US STOCKS-Dow, S&P 500 dragged down by financials after mixed big bank results

Reuters

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    * JPM falls on trading slowdown in Q4
    * Wells Fargo rises after higher profit 
    * Casino stocks up as Macau caps new licenses at six
    * Indexes: Dow down 0.41%, S&P off 0.09%, Nasdaq up 0.18%   

 (Updates prices to open)
    By Bansari Mayur Kamdar and Shreyashi Sanyal
    Jan 14 (Reuters) - The Dow and the S&P 500 fell on Friday as
declines among heavyweight financial stocks led by JPMorgan made
for a weak start to the fourth-quarter earnings season, while
the Nasdaq edged higher as some big technology stocks regained
lost ground.
    Eight of the 11 major S&P 500 sectors fell in early trading,
with financials  .SPSY  falling 1.3%. The S&P 500 banks index
 .SPXBK  slid 1.8% from a record high hit in the previous
session. 
    JPMorgan Chase & Co  JPM.N  tumbled 4.9% on reporting weaker
performance at its trading arm, even as it beat earnings
expectations for the fourth quarter. The bellwether lender also
warned that soaring inflation, looming threat of Omicron and
trading revenues returning to normal levels are set to challenge
the banking industry's growth in the coming months.  urn:newsml:reuters.com:*:nL4N2TU324
    Citigroup Inc  C.N  fell 2.5% after posting a 26% drop in
fourth-quarter profit, while asset manager BlackRock Inc  BLK.N 
fell 1.6% after missing quarterly revenue expectations.
 urn:newsml:reuters.com:*:nL4N2TU38G  urn:newsml:reuters.com:*:nL4N2TU31F
    "The sentiment is pretty sour, even though today officially
kicks off the fourth-quarter earnings reporting period ... it
seems as if inflation continues to be the overriding worry,"
said Sam Stovall, chief investment strategist at CFRA Research,
New York.
    Wells Fargo & Co  WFC.N , on the other hand, gained 2.2%
after posting a bigger-than-expected rise in fourth-quarter
profit.  urn:newsml:reuters.com:*:nL4N2TU2VT
    Financials have outperformed the broader S&P 500 index
 .SPX  on expectations of banks benefiting from interest rate
hikes by the Federal Reserve, firming Treasury yields and a
rotation out of growth sectors such as technology  .SPLRCT ,
communication services  .SPLRCL  and consumer discretionary
 .SPLRCD .
    Year-over-year earnings growth from S&P 500 companies was
expected to be lower in the fourth quarter compared with the
first three quarters but still strong at 22.4%, according to
IBES data from Refinitiv. 
    Megacap growth companies including Apple Inc  AAPL.O ,
Amazon.com Inc  AMZN.O , Microsoft  MSFT.O , Tesla  TSLA.O  and
Meta  FB.O  rose a day after a selloff triggered by multiple Fed
speakers who put talks about inflation and interest rate hikes
in focus. 
    At 10:05 a.m. ET, the Dow Jones Industrial Average  .DJI 
was down 149.40 points, or 0.41%, at 35,964.22, the S&P 500
 .SPX  was down 4.38 points, or 0.09%, at 4,654.65 and the
Nasdaq Composite  .IXIC  was up 26.46 points, or 0.18%, at
14,833.27.
    Casino operators Las Vegas Sands  LVS.N , MGM Resorts
 MGM.N , Wynn Resorts  WYNN.O  and Melco Resorts  MLCO.O 
advanced between 2.5% and 14.8% after Macau's government capped
the number of new casino operators allowed to operate to six
with an operating period of up to 10 years.  urn:newsml:reuters.com:*:nP8N2TS00A
    Data showed retail sales tumbled in December as Americans
struggled with shortages of goods and an explosion of COVID-19
infections. Separately, soaring inflation hit U.S. consumer
sentiment in early January, which fell to the second lowest
level in a decade.  urn:newsml:reuters.com:*:nL1N2TT2FW  urn:newsml:reuters.com:*:nAQN0AXT0P
    U.S. stock markets will remain shut on Monday on account of
a public holiday.
    Declining issues outnumbered advancers for a 2.20-to-1 ratio
on the NYSE and for a 2.19-to-1 ratio on the Nasdaq.
    The S&P index recorded 16 new 52-week highs and no new low,
while the Nasdaq recorded 17 new highs and 350 new lows.

 (Reporting by Bansari Mayur Kamdar and Shreyashi Sanyal in
Bengaluru; Editing by Maju Samuel)
 ((BansariMayur.Kamdar@thomsonreuters.com;))

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