Bank balance sheets cloud sentiment on Wall Street – Dow Jones closes in the red


The “Fearless Girl” on New York’s Wall Street

(Photo: AP)

new York At the start of the US reporting season, quarterly figures and outlooks from some US financial groups caused some disappointment on Friday. The big banks JPMorgan and Citigroup could not convince with their business figures.

The Dow Jones index of standard values ​​went into the long weekend with a discount of 0.56 percent to 35,911 points – Monday is a holiday in the USA and the stock exchange remains closed. On a weekly basis, the Dow posted a minus of 0.9 percent.

The broader S&P 500 turned positive in late Friday trade, closing 0.08 percent higher at 4663 points. The Nasdaq technology exchange index gained 0.75 percent to 15,611 points. He just managed to get a positive balance of the week. Technology stocks in particular came under considerable pressure at times. They are particularly suffering from interest rate fears, which increased again after some US monetary authorities signaled that they wanted to fight inflation aggressively.

“Sentiment is quite gloomy even though the fourth quarter reporting period has officially started…it seems like inflation remains the dominant concern,” said investment specialist Sam Stovall of analyst firm CFRA Research. Investors are currently concerned that the US economy could be stalled by an overly aggressive interest rate policy by the US Federal Reserve.

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In addition, retail sales surprisingly shrank by 1.9 percent in December. Experts had expected spending at the level of the previous month. In November they had risen by 0.3 percent. Private consumption is the mainstay of the world’s largest economy. The massively rising prices and Corona are also depressing the mood of US consumers more than expected. The barometer for consumer sentiment fell to 68.8 points in January from 70.6 points in December.

JP Morgan shares were the biggest loser in the Dow index, down 6.26 percent. A weakening trading business overshadowed the financial institution’s quarterly profit, which was actually higher than expected. Rival Citigroup’s earnings fell by more than a quarter in the closing months of last year. The papers fell by 1.25 percent. Wells Fargo, on the other hand, posted an 86 percent jump in profits thanks to divisional sales. The titles rose by 3.53 percent.

US stock market expert Koch: “The courses on Wall Street remain under pressure”

Market analyst Dennis Dick of trading house Bright Trading said investors may soon be turning back to the financial sector in search of value-added investments. Drivers are the increased expectations of rate hikes by the US Federal Reserve, firming bond yields and a move away from growth sectors such as technology or communication services, he added.

Look at other individual values

Stocks of US casino operators were among the biggest gainers after the Macau government gave the green light to a limited number of new licenses. Las Vegas Sands, Wynn Resorts and Melco Resorts increased by up to 16.6 percent. The local government of the world’s largest gambler’s paradise, Macau, only wants to issue six gaming licenses with a term of ten years. Legacy casino licenses expire in 2022.

Shares in department store operators and textile companies, on the other hand, had to lose feathers after the weak retail data. best buy (-2.5 percent), big lots (-0.41 percent), target (-1.91 percent), Macy’s (-2.94 percent) and Kohl’s (-1.83 percent) lost percentage points. Share prices also fell north current (-5.07 percent), Nike (-0.96 percent), Lululemon Athletica Inc (-2.17 percent) and Guess (-1.69 percent).

More: These stocks will continue to rise in 2022

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