Bank Stock Roundup: Focus Shifts From Earnings To Geopolitical Tensions, Wells Fargo Hits Headlines
Zacks Investment Research | Aug 11, 2017 04:45AM ET
Over the last five trading days, major banks displayed a bearish trend. Investors’ optimism on the overall second-quarter earnings performance of the industry has been faded by concerns related to the North Korean.
The three major equity benchmarks — Dow Jones, S&P 500 and Nasdaq — recorded the worst session on Thursday since mid-May. The continuous war of words between the U.S. and North Korea has shaken investor sentiment.
Banking stocks have also been under pressure as litigations and probes grabbed headlines, particularly, Wells Fargo & Company (NYSE:WFC) leading the way. Legal headwinds pertaining to business malpractices in the pre-crisis period persist. The law-enforcement agencies are trying to resolve these issues in order to avoid lengthy litigations.
Overall, the focus has shifted from earnings to banks' strategies in boosting profitability through restructuring along with resolving legal issues, over the last five trading days.
(Read: Zacks Investment Research
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