Stocks fell on Friday afternoon, giving up earlier gains as big bank results failed to raise hopes for a strong quarterly earnings season.
The Dow Jones Industrial Average (^DJI) lost 0.5%, or nearly 200 points. The S&P 500 (^GSPC) fell 0.1%, while the tech-heavy Nasdaq Composite (^IXIC) fell nearly 0.2%.
Wall Street lenders have begun announcing fourth-quarter earnings, which are seen as a crucial opportunity for stocks to shake off the losses they have suffered so far this year. JPMorgan Chase (JPM), Bank of America (BAC), and Wells Fargo (WFC) all reported good results on Friday. But the latter two saw stocks fall as they failed to calm nerves about potential pain ahead.
Markets punished airline stocks for covering the week. United Airlines (UAL) shares fell more than 9% while American Airlines (AAL) and Delta (DAL) shares fell more than 8%. Delta reported earnings earlier today, and while the company beat estimates for the top and bottom lines, it lowered its 2024 earnings forecast. Elsewhere, META (META) nearly completed a stunning reversal, hitting a new 52-week high in trading During the day, it is rallying back from a stunning drop in its stock price in 2022. The social media company is close to 2% of its all-time record price. high.
Also in focus, oil prices jumped more than 1% after the United States and its allies launched airstrikes on Houthi rebels in Yemen, sparking threats of retaliation from the Iran-backed group behind the Red Sea attacks on shipping. Brent crude futures (BZ=F) were trading at around $80 per barrel, while West Texas Intermediate futures (CL=F) were just under $73.
Meanwhile, investors are looking for more insight into price pressures after the CPI reading for consumers came in hotter than expected on Thursday. In a turnaround on Friday, the producer price index showed an unexpected drop in prices last month, raising hopes that inflation will continue to decline in the coming months.
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