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US benchmarks slip further into the red after banks report results

JP Morgan Chase and Citigroup were first of a batch of banks set to release third quarter results
Wall Street
Wall Street heading south
  • US stocks lower 

  • Dow Jones down 32 points; S&P off 4.3 points

  • US crude down but off-lows

The Dow Jones eased 32 points, down 0.14% at 22,841 while the S&P 500 lost 4.3 points at 2,551. Even the Nasdaq, which was earlier barely grasping at positive territory, lost the fight and and dipped 12 points to 6,592.

The TSX was also off, down 58 at 15.742. 

JP Morgan & Chase (NYSE:JPM) which reported market beating earnings and revenue, saw its shares fall 0.88% at US$95.99 while Citigroup Inc. (NYSE:C) which reported higher than expected numbers, also saw its shares ease 3.43% at US$72.37. Both banks reported a drop in trading revenue.

Bank of America (NYSE:BAC) and Wells Fargo (NYSE:WFC) are scheduled to release results on Friday, and were also lower, down 1.47% at US$25.45 and 0.81% at US$55.21 respectively. US crude eased 1.6%, off its earlier lows to US$50.50 after a US government report showed that domestic crude stockpiles fell for a third week in a row.

AT&T (NYSE:T) fell 5.7% at the wireless carrier said it lost 90,000 US video subscribers in the third quarter due to intense competition and the impact of the recent hurricanes.

The November West Texas Intermediate crude settled at US$50.60 a barrel, down 1.4% in New York, but off its earlier lows after the International Energy Agency reported Thursday that in September, the global oil supply rose while demand growth slowed.

MID-SESSION

The Dow Jones was off 6 points, down 0.02% at 22,867 while the S&P 500 lost 2 points at 2,554.17. Only the Nasdaq was still grasping at positive territory - but barely - up 4 poitns at 6,608.

The TSX was also off 0.16% at 15,774.86.

JP Morgan & Chase (NYSE:JPM) which reported market beating earnings and revenue, saw its shares fall 0.70% at US$96.19 while Citigroup Inc. (NYSE:C) which reported higher than expected numbers, also saw its shares ease 2.32% at US$73.20. Both banks reported a drop in trading revenue.

Bank of America (NYSE:BAC) and Wells Fargo (NYSE:WFC) are scheduled to release results on Friday. US crude eased 1.6%, off its earlier lows to US$50.50 after a US government report showed that domestic crude stockpiles fell for a third week in a row.

Also, the International Energy Agency reported Thursday that in September, the global oil supply rose while demand growth slowed. 

OPEN

US benchmarks started in the red on Thursday, with the Dow Jones Industrial Index down over 25 to 22,848.

The Nasdaq shed 7.54 at 6,595, while the S&P 500 shed 4.05 at 2,551.

In the oil markets, US crude shed  1.93% to stand at US$50.31 a share.

Meanwhile, in Toronto, the TSX, the biggest index there, shed almost 37 points to stand at 15,763.

PREVIEW

Wall Street is indicating a lower open ahead of earnings from big banks, namely JPMorgan Chase & Co (NYSE:JPM) and Citigroup Inc.(NYSE:C).

The US stock futures is showing the S&P is heading down 0.17% at 2,548.75 while the Nasdaq is also indicating a south trend, down 0.13% at 6,074.75. The Dow futures is also trending lower 0.11% at 22,792.

In addition, the market will be watching the annual meeting of the International Monetary Fund and the World Bank which starts today.

That is not all, the fourth round of the North America Free Trade Agreement (NAFTA) talks are also currently taking place in Washington. Considering President Donald Trump has called the treaty the worst trade deal in US history, it will be interesting to see how this progresses.

 


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