Big banks fail to impress Stocks backtracked Friday morning, shedding earlier gains as big bank results failed to lift hopes for a robust quarterly earnings season.
The Dow Jones Industrial Average (^DJI) lost 0.5%, or close to 200 points. The benchmark S&P 500 (^GSPC) hovered around the flatline, while the tech-heavy Nasdaq Composite (^IXIC) ticked right above it.
Wall Street lenders kicked off fourth quarter earnings, seen as a crucial chance for stocks to shake off the losses built in the year so far. JPMorgan Chase (JPM), Bank of America (BAC), and Wells Fargo (WFC) all posted decent results on Friday. But the latter two saw shares fall as they failed to settle nerves about potential pain ahead.
Also in focus, oil prices jumped more than 2% after the US and its allies launched airstrikes against Houthi rebels in Yemen, drawing threats of reprisals from the Iran-backed group behind Red Sea attacks on shipping. Brent futures (BZ=F) traded around $80 a barrel, while West Texas Intermediate futures (CL=F) were just under $74.
Meanwhile, investors are looking for more insight into price pressures after the consumer CPI reading came in hotter than expected on Thursday. In a turnabout on Friday, the Producer Price Index showed an unexpected fall in prices last month, boosting hopes that inflation will continue to cool in the months ahead.