Stocks were dropping after major U.S. banks reported fourth-quarter earnings. Markets were also digesting weaker-than-expected retail sales in December.
Futures for the
Dow Jones Industrial Average
indicated an open 207 points or 0.6% lower, after the index fell 176 points Thursday to close at 36,113. The
was on track to dip 0.6%, while the
—which tumbled 2.5% Thursday as technology stocks in particular came under pressure—was poised to open down 0.8%.
(ticker: JPM) reported a profit of $3.33 a share, beating estimates of $3.01 a share on revenue of $30.35 billion, above expectations for $29.9 billion. The bank released $1.8 billion of loan loss reserves, without which the company would have missed earnings estimates. The stock fell 3.4% after having risen 5.7% for the month leading into earnings.
(WFC) reported a profit of $1.38 a share, beating estimates of $1.13 a share on revenue of $20.9 billion, above expectations for $18.8 billion. The stock gained 2.3%. The stock was up 14.5% for the month leading into earnings.
Markets were also sifting through economic data Friday. Retail sales fell1.9% month-over-month in December, missing expectations for a 0.1% decline and sharply dropping off from a 0.3% rise in November.
The stock market is in the process of reflecting higher interest rates and less liquidity injected into markets from the Federal Reserve, which is now projected to raise interest rates three times this year and reduce the size of its balance sheet at some point to combat inflation.
While interest rates across the board have risen across the board, the stock market may still be reflecting the risk to economic growth. The S&P 500 is set to open at a level that is 3.7% below its all-time high, hit earlier in the month.
The Fed’s recent shift towards tighter monetary policy “completes what is, frankly, the most violently hawkish ‘about face’ on Fed policy I’ve seen in my career,” wrote Tom Essaye, Founder of Sevens Report Research.
Overseas, the pan-European
fell 1% and Hong Kong’s
Hang Seng Index
ended 0.2% lower.
In the commodity space, crude prices continued to march higher. Futures for West Texas Intermediate crude rose 0.3%, approaching $83 a barrel.
Cryptocurrencies were broadly lower.
—the leading crypto—was down more than 3% in the last 24 hours to below $42,500, according to data from CoinDesk. Smaller peer
—a “joke” token that has received high-profile attention from
Here are seven stocks on the move Friday:
(SAP) was up near 1% in the U.S. premarket trade, after the German software group reported that revenue from its cloud-computing business rose 28% in the last quarter.
(PFE) fell 10%, 4.8% and 1.5%, respectively, after the Supreme Court blocked the Biden administration’s vaccine mandate for companies with 100 workers or more.
Las Vegas Sands
(LVS) jumped more than 5% in the premarket; shares in the casino giant have been rising this week as some analysts see a brighter future for the stock in 2022 after a significant underperformance last year. Peer