Stocks Down Despite Upbeat Earnings

Stocks remain broadly lower in afternoon trading despite a slew of positive earnings releases. With roughly an hour left in the trading session, the Dow Jones Industrial Average (DJINDICES: ^DJI  ) is down by 27 points, or 0.2%.

The losses are at first perplexing, given the number of positive earnings reports out today. This morning both JPMorgan Chase (NYSE: JPM  ) and Goldman Sachs (NYSE: GS  ) announced robust fourth-quarter and fiscal 2012 profits.

In JPMorgan's case, the nation's largest bank by assets made $21 billion last year despite writing off $6 billion due to the London Whale scandal. And, as my colleague Matt Koppenheffer put it, just like Charlie Sheen, Goldman Sachs is winning -- again. The hallowed investment bank blew away analyst estimates today, reporting fourth-quarter earnings per share of $5.60 versus a consensus forecast of $3.78.

On the heels of these announcements, both of the Dow's banking components are higher -- JPMorgan by 0.5% and Bank of America (NYSE: BAC  ) by 1.4%. Bank of America is the next big bank to report earnings. While it's scheduled to do so tomorrow, however, we already have a pretty good idea what the results will look like, because B of A effectively told us already.

The broader market is nevertheless defying these positive developments, likely because of today's batch of economic reports. In the first case, the World Bank announced today that it cut its global growth forecast for the remainder of 2013. It now expects global output to expand 2.4%, down from a previous forecast of 3%.

According to the announcement: "Overall, the global economic environment remains fragile and prone to further disappointment, although the balance of risks is now less skewed to the downside than it has been in recent years."

Alternatively, figures released today by the Federal Reserve suggest that domestic manufacturing activity grew by 0.8% in December following a 1.3% gain the preceding month. Taken together, according to Bloomberg News, the two months constitute the strongest back-to-back reading in almost a year.

Foolish bottom line
Given the daily ups and downs of the market, it's pointless to try to beat the market at its own game. A much better approach is to become an expert on the companies you invest in, as this will give you a leg up on the vast majority of other investors. To do so with respect to Bank of America, I invite you to instantly download our in-depth report on the lending giant. Among other things, it covers both the opportunities and risks associated with holding its stock. Simply click here to access this valuable report now.

Read/Post Comments (0) | Recommend This Article (1)

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: 2199728, ~/Articles/ArticleHandler.aspx, 9/27/2016 1:53:28 PM

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 Moments ago Sponsored by:
DOW 18,223.99 129.16 0.71%
S&P 500 2,159.61 13.51 0.63%
NASD 5,300.52 43.03 0.82%

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

9/27/2016 1:38 PM
BAC $15.23 Up +0.14 +0.89%
Bank of America CAPS Rating: ****
GS $163.18 Up +1.70 +1.05%
Goldman Sachs CAPS Rating: ***
JPM $66.26 Up +0.48 +0.73%
JPMorgan Chase CAPS Rating: ****