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Home / Business / Stocks lower as banks slide, but indices rely on weekly gains

Stocks lower as banks slide, but indices rely on weekly gains



U.S. Stocks fell on Friday, with major indexes losing an early profit as initial earnings season reports did not upset and paint a mixed picture of US firm strength at a time of great uncertainty.

The focus was on the results of three major banks. While results largely followed forecasts and the first quarter earnings season started positively, equities declined and pushed down the entire financials sector.

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What are the main benchmarks?

The Dow Jones Industrial Average

DJIA, -0.25%

fell 63 points, or 0.3%, to 24,41

7. The S & P 500

SPX, -0.12%

fell 0.3% to 2,657. The Nasdaq Composite Index

COMP, -0.29%

slipped 30 points or 0.4% to 7,109.

Financials were the strongest bearish sector of the day, down 0.5%. Nonetheless, the day's activity was broadly positive with nine of the 11 primary S & P 500 sectors higher that day.

The most important indices have recently moved higher and have not risen in six of the last eight sessions, Friday. The Dow rises 2.3% for the week, while the S & P rose 2.3% and the Nasdaq 3.2%.

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Returns may prove to be a ray of hope for investors who have been looking for fundamental news to trade, as opposed to uncertainties regarding US policy and trade with China. Possible US military action against the Syrian government has also contributed to caution in recent times, although the impact of a strike on the market is likely to be minimal.

The first quarter earnings season is expected to be strong revenue and revenue growth in years. While high expectations could increase the likelihood of disappointment, strong results may dispel fears that market valuations are not justified by economic activity, and they could limit volatility as recently as their stock fundamentals contrast with stock market fundamentals macroeconomic trends move the case.

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Political topics are likely to remain in focus despite rising revenues.

According to a report, the White House plans to increase pressure on China to make trade concessions through a plan for new tariffs and a threat to block Chinese technology investments in the US. Details on which Chinese products are on the $ 100 billion list could be announced next week. China, for its part, is considering placing allies such as Europe against the US

Meanwhile, President Donald Trump has ordered senior Adides to consider the possibility of joining the Trans-Pacific Partnership, which could pose another challenge to China. The trade imbalance between the two largest economies in the world grew as China saw a significant increase in its trade surplus with the US. This increase came when China recorded its first monthly total trade deficit in 13 months.

Read: Leader of World's Largest Asset Manager Says it's the Key for Stock Investors

Which Stocks Look Like Key Figures?

According to the results of three large companies, bank shares were in focus.

JPMorgan

JPM, -2.47%

fell 2%, although first-quarter earnings and revenue exceeded Wall Street estimates.

Citigroup Inc.

C, -2.27%

reported a result that exceeded consensus forecasts and revenues were in line with expectations. The share lost 2.3%. Wells Fargo

WFC, -3.07%

also reported higher than expected results, although sales declined year-over-year. The stock fell 3.4%.

Read: Expect a Strong First Quarter for Bank Revenues, but Further Questions Are Present [194559005] Zillow Group Inc .

Z, -9.06%

shares fell 9%. The real estate company said on Thursday that it is in the business of buying and turning over houses, which is considered by some to be high risk.

SeaWorld Entertainment Inc. .

SEAS, + 3.64%

issued a late Thursday report on possible civil lawsuits by the Securities and Exchange Commission . The stock rose 1.3%.

Amazon.com Inc.

AMZN, -0.39%

shares rose 0.1%. Trump issued a startling statement on Thursday evening asking about the finances and operations of the US Postal Service and its position in the parcel delivery industry. Trump has blamed Amazon for the concerns of the USPS over the past few weeks, stating that the company is not paying enough taxes, fee experts have denied.

What do analysts say?

"Bank receipts looked decent, but they were not spectacular, and they certainly were not big enough to push the stock over important technical resistance," said Chief Market Analyst Wayne Kaufman at Phoenix Financial Services, stating that losses at both Citigroup and JPMorgan rose after holding their 50-day moving averages.

"Everyone knows that this season will be good, but investor demand was lackluster with low volume both on high and low days, when a really good season does not serve as a catalyst for stocks to higher it will be a red flag. "

Read: What traders want to see to have a safe momentum has moved up

What's on the agenda?

The University of Michigan Consumer Confidence Index fell to 97.8 in April from 101.4 in March. MarketWatch surveyed economists forecasted a figure of 101. The number of jobs in the US fell from a record high at the beginning of February.

Boston Fed President Eric Rosengren said the US Federal Reserve could tighten monetary policy as currently reflected in the US Federal Reserve's median forecast. Reducing the balance sheet of the Fed is considered one of the main risks of the markets.

Read: Why the Fed is "Public Enemy No.1" for the Stock Market

Read: The Fed must be in full swing after the March CPI data that inflation is heating up

] What are other markets doing?

Asian stocks had a mixed session while European stocks

SXXP, + 0.10%

rose higher and was on course for the third consecutive week.

gold futures

GCM8, + 0.48%

GCM8, + 0.48%

returned lower, while the ICE US Dollar Index

DXY, + 0.08%

Stable

Oil prices

The CLK8, + 0.67%

slipped, but hovered at a fresh three-year highs.


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