Wall Street closed lower this Friday, April 14, since various mixed economic data pointed to another rate hike by the Federal Reservedampening investor enthusiasm for a string of big results from US banks at the start of the reporting season.
All three major US stock indices ended in the redbut after the strong rebound last ThursdayThese same posted weekly earnings.
“Today we take a breather,” said Sal Bruno, chief investment officer at IndexIQ in New York.. “After yesterday’s strong rise, the market may have gotten a little ahead of itself.”
JPMorgan Chase & Co, Citigroup Inc and Wells Fargo & Co beat analyst estimates for first-quarter profitbenefiting from the rise in interest rates and the easing of fears of tension in the banking system.
“Unsurprisingly, the largest banks probably weren’t hit as hard by the regional banking turmoil.and possibly even benefited from them,” said Ross Mayfield, Investment Strategy Analyst at Baird in Louisville, Kentucky.
The S&P 500 Banks Index had a sharp riseand JPMorgan Chase shot at his highest percentage gain in one day since November 9, 2020. Citigroup also advanced, while Wells Fargo shares were more subdued.
but some mixed economic dataincluding retail sales, industrial production and consumer confidence, cemented the expectations that the Fed will raise rates another 25 basis points at next month’s policy meeting.
According to the CME’s FedWatch Toolthe financial markets discounted an 80% probability of this happening.
According to preliminary data, the Dow Jones Industrial Average lost 150.54 pointsor 0.44%, to 33,879.15 unitsMeanwhile he S&P 500 was down 8.75 pointsor 0.21%, to 4,137.47. He Nasdaq Composite 42.59 points were leftor 0.35%, at 12,123.68 45 units.
First Quarter Earnings Season Peaks Next Weekwith expected reports from several high-profile companies including Goldman Sachs Group Inc , Morgan Stanley, Bank of America Corp, Netflix Inc and a long list of regional and industrial banks.
Analysts lowered expectations and they expect aggregate earnings for the S&P 500 to have fallen 4.8% from a year ago, a reversal from the 1.4% year-over-year rise recorded at the start of the quarter, according to Refinitiv.
Source: Ambito
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