Market reaction to big bank earnings not good way to start earnings season

Earnings from Citibank (C), JPMorgan Chase (JPM), and Wells Fargo (WFC looked solid this morning but the more the market thought about them the more disappointed it got.

The Financial Sector Select SPDR ETF (XLF) was up 1.6% in the early going but as of 2:30 p.m. New York time the financial ETF had fallen back and was showing a loss of 0.87%.

That, along with the decline in the energy sector–the Energy Select Sector SPDR ETF (XLE) was off 0.67% contributed to the market’s uneven performance today. The Standard & Poor’s 500 was up 0.30% and the Dow Jones Industrial Average was ahead a scant 0.06%.

The weakness in the financial and energy sector was balance by strength in technology. The Technology Select Sector SPDR ETF (XLK) was ahead 1.89% and the NASDAQ Composite had gained 1.11%.

The fundamental trends that drove the sell off earlier in the week continued to stabilize. The yield on the 10-year Treasury was down 1 basis point to 3.13% and the yield on the 2-year Treasury was off 2 basis points to 2.83% as fear of the Fed (FOF) continued to slowly recede.

The CBOE S&P 500 Volatility Index (VIX), known as the fear index was up just 1.28% to 25.30 as of 2:30 p.m. New York time.