Join +750K new investors every month who copy stock picks from billionaire's portfoliosSign Up Free

U.S. stocks are mixed as big banks kick off earnings season

Published 01/13/2023, 10:21 AM
Updated 01/13/2023, 11:04 AM
© Reuters.

By Liz Moyer -- U.S. stocks were mixed after bank executives talked about a slowing economy.

At 11:00 ET (16:00 GMT), the Dow Jones Industrial Average was up 27 points 0.1%, while the S&P 500 was down 0.2%, and the NASDAQ Composite was down 0.1%.

Big banks kicked off earnings season, with the two biggest companies topping expectations. JPMorgan Chase & Co (NYSE:JPM) noted softer investment banking activity, with revenue in the business down 57% from one year ago. CEO Jamie Dimon said that while the economy "currently remains strong," he sees challenges ahead.

Those challenges include the effect of the war in Ukraine, Dimon said, along with "the vulnerable state of energy and food supplies, persistent inflation that is eroding purchasing power and has pushed interest rates higher" and the Federal Reserve's work to tame inflation.

JPMorgan has $2.3 billion in its provision for credit losses, a move driven by a “modest deterioration in the firm’s macroeconomic outlook, now reflecting a mild recession in the central case” it said.

Bank of America Corp (NYSE:BAC) also beat expectations. CEO Brian Moynihan, noting the increasingly slowing economic environment, said "We believe we are well positioned as we begin 2023 to deliver for our clients, shareholders and the communities we serve."

Shares of JPMorgan rose 0.8% and shares of Bank of America shares rose 0.1%.

Consumers are feeling better about the economy, however. Michigan consumer sentiment for January measured at a higher than expected 64.6, the highest reading in eight months. said it was cutting 20% of its jobs after the collapse of the crypto exchange FTX in November. And Tesla Inc (NASDAQ:TSLA) stock fell 2.8% after Guggenheim cut its rating to sell from neutral.

Oil rose. Crude Oil WTI Futures was up 1.4% to $79.50 a barrel, while Brent Oil Futures crude was up 1.1% to $84.98 a barrel. Gold Futures rose 0.9% to $1,916.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.