US stocks close with losses on corporate earnings, geopolitics
Dow falls 0.09%, Nasdaq dips 1%, S&P 500 down 0.53%, fear index rises 4.82%
ISTANBUL
US stocks closed with losses Wednesday, withdrawing further from all-time highs as traders processed a new round of profits and kept an eye on geopolitical events.
The Dow fell 0.09%, or 42.36 points, to close at 49,149.63.
The Nasdaq slipped 1%, or 238.12 points, to 23,471.75, and the S&P 500 lost 0.53%, or 37.14 points, to 6,926.6.
The Volatility Index (VIX), also known as the "fear index,” rose 4.82% to 16.75.
The broader market was bogged down by tech stocks and geopolitical issues, including Iran. For the majority of the trading day, oil prices were higher due to concerns about supply interruptions brought on by civil unrest in Iran, a major OPEC member, and growing tensions between that nation and the US. Prices fell after Trump hinted that he might not attack.
On the data side, US retail was up 0.6% month-on-month in November, more than expected, following a decline of 0.1% in October.
Producer prices were also up more than expected in November, with the Producer Price Index (PPI) rising 3% year-on-year, and increasing 0.2% month-on-month.
The US’ current account deficit also decreased 9.2% in the third quarter of last year, falling to $226.4 billion.
Existing home sales rose by 5.1% in December.
On the corporate side, net profits of Bank of America and Wells Fargo, two of the largest US banks, increased in the fourth quarter, while Citigroup's net profit declined. All three banks' profits exceeded market expectations, with only Bank of America surpassing revenue estimates.
Citigroup shares fell 3.3%, Bank of America was down 3.8%, and Wells Fargo shares were off 4.6%.
Statements from Federal Reserve officials were also followed, with Philadelphia Fed President Anna Paulson stating that if inflation slows and the labor market stabilizes, some modest adjustments to interest rates would be appropriate later in the year.
Minneapolis Fed President Neel Kashkari said the labor market is showing signs of weakening, and inflation is still high but moving in the right direction.
Atlanta Fed President Raphael Bostic emphasized that inflation is not yet solved.
Meanwhile, the Fed's Beige Book showed that overall economic activity was increasing at a "slight to moderate" pace in most parts of the country.
