Wall Street skids as bank earnings disappoint
- JPMorgan, Morgan Stanley report profit miss
- PPI in June surges more than expected
- Indexes down: Dow 046%, S&P 0.28%, Nasdaq 0.20%
- PPI in June surges more than expected
- Indexes down: Dow 046%, S&P 0.28%, Nasdaq 0.20%
All three major U.S. stock indexes started sharply lower in the wake of second-quarter earnings from JPMorgan Chase & Co and Morgan Stanley. Both reported slumping profits and warned of impending economic slowdown.
Losses narrowed as the session wore on, with a gain in semiconductors helping lift the Nasdaq Composite Index into positive territory.
Shares of $JPMorgan(JPM.US$ and $Morgan Stanley(MS.US$ fell 3.7% and 0.4%, respectively, while the S&P Banks index dropped 2.4%.
Slowdown worries were exacerbated as the Labor Department's Producer Price Index report echoed Wednesday's Consumer Price Index data, showing hotter-than-expected inflation in June.
The sell-off began to ease after Fed Governor Christopher Waller said he supported another 75 basis point interest rate increase in July, easing jitters over an even bigger, 100 basis point hike.
the $Dow Jones Industrial Average(.DJI.US$ fell 140.11 points, or 0.46%, to 30,632.68, the $S&P 500 Index(.SPX.US$ lost 10.65 points, or 0.28%, at 3,791.13 and the $Nasdaq Composite Index(.IXIC.US$ added 22.68 points, or 0.2%, at 11,270.26.
Among the 11 major sectors of the S&P 500, all but tech were in the red, with energy shares posting the largest percentage loss.
Analysts now expect aggregate S&P 500 second-quarter earnings growth of 5.1%, significantly less than the 6.8% annual growth estimate at the beginning of the quarter, according to Refinitiv.
U.S.-listed shares of $Taiwan Semiconductor(TSM.US$ rose 3.0% following the chipmaker's upbeat revenue guidance.
$Conagra Brands(CAG.US$ tumbled 7.6% after issuing an annual earnings forecast that came in below estimates. $SPDR S&P 500 ETF(SPY.US$ $Invesco QQQ Trust(QQQ.US$
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