The Dow Jones retreated on Friday, January 14, led by declines in some financial heavyweights after reporting their quarterly results, while gains in technology stocks fueled gains in the Nasdaq and the S&P 500 index.
Meanwhile, retail sales plunged in December, indicating shortages of goods and the impact of the outbreak of the Omicron variant of Covid-19 on the economy.
The S&P 500 rose 0.08% to 4,662.82. The Dow Jones Industrial Average fell 0.56% to 35,911.22. The NASDAQ Composite Index was up 0.59% at 14,893.75, and the small cap Russell 2000 was down 0.08% at 2,157.64.
Sales at retail stores, online and in restaurants fell 1.9% in December, the Commerce Department reported Friday. Meanwhile, December’s decline also marked the end of the record level in retail sales that began in October with a 1.8% increase from the previous month.
Investors appeared worried after bleak economic data suggested the pace of economic recovery was gradually slowing. Furthermore, earlier this week, inflation data also showed that inflation is at its peak.
The energy and technology sectors led the gains for the S&P 500 on Friday. Seven of the eleven critical sectors of the S&P 500 index remained in negative territory, with real estate and the financial sector being the least dynamic.
Shares of JP Morgan Chase & Co. (JPM) fell 6.33% in the January 14 intraday session, despite posting strong fourth-quarter fiscal 2021 results that beat analysts’ expectations. Its revenue jumped 1% year-on-year to $30.3 billion, while net income was $10.4 billion, or $3.33 per diluted share.
Shares of Wells Fargo & Company (WFC) gained 2.28% after the company reported strong results for the fourth quarter of fiscal 2021 on Friday, before the opening bell. The company’s revenue was $20.85 billion in the fourth quarter of FY21, compared to $18.48 billion in the year-ago quarter. His net income was US$5.75 billion.
Shares of BlackRock, Inc. (BLK) fell 3.32% in intraday trading on Friday after reporting its fiscal 2021 fourth quarter results that missed analysts’ earnings expectations. Meanwhile, the company’s net profit was US$1.63 billion on revenue of US$5.10 billion in the fourth quarter of FY21.
In the energy sector, Exxon Mobil Corporation (XOM) rose 1.42%, Chevron Corporation (CVX) gained 1.36% and Royal Dutch Shell plc (RDS-A) rose 1.13% . TotalEnergies SE (TTE) and ConocoPhillips (COP) climbed 2.67% respectively.
In financial stocks, Bank of America Corporation (BAC) fell 2.37%, PayPal Holdings, Inc. (PYPL) fell 2.44% and Morgan Stanley (MS) fell 4.32%. Citigroup Inc. (C) fell 2.12% while The Charles Schwab Corporation (SCHW) jumped 1.42%.
In the real estate sector, American Tower Corporation (AMT) plunged 2.89%, Prologis, Inc. (PLD) fell 1.31% and Crown Castle International Corp. (CCI) fell 2.77%. Equinix, Inc. (EQIX) and Public Storage (PSA) fell 2.21% and 1.49% respectively.
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Futures contracts and commodities
Gold futures were down 0.25% to settle at US$1,816.85 an ounce. Silver fell 0.80% to US$22.977 an ounce, while copper fell 2.34% to US$4.4398.
Brent oil futures rose 2.34% to US$86.45 a barrel and WTI crude rose 2.57% to US$84.23.
Yields on 30-year Treasury bonds rose 3.56% to 2.127, while yields on 10-year bonds rose 4.39% to 1.784.
The US dollar futures index rose 0.41% to hit US$95.160.