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Bank stocks lead Wall Street lower amid Syria tensions, Russia trade threat

Reuters  |  NEW YORK 

By April Joyner

(Reuters) - Financial stocks led a drop on Wall Street on Friday, as results from big failed to enthuse and geopolitical tensions in and further unnerved investors.

Shares of & Co , the biggest U.S. by assets, dropped 3.7 percent in a reversal from premarket trading after the bank's quarterly profit fell slightly short of expectations. JPMorgan was the biggest percentage decliner on the Dow.

sank 3.3 percent after the said it may have to pay a penalty of $1 billion to resolve investigations, while dropped 3.0 percent despite beating profit estimates.

The index <.SPXBK> fell 3.2 percent and the broader financial index <.SPSY> lost 2.0 percent, the most among the 11 sectors.

"Even with great earnings, maybe the expectations were so high that they are not propelling the market further," said Jim Awad, at in "Good earnings are already priced into the market."

The <.DJI> fell 219.43 points, or 0.9 percent, to 24,263.62, the 500 <.SPX> lost 16.6 points, or 0.62 percent, to 2,647.39 and the <.IXIC> dropped 57.34 points, or 0.8 percent, to 7,082.91.

Friday's results kicked off earnings season, with data predicting profits at 500 companies increased by 18.6 percent from a year ago, their biggest rise in seven years.

While the U.S. economy is performing well, geopolitical issues are weighing on stock markets this year, after almost a decade of uninterrupted gains.

The State Department said that it was confident that carried out a missile attack in the town of last weekend and that Russia's claim of a faked attack was false.

Senior Russian lawmakers said on Friday that the lower house of parliament would consider draft legislation giving the Kremlin powers to ban or restrict a list of U.S. imports, reacting to new U.S. sanctions on Russian tycoons and officials.

"I have been up to this point, pretty adamant that a trade war is going to be much less of a war and more of a skirmish," said Crit Thomas, at "I'm starting to come around to maybe this is almost inevitable."

fell 3.0 percent after a Russian lawmaker said the country may stop supplying titanium to the company.

Issues with engines for Boeing's planes also weighed on the company's shares.

The top gainer among sectors was energy <.SPNY>, up 0.9 percent as rose. [O/R]

rose 2.54 percent after founder said the would be profitable in the third and fourth quarters and would not need to raise any money this year.

(Additional reporting by in Bengaluru; Editing by and Chizu Nomiyama)

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Sat, April 14 2018. 01:21 IST