Bank of America reported profits of $3.1 billion, falling 3.1% from a year ago, revenues also saw a fall of 11%, leading investors to sell the stock on Friday. Bank of America shares plummeted 8.8%, closing at $14.02.
Citigroup reported second-quarter profits dropped 37%, beating analysts’ estimates. Profits were $2.7 billion, down from $4.28 billion a year earlier. Shares for the day fell 5.8% to $3.91.
And General Electric announced earnings rose 16%. Profits soared 93%, and it was the first time profits were made since the financial crisis began. But weaker revenues, falling 2%, missed expectations. As of Thursday, the stock was up 23% for the year. At the closing bell on Friday, shares had lowered by 4.85% to $14.51.
And Apple’s CEO Steve Jobs finally addressed the reception issue that consumers of the iPhone 4 have been complaining about and that Consumer Reports, an organization that rates products, didn’t recommend because of the problem. Jobs said the company would hand out free cases to those who own an iPhone 4, which seems to fix the reception problem. The stock closed at $249.96, down 0.6% for the day.
What this finally meant for markets – all 3 major indices fell sharply for the day, wiping out the week’s gains. Europe also ended the day in the red. In Asia, Japan’s Nikkei fell about 3% while Hong Kong’s Hang Seng and Shanghai Composite ended relatively flat.
In commodities, US light crude oil for August delivery fell 83 cents to $75.79 a barrel, while gold for August delivery dropped $17.10 to $1,191.20 an ounce.
In bonds, the yield on the 10-year note was lower, to 2.94% from 2.98% on Thursday, as treasury prices rose.