Wall Street was lower in early afternoon trade on Thursday after Bank of America (NYSE: BAC; TYO: 8648) reported that profits were down by 32 percent in the third quarter.
While other banks have also produced disappointing third-quarter reports, Bank of America is seen as a predictor of the health of the US banking industry because it does business in widespread regions of the country.
The Dow Jones Industrial Average was 0.22 percent lower to 13,861.81, while the Nasdaq Composite dropped 0.35 percent to 2,782.82 and the S&P 500 was down 0.38 percent to 1,535.35.
Bank of America was $1.69 lower to $48.33 after its report.
Elsewhere in the sector, Citigroup (NYSE: C) fell 66 cents to $44. JPMorgan Chase (NYSE: JPM; TYO: 8634), which issued a better than anticipated report on Wednesday, was still down 66 cents to $45.71.
Wells Fargo (NYSE: WFC) dropped 80 cents to $33.49, while Wachovia (NYSE: WB) was 81 cents lower to $47.72.
Savings and loan Washington Mutual (NYSE: WM) was $2.83 lower to $30.24 after it issued a quarterly report showing profits down by 72 percent.
Sagging profits were not just a problem in the banking sector, however.
Candy maker Hershey Co. (NYSE: HSY) dropped $1.51 to $42.78 after it reported that profits were down 66 percent in the quarter on poor sales and higher promotional costs.
In the pharmaceuticals sector, meanwhile, Pfizer (NYSE: PFE) added 8 cents to $24.63 even though it reported that profits were down in its third quarter on lower sales and a charge to end investment in an inhaled form of insulin.