The Dow was down 1% Friday and is off nearly 1.3% during the past five days. The average of 30 blue chips has now fallen about 1.6% so far this month.
The S&P 500
dipped 0.5% and 0.1% respectively, with both set to drop about 1% for the week. The S&P 500 is down nearly 3% in 2022 while the tech-heavy Nasdaq has slid more than 5%.
A weak retail sales report for December
didn’t help matters on Wall Street. Consumer spending surprisingly fell during that key holiday shopping month, raising concerns that runaway inflation
is finally taking a toll
on the economy.
But while investors have been shunning big techs like Apple (AAPL)
, Microsoft (MSFT)
and Tesla (TSLA)
this year, bank stocks were a bright spot for the market — until Friday. Investors were disappointed by JPMorgan Chase’s nearly 15% drop in earnings from the fourth quarter of 2020.
Shares of JPMorgan Chase (JPM)
were down 6%. Fellow financials (and Dow components) Goldman Sachs (GS)
— which reports earnings next Tuesday — and American Express (AXP)
each fell about 4% too.
and BlackRock (BLK)
, which both reported earnings Friday
, were also lower. Wells Fargo (WFC)
was the bright spot for banks, rallying after posting better-than-expected results.
More big banks, including Bank of America (BAC)
, Morgan Stanley (MS)
and Truist (TFC)
, will report their results in next week’s holiday-shortened trading session. Earnings are also on tap from consumer products king Procter & Gamble (PG)
, airlines United (UAL)
and American (AAL)
and streaming giant Netflix (NFLX)
The stock market is closed Monday in observance of Martin Luther King, Jr. Day.