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WFC

Financial Stocks Still Higher Despite Slump For Big Banks in Afternoon Trade

Top Financial Stocks

JPM -0.15%

BAC -0.49%

WFC -1.04%

C -0.20%

USB +0.46%

Financial stocks are fighting off a price slump for shares of JPMorgan Chase & Co ( JPM ) and Wells Fargo ( WFC ), with the NYSE Financial Sector Index up 0.5% while the S&P Financial 100 Index is holding a 0.3% gain.

In company news, Well Fargo ( WFC ) is down 0.75% at $41.13 a share, generating little upside support despite posting a 13% jump in Q3 earnings to a record $5.32 billion. Per-share earnings of $0.99 beat the FactSet consensus by a penny.

But investors appear to be focusing more on the bank's 3% year-over-year drop in revenue to $20.5 billion, lagging Wall Street expectations by around $600 million. As expected, rising interest rates over the summer eroded demand for new mortgages and refinancings, with originations slumping 42% compared to year-ago levels to around $80 billion.

Mortgage applications fell 54% year over year to $87 billion, with Chief Financial Officer Tim Sloan reportedly observing during the bank's conference call this morning that its mortgage business is in a "transitional period."

In other sector news,

(+) LXP, (+1.1%) Announces public offering of 10 mln shares of its common stock, with plans to use net proceeds to pay down existing debt under its unsecured revolving credit facility recently used to purchase three Manhattan parcels.

(-) NMFC, (-3.1%) Prices public offering of 3 mln shares of its common stock at $14.34 each, also selling another 3 million shares on behalf of New Mountian Finance AIV Holdings.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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