CORRECTED-US STOCKS-Wall Street closes lower as banks, energy shares tumble

Published 15/01/2021, 22:00
Updated 15/01/2021, 22:36
© Reuters.

(Corrects third paragraph to reflect WFC, XOM among biggest
drags on S&P)
* Wells Fargo, Citigroup among biggest drags on S&P 500
* Exxon Mobil regulatory probe weighs on S&P, energy sector
* U.S. retail sales fall again in December

By Echo Wang
NEW YORK, Jan 15 (Reuters) - Wall Street's main indexes
finished lower on Friday, with the biggest drag coming from big
U.S. banks after their earnings reports, while the energy sector
was weighed down by a regulatory probe into Exxon Mobil Corp
XOM.N .
The S&P 500 banks index .SPXBK lost ground as shares of
Wells Fargo & Co WFC.N , JPMorgan Chase & Co JPM.N and
Citigroup Inc C.N tumbled even though they had posted
better-than-expected fourth-quarter profits. The bank sector had
rallied sharply in recent days. Wells Fargo was the among biggest drags on the S&P 500,
along with Exxon Mobil.
"Financials and energy have been disappointing ... that's
bringing down the whole market," said Chris Zaccarelli, chief
investment officer at Independent Advisor Alliance in Charlotte,
North Carolina.
"This year is the year for financials, energy, materials,
industrials. So if there is a day when they're not leading, it's
not good news for the market."
Wall Street's major indexes had recently hit record highs on
hopes for a hefty fiscal stimulus package.
Incoming U.S. President Joe Biden late on Thursday unveiled
a $1.9 trillion stimulus proposal, which included some $1
trillion in direct relief to households.
Meanwhile, data showed a further decline in U.S. retail
sales in December in the latest sign the economy lost
considerable speed at the end of 2020. "The weaker-than-expected economic data, and especially in
parts of the economy like retail sales, is a big driver," said
Liz Ann Sonders, chief investment strategist at Charles Schwab.
"We are seeing sentiment through last week in extreme
speculative frothy euphoric optimistic territory," she said.
"Sometimes it doesn't need a catalyst before it begins to fall
on its own weight."
Unofficially, the Dow Jones Industrial Average .DJI fell
159.66 points, or 0.52%, to 30,831.86, the S&P 500 .SPX lost
25.55 points, or 0.67%, to 3,769.99 and the Nasdaq Composite
.IXIC dropped 107.76 points, or 0.82%, to 13,004.88.
Earnings for S&P 500 companies are expected to decline 9.5%
in the final quarter of 2020 from a year ago, but are expected
to rebound in 2021, with a gain of 16.4% projected for the first
quarter, according to IBES data from Refinitiv. Exxon shares fell after a report said that the U.S.
Securities and Exchange Commission launched an investigation of
the oil major, following a whistleblower's complaint that it
overvalued a key asset in the prolific Permian shale oil basin.
(Additional Reporting by Devik Jain and Medha Singh in
Bengaluru and Sinéad Carew, Editing by Marguerita Choy)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.