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Business Update Stock market news live updates: stocks fall amid mixed bank earnings, retail sales missed TOU

Stock market news live updates: stocks fall amid mixed bank earnings, retail sales missed

Stocks fell on Friday on a volatile weekend, with investors monitoring the bank’s mixed set of earnings and US retail sales falling more than expected.

The S&P 500 and the Dow were down. The Nasdaq fluctuated between gain and loss after falling 2.5% on Thursday.

The Dow performed lower, falling more than 1% to a session low as bank stock components of the index declined after earnings were delivered. Shares of JPMorgan Chase (JPM) fell more than 5% after the company Posted less than expected fourth-quarter Increased costs as business income and return costs increase. According to Bloomberg data, JPMorgan’s earnings are the worst since 2011. Citigroup (C) shares also fell after posting similar losses on fixed-income and equity trading revenue for the quarter.

Peer bank Wells Fargo (WFC), on the other hand, gained Posting quarterly income It topped the estimates as commercial and consumer loans increased at the end of last year.

New economic data came in weaker than expected on Friday, adding a risk-off tone to the markets. U.S. retail sales fell 1.9% month-on-month in December, missing estimates for a decline of only 0.1% and showing the biggest decline since February 2021. November sales were also revised lower to show a 0.2% monthly increase compared to a 0.3% increase. Previously reported.

Investors have been wary of claims by key central bank officials this week, citing signs of delayed price pressures in the US economy, that the Federal Reserve is ready to take steps to reduce inflation. JPMorgan Chase CEO Jamie Demon said during this morning’s earnings

During a hearing before Senate Banking Committee on Thursday, Fed Governor Lell Brennard suggested that the central bank could begin raising interest rates – a move that would tighten the monetary policy and help reduce inflation – “as asset purchases end.” The Federal Reserve is currently set to end its asset-purchase tapping process in March.

Lorraine Gilbert, CEO of Wealthwise Financial, said: “What we’re seeing right now is the pricing of markets, which is expected to raise rates. Yahoo Finance Live said on Thursday. “It would be a wild ride.”

And recent inflation data has so far helped strengthen the case for near-term action on monetary policy, many economists have suggested. Thursday’s Producer Price Index (PPI) was the biggest gainer Annual increase in wholesale prices on record, In data up to 2010, despite a slight decline in monthly prices. And the report comes a day after the December Consumer Price Index (CPI), the biggest rise in inflation since 1982. Many economists have suggested that inflationary pressures will continue at least until the first month of this year before they gradually ease.

“Disruption in the supply chain and fiscal stimulus are the two biggest issues,” Matthew Miskin, co-chief investment strategist at John Hancock Investment Management, told Yahoo Finance Live. “As the epidemic gets under control this year, as the omicron wave hopefully dissipates, we will likely see supply chain disruptions, and then we will not get more fiscal stimulus … it causes inflation from our point of view. To come down during the year. ”

Rising labor costs are also affecting corporate profits. According to FactSet, of the nearly two dozen S&P 500 companies that reported fourth-quarter earnings results by the middle of the week, 60% had a negative impact on higher labor costs or a reduction in sales or profits.

11:35 am ET: Biden administration names three nominees to fill positions on Fed board of governors

The Biden administration announced its nominees to fill the Federal Reserve Board of Governors, tapping Sarah Bloom Ruskin, Lisa Cook and Philip Jefferson for the roles. Each nominee still has to go to the Senate Banking Committee for confirmation.

Earlier this week, Federal Reserve Chairman Jerome Powell appeared before the Senate Banking Committee on his re-election hearing to serve as Fed chairman for a second term. Current Fed Governor Lel Brennard also heard his nomination to become Fed’s vice chair.

10:15 am ET: Production declines unexpectedly in December

The U.S. manufacturing sector has shown further signs of slipping between the recent surge in Kovid-19 cases and material shortages.

Manufacturing output fell 0.3% in December, following a 0.6% increase in November, according to new Federal Reserve data on Friday. According to Bloomberg data, consensus economists were looking for a 0.3% monthly increase in production in December. Production accounts for about 12% of total economic activity in the U.S.

The decline in auto production has contributed greatly to the decline in headlines, with the current shortage of chips affecting the industry. Vehicle production fell 1.3% in December, following a 1.7% increase in November.

10:11 am ET: The University of Michigan Sentiment Index fell to 68.8 in January, the second-lowest reading in a decade

Consumer sentiment fell more than expected in early January, reaching one of its lowest readings in 10 years, as the inflation outlook and concerns over COVID-19 emphasize optimism.

This University of Michigan Early January Surveys of Consumer Index It fell to 68.8 from 70.6 in December. According to Bloomberg data, the consensus for the 70.0 reading was lower than expected.

