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Financials Down As JPMorgan Earnings Weigh — Financials Roundup

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

JPMorgan Chase shares fell as the largest U.S. bank by assets posted third-quarter profit growth short of some investors' expectations as growth in credit-card lending and other key areas was tepid.

"You're not really seeing strong loan growth, and trading revenues are moderating as expected," said Edward Moya, senior market analyst at foreign-exchange brokerage OANDA Group. "It will be difficult for the banks in the current economic environment where you start to see smaller businesses struggling."

Anticipated increases in long-term Treasury yields have not materialized either, Mr. Moya noted. Shares of asset managers rose, however, as investors continued to pile into mutual funds and exchange-traded funds.

Shares of BlackRock, the world's largest money manager by assets, rose sharply as the firm saw $75 billion of inflows in the latest quarter, with more than half of the new money going into higher margin actively managed funds. Similarly, shares of U.K. hedge-fund giant Man Group rose after it posted third-quarter net inflows of roughly $5.3 billion. That was far ahead of market expectations, and the in-flows were centered in high-margin assets, according to analysts at brokerage Citi.

Federal Reserve officials last month reviewed plans to begin reducing their bond-buying stimulus program in November and to possibly end the asset purchases entirely by the middle of next year, according to minutes from the latest central-bank meeting. Fed Chairman Jerome Powell also acknowledged recent controversy about stock trading by Fed officials.

 Write to Rob Curran at rob.curran@dowjones.com 

(END) Dow Jones Newswires

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

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