US open: Stocks lower as traders thumb over bank earnings

Wall Street stocks were in the red early on Friday as traders digested a number of earnings from multiple major US banks.

As of 1530 BST, the Dow Jones Industrial Average was down 0.54% at 33,845.42, while the S&P 500 slipped 0.23% to 4,136.70 and the Nasdaq Composite came out the gate 0.36% weaker at 12,122.42.

The Dow opened 184.27 points lower on Friday, taking a bite out of gains recorded in the previous session as investors digested more key inflation data.

However, investors now turn their attention to the beginning of quarterly earnings season, with financial services giant Wells Fargo's quarterly profits coming in ahead of expectations on the back of increased earnings from higher interest rates, and Citigroup reporting a first-quarter net income of $4.6bn on revenues of $21.4bn.

JPMorgan shares jumped after the banking heavyweight handily beat estimates on the Street with its first-quarter results, while BlackRock reported $103.0bn of quarterly long-term net inflows in its first-quarter earnings, driven by continued momentum in bond exchange-traded funds and significant outsourcing mandates.

On the macro front, retail sales volumes shrank twice as fast as expected last month amid broad-based softness by categories. According to the Department of Commerce, in seasonally adjusted terms, retail sales dropped at a month-on-month pace of 1.0% to reach $691.7bn. Excluding often-volatile motor vehicle sales they dropped by 0.8%.

Elsewhere, US industrial production increased 0.5% year-on-year in March, according to the Federal Reserve, principally due to a 1.1% drop in manufacturing output. Mining sector and utilities production, on the other hand, rose 5.4% and 4.2%, respectively.

Still on data, US manufacturers and trade inventories rose by 0.2% month-on-month in February, according to the Census Bureau, following an upwardly revised 0.2% fall in January and just shy of market forecasts for a 0.3% increase.

Finally, a preliminary reading of the University of Michigan's consumer sentiment index detailed an unexpected increased to 63.5 in April, beating forecasts for a flat reading of 62. Rises were seen in both current conditions and expectations, up to 68.6 from 66.3 and 60.3 from 59.2, respectively.

On another note, Federal Reserve banker Christopher Waller indicated his support for yet another rate rise by the central bank in May despite uncertainty stemming from the recent turmoil in the banking sector.

"Financial conditions have not significantly tightened, the labour market continues to be strong and quite tight, and inflation is far above target, so monetary policy needs to be tightened further," Waller said. "How much further will depend on incoming data on inflation, the real economy, and the extent of tightening credit conditions."

Reporting by Iain Gilbert at Sharecast.com

Dow Jones - Risers

JP Morgan Chase & Co. (JPM) $137.93 6.93%
Goldman Sachs Group Inc. (GS) $338.25 1.84%
Caterpillar Inc. (CAT) $224.68 1.36%
American Express Co. (AXP) $164.42 1.31%
Home Depot Inc. (HD) $295.06 1.00%
International Business Machines Corporation (CDI) (IBM) $129.09 0.93%
Visa Inc. (V) $234.80 0.91%
Dow Chemical Co. (DOW) $57.30 0.67%
3M Co. (MMM) $106.69 0.51%
Chevron Corp. (CVX) $172.83 0.43%

Dow Jones - Fallers

Boeing Co. (BA) $200.15 -6.29%
Unitedhealth Group Inc. (UNH) $512.09 -2.69%
Travelers Company Inc. (TRV) $170.54 -1.54%
Microsoft Corp. (MSFT) $288.38 -0.50%
Johnson & Johnson (JNJ) $165.33 -0.47%
Salesforce.Com Inc. (CRM) $193.34 -0.35%
Procter & Gamble Co. (PG) $151.26 -0.34%
Amgen Inc. (AMGN) $250.73 -0.28%
Walt Disney Co. (DIS) $100.59 -0.25%
Walgreens Boots Alliance, Inc. (WBA) $35.72 -0.17%

S&P 500 - Risers

JP Morgan Chase & Co. (JPM) $137.93 6.93%
VF Corp. (VFC) $22.99 5.36%
Albemarle Corp. (ALB) $212.19 4.52%
Blackrock Inc. (BLK) $699.79 4.33%
Nektar Therapeutics (NKTR) $1.07 3.88%
Citigroup Inc. (C) $48.90 3.39%
Bank of America Corp. (BAC) $29.48 3.20%
Fastenal Co. (FAST) $53.88 2.94%
Fluor Corp. (FLR) $31.01 2.85%
State Street Corp. (STT) $81.04 2.83%

S&P 500 - Fallers

Boeing Co. (BA) $200.15 -6.29%
Hartford Financial Services Group Inc. (HIG) $68.68 -3.04%
Unitedhealth Group Inc. (UNH) $512.09 -2.69%
Newmont Corporation (NEM) $49.76 -2.46%
Elevance Health Inc. (ELV) $486.95 -1.86%
Dish Network Corp. (DISH) $8.19 -1.80%
Travelers Company Inc. (TRV) $170.54 -1.54%
Centene Corp. (CNC) $68.29 -1.54%
Edison International (EIX) $71.91 -1.43%
Humana Inc. (HUM) $527.72 -1.41%

Nasdaq 100 - Risers

Qurate Retail Inc. (QRTEA) $0.90 7.70%
Fastenal Co. (FAST) $53.88 2.94%
Skyworks Solutions Inc. (SWKS) $110.60 1.73%
Seagate Technology Plc (STX) $66.46 1.71%
Ross Stores Inc. (ROST) $105.95 1.69%
NetEase Inc. Ads (NTES) $91.54 1.65%
Marriott International - Class A (MAR) $168.05 1.54%
Mercadolibre Inc. (MELI) $1,315.20 1.47%
Microchip Technology Inc. (MCHP) $81.30 1.46%
Lam Research Corp. (LRCX) $505.58 1.45%

Nasdaq 100 - Fallers

Dish Network Corp. (DISH) $8.19 -1.80%
Baidu Inc. (BIDU) $130.76 -1.48%
Trip.com Group Limited (TCOM) $35.38 -0.98%
Gilead Sciences Inc. (GILD) $82.64 -0.76%
Biogen Inc (BIIB) $287.62 -0.72%
Check Point Software Technologies Ltd. (CHKP) $133.54 -0.68%
Netflix Inc. (NFLX) $344.04 -0.62%
Microsoft Corp. (MSFT) $288.38 -0.50%
Cognizant Technology Solutions Corp. (CTSH) $60.40 -0.35%
T-Mobile Us, Inc. (TMUS) $149.86 -0.34%