Bank stocks fell Friday on mixed earnings results.
The KBW Bank Index fell 2.16% but ended the week up 8.17%.
Bank of America Corp. said second-quarter net income fell 5.5% from a year earlier, to $2.42 billion, or 33 cents a share, after paying preferred-stock dividends. The company beat analysts' estimates by 5 cents, but its shares fell 2.1%.
Citigroup Inc.'s shares fell 1 cent, to $3.02, even though company posted an unexpected gain. After paying preferred-stock dividends, Citi earned $3 billion, or 49 cents a share. Analysts on average had expected it to post a loss of 37 cents a share.
In the second quarter of 2008, Citi lost $2.59 billion.
BB&T Corp.'s shares fell 6.2% after it said its second-quarter net income fell 52% from a year earlier, to $208 million, or 20 cents a share, a penny above expectations.
Marshall & Ilsley Corp.'s shares fell 65 cents, to $4.63. It announced that it lost $139.3 million in the quarter, or 50 cents a share. In the second quarter of 2008 it lost $393.8 million.
After subtracting for several one-time items including securities gains of $50 million, or 18 cents a share, and a tax benefit of $18 million, or 6 cents per share, M&I's core earnings loss per share was higher than the average analyst estimate for a loss of 69 cents a share.
First Horizon National Corp.'s shares fell 4.7% after the company said it lost $123.2 million, or 58 cents a share. Analysts on average had expected a loss of 33 cents a share. In the second quarter of 2008, First Horizon lost $19.1 million.
Other decliners Friday included Wells Fargo & Co., 0.2%, PNC Financial Services Group Inc., 2.7%, SunTrust Banks Inc., 3.7%, Capital One Financial Corp., 1.6%, M&T Bank Corp., 2.3% and KeyCorp, which fell 1.9%.
Gainers included JPMorgan Chase & Co., 2.1%, U.S. Bancorp, 0.2% and Colonial BancGroup Inc., which rose 2 cents, to 59 cents.
The Dow Jones industrial average rose 0.37%, while the Standard & Poor's 500 fell 0.04%.
In a note Friday, a Wells Fargo Securities economist group led by Diane Schumaker-Krieg wrote that though the economy may "technically" expand during the third quarter, nearly all the improvement will likely come from the swing in inventories — and final demand is not improving.
"Without any improvement in final demand, the rebound in production we are expecting for the third quarter will not be sustainable, setting us up for a decline in output this fall," the economists wrote.
