US banks earnings fail to impress Wall Street investors
• Dow Jones Industrial Average fell by 142.62 points
Disappointing results marred Thursday’s trading session on the Wall Street with US stocks continuing their fall for the fifth straight session.
The Dow Jones Industrial Average fell 142.62 points, or 0.5%, to finish at 30,630.17, after retreating more than 600 points in morning trading. The S&P 500 slipped by 11.40 points, or 0.3%, to close at 3,790.38. The Nasdaq Composite crawled up by 3.60 points, or less than 0.1%, to end at 11,251.19.
The yield on the benchmark 10-year Treasury note rose 5.3 basis point to 2.957%.
The consumer price index (CPI), a broad measure of everyday goods and services related to the cost of living, rose 9.1% from a year earlier, the largest gain since the end of 1981, the Bureau of Labor Statistics reported on Wednesday. Dow Jones expected the inflation measure to be around 8.8%.
The red-hot inflation reading would strengthen the Federal Reserve’s resolve to raise interest rates aggressively, which would risk overturning the economic expansion.
Market movers
Shares of the largest American banks traded sharply lower on Thursday following the earnings from Morgan Stanley (NYSE: MS) and JPMorgan (NYSE: JPM), whose shares were down 0.4% and 3.5%, respectively. Goldman Sachs Group Inc. (NYSE: GS) shares were down 2.9%, Citigroup Inc. (NYSE: C) was down 2.9%, Bank of America Corp. (NYSE: BAC) was down 2.3% and Wells Fargo & Co. (NYSE: WFC) was down 0.8%.
Declines from JPMorgan, Goldman Sachs and American Express led the Dow’s losses on Thursday.
Volatile oil prices also dropped on Thursday, with West Texas Intermediate (WTI) crude hitting its lowest level since February.
Also read:
US inflation jumps to 9.1%, highest rate since 1981 as consumer pressures intensify
