Shares of U.S. financial companies have negatively responded to the flood of recent earnings reports for the sector, mirroring the market’s subdued sentiment due to geopolitical threats.

The Financial Select Sector SPDR Fund ( XLF ) fell 0.68% Tuesday in its fourth straight day of losses. The sector gauge has broken below its 50-day moving average and closed at the lowest level in nearly two months.

Regional banks, as tracked by the SPDR S&P Regional Banking ETF , fell 1.27% to the lowest closing price since late November 2023. Regional bank stocks are testing the long-term moving average support level.

Chart: US Financial Stocks Fall Below 50-Day Average

Chart: Regional Banks Make Lowest Close Since Late 2023, Test 200-Day Average

Bank Of America Q1 Earnings

In the first quarter of 2024, Bank of America Corp. ( BAC ) reported earnings that exceeded analyst expectations. Adjusted earnings per share of 83 cents surpassed the estimated 77 cents.

Net revenue, excluding interest expenses, amounted to $25.82 billion, slightly higher than the projected $25.43 billion. However, the bank’s loans totaled $1.05 trillion, slightly below the estimated $1.06 trillion.

Shares of Bank of America ( BAC ) fell 3.52% on Tuesday, eyeing the lowest close since early March 2024.

Read also: Bank of America’s Q1 Consumer Banking Income Takes A Hit, Adds 1M Credit Card Accounts

Morgan Stanley: Q1 2024 Results

Read also: Why Morgan Stanley Shares Are Surging Today

Morgan Stanley ( MS ) reported strong financial results, with EPS at $2.02, surpassing the estimated $1.66. Net revenue amounted to $15.18 billion, exceeding the estimated $14.46 billion.

FICC (Fixed Income, Currencies, and Commodities) sales and trading revenue reached $2.49 billion, slightly surpassing the estimated $2.33 billion.

Morgan Stanley’s net interest income was $1.8 billion, lower than the estimated $1.96 billion. Wealth management net revenue stood at $6.88 billion, surpassing the estimated $6.69 billion.

Shares of Morgan Stanley ( MS ) rose 2.5% Tuesday.

Now read: Major US Banks Top Q1 Earnings Estimates As High Interest Rates Offer Tailwinds: ‘Indicators Continue To Be Favorable,’ Jamie Dimon Says