Stock Market Update

[BRIEFING.COM] The major averages continue to chart new session lows this morning.

Citigroup (C 113.05, -3.25, -2.79%) reported mixed Q4 results, beating Q4 EPS expectations but falling short on revenue. However, the bank's overall performance remained solid, highlighted by a 14% increase in reported net interest income (NII), which reached $15.7 billion, driven by strength across all primary business lines.

Citigroup's Q4 results reflect a bank in the midst of a complex but increasingly visible turnaround. While the revenue miss and the significant charge related to its Russia exit created some noise, the underlying performance of its core "interconnected" businesses—specifically Banking and Services - is highly encouraging. The 78% surge in banking revenue is particularly noteworthy, suggesting that Citi is successfully gaining "wallet share" in M&A and leveraged finance even as some competitors lose momentum. 

Meanwhile, Bank of America (BAC 51.96, -2.58, -4.72%) is trading lower despite reporting a modest EPS beat for Q4. Revenue, net of interest expense, of $28.4 billion increased 7% year-over-year, reflecting higher net interest income (NII), asset management fees, and strength in sales and trading.

While BAC's Q4 EPS beat was modest, the more important takeaway was management's constructive macro outlook. The bank continues to see resilient consumers, improving credit trends, and stable employment, all of which underpin confidence in stronger growth in 2026.