US stocks struggled in the direction as some major bank stocks fell after earnings on Friday morning.
The Dow Jones Industrial Average fell 360 points, or about 1%. The S & P 500 fell 0.7%, while the tech-intensive Nasdaq Composite fell 0.4%.
Bank stocks, which had been outperforming in recent weeks as interest rates rose, fell sharply as they seemed to overwhelm investors despite the large number of headlines.
JPMorgan Chase, the number one bank in the United States in terms of assets, showed higher-than-expected profits and returns, but equities fell nearly 5%. The company’s earnings are backed by the release of a large credit reserve, and CFO Jeremy Burnham warned that the company may not be able to meet its key profit targets over the next two years.
Citigroup shares fell 1.7%, but profits fell 26%, after banks exceeded their earnings estimates. Shares of Morgan Stanley and Goldman Sachs also fell.
Wells Fargo shares, on the other hand, increased by more than 4% after bank earnings exceeded expectations. CEO Charles Schaff said in a release that loan demand picked up in the second half of this year.
Gerald Cassidy, a large equity bank analyst at RBC Capital Markets, said in Squawk on the Street, “What’s really popping up is cost growth. Both Wells Fargo and JP Morgan numbers. I saw it at. ” Wells Fargo already has plans for future cost savings, which could explain Friday’s performance, Cassidy said.
On the data side, retail sales in December fell 1.9%. This is worse than the 0.1% reduction expected by economists surveyed by Dow Jones. January preliminary consumer sentiment measurements from the University of Michigan were lower than expected as Americans reported higher long-term inflation expectations.
After the report, retail inventories were squeezed and Bath & Body Works fell by more than 3%.
Elsewhere, paint maker Sherwin-Williams shares fell 2.7% after warning that fourth-quarter earnings were below estimates due to Omicron’s surge in material and staff procurement issues. did. Money management giant BlackRock outperformed earnings, but slightly below earnings. Stock prices have fallen by more than 1%.
Casino stocks were another bright spot on Friday morning. Las Vegas Sands surged 11.5% and Wynn Resorts surged 7.5%.
The jump came after the Macau government announced that it would allow only six casino licenses at the gambling hub. The companies that are rising on Friday are one of the companies that are already active there.
All major averages Slided during a regular transaction on Thursday.. The Dow and S & P 500 fell 0.48% and 1.42%, respectively, to record the first down day in three days. At some point, the 30-stock benchmark had risen by more than 200 points. The Nasdaq Composite was relatively sluggish, dropping 2.51% and squeezing tech stocks, recording three consecutive days of victories.
High-tech stocks plummeted in the first week of this year as the Federal Reserve took a more aggressive approach to inflation, and the earlier rises of the week have now reversed.
“There is an idea that the more hawkish Fed pricing is a process rather than a week. Much was done last week, but this will be a process. I think it will probably be more volatile. Alicia Levine, Stock Market Advisor at Bank of New York Mellon Wealth Management, said:
“We think the first quarter should be rising yields, rising interest rates, out-of-circulation, and the name of long-term growth will be a challenging quarter,” Levine added.
In other data news, corporate inventories were higher than expected in November, but industrial production was disappointed, down 0.1% compared to the expected 0.2% increase.
The report closely monitors all up-to-date inflation measurements by investors.Reading Producer price index The consumer price index showed a historic year-on-year rise this week, but lower than some experts feared.
The main average is in the negative territory of the week as Thursday’s move slowed. The Dow and S & P are on track for the second consecutive negative week, and the Nasdaq is on track for the third week’s loss.
The Dow has fallen by more than 300 points as bank stocks struggle after earnings
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