JPMorgan posted a rare earnings miss as Goldman Sachs beat by a wide margin

JPMorgan $JPM Chase reported third-quarter net income of $15.3 billion, or $5.57 per diluted share, as a slowdown in investment banking and a significant securities loss weighed on results. Goldman Sachs $GS recorded a sharp rise in profit and its second-best quarter ever for revenue, according to the Wall Street Journal.

JPMorgan's reported earnings included $658 million in net investment securities losses, which reduced earnings per share by $0.18, the company said. Excluding that item, net income was $15.8 billion, or $5.75 per share. Revenue on a managed basis came in at $50.9 billion, up 8% from a year earlier.

Investment banking fees in JPMorgan's commercial and investment bank rose 14% year over year but fell 8% from the second quarter, the company said. Equity Markets revenue surged 49% year over year to $5.0 billion, while Fixed Income Markets revenue fell 4% to $5.4 billion.

"The U.S. economy continued to be fueled by strong business investment and ongoing consumer spending," JPMorgan Chairman and CEO Jamie Dimon said in a statement. "However, large fiscal deficits, sticky inflation, elevated asset prices, rising interest rates and geopolitical conditions continue to shift under the surface."

Dimon added that JPMorgan reduced share repurchases in the quarter, buying back $664 million in common stock, as the company looks to deploy capital at what it described as attractive returns.

Wells Fargo $WFC’s top line came in below analyst expectations, according to the Wall Street Journal. The bank reported third-quarter net income of $6.0 billion, or $1.87 per diluted share, up 13% from a year earlier. Total revenue was $21.9 billion, up 2% year over year but down 3% from the second quarter.

Wells Fargo CEO Charlie Scharf said in a statement that results reflected broad-based growth, higher earnings and stronger returns. Average loans and average deposits each grew 11% from a year ago, the company said.

Citigroup $C's results were set to follow later that morning, according to CNBC. Bank of America $BAC and Morgan Stanley $MS are scheduled to report on Wednesday.

Bank shares swung sharply in premarket trading as the results hit. JPMorgan's earnings call with analysts was scheduled for 8:30 a.m. ET on Tuesday.