Log in
Show password
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Dynamic quotes 


SummaryMost relevantAll NewsOther languagesNews of the index componentsMarketScreener Strategies

Dow closes lower after disappointing bank results

01/14/2022 | 06:26pm EST
Traders work on the floor of the NYSE in New York

By Sinéad Carew

(Reuters) - The Dow closed lower on Friday with a big drag from financial stocks as investors were disappointed by fourth quarter results from big U.S. banks, which cast a shadow over the earnings season kick-off.

The Nasdaq and the S&P regained lost ground in afternoon trading to close higher. Meanwhile the consumer discretionary stocks put pressure on the indexes throughout the session after morning data showed a December decline in retail sales and a souring of consumer sentiment.

JPMorgan Chase & Co tumbled after reporting weaker performance at its trading arm. The bellwether lender also warned that soaring inflation, the looming threat of Omicron and trading revenues would challenge industry growth in coming months.

Along with JPMorgan, big decliners putting pressure on the Dow included financial stocks Goldman Sachs, American Express and home improvement retailer Home Depot.

Citigroup Inc shares fell after it reported a 26% drop in fourth-quarter profit, while asset manager BlackRock Inc fell 2.2% after missing quarterly revenue expectations.

The S&P 500 bank subsector, which hit an intraday high in the previous session, closed down 1.7%. The sector has been outperforming the S&P recently as investors bet the Federal Reserve's expected interest rate hikes will boost bank profits.

"The bar was very high going into (JPMorgan) results. On the surface it was good but, under the hood, not so much," said Michael James, managing director of equity trading at Wedbush Securities in Los Angeles. In the interest rate hiking cycle expected this year "positioning was very crowded on the long side" going into the earnings season.

For consumer stock weakness, James pointed to "clearly disappointing" retail sales, which dropped 1.9% last month due to shortages of goods and an explosion of COVID-19 infections. Separate data showed soaring inflation hit U.S. consumer sentiment in January, pushing it to its second lowest level in a decade.

Retail sales and bank loan growth raised doubts about the economic outlook for the current quarter and 2022 for Keith Buchanan, portfolio manager at Globalt in Atlanta.

"The question is, does the economy have enough strength to get through the risk Omicron brings as fiscal and monetary stimulus is rolling off," Buchanan said.

The Dow Jones Industrial Average fell 201.81 points, or 0.56%, to 35,911.81, the S&P 500 gained 3.82 points, or 0.08%, to 4,662.85 and the Nasdaq Composite added 86.94 points, or 0.59%, to 14,893.75.

For the week, the S&P 500 fell 0.3% while the Dow fell 0.9% and the Nasdaq fell 0.3%.

At the end of the session, four out of eleven S&P sectors gained ground with energy leading gains.

An afternoon rally pushed the Nasdaq and the S&P to closing gains with help from rate-sensitive growth sectors with technology closing up 0.89% and communications services adding 0.53%.

"There's clearly some bargain hunting going on in technology today," said Wedbush's James.

Analysts see S&P 500 companies earnings rising 23.1% in the fourth quarter, according to IBES data from Refinitiv.

One bright spot in the bank sector on Friday, however, was Wells Fargo & Co, which rallied after posting a bigger-than-expected rise in fourth-quarter profit.

Las Vegas Sands rallied 14.2% while Melco Resorts advanced 16.6% and Wynn Resorts closed up 8.6% after Macau's government capped the number of new casino operators allowed to operate to six with an operating period of up to 10 years.

U.S. stock markets will remain shut on Monday for the public holiday in honor of Martin Luther King Jr.

Declining issues outnumbered advancing ones on the NYSE by a 1.63-to-1 ratio; on Nasdaq, a 1.19-to-1 ratio favored decliners.

The S&P 500 posted 38 new 52-week highs and three new lows; the Nasdaq Composite recorded 71 new highs and 570 new lows.

On U.S. exchanges, 10.74 billion shares changed hands compared with the 10.34 billion average for the last 20 sessions.

(Additional reporting by Bansari Mayur Kamdar and Shreyashi Sanyal in Bengaluru, Sinéad Carew in New York, Editing by Maju Samuel and Marguerita Choy)

ę Reuters 2022
Stocks mentioned in the article
ChangeLast1st jan.
DJ INDUSTRIAL -0.89% 34715.39 Delayed Quote.-3.60%
ON SEMICONDUCTOR CORPORATION -5.88% 55.54 Delayed Quote.-13.12%
All news about DJ INDUSTRIAL
05:08pUS Stocks Slump Again Thursday, Surrendering Early Gains
04:43pWall Street rally fizzles as Fed tightening fears spook investors
04:43pUS Securities Held Outright by Fed Rise as of Jan. 19 from Previous Week on MBS Surge
04:39pUS Stocks Turn Lower in Late-Day Correction as Inflation Concerns Linger
04:33pUS Securities Held Outright by Federal Reserve Rose by $79.3 Billion as of Jan. 19 from..
04:28pWall Street drops as bargain-hunting loses steam
04:01pWall Street drops as bargain-hunting tapers off
03:55pHousing to Likely Contribute to Growth in 2022 Despite Declining Demand Amid Lack of In..
03:53pUS ECONOMICS : Leading Indicators, Yellen Address on Friday's Short Agenda
03:49pUS Federal Reserve Initiates Discussion on Potential Central Bank Digital Currency
More news
News of the index components DJ INDUSTRIAL
04:46pJPMORGAN CHASE & CO : Change in Directors or Principal Officers, Financial Statements and ..
04:11pGOLDMAN SACHS : to Present at the 23rd Annual Credit Suisse Financial Services Forum
04:11pVisa, Mastercard Expected to Report In Line Q4 Earnings Next Week, BofA Says
03:11pGoogle launches fresh appeal to overturn $2.8 billion fine at top EU court
02:51pCISCO : How To Do DevSecOps for Kubernetes
02:31pBOEING : Demonstrates Multi-Domain Data Fusion and Automated Software Deployment in JADC2 ..
02:16pUnitedHealth Group Reassured Investors About Medicare Advantage, COVID-19 Impact After ..
More news
Duration : Period :
DJ Industrial Technical Analysis Chart | MarketScreener
Full-screen chart
Technical analysis trends DJ INDUSTRIAL
Short TermMid-TermLong Term
THE TRAVELERS COMPANIES 165.18 Delayed Quote.3.19%
PROCTER & GAMBLE COMPANY 162 Delayed Quote.0.54%
THE GOLDMAN SACHS GROUP, INC. 348.1 Delayed Quote.0.22%
UNITEDHEALTH GROUP 463 Delayed Quote.0.10%
CATERPILLAR INC. 216.63 Delayed Quote.-2.27%
3M COMPANY 173.57 Delayed Quote.-2.75%
THE HOME DEPOT, INC. 349.58 Delayed Quote.-2.81%
INTEL CORPORATION 52.04 Delayed Quote.-2.95%
DOW INC. 57.81 Delayed Quote.-3.39%
Heatmap :