Movers: Black Rock, Citigroup, JPMorgan Chase, UnitedHealth Group, Wells Fargo

Scott Peters
14 Jul, 2023
New York City

Market indexes scaled new peaks in the year after worries inflation and rate hikes eased. 

The S&P 500 index futures traded higher 0.3% to 4,521.33 and the Nasdaq Composite edged higher 0.4% to 14,191.93.

The yield on 2-year Treasury notes decreased to 4.70%, 10-year Treasury notes inched lower to 3.80% and 30-year Treasury bonds edged down to 3.91%. 

Citigroup declined 2.1% to $46.68 despite the company reporting better-than-expected quarterly earnings.  

Total revenues, net of interest expenses, declined 1% to $19.4 billion from $19.6 billion and net income declined 36% to $2.9 billion from $4.5 billion and diluted earnings per share fell to $1.33 from $2.19 a year ago. 

Total assets at the end of the quarter increased 2% to $2.43 trillion from $2.38 trillion and deposits were stable at $1.3 trillion from a year ago. 

Citigroup's allowance for credit losses at the end of the quarter increased to $17.5 billion from the previous year. 

During the quarter, the company returned a total of $2.0 billion to shareholders in the form of $1.04 billion in dividends and $1.0 billion in share repurchases.    

JPMorgan Chase gained 0.5% to $149.70  and the New York-based bank reported higher earnings on bond trading income.

Revenue in the second quarter increased 34% to $41.3 billion from $30.7 billion and net income soared 67% to $14.4 billion from $8.6 billion and diluted earnings per share rose to $4.75 from 2.76 a year ago. 

Return on common equity surged to 20% from 13% a year ago and provision of credit losses surged to $2.9 billion from $1.1 billion respectively. 

BlackRock Inc declined 2.1% to $724.51 after the asset management company reported earnings ahead of market expectation and robust fund inflows. 

Revenue in the second quarter declined 1% to $4.46 billion from $4.52 billion and net income soared 27% to $1.36 billion from $1.07 billion and diluted earnings per share expanded to $9.06 from $7.06 a year ago. 

Assets under management increased 11% to $9.4 trillion from $8.4 trillion a year ago and quarterly inflow of assets was $80 billion with positive asset flows across client types and regions. 

UnitedHealth Group soared 6.8% to $478.29 after the insurance company reported  better-than-expected earnings on lower-than-expected costs and rising premiums. 

Net income in the quarter increased to $5.47 billion from $5.07 billion and diluted earnings per share rose to $5.82 from $5.34 a year ago. 

Medical care ratio in the quarter increased to 83.2% from 81.5% a year ago  

The insurance company lifted its adjusted annual earnings estimate to between $24.70 and $25.0 from the previous estimate between $24.0 and $25.0. 

Wells Fargo & Company gained 0.6% to $43.95 after the bank reported better-than-expected quarterly results.  

Total revenue in the second quarter ending in June rose to $20.5 billion from $17.1 billion and net income advanced to $4.9 billion from $3.1 billion and diluted earnings per share expanded to $1.25 from 75 cents a year ago. 

In the quarter, average loans increased to $945.9 billion from $926.6 billion and average deposit decreased to $1.35 trillion from $1.45 trillion from a year ago. 

Provision for credit losses rose sharply to $1.7 billion from $580 million a year ago, indicating growing worries about commercial real estate loans and higher credit card balances. 

The company repurchased 100.2 million shares for $4.0 billion in the second quarter. 

The company proposed to increase its quarterly dividend per share to 35 cents per from 30 cents a year ago.