Bill Cara: Citi quarter disappoints, Mon., July 17, 2006, 6:45 AM

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July 17, 2006

Citi quarter disappoints, Mon., July 17, 2006, 6:45 AM

The quarter over quarter results at Citigroup came up short of Wall Street estimates. (Research appended)

The problems are precisely where we were expecting: investment banking and commercial banking. As Citi is the world's premier financial firm, traders will be studying these results to try to determine if the entire industry will be similarly affected.

Later today, I will append Wall Street research on Cara 100 component Citigroup. I'll let them run the numbers. Download Bear Stearns July 17 report on Citigroup

In this weekend's Week In Review, I opined that the Financial sector stocks would be hard hit this quarter and next for the same reasons that Citi has disappointed with these results.

Unfortunately, due to the huge stakes involved, there will be Talking Heads spin this story into a positive one for Citi. But it is not that.

Citigroup [GICS 40, Dow 30, Cara 100]
(C: Yahoo Finance file)
(C: StockChart chart)
(C: Investertech chart)
(C: ADVFN Financial Data)(C: ADVFN Financial Data)
(C: Value Line Report May 26: next one is due Aug. 25)

I'm still not feeling up to par. This stomach flu hit me hard, and I have been a little dizzy. But then some of you think that's par. :-)

Posted by Posted by Bill Cara on July 17, 2006 06:45:41 AM | Category: 40 Financials , Cara Global 100 Best Companies

Discourse

As the financial sector has been the last major holdout, perhaps C's news will be the catalyst to push the S&P over the edge. It seems that we do need something cathartic to happen to shake things out. Take care of that stomach flu. Hydration, hydration.

Posted by: Leisa at July 17, 2006 8:07 AM [link]

In addition to hydration, acidophilus. Always gets my innards working better.

Posted by: Novalawyer at July 17, 2006 9:10 AM [link]

Speaking of talking heads, on several different shows this weekend sell siders were really touting the home builders. They continue to be utterly shameless.

Posted by: cb at July 17, 2006 12:09 PM [link]

cb, institutions are still sitting with huge positions in the HBs. So it comes as no surprise that their shills are out trying to sucker in retail buyers.

Posted by: number2son at July 17, 2006 2:22 PM [link]