Major Banks Reported Strong Quarterly Results, IBM Weakness Weighed On Market Sentiment

Barry Adams
14 Jul, 2026
New York City

Wall Street indexes lacked direction in early trading on Tuesday, and investors reviewed the latest batch of earnings. 

The S&P 500 Index decreased 0.1%, and the tech-focused Nasdaq Composite edged up 0.1% as investors shifted their focus to the start of earnings season. 

JPMorgan Chase and Wells Fargo were in focus after the two leading banks reported better-than-expected results in the second quarter. 

Market sentiment was subdued amid escalating tensions in the Middle East, and the U.S. and Iran continued to exchange military strikes over the Strait of Hormuz. 

The West Texas Intermediate crude oil price rose 3.5% to $80.94 a barrel, and the Brent crude oil price increased 4.7% to $87.25 a barrel as commercial shipping remained disrupted for the second consecutive week. 

The dual blockade of the narrow passageway is forcing many shipping companies to avoid the shipping channel and seek alternative passage after the U.S. president proposed a flat fee of 20% for shipments passing through the Strait of Hormuz. 

 

U.S. Movers 

JPMorgan Chase decreased 2.6% to $326.0 despite the New York-based bank reporting better-than-expected second quarter results. 

Revenue increased 15% to $57.4 billion from $44.9 billion, net income advanced 28% to $21.2 billion from $15.0 billion, and diluted earnings per share rose to $7.70 from $5.24 a year ago. 

“Performance was strong across the firm, and revenue in each line of business hit a new record," said Chairman and CEO Jamie Dimon in a statement released to investors. 

Average deposits increased 7%, average loans rose 10%, and debit and credit card sales volume advanced 10% from a year ago, respectively. 

In the quarter, the bank booked $4.6 billion of net gains related to Visa shares, or $1.27 per share, and $1.0 billion of gains on certain equity investments, or 29 cents per share. 

Bank of America edged down 0.5% to $59.20 after the company reported better-than-expected second quarter results. 

Total revenue increased 15.3% to $31.6 billion from $27.4 billion, net income advanced 26.4% to $9.1 billion from $7.2 billion, and diluted earnings per share rose to $1.21 from 90 cents a year ago. 

Higher interest rates supported the 9% jump in net interest income to $16.0 billion, and provision for credit losses decreased to $1.4 billion from $1.6 billion in the period a year ago. 

The company returned $8.0 billion to shareholders, including $2.0 billion in dividends and $6.0 billion in common stock repurchases. 

Wells Fargo decreased 1.6% to $86.27 despite the bank reporting strong results in the second quarter. 

Total revenue increased 9% to $22.6 billion from $20.8 billion, net income advanced 16% to $6.4 billion from $5.5 billion, and diluted earnings per share rose to $2.0 from $1.60 a year ago. 

Net interest income rose 5% and non-interest income advanced 13%, driving the total revenue higher by 9%.  

Average loans increased to $1.03 trillion from $916.7 billion, average deposits advanced to $1.46 trillion from $1.33 trillion, and return on equity jumped to 15.0% from 12.8% a year ago. 

Goldman Sachs Group jumped 1.4% to $1,060.0 after the financial service provider reported better-than-expected results in the second quarter. 

Total net revenue increased 39% to $20.4 billion from $14.6 billion, net income advanced 84% to $6.4 billion from $3.5 billion, and diluted earnings per share soared 92% to $20.98 from $10.91 a year ago. 

The annualized return on average common shareholders' equity was 23.5% for the second quarter of 2026 and 21.7% for the first half of 2026. 

Book value per common share increased by 1.8% during the second quarter of 2026 and by 2.8% during the first half of 2026 to $367.67.