Wall Street Lunch: Big Banks Fall Despite Upbeat Earnings

Big banks like JPMorgan (JPM), Bank of America (BAC), and Wells Fargo (WFC) faced sell-the-news reactions despite earnings beats, with expense and outlook concerns weighing. Goldman Sachs (GS) outperformed peers, driven by a 55% surge in investment banking fees, partially linked to the SpaceX (SPCX) IPO. IBM (IBM) issued a revenue warning, triggering a sharp selloff in software and consulting stocks as customers redirected spending toward hardware. Retail inflation surprised to the downside, but with energy prices rebounding, inflation's improvement may be short-lived.

Big banks were met with a sell-the-news reaction as earnings season got underway. JPMorgan Chase ( JPM ) came under early selling pressure on concerns about rising expenses , despite topping forecasts and raising its full-year outlook for net interest income. Bank of America ( BAC ) and Wells Fargo ( WFC ) also traded lower despite beating expectations, while Citigroup ( C ) hovered around the flatline. Goldman Sachs ( GS ) was a notable exception , helped in part by the SpaceX ( SPCX ) IPO. Revenue easily topped forecasts, driven by a 55% year-over-year jump in investment banking fees.

Among other active stocks, IBM ( IBM ) unexpectedly warned that second-quarter revenue would miss estimates , sending software and consulting stocks sharply lower. IBM shares plunged more than 20% after CEO Arvind Krishna said customers shifted spending in the final weeks of June toward servers, storage and memory. ServiceNow ( NOW ), Salesforce ( CRM )...