After a 38% year-to-date run, C fell 5.6% on the biggest sequential investment-banking fee drop among banks, higher credit costs, a larger reserve build and a barely-beat revenue. Having failed the 50-day and broken the 200-day with RSI 36, the speaker is not a dip buyer here, though it is not the end of the world.
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City had a negative 5.6% day today. I don't want to make too much of it because the stock, you know, obviously started off the year redhot and has run up. I think it's one of the I think it's the is it the best performing bank or it was
but City had a City had a nice summer. Let's let's leave it there. It was over $140 a share in late June and now it just ticked down to 124 which is not catastrophic but for a bank stock I guess that's a lot of movement.
The earnings and revenue um things are cooling off. So these are the reasons people on the street are saying city fell. Investment banking fees were down 13% sequentially meaning from the last time they reported.
It was it was the biggest quarterly decline among all the banks. Um credit costs rose. So the reserve build was larger than last quarter which people pay attention to.
Why does the reserve grow? Sometimes as a function of the total amount of credit they're putting out there. they have to be reserved against it, but sometimes because they're seeing something in the data um amongst their borrowers that gives them uh pause.
We don't know the specific reasons, but uh credit card profit was hurt by rewards and and provisions. Um with rates rising, credit is what people are worried about. Um fee income was soft.
Non-interest revenue, this is where they do a transaction, a banking transaction and charge a fee was negative -4%.
Um the revenue beat was barely a beat and expectations were high. I think the stock at one point was up 38% year to date. So um you combine all those things and that's why I think you got that outsized negative reaction in city.
Not the end of the world, but put the chart back up. This is a clear violation. First off, it's a failure at the uh 50-day and then it's a violation below the 200 day. Uh, and you see momentum confirming falling to a 36 RSI. I I'm not a dip buyer here. What do you think?