By Yasin Ebrahim
Investing.com – S & P 500 rose on Friday, but lost for the second straight week following a technical defeat earlier this week, and overwhelming earnings from major Wall Street banks couldn’t turn the tide. ..
The rise was 0.1%, the fall was 0.56%, or 201 points, and Nasdaq was up 0.6%.
A trio of major Wall Street banks, including Citigroup, Wells Fargo and JP Morgan (NYSE :), reported better results than expected, while guidance on rising costs worried investors, while the latter was second. It fell 6% due to a fall in profits in the fourth quarter.
JP Morgan has expressed concern about whether banks will reach their 17% target for tangible property returns and said they expect costs to increase by 8% this year.
Citigroup (NYSE :) Equities reported a 26% decline in profits due to a 20% decline in fixed income trading revenues in the fourth quarter and unexpectedly lower trading revenues. Its share has fallen by more than 1%.
Wells Fargo (NYSE :) Banks have shown a bright outlook for loan growth in 2022, rising by more than 3% after a 86% surge in profits.
Technology was higher-but the rise in big tech and semiconductor stocks supported a wider sector, so following losses earlier this week, it still ended in the red this week.
Apple (NASDAQ :) rose 0.5% after Bloomberg reported that it could postpone the debut of virtual reality headsets.
Casino stocks are also attracting attention, Las Vegas Sands (NYSE :) and Wynn Resorts (NASDAQ :) surged after Asian gambling mecca Macau detailed new measures for gambling operations in the region to mitigate uncertainty about game license renewals. did.
Measures not yet approved by the Macau Parliament will limit the number of game licenses to 6 and reduce the duration of game licenses from 20 to 10 years.
Sentiment for retail stocks was hit by signs of wobble in consumer spending after December spending fell 1.9% more than expected.
Still, weak personal consumption can prove the backing of inflections.
On the positive side, current retail weaknesses should help accelerate inventory rebuilding and relieve inflationary pressures. It doesn’t necessarily mitigate the case of a rate hike in March, but it will reduce the tail risk of the Fed’s rate hike more than four times this year, “Jeffreys said in a note.
In other news, Boston Beer (NYSE :) adjusted its annual earnings outlook as rising costs and supply issues weighed on growth.Its share has fallen by more than 8%
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The S & P 500 will result in a second week loss due to the heavy downturn in bank earnings by Investing.com
Source link The S & P 500 will result in a second week loss due to the heavy downturn in bank earnings by Investing.com