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This article is more than 3 year old.

Wall Street dips as JPMorgan leads bank stocks lower

Wall Street dips as JPMorgan leads bank stocks lower
Banks led a drop in US stocks on Friday, as results from big lenders including JPMorgan failed to enthuse investors keeping a wary eye on Russia's plan to consider banning some US imports.
Shares of the biggest US bank by assets dropped about 3%, overturning an initial gain in premarket trading when the bank reported a record quarterly profit that fell slightly short of expectations.
Wells Fargo sank 3.3% after the bank said it may have to pay a penalty of $1 billion to resolve investigations, while Citigroup dropped 2.4% despite reporting upbeat profit.
The S&P banks index fell around 2.6% and the broader S&P financial index lost 1.4%, the most among the 11 major S&P sectors.
Analysts cast the losses as driven in part by a bullish 10 days for the lenders, whose shares have generally been shakier in 2018 after doubling in value in a little over 18 months.
"We had such a huge run up in 2017 and early 2018 that the market pretty much discounted everything was going to come down the pipe," said Crit Thomas, global market strategist at Touchstone Investments.
"Yeah the earnings are good, but just not good enough."
By 13:02 p.m. ET, the Dow Jones Industrial Average was down 0.3% at 24,410.7. The S&P 500 fell 0.09% to 2,661.58 and the Nasdaq Composite dipped 0.17% to 7,127.82.
The bank results blow the starting whistle on US earnings season, with Thomson Reuters data predicting profits at S&P 500 companies increased by 18.4 percent from a year ago, their biggest rise in seven years.
While the US economy is performing well, geopolitical issues are weighing this year on stock markets after almost a decade of uninterrupted gains.
Senior lawmakers said on Friday that Russia's lower house of parliament would consider draft legislation giving the Kremlin powers to ban or restrict a list of US imports, reacting to new US sanctions on Russian tycoons and officials.
"I have been up to this point, pretty adamant that a trade war is going to be much less of a war and more of a skirmish," said Thomas. "I'm starting to come around to maybe this almost inevitable."
Boeing fell 2.14% after a Russian senator said the company could be a casualty, with ongoing issues with engines for its 787 Dreamliner planes also weighing.
The top gainer among S&P sectors was the energy sector, up 1 percent as oil prices rose.
Tesla rose 2.54% after founder Elon Musk said the electric car maker would be profitable in the third and fourth quarters of this year and would not have to raise any money from investors.
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