Equities New York outlook: Wall Street down at start of earnings season | 01/14/22

NEW YORK (awp international) – At the start of the quarterly reporting season for US companies, Wall Street is likely to react with losses on Friday and thus continue the downward slide from the previous day. The numbers and outlook of some US financial groups were mostly disappointing. The technology stocks, which had already come under massive selling pressure the day before, should also lose further ground. They suffered particularly from interest rate fears after some US monetary authorities signaled that they would aggressively fight inflation.

The broker IG rated the Dow Jones Industrial around three quarters of an hour before the start of trading 0.82 percent lower at 35,818 points. The tech-heavy Nasdaq 100 was recently expected to be around 0.8 percent lower.

Fresh US economic data showed little impact on the indices in pre-market trading. US retail sales fell significantly more than expected in December. US imported goods inflation weakened more than expected in December.

Traditionally, a few big banks started with the company figures, but the majority of their results did not meet expectations. This included JPMorgan’s metrics. The US money house earned $10.4 billion in the fourth quarter, 14 percent less than a year earlier, but still more than analysts had expected on average. However, the trading business went worse than expected by experts. JPMorgan shares are down 4.2 percent in premarket US trading.

At the US financial group Citigroup, net profit fell by around 26 percent in the fourth quarter due to higher costs. In the three months to the end of December, the important business with bonds, foreign exchange and commodities in particular remained below expectations, and earnings from stock trading also fell surprisingly. The stock lost 3.9 percent premarket.

Blackrock’s results also disappointed investors, because the shares of the world’s largest asset manager fell by 3.2 percent before the market. The Wells Fargo bank had a similar experience, and its business figures were also not convincing. The share certificates fell by 0.9 percent./edh/jha/

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