“While the Delta and Omicron variants certainly contributed to this downward shift, the decline was also due to rising inflation rates,” Richard Curtin, chief economist at the Survey of Consumers, wrote in a statement. “In early January, three-quarters of consumers ranked inflation as the most serious problem facing the nation, compared to unemployment.”

“Given that the impact of inflation is regressive, the sentiment index for households with a total income below $ 100,000 fell 9.4% in early January, but for households earning more than that amount, it rose 5.7%,” he added.

Overall, consumer expectations for one-year inflation rose to 4.9% from 4.8% in December, or the highest level since 2008.

9:30 am ET: Stocks open lower after disappointing economic data, mixed bank earnings

Here is where the markets were trading after the opening bell on Friday morning:

  • S&P 500 (^ GSPC): -28.25 (-0.61%) to 4,630.78

  • Dow (DJI): -337.64 (-0.76%) to 35,775.98

  • Nasdaq (^ IXIC): -51.93 (-0.34%) to 14,756.56

  • Crude (CL = F): + $ 0.56 (+ 0.68%) to $ 82.68 per barrel

  • Gold (GC = F): + $ 3.90 (+ 0.21%) to 1,825.30 per ounce

  • 10 year treasury (TNX): +2.5 bps for 1.734% yield

8:32 am ET: Retail sales down 1.9% in December, missing estimates

Retail sales fell sharply in December, as consumer spending rebounded in early 2021.

Total The value of US retail sales was down 1.9% in December Compared to November, the Commerce Department said on Friday. This was the first monthly decline since July and the largest since February 2021. According to Bloomberg data, consensus economists focused on a 0.1% decline. In November, retail sales rose 0.2%, a figure that has also improved to the bottom. Up from the previous 0.3%. Reported.

By category, non-store retailers or e-commerce stores saw the largest ever decline in monthly retail sales, down 8.7% in December. Department stores also saw a 7.0% decline in sales, and sales of furniture and home furnishings fell 5.5%. However, the weakness in December was broad-based, and retailers in almost every category saw a monthly decline in sales. Notably, building material stores saw sales increase by about 1% during the month, and casual store retailers saw sales increase 1.8%.

7:43 am ET: ‘Economy continues to thrive despite headwinds related to Omicron variant’: Dimon

JPMorgan Chase CEO Jamie Dimon spoke enthusiastically about the path to economic recovery, given the latest disruptions caused by the rapidly expanding Omicron variant.

“The economy is doing very well despite the headaches over the Omicron variant, inflation and supply chain disruptions,” said Dimon. The bank said in its fourth-quarter earnings report on Friday. “With exceptionally low net charge-offs, lending continues to be healthy, and we are optimistic about US economic growth as business sentiment picks up and consumers benefit from job and wage growth.”

Both JPMorgan Chase and Wells Fargo showed an increase in loans contributing to the results at the end of last year, indicating that consumers and businesses are confident in borrowing and spending.

However, JPMorgan’s fixed income and stock trading business saw a decline in sales compared to last year. Fixed income sales and trading revenues fell 16% year-on-year to $ 3.33 billion, due in part to the bank’s “challenging trading environment in rates, as well as lower earnings compared to the previous year due to stronger credit and currency and emerging markets.” Sales and trading revenue of equities fell 1.8% to 1.95 billion.

Overall, adjusted revenue rose 0.6% year-on-year to $ 30.35 billion, topping અંદા 30.01 billion, according to Bloomberg data. Earnings per share was 33 3.33, higher than expected at 99 2.99.

7:32 am ET Friday: Stock futures leave previous gains, point to lower open

Here is where the markets were trading before the opening bell:

  • S&P 500 Futures (ES = F): -5 points (-0.11%), to 4,647.00
  • Dow Futures (YM = F): -37 points (-0.1%), to 35,952.00

  • Nasdaq futures (NQ = F): -30.75 points (-0.2%) to 15,459.50

  • Crude (CL = F): + $ 0.58 (+ 0.71%) to $ 82.70 per barrel

  • Gold (GC = F): + $ 0.90 (+ 0.05%) to $ 1,822.30 per ounce

  • 10 year treasury (TNX): +3.3 bps for 1.742% yield

6:01 pm ET Thursday: Stock futures open slightly higher

Here is where the markets were trading on Thursday evening:

  • S&P 500 Futures (ES = F): +4.25 points (+ 0.09%), to 4,656.25
  • Dow Futures (YM = F): +37 points (+ 0.1%), to 36,026.00

  • Nasdaq futures (NQ = F): +18.75 points (+ 0.12%) to 15,509.00

Business Update Stock market news live updates: stocks fall amid mixed bank earnings, retail sales missed

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New York, New York – January 11: Traders work on the floor of the New York Stock Exchange (NYSE) on January 11, 2022 in New York City. The Dow was down slightly in morning trade after selling closed yesterday. (Photo by Spencer Plate / Getty Images)

Emily McCormick is a reporter for Yahoo Finance. Follow her on Twitter

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