US: Stocks fall on weakness in industrial, bank shares

WALL Street stocks fell Tuesday (Apr 4) as financial and industrial shares retreated amid worries over slowing growth, in a session overshadowed by the historic courtroom appearance of former president Donald Trump.

Analysts cited data showing a drop in US job openings as the latest indication of cooling in the world’s biggest economy — following weak manufacturing numbers on Monday.

The Dow Jones Industrial Average finished 0.6 per cent lower at 33,402.38.

The broad-based S&P 500 also shed 0.6 per cent to 4,100.60, while the tech-rich Nasdaq Composite Index declined 0.5 per cent to 12,126.33.

Market watchers said the media focus on Trump’s pleading in a state criminal proceeding probably crimped trading volumes but did not affect the market’s trajectory.

“While it’s historic and likely has a lot of eyeballs on it, it’s very difficult to draw a direct economic impact,” said Art Hogan, an analyst at B Riley Financial, of the proceedings.

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Hogan also pointed to a “delayed reaction” in the market after Monday’s dismal manufacturing data, weighing on industrial companies. Caterpillar, whose shares fell more than five per cent, was the biggest loser in the Dow.

Financials were another underperforming sector after JPMorgan Chase chief executive Jamie Dimon warned the banking crisis “is not yet over” and would be felt for years to come.

Midsized banks had an ugly day, with First Republic losing 5.6 per cent, Western Alliance dropping 3.8 per cent and Zions Bancorporation shares slipping 4.8 per cent.

Steve Sosnick of Interactive Brokers attributed some of Tuesday’s performance to a reversal after a buoyant first quarter.

“It seems there is some profit-taking today after a big run into the end of the first quarter,” he said. AFP