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Stock prices will fluctuate as earnings season begins and wholesale inflation slows.

The Elite Times TeamBy No Comments8 Mins Read

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Stocks tumbled Friday afternoon, erasing earlier gains after results from major banks failed to boost hopes for strong quarterly results.

The Dow Jones Industrial Average (^DJI) fell 0.5%, or nearly 200 points. The benchmark S&P 500 Index (^GSPC) fell 0.1%, and the tech-heavy Nasdaq Composite Index (^IXIC) fell nearly 0.2%.

Wall Street financial institutions report fourth-quarter results, seen as a key chance for stocks to shake off losses accumulated so far this year. JPMorgan Chase (JPM), Bank of America (BAC), and Wells Fargo (WFC) all reported decent financial results on Friday. However, the latter two companies were unable to resolve concerns about the possibility of future pain, and their stock prices fell.

The market affected airline stocks and capped the week. United Airlines (UAL) fell more than 9%, while American Airlines (AAL) and Delta Air Lines (DAL) fell more than 8%. Delta Air Lines released earnings earlier in the day, and although the airline beat expectations for revenue and bottom line, it lowered its 2024 revenue forecast. Elsewhere, META (META) achieved an almost stunning reversal, hitting a 52-week high in intraday trading and rebounding from an incredible stock decline in 2022. The social media company is within 2% of his all-time high. expensive.

Oil prices also rose more than 1% after the United States and its allies launched airstrikes against Houthi rebels in Yemen, drawing threats of retaliation from the Iranian-backed group behind the Red Sea shipping attack. What he did is also attracting attention. Brent futures (BZ=F) were trading around $80 per barrel, while West Texas Intermediate futures (CL=F) were trading at just under $73.

Meanwhile, investors are looking for more insight into price pressures after Thursday’s better-than-expected consumer CPI data. In a turn of events on Friday, the producer price index showed an unexpected decline in prices last month, raising hopes that inflation will continue to slow in the coming months.

live7 updates

  • Stocks fall in afternoon trading

    Stocks fell Friday afternoon, reversing earlier gains, after reports from major banks failed to boost expectations for strong quarterly results.

    The Dow Jones Industrial Average (^DJI) fell 0.5%, or nearly 200 points. The benchmark S&P 500 Index (^GSPC) fell 0.1%, and the tech-heavy Nasdaq Composite Index (^IXIC) fell nearly 0.2%.

  • Citigroup reveals plans to cut 20,000 jobs by 2026

    Citigroup (C) is on track to become the smallest of the Big Four U.S. banks by number of employees, as Chief Executive Officer Jane Fraser bets on a dramatic restructuring to boost the stock.

    Yahoo Finance’s David Hollerith reports that the Bank of New York expects to eliminate 20,000 positions by 2026, saving $2.5 billion. Citigroup also intends to cut another 40,000 jobs when it takes its Mexican consumer unit Banamex to an initial public offering.

    The cuts will leave Citigroup with 180,000 employees, the smallest of the four largest U.S. banks, and the overall workforce size will likely be reduced by 25%. It ended in 2023 with 240,000 people.

    The announcement comes after Citigroup reported a net loss of $1.8 billion in the fourth quarter as a result of a $1.7 billion FDIC valuation and other previously disclosed charges and provisions.

    The stock was down more than 1% around midday.

  • Oil prices rise after US airstrikes on Yemen

    Tensions in the Middle East continue to rise as US-led airstrikes against Yemen’s Houthi rebels raise the threat of further hostilities and further heighten market volatility.

    Oil prices rose 2% in Friday morning trading after airstrikes coordinated by the U.S. and British militaries. The airstrikes were carried out in response to Houthi attacks on transport ships in the Red Sea, forcing global shipping companies to reroute ships, extending sailing distances and increasing costs.

    The Red Sea flows into the Suez Canal, providing ships with the shortest shipping route between Europe and Asia. Approximately 10% of all global trade passes through major international sea lanes.

    The airstrike raised the prospect of further disruption to global trade, raising the threat of retaliation from Iranian-backed groups behind the Red Sea attacks.

