US: Stocks mixed after bank earnings, better inflation data
WALL Street stocks were mixed at the end of Friday’s (Jan 12) session following better inflation data and mixed corporate earnings.
US wholesale prices edged down 0.1 per cent in December, defying expectations for higher prices and countering Thursday’s report that showed an uptick in consumer prices.
Meanwhile, leading banks were mostly lower following a deluge of quarterly results, while airlines were hammered after Delta’s forecast disappointed investors.
“The market is optimistic as it can be about (interest) rates cuts,” said Steve Sosnick of Interactive Brokers, adding that investors want to see solid earnings.
The Dow Jones Industrial Average dipped 0.3 per cent to 37,592.98.
The broad-based S&P 500 added 0.1 per cent at 4,783.83, while the tech-rich Nasdaq Composite Index was unchanged at 14,972.76.
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Among individual companies, Delta Air Lines stock fell almost 9 per cent after cutting its earnings forecast, spurring losses across the sector.
Both American Airlines and United Airlines dropped around 10 per cent.
Citigroup advanced 1 per cent as the company announced plans to trim headcount by 20,000 as the bank emphasized it is on track for a turnaround.
The other three banks that reported – Bank of America, JPMorgan Chase and Wells Fargo – all dropped after mixed reports.
BlackRock advanced 0.9 per cent as it announced it would acquire Global Infrastructure Partners for around US$12.5 billion, which manages some US$100 billion in energy, water, digital and other infrastructure. AFP
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