Citigroup kicks off earning season with a whimper

Normally we see JP Morgan kickoff earning season, but this time Citigroup gets to kick things off. Citigroup reported a beat on fourth quarter EPS at $1.61, higher than the $1.55 analysts’ consensus. Revenue missed with a $17.1 billion print, much lower than the eyed $17.6 billion consensus.

Citigroup shares are lower by 1.4% in the premarket trade as Wall Street focused on the steep 21% decline in fixed income markets. They noted it reflected a challenging trading environment characterized by volatile market conditions and widening credit spreads, particularly in December.

CEO Michael Corbat noted, ““A volatile fourth quarter impacted some of our market sensitive businesses, particularly Fixed Income. However, our ICG accrual businesses – Treasury and Trade Solutions, Securities Services, Private Bank and Corporate Lending – continued their strong performance. And in Global Consumer Banking, we had good underlying growth in U.S. Branded Cards and solid performance from our franchise in Mexico where we have been investing. For 2019, we remain committed to delivering a 12% RoTCE and continuing to improve our operating efficiency during the year.”

US Stocks are poised to open much lower with the Dow set to open lower by 200 points.

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Ed Moya

Ed Moya

Senior Market Analyst, The Americas at OANDA
With more than 20 years’ trading experience, Ed Moya is a senior market analyst with OANDA, producing up-to-the-minute intermarket analysis, coverage of geopolitical events, central bank policies and market reaction to corporate news. His particular expertise lies across a wide range of asset classes including FX, commodities, fixed income, stocks and cryptocurrencies. Over the course of his career, Ed has worked with some of the leading forex brokerages, research teams and news departments on Wall Street including Global Forex Trading, FX Solutions and Trading Advantage. Most recently he worked with TradeTheNews.com, where he provided market analysis on economic data and corporate news. Based in New York, Ed is a regular guest on several major financial television networks including CNBC, Bloomberg TV, Yahoo! Finance Live, Fox Business and Sky TV. His views are trusted by the world’s most renowned global newswires including Reuters, Bloomberg and the Associated Press, and he is regularly quoted in leading publications such as MSN, MarketWatch, Forbes, Breitbart, The New York Times and The Wall Street Journal. Ed holds a BA in Economics from Rutgers University.
Ed Moya