    Brent futures (BZ=F) were trading around $80 a barrel, while West Texas Intermediate futures (CL=F) were trading at just under $74.

  • Stock prices rise in morning trading

    Here are some of the leading stocks on Yahoo Finance. trend ticker Page during Friday morning trading:

    Black Rock (BLK): The company’s stock price was just above the flatline on Friday morning after the company announced that it beat profit expectations and had assets under management of more than $10 trillion in the fourth quarter of 2023. The company also announced it would acquire infrastructure fund manager GIP for $12.5 billion. GIP has over $100 billion in assets under management.

    Delta Airlines (Dal): The company’s stock price fell more than 7% as the company cut its 2024 revenue forecast and investors downplayed fourth-quarter sales and profit growth. Delta Air Lines reported revenue of $13.66 billion and earnings of $1.28 per share.

    JP Morgan Chase (J.P.M.): Shares of the largest U.S. bank rose 1% after the company said revenue rose 12% to $39.94 billion, beating analysts’ expectations. Overall, the bank posted annual profits of about $50 billion in 2023. Among the major banks that announced their results on Friday, JPMorgan led the way in morning trading.

    Major US financial institutions saw a decline in fourth quarter profits. Wells Fargo (WFC) fell nearly 3%, Bank of America (BAC) fell more than 2% and Citigroup (C) rose about 0.3%.

  • Stock prices rise slightly, outperforming bank profits

    Stocks rose modestly on Friday morning as investors held off on disappointing results from major banks.

    The Dow Jones Industrial Average (^DJI) rose 0.1%, or about 50 points. The benchmark S&P 500 Index (^GSPC) rose 0.4%, and the tech-heavy Nasdaq Composite Index (^IXIC) rose about 0.3%.

  • It’s 10 … followed by 12 zeros

    BlackRock (BLK) on Friday said it had more than $10 billion in assets under management at the end of the fourth quarter, the first time in two years that client assets have surpassed that mark thanks to last year’s market rally.

    The company’s total assets under management were $10,089,995 million as of December 31, to be exact.

    Net inflows to BlackRock reached $289 billion in 2023, with $96 billion in assets flowing into the company’s products in the fourth quarter, making it the second strongest quarter of the year. Approximately $110 billion of net assets were transferred to BlackRock vehicles in the first quarter.

    Along with Friday’s quarterly results, BlackRock also announced the acquisition of infrastructure fund manager GIP for $12.5 billion. GIP has over $100 billion in assets under management.

  • Jamie Dimon warns again of ‘sticky’ inflation and rising interest rates

    JPMorgan (JPM) announced fourth-quarter results early Friday, capping off a record year for the nation’s largest bank.

    And in the company’s fourth-quarter release, investors got another broad look at the U.S. and global economy from outspoken CEO Jamie Dimon.

    Mr. Dimon largely reiterated his view that investors have become too comfortable with the idea that inflation is well on its way back to the Fed’s 2% target and that interest rates will remain higher than expected. However, he said a number of “unprecedented” factors in the market meant banks’ rates would rise. “You have to be prepared for any environment.”

    Below is Mr. Dimon’s full comment, with emphasis and spacing added.

    The US economy remains resilient, consumers are still spending, and the market is now expected to have a soft landing. It is important to note that the economy is supported by large government deficit spending and past stimulus packages.

    Additionally, the green economy, the restructuring of global supply chains, increased military spending, and rising healthcare costs continue to require increased spending. This could lead to stronger inflation and higher interest rates than the market expects. In addition to this, there are also a number of downside risks to be aware of.

    Quantitative tightening has drained over $900 billion of liquidity from the system annually. Never seen a complete cycle of tightening. And the ongoing wars in Ukraine and the Middle East have the potential to disrupt energy and food markets, migration, military and economic relations, in addition to a horrific human toll. Due to these significant and somewhat unprecedented implications, we remain vigilant. We hope for the best, but last year proved why we must be prepared for any environment.

For the latest stock market news and in-depth analysis of price-moving events, click here.

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