Wall Street: Wall Street weighed down by banks


by Sinéad Carew

(Reuters) – The New York Stock Exchange ended in disarray on Friday, with the Dow Jones held back by the financial sector after disappointing releases from major U.S. banks kicking off quarterly corporate earnings season in the United States -United.

The S&P-500 and the Nasdaq, on the other hand, managed to end the session in the green after a day spent largely in negative territory.

The Dow Jones Industrial Average fell 0.56 percent, or 201.81 points, to 35,911.81 points.

The broader S&P-500 edged up 3.82 points, or 0.08%, to 4,662.85 points.

The Nasdaq Composite gained 86.94 points (0.59%) to 14,893.75 points.

Over the week, the Dow lost 0.9% and the S&P-500 and the Nasdaq both lost 0.3%.

Financial stocks, especially banks, suffered on Friday after having outperformed lately on the prospect of the upcoming tightening of monetary policy by the US Federal Reserve.

Industry heavyweight JPMorgan fell 6.15% on weak performance in its capital markets business in the fourth quarter and, more importantly, its expectation that high inflation, the threat of the Omicron variant of the coronavirus and the return to normal trading activity will pose many challenges for the banking sector in the months to come.

Citigroup for its part lost 1.25% after a 26% decline in its profit in the fourth quarter while the giant of the management of assets BlackRock dropped 2.2% with a quarterly turnover below expectations.

Contrary to this trend in the financial sector, the Californian bank Wells Fargo gained 3.7% after posting a quarterly profit better than expected.

Excluding results, Netflix took 1.25% after the announcement of an increase in the price of its subscriptions in the United States and Canada.

The New York Stock Exchange will be closed on Monday due to the holiday observed in the United States in memory of Martin Luther King.

(With Bansari Mayur Kamdar and Shreyashi Sanyal in Bangalore, Sinéad Carew in New York, French version Bertrand Boucey)

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