Bank stocks and the broader markets took a dive in late afternoon trading after Rochdale Securities LLC analyst Richard Bove recommended that investors sell Well Fargo & Co.'s stock.
The KBW Bank Index closed down 2.39%, the Dow Jones industrial average 0.92% and the Standard & Poor's 500 index 0.89%.
Wells Fargo's shares were off 5.12% despite the San Francisco company's earnings report that beat analysts' average per-share earnings estimate by 19 cents. However, Bove said the better-than-expected third-quarter profit was mainly due to servicing fees on mortgages and a lower tax rate.
Decliners included KeyCorp, off 4% after the Cleveland company reported a wider-than-expected loss; JPMorgan Chase & Co., 3%; Bank of America Corp., 2.9%; SunTrust Banks Inc., 0.3%; Capital One Financial Corp., 0.7%; Zions Bancorp., 2.9%; Comerica Inc., 4.6%, and Citigroup Inc., 1 cent a share, to $4.42.
Gainers included U.S. Bancorp, up 2.7% after the Minneapolis company posted better-than-expected earnings, and PNC Financial Services Group Inc., 0.2%.