Track the companies that matter to you. It's FREE! Click one of these fan favorites to get started: Apple; Google; Ford.



Financial Earnings Fail to Ignite Rally

Watch stocks you care about

The single, easiest way to keep track of all the stocks that matter...

Your own personalized stock watchlist!

It's a 100% FREE Motley Fool service...

Click Here Now

Stocks are collectively lower today despite upbeat fourth-quarter earnings figures from some of the nation's largest financial companies, including JPMorgan Chase (NYSE: JPM  ) and Goldman Sachs (NYSE: GS  ) . At roughly halfway through the trading day, the Dow Jones Industrial Average (DJINDICES: ^DJI  ) is lower by 33 points, or 0.24%.

As intimated, the biggest news today concerns fourth-quarter and 2012 full-year earnings figures from two of the most venerable Wall Street firms.

For its part, JPMorgan, the nation's largest bank by assets, reported a staggering 53% increase in profit over the same quarter in 2011. Many investors were nevertheless more interested in hearing about further fallout from the firm's London Whale scandal, which led to more than $6 billion in trading losses earlier in the year. Besides igniting a shake-up in the executive suite, the debacle has also cost CEO Jamie Dimon billions of dollars in lost compensation.

With respect to Goldman, today's earnings release has caused many to proclaim that the investment bank is back -- that is, making money hand over fist in its trading department just like the good ol' days. Fourth-quarter profit at the company grew nearly threefold to $2.89 billion from just over $1 billion in the same period of 2011. Along with Morgan Stanley (NYSE: MS  ) , moreover, the firm also announced that it's entered into a settlement with financial regulators related to faulty mortgage foreclosure practices dating back to the financial crisis. Of the $557 million included in the settlement, Goldman's share includes $135 million in cash plus $195 million in foreclosure relief. Morgan Stanley will pay $97 million in cash and offer up $130 million in "other relief."

Beyond news impacting financial stocks, the worst-performing component on the Dow today is Boeing (NYSE: BA  ) . The massive aerospace company has come under attack lately, as problems with its new 787 Dreamliner continue to mount. Following an emergency landing by a Japanese carrier yesterday, the East Asian country's airlines banned their use pending review. Shares in Boeing are down by more than 3% on the news.

While earnings season started out on a positive note, it appears to have lost momentum. For the individual investor, however, it's important to remember that daily and/or quarterly fluctuations are much less important to a portfolio than the long-term trends.

Stock picks for the long term
Take the first step toward great investments in 2013 and beyond by getting the inside scoop on what Motley Fool superinvestor David Gardner will be buying this year. He's crushed the market in his Stock Advisor and Rule Breakers portfolios for years, and now you can get a personal tour of his flagship stock-picking service: SupernovaJust click here now for instant access.

Read/Post Comments (0) | Recommend This Article (3)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2199174, ~/Articles/ArticleHandler.aspx, 9/30/2016 1:23:28 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated 4 hours ago Sponsored by:
DOW 18,143.45 -195.79 -1.07%
S&P 500 2,151.13 -20.24 -0.93%
NASD 5,269.15 -49.39 -0.93%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

9/29/2016 4:00 PM
BA $131.03 Down -1.20 -0.91%
Boeing CAPS Rating: ****
GS $158.95 Down -4.50 -2.75%
Goldman Sachs CAPS Rating: ***
JPM $65.65 Down -1.06 -1.59%
JPMorgan Chase CAPS Rating: ****
MS $31.04 Down -0.73 -2.30%
Morgan Stanley CAPS Rating: ***