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Wall Street drops as JPMorgan leads bank stocks lower

Reuters 

By Sruthi Shankar

(Reuters) - Banks led a slide in U.S. stocks on Friday, as results from big lenders including JPMorgan failed to enthuse investors keeping a wary eye on Russia's plan to consider banning some U.S. imports.

Shares of the biggest U.S. by assets dropped 2.6 percent, overturning an initial gain in premarket trading when the reported a record quarterly profit that fell slightly short of expectations.

sank 3.1 percent, also erasing initial gains, after the said it may have to pay a penalty of $1 billion to resolve investigations.

and the banks index also fell around 2.5 percent and the broader financial index lost 1.3 percent, making it the biggest decliner among the 11 sectors.

Analysts cast the losses as driven in part by a bullish 10 days for the lenders, whose shares have generally been shakier in 2018 after doubling in value in a little over 18 months.

"This is the exception, and not the norm, to have good reports and stocks sell off," said Art Hogan, at in

"But we did see the banks ramp up, over the last couple of days into these reports, sort of buy the rumour sell on the is not unusual for the group."

At 11:11 a.m. ET, the Dow Jones Industrial Average was down 87 points, or 0.36 percent, at 24,396.05, the 500 6.39 points, or 0.29 percent, at 2,657.6 and the 29.07 points, or 0.41 percent, at 7,111.18.

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The results blow the starting whistle on U.S. earnings season, with data predicting profits at 500 companies increased by 18.4 percent from a year ago, their biggest rise in seven years.

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

Senior lawmakers said on Friday that Russia's 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.

fell 1.86 percent after a Russian said the company could be a casualty, with ongoing issues with engines for its planes also weighing.

The top gainer among sectors was the energy sector, up 1.1 percent as rose. [O/R]

rose 1.6 percent after founder said the would be profitable in the third and fourth quarters of this year and would not have to raise any from investors.

fell about 7 percent after brokerage gave the cloud-based storage firm a "sell"-equivalent rating.

(Reporting by in Bengaluru; Editing by and Patrick Graham)

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

First Published: Fri, April 13 2018. 22:29 IST
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