Financials were under pressure Friday heading into the close despite a slew of above-forecast results from major Wall Street banks.
JPMorgan Chase (NYSE:JPM) fell 1.8% despite delivering quarterly earnings and revenue that topped Wall Street expectations.
Ahead of JPMorgan's earnings report, Portales Partners said that JPMorgan shares were "overvalued" and warned of at least 10% downside, saying the bank had reached "peak profitability" for the current cycle.
JPMorgan reported earnings of $2.34 a share on revenue of $27.8 billion, beating analysts' expectations of $2.2 a s7hare on revenue of $27.5 billion.
Citigroup (NYSE:C) eased from session highs as investors digested mixed results. Earnings topped expectations but revenue fell short.
Citigroup said third-quarter profit rose 12% from a year ago helped by a 3% rise in loans and a 4% climb in deposits.
Wells Fargo (NYSE:WFC) rose 0.80%, shrugging off a miss on third-quarter profit.
The scandal-hit bank reported earnings of $1.13 a share, or an adjusted profit of $1.16 per share, missing analysts' expectations of $1.19 a share, while revenue topped expectations coming in 21.9 billion for the quarter.
Financials fell 0.88%, extending its decline into correction territory, defined as 10% drop from its most recent high.
