The stock market opened lower Friday morning but bounced off session lows, leaving the major indexes mixed. Most sectors fell as financials led losses.
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The Nasdaq composite climbed 0.2% thanks to gains in the technology sector, one of the few rising this morning. Major techs such as Microsoft (MSFT) and Alphabet (GOOGL) bounced modestly from Thursday’s sell-off. Semiconductor stocks outperformed, with iShares Semiconductor ETF (SOXX) up 0.8%.
The Nasdaq is bouncing off the 200-day moving average. The S&P 500 trimmed its loss to 0.1%.
The Dow Jones Industrial Average tumbled 0.5% after financials JPMorgan Chase (JPM), American Express (AXP) and Goldman Sachs (GS) slid 2% to 5%.
Volume rose on the NYSE and Nasdaq compared with the same time Thursday.
Three major banks beat profit expectations this morning, but their shares could not escape the broad market’s weakness.
Financials Hit Stock Market Performance
JPMorgan, Citigroup (C) and Wells Fargo (WFC) reported better-than-expected fourth-quarter earnings early Friday.
Citi’s adjusted earnings climbed to $1.99 a share. The stock is forming a lopsided double-bottom base.
JPMorgan earnings per share dipped to $3.33 a share, while revenue edged up to $30.35 billion. The stock gapped down nearly 5%, piercing the 50-day moving average. Its cup base is now on an uncertain path.
Shares fell 4.3% to 160.95 in early Friday stock market trading. JPM stock has a flat-base buy point of 173.06, according to MarketSmith chart analysis.
Wells Fargo GAAP earnings came in at $1.38 a share, as revenue climbed $20.86 billion. The stock is extended from a 52.66 buy point.
Investment manager BlackRock (BLK) fell 2% after reporting fourth-quarter results. The parent of the iShares family of ETFs posted a 2% increase in EPS and a 14% rise in revenue.
Financial Select Sector SPDR (XLF) gapped down to a 2% loss, falling below the 40.96 buy point of a flat base.
Next week, a bevy of banks and other financial companies are reporting fourth-quarter results. Financials are one of the few sectors up this month.
Innovator IBD 50 ETF (FFTY) climbed 0.2%.
Houlihan Lokey (HLI), which topped a buy point Thursday, traded below that 119.99 entry Friday morning. Volume was heavy, but there’s no sell signal. The stock was discussed in IBD 50 Stocks To Watch this week.
Kinsale Capital Group (KNSL) gapped below its 50-day moving average in heavy trading. Linde (LIN) fell below its 50-day line as well.
Stock Market Digests Economic Reports
U.S. Stock Market Today Overview |
||||
|---|---|---|---|---|
| Index | Symbol | Price | Gain/Loss | % Change |
| Dow Jones | (0DJIA) | 35890.62 | -223.00 | -0.62 |
| S&P 500 | (0S&P5) | 4652.71 | -6.32 | -0.14 |
| Nasdaq | (0NDQC ) | 14849.73 | +42.92 | +0.29 |
| Russell 2000 | (IWM) | 213.20 | -0.81 | -0.38 |
| IBD 50 | (FFTY) | 42.15 | +0.04 | +0.09 |
| Last Update: 10:28 AM ET 1/14/2022 | ||||
Retail sales fell 1.9% in December, the Commerce Department said Friday. The omicron variant was in full swing in December, dampening some consumer spending. Sales soared 16.9% for the full 2021. Consumer demand swelled last year as the economy tried to normalize from the pandemic.
“December was a rough month for the American consumer. Between higher prices, empty shelves, consumers sick from omicron, and holiday shopping pulled forward, retail activity declined even more than expected, and November numbers were also revised lower,” Anu Gaggar, Global Investment Strategist for Commonwealth Financial Network, said in a note.
Sal Guatieri, Senior Economist at BMO Capital Markets, cited omicron and the suspension of the expanded child tax benefit for the December decline, which suggests spending will stay weak in January.
“Even online sales plunged, the one area that should have prospered during the latest Covid wave,” he noted. Still, high household savings, strong job growth, and improved confidence once the omicron wave crests should strengthen consumers in the second quarter.
Covid vaccine makers fell after the U.S. Supreme Court struck down President Biden’s vaccine mandate for large businesses Thursday. The court ruled that the administration lacks the authority for such a sweeping order but allowed vaccine orders for Medicare and Medicaid providers.
Moderna (MRNA) slid 2.4% to a seven-month low while Pfizer (PFE) fell 0.8% and BioNTech (BNTX) lost 1.9% and is at a six-month low. Johnson & Johnson (JNJ) fell 0.7%.
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