Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

S&P 500 Falls as Financials Wobble After Bank Earnings Fail to Impress

Stock MarketsJan 15, 2022 03:10
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters.

By Yasin Ebrahim

Investing.com – The S&P 500 fell Tuesday, as financials fell after quarterly earnings from major Wall Street banks failed to impress investors.

The S&P 500 fell 0.6%, the Dow Jones Industrial Average slumped 1.1%, or 394 points, the Nasdaq lost 0.3% to trade at 14,765. Traders are watching 14,725 level, the 100-day moving average, on the NASDAQ Composite, as a key level of support.

A trio of major Wall Street banks including Citigroup, Wells Fargo, and JPMorgan (NYSE:JPM) reported better-than-expected results, but the latter slumped 6% as its guidance on increased costs worried investors.

JPMorgan said it expected expenses to rise by 8% this year, stoking concerns about whether the bank will meet its 17% target for return on tangible equity.

Citigroup (NYSE:C) shares reported a 26% fall in profit, paced by wider-than-expected decline in trading revenue, with fixed-income trading revenue down 20% in the fourth quarter. Its shares fell 2%.

Wells Fargo (NYSE:WFC) rose more than 2% after its profit jumped 86%, and the bank delivered an upbeat outlook on loan growth for 2022.

Technology was flat, outperforming the broader market, as a climb in big tech and semiconductor stocks underpinned the broader sector.

Apple (NASDAQ:AAPL) was flat after Apple Bloomberg reported that the company may push back the debut of its virtual reality headsets.

Casino stocks were also in focused, with Las Vegas Sands (NYSE:LVS) and Wynn Resorts (NASDAQ:WYNN) surged after Macau, the gambling mecca in Asia, detailed new measures for gambling operation in the region easing uncertainty around the renewal of gaming licenses.

The measures, which are yet to be approved by the Macau legislature, would limit the number of gaming licenses to six, and cut the duration of gaming licenses to 10 years from 20.

In other news, Boston Beer (NYSE:SAM) trimmed its outlook on annual earnings as rising costs and supply issues weighed on growth. Its shares fell more than 11%.

Sentiment on stocks was also hurt by signs of wobble in consumer spending after retail spending fell by a more than expected 1.9% in December.

Still, the weakness in consumer spending could prove a sliver lining for inflation.

”On the upside, the current retail weakness will accelerate inventory rebuilding, which should help take the pressure off inflation. It doesn't necessarily soften the case for a March hike, but it reduces the tail risk of the Fed hiking more than 4 times this year,” Jefferies said in a note.

S&P 500 Falls as Financials Wobble After Bank Earnings Fail to Impress
 

Related Articles

Affirm Holdings Rallies After DA Davidson Upgrade
Affirm Holdings Rallies After DA Davidson Upgrade By Investing.com - Jan 29, 2022

 By Sam Boughedda Investing.com — Fintech company Affirm Holdings Inc (NASDAQ:AFRM) shares surged 16% Friday on the back of an upgrade by DA Davidson. Analyst Christopher...

S&P 500 Rides Apple Rally Higher as Tech Fights Back
S&P 500 Rides Apple Rally Higher as Tech Fights Back By Investing.com - Jan 29, 2022

By Yasin Ebrahim Investing.com – The S&P 500 rallied Friday, as blowout quarterly results from Apple put tech back into the driving seat following a recent rout amid jitters about...

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email