Citigroup Inc (C) Q3 Earnings Beat, Despite Very Weak Fixed Income Performance

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The broad-based S&P 500 shed 0.2 percent to 2,549.84, while the tech-rich Nasdaq Composite Index dropped 0.3 percent to 6,586.93.

"We still have a long way to go in the earnings season to know where things are", said Ken Moraif, senior advisor at Money Matters.

Like its Wall Street rival JP Morgan Chase & Co (NYSE:JPM) - which reported its results earlier today - Citi recorded a 16% year-on-year decline in fixed income trading revenue which totalled US$2.88bn.

The Dow fell as declines in shares of Walt Disney and those of Nike, recently down 1.5 percent and 1.1 percent respectively, outweighed gains in shares of Microsoft and those of United Technologies, recently up 0.9 percent and 0.8 percent respectively.

Commenting on the lender's latest set of results, chief Michael Corbat said: "We had revenues in numerous products we have been investing in, tightly managed our expenses, and again saw loan growth in both our consumer and institutional businesses".

During a call with reporters, Lake cited "the benefits of diversification and scale", while Daniel Pinto, who runs JPMorgan's investment bank, pointed to "balanced strength across diverse businesses" in a memo to employees.

Citigroup's stock has risen 26% this year, by far the best among the U.S.'s six biggest banks, thanks in part to the announcement of a plan to return $60 billion in capital through 2020.

Analysts on Citi's earnings call questioned when the incentives would end and investors would start to see a return.

Citigroup Inc's earnings for the third quarter of the year were also up when compared to the same period last year.

JPMorgan, the largest US bank by assets, also topped expectations as loan growth and higher interest rates more than offset a 27 percent slide in bond trading. "Don't freak out. It doesn't mean it's going to be 21 months before we see growth in anything", Chief Financial Officer John Gersprach told analysts. A lot of people are still underweight risk.

On the other hand, equity markets revenues improved 16% to $757m thanks to growth in the cash equities business.

Wall Street also set its sights on economic data Wednesday.

JPMorgan shares were down 0.4 percent at $96.48 in morning trading.

Treasury yields slipped on Thursday.

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