© Reuters New York Stock Market Situation: Dow Jones closes 118.04 points Investors are disappointed with the results.
InfoQuest – The New York Dow Jones Stock Exchange Index closed negative on Friday (January 12), while the S&P 500 Index and the Nasdaq Index closed slightly positive after volatile trading. The banks’ hot earnings release positive things were overshadowed by lower-than-expected inflation data, which supported expectations that the US Federal Reserve (Fed) will lower interest rates.
The Dow Jones Industrial Average closed at 37,592.98 points, down 118.04 points or -0.31%, the S&P 500 index closed at 4,783.83 points, up 3.59 points or +0.08%, and the Nasdaq index closed at 14,972.76 points, up or +20.78 points %.
In this week the Dow added 0.34%, the S&P 500 rose 1.84% and the Nasdaq rose 3.09%, with the S&P 500 posting its biggest weekly gain since mid-December. And the Nasdaq index posted its biggest weekly gain since early November.
The Labor Department released its PPI index, which measures inflation in producer spending, for December on Friday The headline PPI, which includes food and energy, rose 1.0% in December. This was below analysts’ expectations of 1.3% from 0.8% in November. Month-on-month, the headline PPI fell 0.1% in December, while analysts expected it to rise 0.1% After falling 0.1% in November.
The Core PPI index, which excludes food and energy, increased by 1.8% in December year on year. This was below analysts’ expectations of 1.9% from 2.0% in November On a month-on-month basis, the core PPI index was unchanged in December. Although analysts expect it could increase 0.2% from 0.0% in November.
Such data have caused US bond yields to fall, and the CME Group’s latest FedWatch Tool indicates that 79.5% of investors favor the Fed to cut interest rates by 0.25% to 5.00-5.25% at its meeting on 19-20 March 20, after putting a weight of 73.2% on it on Thursday (January 11).
The S&P Banking Index closed down 1.26% after falling as much as 1.7%.
Bank of America shares fell 1.06% after revealing contracted Q4 2023 profits, while Wells Fargo shares fell 3.34% after warning net interest income would fall 7-9% this year.
But Citigroup shares rose 1.04% after reporting a loss of $1.8 billion in the fourth quarter and expecting further job cuts.
JPMorgan Chase fell 0.73% despite reporting a record annual profit and expecting higher-than-expected interest income this year.
United Health shares fell 3.37% after the company reported a bigger-than-expected increase in medical costs. which weighed down the Dow Jones Index significantly
Delta Air Lines shares fell 8.97% after downgrading its annual profit forecast.
Tesla shares fell 3.67% after price cuts for some new electric car models in China. and plans to stop production of most cars at its factory near Berlin.
Click to read the original news from InfoQuest.
#Dow #Jones #closes #points #investors #disappointed #results #InfoQuest
.jpg?fit=300%2C300&ssl=1)
