US markets started the week with a dud of a session as traders reacted to earnings results from big banks and US-China trade news.
Money center banks Goldman Sachs and Citigroup each reported before the bell. Goldman, which saw institutional client sales fall 18%, was the biggest blue chip loser on the day. Citi, meanwhile, was flat after a $4 billion buyback led to an earnings boost thanks but revenue declined 2%.
Earnings season as a whole is off to a roaring start. According to data from FactSet, 85% of companies surpassed Street earnings expectations, CNBC reported.
On the US-China front, Treasury Secretary Steven Mnuchin said the US would be willing to face repercussions if it did not honor its side of a potential trade deal between the two countries, the South China Morning Post reported Sunday. Enforcement of the deal, including the US’s ability to impose new tariffs if China doesn’t abide by the terms, remains a sticking point.
The Dow Jones Industrial Average slipped 27 points to close at 26,384.8, the Nasdaq ended down 8 points at 7,976 and the S&P 500 dropped less than 2 points to 2,905.6.
At the small-cap level, the Russell 2000 dropped 0.4% to 1,579 points while the S&P Smallcap 600 fell 0.4% to 966 points.
1:30 pm: Wall Street continues to slip as investors grapple with big banks' results
Stocks slid Monday afternoon as a decline from Goldman Sachs held the Dow in negative territory.
Goldman and Citigroup each reported before the bell. Goldman, which saw institutional client sales fall 18%, saw its stock lose 3.2%. Citi, meanwhile got an earnings boost thanks to a $4 million buyback but had revenue decline 2%.
Earnings season as a whole is off to a roaring start. According to data from FactSet, 85% of companies surpassed Street earnings expectations, CNBC reported.
Regarding US-China trade talks, Treasury Secretary Steve Mnuchin said the US would be willing to face repercussions if it did not honor its side of a potential trade deal between the two countries, the South China Morning Post reported Sunday. Enforcement of the deal, including the US’s ability to impose new tariffs if China doesn’t abide by the terms, remains a sticking point.
The Dow Jones Industrial Average slipped 43 points to 26,369.1, the Nasdaq is down 0.3% to 7,957.5 and the S&P 500 dropped 5 points to 2,902.3.
At the small-cap level, the Russell 2000 shrank 0.5% to 1,585.7, while the S&P Smallcap 600 fell 0.5% to 965.1.
In Europe, markets were stagnant. London FTSE was flattish at 7,436.9, the French CAC was up 6 points to 5,501.9 and the German DAX advanced 0.2% to 12,020.3.
10:13 am: Wall Street slips below the flatline as investors digest Citi, Goldman results
Investors kept it close to the vest at the open Monday after two more money center banks reported quarterly results.
Citigroup Inc (NYSE:C) and The Goldman Sachs Group Inc (NYSE:GS) both dropped as traders saw cracks in results that beat earnings expectations. Citi’s earnings boost came in part from a $4 billion buyback, but its revenue fell 2%. Goldman, on the other hand, saw institutional client sales steeply decline.
As a whole, earnings season is off to a roaring start, according to data from FactSet, 85% of companies surpassed Street earnings expectations, CNBC reported.
Regarding US-China trade talks, Treasury Secretary Steve Mnuchin said the US would be willing to face repercussions if it did not honor its side of a potential trade deal between the two countries, the South China Morning Post reported Sunday. Enforcement of the deal, including the US’s ability to impose new tariffs if China doesn’t abide by the terms, remains a sticking point.
The Dow Jones Industrial Average slipped 31 points to 26,380.6,; the Nasdaq is down nearly 12 to 7,973.6 and the S&P 500 futures dropped 3 points to 2,904.5.
At the small-cap level, the Russell 2000 ticked up 1 point to 1,585.7, while the S&P Smallcap 600 fell less than point to 969.2.
In Europe, markets were similarly unmoved. London FTSE fell 7 points to 7,430.6, the French CAC was down 1 point to 5,501.9 and the German DAX advanced 13 points to 12,013.2.
7:34 am: US shares set for muted start as traders await big bank earns
US stocks are poised for a mixed open as earnings season continues apace and President Donald Trump has once again criticized the stance of the Federal Reserve.
In a weekend tweet, the 45th US president said he reckoned the US stock market could be higher by between 5,000 and 10,000 points if the Central Bank had "done its job properly".
He also said that GDP (gross domestic product) growth would have been more than 4% instead of 3%.
Today, traders will be pouring over more bank earnings as behemoth Goldman Sachs (NYSE:GS), Citigroup (NYSE:C) are due to report before the New York bell and investors will be looking out to see how interest rate changes have affected them.
On Friday, stocks closed firmly higher in the US. The Dow Jones Industrial Average finished up nearly 270 points at 26,412. The Nasdaq finished up nearly 37 at 7,984. The S&P 500 index closed around 19 at 2,907.
In futures today, the Dow Jones is up 40; the Nasdaq is down nearly four and the S&P 500 futures are near flat.
Meanwhile in Europe, after a mixed Asian session, which saw the Nikkei 225 add 298 points and the Shanghai Index fall nearly 11, equities are trending higher.
The FTSE 100 is up around seven and the German DAX is up around 25 points.
Market analyst David Madden, from CMC Markets, said: "European equity markets are subdued this morning on the back of a strong finish on Friday.
"It seems like investors are taking a breather, and the lack of volatility in Asia overnight prompted some dealers to sit on their hands this morning. Steven Mnuchin, US treasury secretary, issued a positive statement about US-China trade talks over the weekend, and he claimed the negotiations are ‘close to the final round’, and that is adding to global feel good factor."