- Stocks end lower as JPMorgan holds back bank stock gains, hawkish Fed and weak retail sales tame bulls.
- Las Vegas Sands and Wynn Resorts surge after Macau issues new rules for casino permits in the world's biggest gaming bu.
- JPMorgan slides after Q4 earnings beat clouded by loan loss release, weak net interest income outlook.
- Citigroup tops Q4 forecasts, but gets dragged by JPMorgan and the broader bank stock sector.
- Peloton extends slide as stock is removed from Nasdaq 100 index.
Stocks finished mixed amid concerns over the hawkish tone from the Federal Reserve and the unofficial start of the fourth quarter earnings season.
The Dow Jones Industrial Average finished down 201 points, or 0.56% to 35,911 while the S&P 500 gained 0.08% and the tech-focused Nasdaq advanced 0.59%.
The benchmark 10-year Treasury note yield rose to 1.784% in New York trading.
A mixed report from JPMorgan (JPM) unsettled investors as the country's biggest bank forecast a weaker-than-expected year for net interest income, a key profit metric, and only topped Street earnings forecasts by releasing $1.8 billion in loan loss provisions.
Shares finished down 6.2%.
A weaker-than-expected reading for December retail sales also weighed on stocks, with the core figure falling 2.5% amid surging inflation and Omicron disruptions.
Fed Governor Lael Brainard's testimony to the Senate Banking Committee Thursday underscored the central bank's commitment to lowering the country's inflation rate -- the fastest since 1982 -- with rate hikes and reduced policy support when she told lawmakers that "our most important task ... is focused on getting inflation back down to 2% while sustaining a recovery that includes everyone."
Warnings from airline bosses about the impact of Omicron infections on travel demand, as well as the pace of the variant's spread, are also raising concerns for growth in the broader economy, which is also seeing fiscal support being removed as lawmakers look to mid-term elections later in the year.
On the upside, Las Vegas Sands (LVS) and Wynn Resorts (WYNN) shares surged higher after officials in Macau set out plans to limit the number of casinos in the world's largest gaming hub.
Wells Fargo gained 3.7% after posting fourth-quarter earnings that handily beat analysts’ forecasts amid broader improvement in the economy and net reserves.
Citigroup (C), fell 1.2% despite posting stronger-than-expected fourth quarter earnings thanks in part to huge increases in investment banking fees.
Peloton (PTON) shares slumped 2.3% after Nasdaq officials planned to remove the fitness equipment maker from its benchmark tech indices.
Global oil prices extended gains following stronger-than-expected import and trade surplus data from China, with WTI futures contracts for February delivery rising $2.13 cents from Thursday's close to $83.93 per barrel.
In overseas trading Europe's region-wide Stoxx 600 was marked 1% lower while the MSCI Asia ex-Japan index fell 0.63% into the close of trading.
