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Wall Street falls as bank stocks, Syria conflict weigh

Reuters  |  NEW YORK 

By April Joyner

(Reuters) - Financial stocks led a drop on Wall Street on Friday as results from big banks failed to enthuse and fear of broader conflict in further unnerved investors.

The banks index <.SPXBK> fell 2.6 percent and the broader financial index <.SPSY> lost 1.6 percent, the most among the 11 sectors.

Shares of & Co , the biggest U.S. by assets, dropped 2.7 percent after the bank's quarterly profit fell slightly short of expectations. JPMorgan shares were the biggest weight on the 500.

sank 3.4 percent after the said it may have to pay a penalty of $1 billion to resolve investigations, while dropped 1.6 percent despite beating profit estimates.

Weak loan growth weighed on shares, said RJ Grant, at Keefe, in

"If you didn't own financials going into the quarter, there was nothing in the numbers today that would make you excited about owning them," said.

U.S. stocks extended losses on Friday after the State Department said that it had proof that carried out a in the town of

The renewed possibility of a strike in "is enough to cause heartburn for the market," said Robert Phipps, a at Per in Austin, "There's a ton of uncertainty right now so investors don't want to go into the weekend particularly long."

The <.DJI> fell 122.91 points, or 0.5 percent, to 24,360.14, the 500 <.SPX> lost 7.69 points, or 0.29 percent, to 2,656.3 and the <.IXIC> dropped 33.60 points, or 0.47 percent, to 7,106.65.

Still, for the week, the 500 rose 1.99 percent, the Dow gained 1.79 percent, and the Nasdaq added 2.77 percent.

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

While the U.S. is performing well, geopolitical issues are weighing on stock markets this year.

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.

fell 2.4 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 1.1 percent as rose. [O/R]

rose 2.1 percent after founder said the would be profitable in the third and fourth quarters and would not need to raise any money this year.

Declining issues outnumbered advancing ones on the NYSE by a 1.28-to-1 ratio; on Nasdaq, a 1.64-to-1 ratio favoured decliners.

Volume on U.S. exchanges was 5.78 billion shares, compared to the 7.22 billion average for the full session over the last 20 trading days.

(Additional reporting by in Bengaluru and Sinead Carew in New York; 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. 02:14 IST