Don’t miss the latest developments in business and finance.

US Market ends into the red

Image
Capital Market
Last Updated : Jan 16 2021 | 10:04 AM IST
The US stock market finished session down on Friday, 15 January 2021, as investors negative sentiment was generated in reaction to disappointing earnings news from financial giants Wells Fargo, Citigroup, and JPMorgan Chase, and report from the Commerce Department showing a continued decline in U.S. retail sales in the month of December. Concern over a slow rollout of COVID-19 vaccines has also weighed on sentiment.

At the close of trade, the Dow Jones Industrial Average index dropped 177.26 points, or 0.57%, to 30,814.28. The S&P 500 index shed 27.29 points, or 0.72%, to 3,768.25. The tech-heavy Nasdaq Composite Index declined 114.13 points, or 0.87%, to 12,998.50. Major benchmarks also notched weekly declines, with the Dow off 0.9%, and the S&P 500 and Nasdaq both down 1.5%.

Biden on Thursday evening outlined a coronavirus relief plan that didn't surprise Wall Street, and included $1,400 cash payments to households, supplemental unemployment payments, and money for distributing COVID-19 vaccines, among other items.

Wells Fargo and Citigroup posted steep losses after both reported better than expected fourth quarter earnings but on revenues that missed estimates.

Shares of JPMorgan also moved notably lower even though the company reported fourth quarter results that beat expectations on both the top and bottom lines. The bank reported a 42% jump in net income, bolstered by the release of $2.9 billion in loan-loss reserves.

Exxon Mobil Corp. shares closed 4.8% lower after reports that the Securities and Exchange Commission launched an investigation into allegations that an employee of the oil giant overstated the value of a key Permian Basin asset

ECONOMIC NEWS: The Commerce Department said retail sales fell by 0.7% in December after tumbling by a revised 1.4% in November. Excluding sales by motor vehicle and parts dealers, retail sales plunged by 1.4% in December after sliding by 1.3% in November.

More From This Section

Meanwhile, the Federal Reserve released a separate report showing U.S. industrial production jumped by much more than expected in the month of December. The Fed said industrial production surged up by 1.6% in December after climbing by an upwardly revised 0.5% in November.

Powered by Capital Market - Live News

Also Read

First Published: Jan 16 2021 | 9:49 AM IST

Next Story