Nasdaq up 1% for the year
The Dow Jones Industrial Average closed at 30,814.26 on Friday with a loss of 177.26 points or -0.57%. The S&P 500 closed at 3,768.25 for a loss of 27.29 points or -0.72%. The Nasdaq Composite closed at 12,998.50 for a loss of 114.14 points or -0.87%. The VIX Volatility Index was higher at 24.34 for a gain of 1.09 points or 4.69%.
For the week, the Nasdaq and S&P 500 were down around 1.5%. The Dow Jones had a loss of -0.90%. For the year, the S&P 500 has a gain of 0.3%, the Nasdaq has a gain of approximately 1% and the Dow Jones has a gain of around 0.90%.
Friday’s market movers
U.S. indexes closed lower Friday. Financials ended lower after big banks began the earnings season with their reports. Joe Biden’s release of his plans for Covid stimulus in a speech Thursday night was also a headline. The plan includes strong stimulus efforts with a price tag of $1.9 trillion.
Some of the Biden plan highlights include:
- $1,400 direct payments
- A $400 per week unemployment insurance supplement until September 2021.
- An increase in child tax credit.
- Funds for Covid testing and vaccines.
Biden also says there will be a part two to the strategy with a subsequent focus on infrastructure and climate change.
In other news, investors continued watching impeachment developments, with discussion and voting in the Senate still on an uncertain timeline. A more contagious variation of Covid was also a concern as both new cases and deaths continued.
Stock markets will be closed Monday for the Martin Luther King Jr. holiday.
From the big banks:
- JPMorgan Chase (NYSE:JPM): Revenue of $30.16 billion increased 3.4% year over year and beat estimates $1.42 billion. Fourth-quarter GAAP earnings of $3.79 per share beat estimates by $1.17.
- Wells Fargo (NYSE:WFC): Revenue of $17.9 billion decreased 9.9% year over year and missed estimates by $100 million. Fourth-quarter GAAP earnings of 64 cents per share beat estimates by 23 cents and non-GAAP earnings of 70 cents beat estimates by 7 cents.
- Citigroup (NYSE:C): Revenue of $16.5 billion decreased 10.2% year over year and missed estimates by $210 million. Fourth-quarter GAAP earnings of $2.08 per share beat estimates by 72 cents.
- PNC Financial (NYSE:PNC): Revenue of $4.2 billion decreased 8.9% year over year and beat estimates by $100 million. Fourth-quarter GAAP earnings of $3.26 per share beat estimates by 65 cents.
- Lifted buyback restrictions and lower than estimated actual credit losses were highlights, though financials as a sector were lower for the day.
On the economic calendar:
- Retail sales decreased 0.7% in December following a decrease of 1.4%. Retail sales excluding autos decreased 1.4%. Year over year, retail sales increased 2.9%, down from the previous report of 3.7%.
- The New York Empire State Manufacturing Index decreased to 3.5 from 4.9.
- Business inventories increased 0.5% in November following an increase of 0.8%.
- The Michigan Consumer Sentiment Index decreased to 79.2 in January from 80.7
- The Baker Hughes weekly oil rig count showed an increase of 13 rigs in the U.S., an increase of 44 rigs in Canada and a decrease of four rigs internationally.
- The Producer Price Index increased 0.3% in December and 0.8% year over year. The Core Producer Price Index increased 0.1% in December and 1.2% year over year.
- The Industrial Production and Capacity report was released. Industrial production increased 1.6% in December and decreased 3.6%year over year. Manufacturing production increased 0.9% in December and decreased 2.8% year over year. Capacity utilization increased to 74.5% from 73.4%.
Across the board:
- Chinese smartphone maker Xiaomi (XIACF) was added to a sales blacklist under Trump order.
- The Securities and Exchange Commission is investigating Exxon Mobil (NYSE:XOM) over Permian Basin asset valuations.
- GameStop (NYSE:GME) -10.87%
- Facebook (NASDAQ:FB) +2.33%
- Home Depot (NYSE:HD) +2.70%
In small caps, the Russell 2000 closed at 2,123.20 for a loss of 32.15 points or -1.49%. The S&P 600 closed at 1,211.91 for a loss of 20.79 points or -1.69%. The Dow Jones U.S. Small-Cap Growth Index closed at 14,770.74 for a loss of -\219.56 points or -1.46%. The Dow Jones U.S. Small-Cap Value Index closed at 9,656.56 for a loss of 125.14 points or -1.28%.
Other notable indexes
Other notable index closes included the S&P 400 Mid-Cap Index at 2,424.03 for a loss of 24.35 points or -0.99%; the S&P 100 at 1,716.11 for a loss of 13.63 points or -0.79%; the Nasdaq 100 at 12,803.93 for a loss of 94.76 points or -0.73%; the Russell 3000 at 2,273.88 for a loss of 18.14 points or -0.79%; the Russell 1000 at 2,135.51 for a loss of 15.91 points or -0.74%; the Wilshire 5000 at 39,652.53 for a loss of 302.55 points or -0.76%; and the Dow Jones U.S. Select Dividend Index at 722.30 for a loss of 6.55 points or -0.90%.
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About the author:
Julie Young is a financial writer with comprehensive experience in the financial services industry. She writes about investments, investment products, financial market news and economic trends. Julie has a Master of Science in finance from Boston College and a Bachelor of Science in finance from the University of Arkansas.
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