Goldman, Citi and Wells Fargo Beat Estimates as Dimon Warns of Sticky Inflation

Goldman Sachs, Citigroup and Wells Fargo all topped profit forecasts on Tuesday, extending a mostly solid start to third-quarter bank earnings. Goldman earned $5.29 billion, or $17.01 per share, well above the roughly $13 expected, as equities trading revenue jumped 72% to $6.44 billion. Citigroup's profit rose about 40% on investment banking, services and wealth management, while Wells Fargo earned $5.95 billion, or $1.87 per share.

Shares reacted unevenly: Goldman gained about 1.9% in early trading, while Citi slipped 0.7% and Wells Fargo fell 1.5%. JPMorgan, which reported a rare miss with $5.57 per share against about $5.90 expected, edged higher. Bank of America, a Dyatome Capital holding, reports Wednesday.

The tone from management was cautious. JPMorgan CEO Jamie Dimon pointed to sticky inflation, elevated asset prices and rising interest rates as forces shifting beneath the economy, a day after the Fed's September hike reshaped expectations. The KBW bank index has fallen roughly 8% over three months even as the S&P 500 has gained.