Financials drop as JPMorgan profits weigh

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Shares of banks and other financial institutions fell after mixed results.

Shares of JPMorgan Chase fell as the largest US bank by assets posted third quarter earnings growth below expectations of some investors, growth in credit card loans and other key areas was subdued .

“You are not really seeing strong loan growth and trading income is moderating as expected,” said Edward Moya, senior market analyst at currency brokerage group OANDA. “It will be difficult for the banks in the current economic environment where you start to see small businesses struggling.”

The expected increases in long-term treasury yields have not materialized either, Moya noted. Shares of asset managers rose, however, as investors continued to invest in mutual funds and exchange-traded funds.

Shares of BlackRock, the world’s largest fund manager by assets, rose sharply as the company saw an inflow of $ 75 billion in the last quarter as more than half of new capital was invested in actively managed funds with higher margins. Likewise, shares of British hedge fund giant Man Group rose after posting net inflows of around $ 5.3 billion in the third quarter. It was well ahead of market expectations, and entries were focused on high-margin assets, analysts at brokerage Citi said.

Federal Reserve officials last month reviewed plans to start scaling back their bond buying stimulus program in November and possibly end asset purchases entirely by the middle of next year. , according to the minutes of the last central bank meeting. Fed Chairman Jerome Powell also acknowledged the recent controversy over stock transactions by Fed officials.

 Write to Rob Curran at [email protected] 

(END) Dow Jones Newswires

October 13, 2021 17:24 ET (21:24 GMT)

Copyright (c) 2021 Dow Jones & Company, Inc.


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