4:20pm: Delta, UnitedHealth also struggle
The Dow closed Friday down 118 points, 0.3%, at 37,593, the Nasdaq Composite added 3 points, less than 0.1%, to 14,973 and the S&P 500 added 4 points, 0.1%, to 4,784. The small-cap Russell 2000 index declined 5 points, 0.2%, to 1,951.
Despite the loss, the Dow managed to salvage a winning week overall.
Among the laggards were Delta, shares of which fell close to 9% on disappointing guidance, and UnitedHealth, which saw its stock drop more than 3% despite an earnings surprise.
Big bank earnings were also in focus. Wells Fargo, JPMorgan Chase and Bank of America shares all ended the day in the red, while Citigroup shares climbed after the company announced a 10% cut to its workforce.
12:15pm: JPMorgan the lone bank in the green
At midday, the Dow was down 198 points, 0.5%, to 37,513, the Nasdaq Composite dipped 30 points, 0.2%, to 14,940 and the S&P 500 fell 7 points, 0.2%, to 4,773.
The big banks have largely struggled following earnings reports this morning. Wells Fargo stock fell nearly 2% Citigroup dropped 1% and Bank of America slid 1.5%, while JPMorgan Chase shares improved 1%.
Investors also reacted to producer price index data that showed wholesale prices declined 0.1% in December.
“PPI affirms that December’s pickup in the CPI was likely a one-off,” said Bill Adams, chief economist for Comerica Bank, as reported by CNBC. “The path continues to clear for the Fed to begin cutting interest rates in 2024 and to slow the pace at which they shrink their balance sheet.”
9:40am: Stocks lifted by drop in wholesale price inflation, bank results mixed
Stocks in New York rallied on Friday after a wholesale price inflation increased less than the market had expected.
Shortly after the opening bell, the Dow Jones Industrial Average was up 98.39 points, 0.3%, at 37,809.41, the S&P 500 was up 20.33 points, 0.4%, at 4,800.57 and the Nasdaq Composite was up 56.47 points, 0.4%, at 15,026.65.
Investors were also digesting a mixed bag of earnings in the banking sector which saw JPMorgan and Citigroup rise but Bank of America and Wells Fargo fall back.
US producer prices grew at a slower pace than expected in December, numbers on Friday showed.
According to the Bureau of Labor Statistics, producer prices rose 1.0% year-on-year in December, picking up speed from a 0.8% climb in November, but falling short of consensus.
Producer prices had been expected to grow 1.3% annually in December.
7:00am: Futures ease after banking earnings roll-in
Stock futures eased on Friday as investors digested Thursday’s CPI figures and as banking earnings began to hit the wires.
In pre-market trading, futures for the Dow Jones Industrial Average were down 0.2%, while those for the S&P 500 were down 0.2% and contracts for the Nasdaq 100 futures fell 0.3%.
Joshua Mahony at Scope Markets said: “Today sees US earnings season kicking off with a focus on Wall Street, as JP Morgan Chase, Citigroup, Wells Fargo, and Bank of America report their fourth quarter figures.”
“In an environment of elevated interest rates investors will be keen to understand whether the benefits of higher margins are outweighed by the risk of huge unrealized losses on treasury positions.”
“With the fourth quarter representing an advantageous time for equity bulls, there is an expectation that trading revenues will be a boost for investment banks in particular.”
Just released, Bank of America slipped 3.4% in pre-market trading after reporting a spike in bad debts and a drop in annual profit.
Fourth quarter net income more than halved from a year before to $3.14 billion from $7.13 billion.
Elsewhere, Wells Fargo is down 2.1% after reporting slightly higher fourth quarter revenue and net income.
But JPMorgan reversed early falls and is now up 2.1% after it reported a 15% fall in fourth quarter net income although revenue puished higher.
BlackRock is another quick out of the blocks, reporting assets under management topped $10 trillion at the end of the fourth-quarter, plus a cash and shares deal to acquire Global Infrastructure Partners.
The deal will create a “world leading infrastructure investment platform,” the firm said.
BlackRock is paying over $3 billion in cash to acquire GIP, as well as handing over 12 million of its own shares, taking the dal value to around $12.5 billion.
Shares were down 0.6% in pre-market deals.