Big banks continued to roll out earnings early Tuesday with Bank of America, PNC Financial, Morgan Stanley and Bank of New York Mellon all reporting results.
Bank of America stock faces a breakout or a breakdown, depending on the day's action. Morgan Stanley shares rose on earnings while PNC stock trades below support amid a failed breakout. JPMorgan, Wells Fargo and BlackRock kicked off financial earnings last week with mixed stock reactions.
Bank Of America
Bank of America reported an 11.7% earnings decline for the first quarter to 83 cents per share adjusted. Total revenue eased 2.2% to $25.82 billion.
FactSet analysts expected earnings of 76 cents per share on $25.49 billion in revenue.
Net interest income decreased 3% to $14 billion. Bank of America increased its provision for credit losses to $1.3 billion, up from $1.1 billion in Q4 and $973 million last year.
BAC stock fell 2% early Tuesday, dropping just below its 50-day moving average and 10-week lines. The fall below the moving average indicates a sell signal.
A rebound above that level would have indicated a buy signal.
BAC stock ticked up 0.4% premarket Tuesday. Shares climbed 6.8% this year through Monday's close.
PNC Financial
PNC's earnings declines accelerated for the fourth quarter in a row, falling 22% to $3.10 per share. Revenue declines accelerated for the third consecutive quarter, dropping 8.2% to $5.15 billion.
The results beat earnings estimates of $3.01 per share but fell short of revenue forecasts of $5.19 billion.
PNC lowered its provision for credit losses to $155 million from $232 million in Q4. The bank recorded $235 million in provisions for Q1 2023.
Net interest income fell 20.7% year-over-year to $1.34 billion.
PNC stock faded nearly 3% Tuesday morning.
Shares are trading below support at their 50-day line amid a broken-down breakout from a flat base at the end of March. PNC is trading about 5% below the 157.69 buy point through Monday. A decline of 7% or more confirms a sell signal.
Morgan Stanley
Morgan Stanley on Tuesday reported an 18.8% increase in earnings to $2.02 per share, reversing eight consecutive quarters of declines, FactSet data shows. Revenue growth downshifted, rising 4.3% to $15.14 billion vs. an average 46% gain over the prior three quarters.
Analysts expected earnings of $1.67 per share on $14.42 billion in revenue.
Morgan Stanley tumbled last week following reports that the bank's wealth arm faces multiple federal probes over its client-vetting practices and potential money laundering risks.
MS stock surged more than 2% early Tuesday to its 50-day line. Shares had fallen back to its 200-day line on last week's drop. Morgan Stanley retreated 6.7% this year through Monday.
Rival Goldman Sachs swung higher Monday following its blowout earnings report.
Bank Of New York Mellon
Bank of America reported an 11% earnings increase to $1.25 per share, beating expectations of $1.19 per share. Revenue rose 3% to a quarterly record $4.53 billion.
FactSet analysts estimate revenue of $4.39 billion. Provisions for credit losses were flat year-over-year at $27 million, and down from $84 million in Q4. Net interest income declined by 8% to $1.04 billion.
BK stock ticked up early Tuesday after swinging 2.2% higher premarket. Shares are working back toward their 50-day line after falling below the level last week.
Bank of New York Mellon is trading below a 56.42 buy point for a flat base after breaking out on March 21. BK stock climbed 5.8% in 2024.
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