Wall Street’s three main indexes flitted between slight gains and losses on Monday, as declines in Boeing and bank stocks after Citigroup’s quarterly report were countered by a rise in technology shares.
The third-largest U.S. lender beat profit estimates but reported a decline in interest margins, with its shares marginally lower in volatile trading.
The sequential squeeze on Citi’s net interest margins by 5 basis points is a cause for worry for investors in other large banks, said Marty Mosby, director of bank and equity strategies at Vining Sparks in Memphis, Tennessee. It raises concerns over expected declines in short-term interest rates when the Federal Reserve begins to cut rates, he added.
JPMorgan Chase & Co (JPM.N), Goldman Sachs Group Inc (GS.N) and Wells Fargo (WFC.N) slipped ahead of their earnings reports on Tuesday.
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