JPMorgan Chase (NYSE:JPM) took a spanking Thursday as a reminder beating earnings isn’t always all it’s cracked up to be — and the rest of the financial sector felt the paddle, too.
JPMorgan reported earnings Thursday of $1.02 per share — 10 cents better than analysts’ prediction — however, JPM suffered losses in fees from investment banking, debt underwriting and stock underwriting, as well as a $347 million loss in its private equity business. JPMorgan also was hampered by lawsuits over bad mortgages, and the company also said it was going to lose about $300 million in debit card fees in the fourth quarter thanks to a new Federal rule capping transaction charges.
All that cheery news led to an almost 5% haircut from JPM shares, or about a $1.60 drop to $31.60. It also set the market to work fleecing other financial stocks. Among the banking powerhouses eating big losses were Bank of America (NYSE:BAC), down 5.47% to $6.22, Citigroup (NYSE:C, -5.34%, $27.64), Royal Bank of Scotland (NYSE:RBS, -6.08%, $7.73) and Barclays Plc (NYSE:BCS, -5.38%, $11.09).
Thursday also marked the end of a three-day global service outage affecting millions of BlackBerry that prompted an apology from Research In Motion (NASDAQ:RIMM) founder and co-CEO Mike Lazaridis. The problem, which started with a hardware error, was exacerbated when a backup system “did not work the way we intended,” Lazaridis told CNNMoney.
Users’ outrage apparently wasn’t taken out on RIMM stock, which lost just less than 2% since the start of the outage Tuesday, closing Thursday’s trading at $23.61.Three Up
As of this writing, Kyle Woodley did not own a position in any of the aforementioned stocks.