US stocks dip after bank earnings

US stocks dip after bank earnings

NEW YORK: Wall Street stocks ended modestly lower on Monday (Apr 15) following mixed results from large banks ahead of other earnings reports and economic data.

The Dow Jones Industrial Average dipped 27.53 points (0.10 per cent) to 26,384.77.

The broad-based S&P 500 slipped 1.83 points (0.06 per cent) to 2,905.58, while the tech-rich Nasdaq Composite Index lost 8.15 points (0.10 per cent) at 7,976.01.

Goldman Sachs fell 2.8 per cent after reporting a 20.3 per cent decline in earnings to US$2.1 billion due in part to weak trading revenues.

Executives talked up new online banking products that broaden Goldman's reach beyond Wall Street but those are not expected to boost earnings for a few years.

Citigroup slipped 0.1 per cent after reporting a 1.9 per cent increase in first-quarter profits to US$4.7 billion.

With the S&P 500 up nearly 16 per cent this year, analysts say it will be harder for the market to rise further without an obvious catalyst.

Analysts expect earnings to decline overall compared with the year-ago period, although some believe companies will have an easy time topping the reduced expectations.

Economic releases this week include retail sales, the trade balance and manufacturing surveys as well as new home construction.

Among other companies, American Airlines dropped 2.7 per cent after announcing it will scrap some 115 flights per day in the coming months because its fleet of Boeing 737 MAX planes is being grounded until Aug 19.

United Continental shed 1.1 per cent after it announced it would pull the Boeing aircraft from its schedule through early July.

Boeing dropped 1.1 per cent following the announcements.

Source: AFP/de