Bank of New York Mellon (BK.US) is one of the worst performing stocks during today's trading session, despite the fact that company reported better than expected Q2 results. The bank posted quarterly earnings of $1.01 per share, 10 cents a share above estimates. Revenue also came in above Wall Street forecasts.
“We are seeing momentum across most of our businesses as we continue to drive improved performance and capabilities across the company, and as we benefit from higher volumes and volatility versus a year ago," CEO Todd Gibbons said.
Company's investment and wealth management division revenue decreased by 3% while investment services total revenue increased 3%.
The company sees downside risks for the rest of the year, including economic uncertainty and continued "significant pressure" from low interest rates.
Bank set aside $143 million for credit losses "reflecting increased downgrades and the continuation of the challenging macroeconomic outlook."
Bank of New York Mellon (BK.US) stock price is currently testing the upward trendline. Should a break below the trendline occur, downward move may accelerate. Potential target for sellers is located at $31.44 per share. On the other hand, if the stock price stays above the aforementioned trendline, the buyers may target recent highs at $39.88 per share. Source: xStation5
