Stock Market Today: Bank of America's $6 Billion Pain and PNC Financial's $1 Billion Success

The Dow Jones Industrial Average has gained 65 points in pre-market trading, suggesting a strong start to the stock market today. Wall Street looks set to follow world markets higher in this session. Global stocks posted big gains overnight, with Japan's Nikkei index rising by 3% and European stocks higher by 0.9% as of 7:30 a.m EDT. 

Earnings season continues to give investors plenty of fresh information to digest, and today is no different as banking giants Bank of America , US Bancorp , and PNC Financial  all announced results before the opening bell. Let's dig right in.

Bank of America posted a fiscal first quarter loss of $0.05 a share, compared to the $0.10 in profit that it booked last year. Revenue dipped by 3% to $22.8 billion thanks to shrinking mortgage demand: mortgage originations fell 65% in the quarter. But the reason for the sharp profit drop was a $6 billion litigation expense that BofA expensed, which cleaved $0.40 from per-share earnings. Or, as CEO Brian Moynihan put it in a press release accompanying the results, "the cost of resolving more of our mortgage issues hurt earnings this quarter." While it's good news to have that litigation behind them, investors have to hope the company doesn't have billions more in mortgage issues still left to "resolve." The stock was down 0.9% in pre-market trading.

PNC Financial, the nation's sixth-largest bank, today posted quarterly earnings that beat estimates -- but revenue that came up short. PNC earned $1.82 a share in profit, which was well ahead of the $1.66 that analysts had expected. Revenue shrunk by 5%, while Wall Street was looking for a more modest 2.5% dip. Nonetheless, CEO William Demchak called the results "a successful first quarter," and highlighted the fact that PNC booked its fourth-straight quarter of $1 billion or more in earnings. That was despite a 41% plunge in its residential mortgage business. The megabank's stock was up 2% in pre-market trading.

Finally, US Bancorp booked flat earnings of $0.73 a share, exactly what analysts expected. Revenue came in at $4.8 billion, also as expected. The bank saw a healthy 8.5% spike in its commercial lending business, while its overall loan portfolio grew by 6%. Meanwhile, the company continues to turn in some industry-leading performances, including its return on overall assets, which this quarter was just over 1.5%. The stock was up 0.8% in pre-market trading.

Your credit card may soon be completely worthless
Bank deposits are as good as cash, but the plastic in your wallet is about to go the way of the typewriter, the VCR, and the 8-track tape player. When it does, a handful of investors could stand to get very rich. You can join them -- but you must act now. An eye-opening new presentation reveals the full story on why your credit card is about to be worthless -- and highlights one little-known company sitting at the epicenter of an earth-shaking movement that could hand early investors the kind of profits we haven't seen since the dot-com days. Click here to watch this stunning video.

The article Stock Market Today: Bank of America's $6 Billion Pain and PNC Financial's $1 Billion Success originally appeared on

Demitrios Kalogeropoulos has no position in any stocks mentioned. The Motley Fool recommends Bank of America. The Motley Fool owns shares of Bank of America and PNC Financial Services. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Copyright © 1995 - 2014 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Read Full Story