While you were sleeping: JPMorgan Chase, Citigroup fall


While you were sleeping: JPMorgan Chase, Citigroup fall

By Margreet Dietz

Oct. 13 (BusinessDesk) – Wall Street
slipped, after touching record highs earlier in the day, as
shares of JPMorgan Chase and those of Citigroup fell after
the US banks posted quarterly earnings.

Shares of JPMorgan
Chase traded 0.8 percent weaker as of 2.35pm in New York,
while those of Citigroup were 2.5 percent lower, even as
both banks beat analysts’ expectations.

“The results
were solid but not exceptional,” Morningstar analyst Jim
Sinegal said about JPMorgan Chase, according to Reuters.

Shares of Bank of America and Wells Fargo, which are both
slated to report their latest earnings on Friday, also
declined, down 1.4 percent and 0.7 percent
respectively.

“The risk is similar to the second quarter
in that stocks are being priced for perfection,” Bryan
Reilly, senior investment analyst at CIBC Atlantic Trust,
told Reuters. “But the strength in the global economy has
accelerated and a weakening dollar should set up companies
for very healthy beats in Q3.”

In 2.35pm trading in New
York, the Dow Jones Industrial Average slipped 0.08 percent,
while the Nasdaq Composite Index inched 0.04 percent lower.
In 2.20pm trading, the Standard & Poor’s 500 Index eased
0.06 percent.

Earlier in the day the Dow touched a record
high of 22,884.82, while the S&P 500 touched a record high
2,555.33 and the Nasdaq reached a record 6,613.50.

The Dow
fell as declines in shares of Walt Disney and those of Nike,
recently down 1.5 percent and 1.1 percent respectively,
outweighed gains in shares of Microsoft and those of United
Technologies, recently up 0.9 percent and 0.8 percent
respectively.

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Shares of AT&T dropped, down 5.8 percent as
of 3.05pm in New York, after the owner of DirecTV said it
lost 90,000 US video subscribers in the quarter.

“It
should be clear that DirecTV, like all of its cable peers,
is suffering from the ravages of cord-cutting,” Craig
Moffett, analyst at MoffettNathanson, told Reuters. “It is
reasonable to expect a weak quarter for the whole pay-TV
industry.”

Energy stocks declined with the price of oil
amid concern about increased US production at a time the
world’s major oil producers are trying to curb output.

In the latest US economic data, a Labour Department
report showed its producer price index for final demand
climbed 0.4 percent in September, following a 0.2 percent
increase in August.

Investors will scrutinise reports on
the consumer price index and retail sales, both due on
Friday, to gauge the outlook for inflation and the odds of a
third interest rate increase by the Federal Reserve before
the end of the year.

In Europe, the Stoxx 600 Index ended
the day little changed from the previous close. France’s
CAC 40 Index inched 0.03 percent lower.

Germany’s DAX
Index rose 0.1 percent, while the UK’s FTSE 100 Index
added 0.3
percent.

(BusinessDesk)

ends

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