Stocks are volatile as earnings season begins, and inflation declines wholesale


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.

He lives7 updates

  • Stocks fall in afternoon trading

    Stocks fell on Friday afternoon, reversing earlier gains as reports from major banks failed to raise hopes of 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%.

  • Citigroup reveals plans to cut 20,000 jobs by 2026

    Citigroup (C) is on its way to becoming the smallest of the four big banks in the United States in terms of number of employees, as CEO Jane Fraser is betting on a radical restructuring to boost the company’s stock price.

    The New York bank said it expects to cut 20,000 jobs by 2026, which would save it $2.5 billion, according to Yahoo Finance’s David Hollerith. Citigroup also intends to offload another $40,000 when it lists its Mexican consumer unit Banamex in an IPO.

    The cuts would leave Citigroup with 180,000 workers, which would likely make it the smallest of the Big Four banks in the United States and reduce the overall size of its workforce by 25%. It ended 2023 with 240,000.

    The announcement came as Citigroup reported a net loss of $1.8 billion in the fourth quarter as a result of a $1.7 billion FDIC assessment and other previously disclosed charges and reserves.

    Shares were down more than 1% at midday.

  • Oil prices rise after US air strikes in Yemen

    Tensions in the Middle East continue to rise after US-led airstrikes against Houthi rebels in Yemen escalated the threat of further hostilities and fueled further market volatility.

    Oil prices jumped 2% during morning trading on Friday after air strikes coordinated by the US and British military. The strikes came in response to Houthi attacks on cargo ships in the Red Sea, forcing global shipping companies to reroute their ships, extending the length of trips and increasing their cost.

    The Red Sea flows into the Suez Canal, providing ships with the shortest passage between Europe and Asia. Nearly 10% of total global trade passes through the major international sea lane.

    The air strikes have sparked threats of retaliation from the Iran-backed group behind the Red Sea attacks, raising the possibility of further disruption to global trade.

    Brent crude futures (BZ=F) were trading at around $80 per barrel, while West Texas Intermediate crude futures (CL=F) were just under $74.

  • Stocks are trending in morning trading

    Here are some of Yahoo Finance’s leading stocks Trend indicators Page during morning trading on Friday:

    Black stone (Black): Shares of the money manager rose above the flat line on Friday morning after it beat earnings expectations and revealed that its assets under management exceeded $10 trillion in the fourth quarter of 2023. The company also announced that it has acquired infrastructure fund manager GIP for $12.5 billion. GIP has over $100 billion in assets under management.

    delta airlines (D): The airline’s shares fell by more than 7% after it lowered its profit expectations for 2024 and investors downplayed the importance of its revenues and profits in the fourth quarter. Delta reported revenue of $13.66 billion and earnings of $1.28 per share.

    C. B. Morgan Chase (JBM): Shares of the largest US bank rose 1% after it announced a 12% increase in revenue to $39.94 billion, exceeding analysts’ expectations. Finally, the bank reported annual earnings of nearly $50 billion for 2023. Among the large banks reporting results on Friday, JPMorgan led the gainers during the morning session.

    Major US lenders showed lower profits in the fourth quarter. Wells Fargo (WFC) is down nearly 3%, Bank of America (BAC) is down more than 2%, and Citigroup (C) is up about 0.3%.

  • Stocks rose slightly, outpacing banks’ earnings

    Stocks rose on Friday morning as investors largely looked to results from big banks that failed to spark excitement

    The Dow Jones Industrial Average (^DJI) rose 0.1%, or about 50 points. The S&P 500 (^GSPC) rose 0.4%, while the tech-heavy Nasdaq Composite (^IXIC) advanced about 0.3%.

  • It’s 10… followed by 12 zeros

    BlackRock (BLK) announced on Friday that its assets under management exceeded $10,000,000,000,000 at the end of the fourth quarter, with last year’s rally in markets causing client assets to exceed that mark for the first time in two years.

    The company’s assets under management were $10,008,995,000,000 to be precise, as of December 31.

    During 2023, BlackRock saw net inflows of $289 billion, with $96 billion in assets flowing into the company’s products during the fourth quarter representing the second-best quarter of the year. In the first quarter, about $110 billion of net assets were transferred to BlackRock vehicles.

    Alongside its quarterly results on Friday, BlackRock also announced that it has acquired infrastructure fund manager GIP for $12.5 billion. GIP has over $100 billion in assets under management.

  • Jamie Dimon once again warns of “steadier” inflation and higher interest rates

    JPMorgan (JPM) reported fourth-quarter results early Friday that capped a record year for the nation’s largest bank.

    Inside the company’s fourth-quarter release, investors got another expanded view on the U.S. and global economy from its outspoken CEO, Jamie Dimon.

    Largely reiterating his view that investors are too comfortable with the idea that inflation is on a smooth path back to the Fed’s 2% target and that interest rates will remain higher than forecasters expect, Dimon said a combination of “unprecedented” factors in the markets… It means that the bank “must be prepared for any environment.”

    Here are Damon’s comments in full, with added emphasis and spacing:

    The US economy continues to be resilient, as consumers continue to spend, and markets are now anticipating a soft landing. It is important to note that the economy is fueled by large amounts of government deficit spending and previous stimulus.

    There is also a continuing need for increased spending due to the green economy, restructuring of global supply chains, rising military spending, and rising health care costs. This could cause inflation to be more persistent and rates to be higher than markets expect. Furthermore, there are a number of downside risks to monitor.

    Quantitative tightening drains more than $900 billion of liquidity from the system annually We have never seen a full cycle of tightening. The ongoing wars in Ukraine and the Middle East have the potential to disrupt energy and food markets, migration, and military-economic relations, in addition to their horrific human cost. These large and somewhat unprecedented forces make us remain wary. While we hope for the best, the past year has shown why we must be prepared for any environment.

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