Uninspiring earning from Citigroup and Bank of America - buoynat housing starts and alleged big drop in unemployment numbers more than offset Earning news... -

http://www.zerohedge.com/news/2013-01-17/citi-down-4-top-and-bottom-line-miss

Citi Down 4% On Top- And Bottom-Line Miss

Submitted by Tyler Durden on 01/17/2013 - 08:21

While Citi's stock si getting hammered in the pre-market for missing both top- and bottom-lines, two things stand aout to us at first glance. First, they reduced their exposure to GIIPS  during Q4 - just when the rip-roaring rally in Europe really took off; and second, and more importantly, Citi did not take a huge loan loss reserve drawdown like every other bank.

• *CITIGROUP 4Q REV. $18.66B, EST. $18.92B                  :C US
• *CITIGROUP 4Q ADJ. EPS 69C WITH/WITHOUT ITEMS MISSES EST. 96C
• *CITI 4Q GIIPS NET CURRENT FUNDED EXPOSURE $8.9B VS 3Q $9.5B
• *CITIGROUP 4Q LOAN LOSS RESERVE RELEASE $86M VS $1.5B PRIOR YR

The question is, why would Citi not take advantage of the investing public's ignorance like every other bank and release more from loan-loss-reserves - have they maxed out their previous releases? or are they less exuberant at the housing un-recovery?

and...

http://www.zerohedge.com/news/2013-01-17/bank-america-earnings-plagued-legacy-countrywide-woes-offset-900-million-loan-loss-r

Bank Of America Earnings Plagued By Legacy Countrywide Woes Offset By $900 Million In Loan Loss Reserve Releases

Submitted by Tyler Durden on 01/17/2013 - 07:54

Bank of America just reported yet another quarter marked by a bevy of "one-time" charges, which have now become normal course of business, even as NIM declined Y/Y, and sales and trading revenues declined sequentially. Loan loss reserve releases of $900 million more than offset the declining Noninterest income, and contributed to a positive pre-tax net income number. The biggest threat continue to be private Rep and Warrant outstanding claims which increased by almost 42 billion in the quarter to a total of $12.3 billion.

and....

http://www.zerohedge.com/news/2013-01-17/futures-refuse-remain-grounded-unlike-global-boeing-fleet

Futures Refuse To Remain Grounded, Unlike Global Boeing Fleet

Submitted by Tyler Durden on 01/17/2013 - 06:59

Same overnight pattern, different day. After a late day ramp in the US market, followed by a selloff in the futures after hours, taking the ES to trading session lows, we get the European trading crew which day after day sends the EURUSD soaring as Europe opens, pushing futures to unchanged or even green and easily negating the key news event of the day, in this case the full grounding of the entire global Boeing fleet which will once again weigh on the stock and DJIA. In the meantime, the big rotation behind the scenes in FX land continues, with the ongoing and very sudden pounding of the Swiss Franc taking the EURCHF to 1.2450, or the highest, since 2011. Same with the USDJPY which after another attempt to fall, rallies on more of the same regurgitated rumors. Not to mention the EURUSD of course, which as mentioned above has surged some 100 pips since the European open. In other words the overnight beating of the USD is enough to push the US stock market high enough in nominal terms, avoiding that there is no incremental cash flow. Then again, who needs cash flow when you have "multiple expansion."

• Jobless Claims Fall 37,000; Dec. Housing Starts Up 12.1%