Equities New York: JPMorgan disappoints – Dow clearly in the red | 01/14/22

NEW YORK (awp international) – At the start of the reporting season in the USA, the New York stock market extended its previous day’s losses on Friday. The numbers and outlook of some US financial groups were mostly disappointing. The technology stocks, which had come under strong selling pressure again the day before, did not recover either. They are particularly suffering from fears of interest rates, which increased again after some US monetary authorities signaled that they wanted to fight inflation aggressively.

The US leading index Dow Jones Industrial posted a discount of 1.22 percent to 35,672 points two and a half hours before the end of the stock market. At the same time, he is heading towards a negative weekly balance. The market-wide S&P 500 recently fell by 0.86 percent to 4619 points. The tech-heavy Nasdaq 100 fell another 0.41 percent to 15,432 points. Before the long weekend – Monday is a public holiday in the USA and the stock exchange is closed – the mood clouded over noticeably.

US economic data also gave little cause for celebration. Sales in the important US retail sector fell much more sharply than expected in December. Industrial production for December also fell short of expectations. The consumer climate survey by the University of Michigan was also disappointing and fell to its lowest level in over ten years in January. In contrast, the rise in prices for goods imported from the USA weakened more than expected in December.

A few big banks traditionally started publishing company figures for the fourth quarter before the weekend, but the majority of their results did not meet expectations. This included the numbers from JPMorgan. The US money house made less in the fourth quarter than a year earlier, but still more than analysts had expected.

However, JPMorgan’s trading business did worse than experts thought. CEO Jamie Dimon also warned of continued inflation risks and set investors at significantly rising costs. That was not well received by the market: JPMorgan shares slipped 6.3 percent at the Dow end. With American Express and Goldman Sachs, two other financial stocks in the leading US index were among the biggest losers with price losses of 4.8 and 3.8 percent respectively.

Citigroup’s trading income also fell short of expectations. Chief Financial Officer Mark Mason described the market environment in fixed income trading as challenging. The price minus for the Citigroup shares last amounted to 2.2 percent.

The papers of the world’s largest asset manager Blackrock lost 3.3 percent according to quarterly figures. Things went better for the Wells Fargo bank, whose shares rose by 2.3 percent after the quarterly report was presented./ajx/he


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