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Wall Street drops as JPMorgan, Citi, Wells Fargo erase pre-market gains

The S&P 500 banks index was down 1.98 percent

Reuters 

JPMorgan
Photo: Reuters

Wall Street major indexes fell on Friday morning, erasing all their gains coming out of the opening bell as led a sharp reversal in financial stocks.

dropped 1.7 percent after its profit missed estimates as offset gains from higher interest rates and a jump in trading revenue.

Shares of also shed premarket gains to drop 2.9 percent after the said it may have to pay a penalty of $1 billion to resolve investigations.

also reversed course to trade 1.8 percent lower after its results.

The banks index was down 1.98 percent.

"A lot of it (earnings expectations) has been baked in and that's is the real critical test for the markets," said Scott Brown, at in St. Petersburg,

"This has not been the typical pre-earnings season where you're talking down expectations. There is some potential for disappointment at the same time there is also lot of hope that these numbers are going to meet expectations."

Tax cuts are expected to help corporate post its biggest quarterly profit growth in seven years. Earnings at the companies are estimated to grow by 18.4 percent from a year earlier.

At 10:29 a.m. ET, the was down 51.36 points, or 0.21 percent, at 24,431.69, the was down 5.47 points, or 0.21 percent, at 2,658.52 and the was down 29.39 points, or 0.41 percent, at 7,110.86.

Stocks got a boost on Thursday after U.S. cast doubt over the timing of his threatened strike on Syria, easing the risk of clashes between Western powers and in over an

Talks of the re-opening negotiations with the (TPP), a multinational trade deal the walked away from last year, also helped sentiment.

But Trump later tweeted that the would only join the TPP if the deal were substantially better than the one offered to former

jumped 2 percent after its founder said the will not need to raise any money this year as it will have positive cash flow and be profitable in the third and fourth quarter.

fell about 7 percent after brokerage started with "reduce" rating on the cloud-based storage firm.

First Published: Fri, April 13 2018. 21:54 IST
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