US bank stocks underperform for second day

Ally Financial

11/09/2024 17:15

** Shares of the biggest U.S. banks were underperforming on Wed
with the S&P 500 bank index  .SPXBK  down 1.5% vs a 0.6% drop
for the benchmark S&P 500  .SPX  index as investors digested
bearish bank executive comments 
    ** The index was falling for a second day after already
losing 2.9% Tues after comments at a Barclays conference about
trading and investment banking revenue as well as concerns and
an expected hit to interest income when the Federal Reserve cuts
interest rates this month
    ** After Tues's presentations Barclays analyst Jason
Goldberg mentioned soft loan growth and fixed rate assets
repricing at lower than expected levels and said: "While banks,
generally speaking, reiterated 2024 net interest income
expectations, outlooks for 2025 appears more varied for those
willing to talk about."
    ** Bank of America  BAC.N  down 2.1% after Warren Buffett's
Berkshire Hathaway  BRKa.N  disclosed on Tues it sold another
~5.8 mln BofA shares for $228.7 mln between Sept. 6 and Sept. 10
    ** Goldman Sachs  GS.N  shares down 0.5% on Wed after
falling 4.3% on Tues after its fell CEO said late on Mon that
trading rev could fall 10% this qtr. 
    ** JPMorgan Chase JPM.N  shares down 0.4% on Wed but had
lost 5.2% on Tues after its president tempered expectations
about income from interest payments
    ** Ally Financial  ALLY.N  was down 1.8% on Wed after
falling 17.6% on Tues after its finance chief said credit
challenges intensified this quarter
    
         







 (Reporting By Sinéad Carew)
 ((sinead.carew@thomsonreuters.com; +13322191897;))