Citigroup’s profit was seen dropping nearly 11 percent on Friday amid its third quarter, but it appears that the results had topped analysts’ expectations, which sent shares to rally.
The bank’s net income posted $3.8 billion or $1.24 per share in the month ending September 30, compared with last year’s $4.3 billion or $1.35 per share in the same quarter, suggesting a better-than-expected $1.15 per share analysts’ estimate.
Meanwhile, its revenue slipped 5 percent to $17.76 billion in the quarter, exceeding analysts’ estimates of $17.29 billion.
Revenue results were mostly led by its Citi Holdings unit, which seemed to hold its assets and is planned to sell off.
According to the company, revenue in that unit dipped about 48 percent, but revenue at its global consumer banking division, which includes Citibank, rallied by 1 percent. In addition, investment banking revenue surged 15 percent.
Citigroup Ends Negative Sentiment on Shares
During the pre-market session on Friday, the New York bank reported another quarter of beating analyst forecasts, as well as ending the negative sentiment on the stock.
Although the results for the quarter appeared slightly unimpressive compared to the previous periods, the investment thesis claimed that these positive results are beneficial for the bank stocks.
Citigroup Chose Obama’s 2008 Cabinet
A month before the presidential election of 2008, Citigroup submitted a list of chosen candidates for cabinet positions in an Obama administration. The said list corresponds almost exactly to Barack Obama cabinets’ eventual composition.
Further, a memorandum written by Michael Froman – a former executive of Citigroup, who currently serves as a US trade representative, was revealed by WikiLeaks retrieved from the email account of John Podesta, who is currently serving as Hillary Clinton’s campaign chair.
The email is dated Oct. 6, 2008 with a subject line “Lists,” which came to Podesta a month before he was named as a chairman of President-Elect Obama’s transition team.
Current Stance of Citigroup Shares
The chart below illustrates Citigroup’s stance amid recent issues linked to the memorandum written by Michael Froman.
The previous trend signaled market players to open for a Buy position on the trendline’s third candle, which in fact did rallied on the green with a light trading volume on October 5. Hence, stock prices continued an upward trend, but tried to break out on the upside before reaching its peak level of 49.95 on October 10.
In essence, stock prices showed a bearish tone after hitting its session highs last week, which is currently settling at a bullish movement in today’s session.
Given the current bullish stance of the Citigroup shares, we conclude that the New York bank’s involvement in Obama’s cabinet list will truly affect stock prices.
However, we are still waiting for a supporting candle as today’s trade in a heavy trading volume is attempting to break out on the upside nearly touching resistance 49.95.
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