Investing.com – Citigroup (NYSE:C) soared on Monday, underpinning gains in financials, even as it reported mixed fourth-quarter results as earnings beat forecasts and revenue missed.
Citigroup reported earnings of $1.61 a share, topping expectations for earnings of $1.55 a share, while revenue of $17.12 billion missed estimates of $17.57 billion. Its shares rose 4.4%.
The weaker-than-expected revenue was driven by a decline in the bank's fixed income business, which the company blamed on a "volatile" fourth quarter.
The mixed report from Citigroup did little to deter market participants, as investors viewed the recent sell off as "perhaps being over done given the overall quality in the Citigroup report," according to Briefing.com.
Citi's strong gains triggered a wave of buys across banking stocks, as JPMorgan Chase & Co (NYSE:JPM) and Wells Fargo & Company (NYSE:WFC), both of which report fourth-quarter earnings tomorrow before U.S. markets open, gained 1%.
Analysts are expected to parse JPMorgan's report for clues on credit quality as market volatility, economic uncertainty and falling oil prices during the fourth quarter has raised concerns about liquidity.
Financial Select Sector SPDR (NYSE:XLF) gained 1%, but remain down about 16% over the last year.