US STOCKS-Wall Street sinks after big banks collapse after results


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* JP Morgan declines despite gain in profit

* Citigroup, Wells Fargo among leading S&P 500 Decliners

* Retail sales decline again in December

* Index down: Dow adds 0.44%, S&P 0.48%, Nasdaq 0.46% (comment, description, update price);

15 January (Reuters) – Wall Street’s main indices fell short of losses from major US lenders after reporting its earnings on Friday, while incoming President Joe Biden’s 1.9 trillion stimulus plan also raised fears of an increase in corporate taxes.

Shares of JPMorgan Chase & Co., Citigroup Inc. and Wells Fargo & Co., which saw a strong rally for earnings, were also down despite all banks expecting better-quarter profits.

JPMorgan fell 2.2% after a seven-day winning streak that had boosted the stock by nearly 12%.

The index of S&P 500 banks dropped 3.3%.

Wall Street’s main indices are set to wrap up the week’s low after recently climbing to a record high, which is at stake for a fiscal package and optimism about vaccine delivery.

Also weighing on the markets was a Washington Post report stating that the COVID-19 vaccine reserve had already run out when the Donald Trump administration vowed to release it this week, defying hopes of expanded access Had given. (wapo.st/2MZoiwa)

“It’s somewhat of a vaccine and maybe a somewhat Biden spending plan,” said Paul Nolte, portfolio manager at Kingsway Investment Management in Chicago.

“It’s a healthy improvement for some of the advances we’ve seen in the market.”

Biden’s stimulus proposal was unveiled on Thursday, including some $ 1 trillion in direct relief to households, and feared the government would need to raise corporate taxes to spend.

Dennis Dick, owner of Bright Trading LLC of Las Vegas, said, “Biden’s concern is not the stock market, his concern is Main Street and that’s a good thing … but it suggests that corporate taxes are going to rise.” .

Meanwhile, the data showed a further decline in US retail sales in December – the latest sign the economy lost much momentum in late 2020.

Nine out of 11 major S&P sectors fell, with energy, financials and industrialists posting the most prominent declines after major markets in a recent rally.

Defensive utilities and real estate were the only high-turnover areas.

At 11:39 am, the Dow Jones Industrial Average fell 135.21 points or 0.44% to 30,856.31, the S & P 500 lost 18.40 points or 0.48% to 3,777.14 and the Nashik Composite was down 60.55 points or 0.46% to close at 13,052.08. . .

Earnings for the S&P 500 companies are expected to decline 9.5% in the final quarter of 2020 from a year earlier, but the refinery is expected to rebound in 2021 with a 16.4% gain for the first quarter, according to IBES data.

Exxon Mobil Corp fell 3.6%, after a report said that the US Securities and Exchange Commission launched an investigation into the oil major following a complaint by Whistleblower that the company instigated a major asset in Parliament Permian shale oil Allin.

Spotify Technology SA dropped nearly 5% after Citigroup downgraded its shares to “sell”.

Hewlett Packard Enterprise Co rose 1% after JP Morgan upgraded the enterprise software maker’s stock to “overweight”.

Announcement issues declining advisors on the NYSE by a ratio of 2.8 to 1 and on the Nasdaq by a ratio of 2.9 to 1.

The S&P 500 posted 5 new 52-week highs and no new lows, while Nasdaq recorded 180 new highs and eight new lows. (Reporting by Devik Jain and Medha Singh in Bengaluru; Editing by Saumyadev Chakraborty and Maju Samuel)

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