPMorgan earned $1.76 per share, well above Wall Street's consensus estimate of $1.65 as revenue from fixed income trading plunged 27% from the same point previous year.

The Dow fell as declines in shares of Walt Disney and those of Nike, recently down 1.5 percent and 1.1 percent respectively, outweighed gains in shares of Microsoft and those of United Technologies, recently up 0.9 percent and 0.8 percent respectively. But concerns about rising credit costs drove the stock lower by more than 3 percent.

"We had revenue increases in numerous products we have been investing in, tightly managed our expenses, and again saw loan growth in both our consumer and institutional businesses".

Wall Street stocks retreated from records Thursday as investors soured on financial shares following earnings from large banks, a sector that has risen significantly this year. Year-to-date, C has gained 27.38%, versus a 15.71% rise in the benchmark S&P 500 index during the same period.

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JPMorgan, the largest USA bank by assets, also topped expectations as loan growth and higher interest rates more than offset a 27 percent slide in bond trading.

In the latest USA 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.

Executives maintained earlier guidance for full-year net interest income, expenses, charge-offs and loan growth, indicating that they expect JPMorgan's other businesses to continue to offset capital markets pain.

Wall Street also set its sights on economic data Wednesday.

Citi shares were down 3 percent and JPMorgan was off 0.8 percent in afternoon trade.

Meanwhile, weekly jobless claims totaled 243,000, hitting a more than one-month low, the Labor Department also said.

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