Banks Lead Stocks Lower Early Friday 01/14 10:23
Stocks edged lower in morning trading on Wall Street Friday, keeping the
major indexes on course for their second weekly decline in a row.
(AP) -- Stocks edged lower in morning trading on Wall Street Friday, keeping
the major indexes on course for their second weekly decline in a row.
The S&P 500 fell 0.1% as of 10:16 a.m. Eastern. The Dow Jones Industrial
Average fell 182 points, or 0.5%, to 35,931 and the Nasdaq fell 0.3%.
Banks were the biggest weight on the market. JPMorgan Chase fell 4.4% after
reporting that its profits fell 14% in the latest quarter from a year earlier
as its trading business slumped. Citigroup fell 1.9% after reporting its latest
A wide range of retailers and other companies that rely on direct consumer
spending also fell following a weak retail sales report for December. Home
Depot fell 1.6% and Whirlpool fell 3.3%.
Technology stocks gained ground and tempered the market's losses.
U.S. crude oil prices rose 1% and helped send energy stocks higher. Chevron
Bond yields rose. The yield on the 10-year Treasury rose to 1.75% from 1.70%
The Commerce Department reported that retail sales sank 1.9% in December
after Americans cut their spending in the face of product shortages, rising
prices and the onset of the omicron variant. It's the latest in a series of
economic reports this week that has raised concern about inflation and its
impact on businesses finances and consumer spending.
The Labor Department reported on Wednesday that consumer inflation jumped at
the fastest pace in nearly 40 years last month, a 7% spike from a year earlier
that is increasing household expenses and biting into wage gains. The
government agency also reported on Thursday that prices at the wholesale level
surged by a record 9.7% for all of 2021.
Rising prices have been prompting businesses to pass more costs on to
consumers. Consumers have been pulling back on spending at department stores,
restaurants and online as a result of higher prices and supply shortages.
Businesses are also feeling the impact from inflation. Paint maker
Sherwin-Williams fell 1.9% after reporting disappointing fourth-quarter
earnings because of raw materials costs and supply chain problems. Boston Beer,
which makes Sam Adams beer, slumped 6.8% after cutting its earnings forecast
because of supply chain problems.
Concerns over persistently rising inflation are also prompting the Federal
Reserve to trim its bond purchases and consider raising interest rates earlier
and more often than Wall Street had expected less than a year ago.