US

Stocks sink as big banks get pummeled

The Dow was down 1% Friday and is off nearly 1.3% during the past five days. The average of 30 blue chips has now fallen about 1.6% so far this month.

The S&P 500 and Nasdaq dipped 0.5% and 0.1% respectively, with both set to drop about 1% for the week. The S&P 500 is down nearly 3% in 2022 while the tech-heavy Nasdaq has slid more than 5%.
A weak retail sales report for December didn’t help matters on Wall Street. Consumer spending surprisingly fell during that key holiday shopping month, raising concerns that runaway inflation is finally taking a toll on the economy.
But while investors have been shunning big techs like Apple (AAPL), Microsoft (MSFT) and Tesla (TSLA) this year, bank stocks were a bright spot for the market — until Friday. Investors were disappointed by JPMorgan Chase’s nearly 15% drop in earnings from the fourth quarter of 2020.
Shares of JPMorgan Chase (JPM) were down 6%. Fellow financials (and Dow components) Goldman Sachs (GS) — which reports earnings next Tuesday — and American Express (AXP) each fell about 4% too.
Citigroup (C) and BlackRock (BLK), which both reported earnings Friday, were also lower. Wells Fargo (WFC) was the bright spot for banks, rallying after posting better-than-expected results.
More big banks, including Bank of America (BAC), Morgan Stanley (MS) and Truist (TFC), will report their results in next week’s holiday-shortened trading session. Earnings are also on tap from consumer products king Procter & Gamble (PG), airlines United (UAL) and American (AAL) and streaming giant Netflix (NFLX).

The stock market is closed Monday in observance of Martin Luther King, Jr. Day.


Source link

Related Articles

Back to top button